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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.

What's in a trademark? Sometimes, the next iconic car name

The United States Patent and Trademark Office is a treasure trove for auto enthusiasts, especially those who double as conspiracy theorists.
Why has Toyota applied to trademark "Supra," the name of one of its legendary sports cars, even though it hasn't sold one in the United States in 16 years? Why would General Motors continue to register "Chevelle" long after one of the most famous American muscle cars hit the end of the road? And what could Chrysler possibly do with the rights to "313," the area code for Detroit?

James May picks 13 most significant cars ever for London Classic Car Show

James May tends to be the most pragmatic of the Top Gear UK hosting crew. Jeremy Clarkson obviously likes his vehicles loud, brash and preferably British, and Richard Hammond seems to have a thing for American muscle. May appears to find joy just in the mechanical nature of things, whether high performance or simply made for getting around. He's getting a chance to put that appreciation on display by curating a 13-car collection at the London Classic Car Show called The Cars That Changed The World. May actually wants to provoke debate from visitors about the exhibit and is separating his choices into two categories: The Halls of Obviousness and The Chambers of Bloody-mindedness. The first bunch includes the usual important vehicles you expect to see, but the other group has the really interesting picks. As May explains these selections in the event announcement, "I believe they are just as significant historically but they've simply been forgotten or misunderstood." The obvious choices are: 1886 Benz Motorwagen 1908 Ford Model T 1938 Volkswagen Beetle 1959 Austin Mini 1964 Ford Mustang 1997 Toyota Prius And the more eccentric ones are: 1901 Waverley Electric 1906 Cadillac Model K 1933 Standard Superior 1972 Honda Civic 1980 Lada Riva 2009 Bruno ExoMars Rover If you notice, there are only 12 vehicles listed above. That's because the final one is being kept secret for show attendees, but May considers it the most significant car ever made. The London Classic Car Show runs at the ExCeL in London's Docklands from January 8-11, 2015. In addition to May's exhibit and the other vehicles there, Formula 1 designer Adrian Newey is also curating a display from his own collection. May is hoping to spur conversations with his choices. Let us know in Comments if you notice any glaring omissions that should be among the 13. Read the full announcement below, along with a brief explanation for each choice from May. GET READY FOR A CLASSIC ARGUMENT 30/12/14 James May has chosen the 13 most significant cars of all time for The London Classic Car Show... but is he right? It's bold, controversial and bound to cause arguments... and that's just the way BBC Top Gear's James May wants it. May has stuck his neck on the line and has chosen what he regards are the 13 most influential cars of all time. The result is The Cars That Changed The World and it's one of the star exhibits at the London Classic Car Show taking place at ExCeL in London's Docklands from 8-11 January 2015.