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Autoblog Podcast #398

Episode #398 of the Autoblog Podcast is here, and this week, Dan Roth, Brandon Turkus, and Michael Harley talk about the 2015 Ford Mustang, the 2015 Toyota Camry, and the Congressional grilling NHTSA received last week. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the rundown below with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #398: Topics: 2015 Ford Mustang 2015 Toyota Camry NHTSA under Congressional fire In The Autoblog Garage: 2014 Lexus ES 300h 2014 Lexus GS 350 F-Sport 2015 Kia K900 Hosts: Dan Roth, Michael Harley, Brandon Turkus Runtime: 01:36:56 Rundown: Intro and Garage - 00:00 2015 Ford Mustang - 28:58 2015 Toyota Camry - 42:41 NHTSA - 57:55 Q&A - 01:17:15 Get the podcast: [UStream] Listen live on Mondays at 10 PM Eastern at UStream [iTunes] Subscribe to the Autoblog Podcast in iTunes [RSS] Add the Autoblog Podcast feed to your RSS aggregator [MP3] Download the MP3 directly Feedback: Email: Podcast at Autoblog dot com Review the show in iTunes Government/Legal Podcasts Ford Kia Lexus Toyota

2014 Ford Transit Connect configurator fires up for the whole family

The second-generation Ford Transit Connect is almost upon us, and to get work- and family-oriented customers ready for the new model, Ford has launched a configurator for both van and wagon versions. Both body styles will go on sale early next year with the base TC Van starting at $22,000, but customers wanting side windows and rear seats will have to pony up at least an extra $3,000 for the TC Wagon.
Ford is definitely looking to get back into the family van business with the 2014 TC Wagon offering three available trim levels, two engines and the choice between five- and seven-passenger seating (with two wheelbases). Like many recent Ford products, a fancy Titanium trim level is offered, and opting for it will cost you - this trim starts at $29,000, and we were able to spec it out with a panoramic roof, tow package and front and rear parking sensors for a little over $33,000.
Businesses looking for a small, fuel-efficient work vehicle now get more options on the TC Van like the choice of split, hinged rear doors or a liftgate (with or without glass), a long wheelbase ($1,000) and Ford's CrewChief vehicle tracking system ($925). Fully loaded, this van is still costs less than the fullsize E-Series. On both Van and Wagon, the 1.6-liter EcoBoost engine is a $795 option, but it is only offered on short-wheelbase models and Ford has yet to release power or fuel economy specs yet. With the standard 2.5-liter engine, the TC will get up to 21 miles per gallon in the city and 29 mpg on the highway.

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.