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Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.

Chrysler Portal Concept introduces millennials to their automotive future at CES

"Created by millennials for millennials." That's how Chrysler describes its new Portal Concept, a fully electric minivan that's set to debut later today at CES in Las Vegas. Reading between the lines, apparently that means millennials want a one-box van with lots of glass and LED lighting elements... and that FCA is talking to the same millennials as Mercedes did back in 2015. From the few early images of the vehicle released ahead of its official debut, Chrysler's electric van looks like it could have come straight off a Syd Mead drawing. The Portal Concept rides on a 118.2-inch wheelbase, which makes it a little smaller than the Pacifica. There's just enough reality in its design that we can't completely dismiss its viability as an actual vehicle, but all of its disparate design ideas make the Portal look like an overwrought vision of a future that will probably never happen. That said, we'll reserve final judgment until we see it in person at CES. The Portal Concept gets intriguing once its massive double-sliding doors open up. There's a minimalist dash with a long, slender LCD at the top and another, more conventional touchscreen right in the center. Apparently, the screens can be repositioned as needed. There are 10 docking stations inside to charge and hold smartphones or tablets. FCA worked with Panasonic to develop the Portal's user experience, and the automaker hints that the supplier could become a long-term partner. Chrysler calls the interior of its Portal Concept a "third space," the other two being home and work. All the seats mount to rails that allow them to move fore and aft, fold flat, or be removed completely. The flat floor sits above a lithium ion battery pack rated at 100 kWh. That's enough capacity to allow a driving range of more than 250 miles. A 350-kW fast charger can replenish the pack to allow a 150-mile range in less than 20 minutes. A single electric motor powers the front wheels. As befitting a vehicle unveiled at CES, Chrysler says the Portal is capable of SAE Level Three autonomous driving, which means the occupants can turn driving duties over to the vehicle under certain conditions on the highway. As self-driving technology advances, Chrysler says the Portal could be upgraded. Facial recognition and voice biometric technologies allow the Portal to recognize individual users so it can tailor the driving environment to their needs and wishes.

Chrysler Recalling 870,000 SUVs For Brake Defect

Chrysler is recalling nearly 870,000 SUVs because corrosion may make the vehicles' brakes harder to use. Jeep Grand Cherokee and Dodge Durango SUVs from the 2011 through 2014 model years are involved. Chrysler says crimp joints in the brake boosters can corrode if they're exposed to water. If the water freezes, the boosters won't aid braking as they usually do. Chrysler began investigating after some customers said their brakes felt too firm when pressed down. The company knows of one accident, but no injuries, due to the defect. Dealers will install a shield to protect the boosters for free and replace boosters that aren't working properly. Chrysler has since changed the design to make the boosters more corrosion resistant. Chrysler will notify owners of the recall, which involves 867,795 vehicles. Related Gallery Safest Crossovers For The Budget-Conscious Family View 10 Photos Recalls Chrysler Dodge