1997 Ford Escort Lx Sedan 4-door 2.0l "rusty But Trusty" on 2040-cars

Auto blog

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.

GM readying aluminum-body fullsize pickups

Ford's extensive use of aluminum in its 2015 F-150 is a big deal. A really big deal. Big enough, in fact, that General Motors is reportedly changing its fullsize pickup strategy. According to The Wall Street Journal, The General has locked in partnerships with Alcoa Inc. and Novelis Inc. - companies that will supply aluminum for the next-generation Chevrolet Silverado and GMC Sierra trucks.
"Ford's introduction of the 2015 F-150 pickup truck was a game changer, and it's the first, not the last, conversion of this type," Novelis spokesperson Charles Belbin told the Journal. The switch to aluminum has allowed Ford to shave roughly 700 pounds off its fullsize truck's curb weight. And while official mileage ratings have not been announced, the weight loss should go a long way for improving efficiency, especially when combined other efficiency-minded improvements including better aerodynamics and new, turbocharged V6 engines.
Of course, aluminum-bodied cars are nothing new. But extensive use of aluminum in a major, best-selling product like the Ford F-150 is expected to kick off widespread use of this weight-saving material as availability rises and cost decreases. The WSJ reports that GM had originally explored the idea of moving to aluminum pickups back in 2008, but abandoned the idea due to cost concerns amid economic woes.

Ford recalls nearly 200,000 Expeditions and Navigators for fire risk

Ford is recalling 2015-2017 Expeditions and 2015-2017 Lincoln Navigators because the front blower motor could fail and cause a fire. In total, 198,482 Expeditions and Navigators will be recalled. In the official recall documents posted by NHTSA, Ford says that it “has not identified the cause of this condition.” However, Ford also says it is currently aware of 25 fire allegations related to the blower motors on these vehicles. Despite not strictly identifying the cause of blower motor fires, Ford put forth a theory in its fieldwork analysis of the issue.  “In June 2022, based on component analysis, Ford Engineering theorized that a mispositioned blower motor brush holder spring could cause an internal short or localized heating of the brush spring or holder. It is believed that when a fire initiates on the blower motor, it does so at the positive brush holder location. The variable blower controller would remain operational and there would be no signs of an overheated relay. Field data indicates that this concern typically occurs at a higher time in service, and on vehicles with higher mileage.” Since the blower motor is located on the passenger side interior behind the glovebox, the fires that start are interior fires. Ford isnÂ’t aware of any accidents related to this issue, but there is one claim of burnt hands and fingers as a result of a fire. According to Ford, warning signs of an impending fire or failed blower motor include an inoperative fan, burning smell and/or smoke from the instrument panel vents while the vehicle is on. To remedy this situation, Ford is recalling the affected SUVs and replacing the blower motor assembly with a revised part. The new part uses a blower motor assembly design utilized on other applications. If folks with these SUVs experience any symptoms of blower motor failure before the new part becomes available, Ford says they can take their vehicle to the dealer to have it replaced with a part of the same design. Once the redesigned part becomes available, the dealer will then swap it in. Owner notification letters are expected to begin on September 12 this year. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.