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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.

Ford recalls Explorer and Lincoln MKC for fire hazard

The Basics: Ford will recall 5,536 examples of the 2016 Explorer and 2015-2016 Lincoln MKC. The Explorers have build dates between October 20, 2014, and January 28, 2016, at the Chicago Assembly Plant. The MKCs are from between November 25, 2013, and January 25, 2016, at the Louisville Assembly Plant. In total, there are 3,129 total affected examples of the 2015-2016 Lincoln MKC and 2,407 examples of the 2016 Ford Explorer. Of these, 1,543 are in the US and 3,993 are in Canada. The Problem: The combination of the engine block design and the block heater in these vehicles can cause the part to overheat when plugged in. Injuries/Deaths: None reported, but there are two cases of underhood fires in Canada. If you own one: Ford will begin notifying owners during the week of May 16, company spokesperson John Cangany tells Autoblog. Related Video: Ford issues safety recall for certain 2015-2016 Lincoln MKC and 2016 Ford Explorer vehicles to replace engine block heaters Ford is issuing a safety recall for approximately 5,500 2015-2016 Lincoln MKC and 2016 Ford Explorer vehicles to remove the heaters and replace them with an updated design. The engine block design, coupled with the particular block heater installed in these vehicles, causes the unit to be susceptible to overheating when the vehicle is parked and the block heater is plugged in –increasing the risk of an underhood fire. Ford is aware of two reports of underhood fires in Canada, but is not aware of any accidents or injuries related to this issue. Affected vehicles include certain 2015-2016 Lincoln MKC vehicles built at Louisville Assembly Plant, Nov. 25, 2013 through Jan. 25, 2016 and certain 2016 Ford Explorer vehicles built at Chicago Assembly Plant, Oct. 20, 2014 through Jan. 28, 2016. There are 5,536 vehicles affected by the issue, including 3,129 2015-2016 Lincoln MKC and 2,407 2016 Ford Explorer vehicles, with 1,543 of the affected vehicles in the United States and federalized territories and 3,993 in Canada. Dealers will remove and replace the engine block heater with an updated design and, if needed, replace the cord at no cost to the customer.

Edmunds ranks the best used cars for 2013

When people ask us what car we would recommend for them, it's usually not easy to answer. To make a useful recommendation we must consider which of the numerous vehicle segments fits their needs best, and then choose one of the many vehicles offered in each segment. For some people, new cars don't meet their expectations of value, because they lose so much of it the moment they are purchased and driven off the dealer lot. For them, there's always the used-car market, where great deals can be found, but cars' histories of reliability and maintenance records - and perhaps that Certified Pre-Owned warranty - become ever-important factors playing into purchase choice.
To help out, Edmunds has done us the favor of assembling a list of the best used vehicles money can buy, covering model years 2006-2011, according to what it considers the most important criteria when shopping for used autos: reliability, safety, value and availability. That means unreliable, unsafe, super-expensive or limited-edition models don't appear on the list, but instead cars from each segment that are more likely to satisfy the general population.
There are some real goodies on the list, including but not limited to vehicles such as the capable Honda Fit, the cultish Honda Accord coupe (which can be had with a 240-horsepower V6 and a six-speed manual transmission some years), and the powerful Chevrolet Corvette. While Edmunds' choice of the Volvo C70 for best used convertible baffled us at first (not that it's a bad car), it redeemed itself by stating that the Mazda MX-5 still is an unofficial top choice if you don't require more than two seats.