1990 Volkswagen Corrado G60 Supercharged Coupe - Estate Sale / Project Vehicle 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.

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

2015 Volkswagen Passat Alltrack ready for any road, except in the US

If Volkswagen built a Subaru Outback-fighter for US buyers, the Passat Alltrack would be it, and the new generation of VW's off-roading wagon debuted this week at the Geneva Motor Show. The Passat Alltrack – which is not sold in the United States – takes the car-like demeanor of the Passat and punches it up into a go-anywhere crossover. It has permanent 4Motion all-wheel drive, raised ride height and an electronic differential lock. The body is fitted with modified bumpers with underbody guards, reinforced wheelarches and side moldings with extended sills. There are roof rails on top, and it rolls on standard 17-inch wheels with 18s and 19s optional. The Passat Alltrack offers five direct-injected engines, with the lineup comprised of two turbocharged gasoline mills and three turbo diesels. Volkswagen loaded the vehicle with a wide range of infotainment and safety features, including choices of five radio and navigation units. It also has fully digital instruments, heads-up display and a rear-seat entertainment system setup for laptops. There is also lane-changing assist, rear-traffic alert and trailer-assist features. As spokesman confirmed to Autoblog there are no plans to bring the Passat Alltrack to the US market. The new Passat Alltrack • World premiere at the Geneva International Motor Show • All-wheel drive all-rounder* combines exceptional off-road properties with excellent travel comfort The latest generation of the Passat Alltrack* is celebrating its debut at this year's Geneva International Motor Show. Based on the new Passat Estate, the new Passat Alltrack impresses with an independent off-road look, 4MOTION permanent all-wheel drive and highly advanced technologies. The updated version confidently handles rough terrain, on the one hand, while simultaneously providing excellent cruising comfort – thanks to the driving profile selector and DCC adaptive chassis control. The Passat Alltrack is an independent model within the model series. This can be seen in exterior features such as the modified bumpers (with underbody guard in stainless-steel look), rugged wheel arch and side sill moulding covers in "Anthracite" and sill extensions. Its 27.5 mm higher ground clearance also makes it ready for any driving situation. Anodised silver roof rails, "Alltrack" badges on the radiator grille and tailgate, and custom 17-inch alloy wheels (18- and 19-inch wheel options available) upgrade this Estate even more.