Ford: Mustang on 2040-cars

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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.

Leno drives Henry Ford II's all-original '52 Ferrari 212 Barchetta

The story of the relationship between Henry Ford II and Enzo Ferrari is absolutely fascinating. The two great men of the auto industry had what appeared to be a burgeoning friendship until Ferrari pulled out of a deal to sell his company to Ford in the '60s. The latest car featured in Jay Leno's Garage is a 1952 Ferrari 212 Barchetta that tells the very beginnings of that story.
This Prancing Horse was a gift to Ford from Enzo when the two companies were first thinking about merging, according to the curator of the Petersen Automotive Museum. Ferrari really wanted to show off its best so instead of the 212's normal V12, this car was fitted with the larger 2.7-liter unit from a Ferrari 225. The car has been almost unaltered since then. It still wears its original paint, and it's tires date back to 1954.
The great thing about the Petersen is that unlike a lot of auto museums, the people there actually drive the cars and keep them in working order. Once on the road with Leno behind the wheel, this Ferrari really sings. Unfortunately, he can't open it up too much because the 60-year-old tires really hold things back. Scroll down to watch this amazing piece of automotive history and learn it's possible effect on the styling of the original Ford Thunderbird.

GM also sheds parts from its pickups to boost payload ratings

The row between Ford and Ram over who boasts the best-in-class tow rating for heavy duty pickups has revealed a number of things. Chief among them is a report that Ford removes items like the spare tire, jack, radio and center console from its vehicles in a bid to lower its base curb weight and therefore keep the truck's gross vehicle weight rating down.
For those that need a refresher, GVWR is the vehicle's curb weight plus its maximum payload. A lower GVWR allows Ford to station its F-450 among the so-called Class III pickups, despite the fact that internally, it has the makings of a more brutish Class IV truck.
Ford explains away these deletions, saying a customer could order their vehicle in such a manner. It has also come to light that Ford is not the only automaker to engage in such practices.