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New Civic, FCA UAW Agreement, Frankfurt | Autoblog Minute

FCA reaches a tentative agreement with the UAW, Honda reveals the all new 2016 Civic, and the Frankfurt Motor Show dazzles us again.Senior editor Greg Migliore reports in the Weekly Recap edition of Autoblog Minute Weekly. UAW/Unions Bentley Honda Jaguar Porsche Tesla Autoblog Minute Videos Original Video FCA porsche mission e civic

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.

The story behind Bridgestone's new tires for the rare and beautiful Jaguar XJ220

The Jaguar XJ220 is a beautiful, fast, and arguably under appreciated supercar from the early 1990s. While contemporaries like the Ferrari F40 and Porsche 959 garner more than $1 million at auctions, the XJ220 might pull in half that. Maintaining an older car requires work, a task made more difficult when parts aren't available. Last year, Bridgestone announced it was producing new tires specifically for XJ220s. The Japanese tire supplier has released a 42-minute video documenting the process. There were only 275 XJ220s ever built, fewer than both the F40 and 959. Until recently, no supplier made four same-spec tires that would fit the XJ220. Early Dodge Viper owners suffer from the same problem. Thanks to both Bridgestone and Pirelli, owners now have two options to choose from. Bridgestone worked with Don Law Racing, the go-to shop for all things XJ220, when developing the right tire for the car. It isn't simply a reproduction of an older-spec tire. Bridgestone tested a number of new compounds. With so few cars available, from the beginning this was going to be a money-losing prospect for the tire maker. Enthusiasts within the organization fought hard to get everything approved. Watch the full video to hear how much time and effort went into the project. Related Video: News Source: Bridgestone via Motor1Image Credit: Getty Jaguar Videos tires jaguar xj220