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VW to announce $1B investment in Mexico plant

Big news south of the border could be slated for later this week, as Automotive News is reporting that the Volkswagen Group will announce a $1-billion investment in the company's Puebla factory. The company officially declined to comment, but AN is claiming the investment in the Puebla facility, which has been operating for over five decades, will add 1,900 jobs to the nearly 16,000-strong workforce. According to AN, a person familiar with the situation in Puebla claims the investment will support production of the next-generation Tiguan, slated to arrive in 2017. The Puebla factory currently produces Golf, while total output last year nearly hit half a million vehicles, or about 15 percent of Mexico's total automotive output. News Source: Automotive News - sub. req.Image Credit: Susana Gonzalez / Newsmakers/ Getty Plants/Manufacturing Volkswagen Mexico vw tiguan puebla

VW spending $10 million on EV infrastructure, calls on Congress for help

It must be the season of big EV infrastructure announcements. In the last few days, we've heard from Bollore in France, PG&E in California and now VW. The German automaker says it will spend a total of $10 million on electric vehicle charging infrastructure by 2016. That includes the previously announced ChargePoint investment VW made with BMW and work the automaker is doing to get chargers for cars like the e-Golf installed as its dealerships. But Jorg Sommer, Volkswagen of America'sl VP of product marketing and strategy, said today in Washington, DC that automakers need help from the federal, state and local governments to turn electric mobility into a thing. Speaking at the 2015 Electric Drive Congress, Sommer said VW would like the Feds to support fast charging networks in urban areas as well as interstate corridors and that governments should "commit to cleaner fleets by purchasing EVs and PHEVs. This should be a US Government priority," he said. He also suggested that the plug-in vehicle multiplier credits under the EPA's greenhouse gas regulations should be extended beyond the 2021 model year. VOLKSWAGEN OF AMERICA TO INVEST $10 MILLION IN ELECTRIC VEHICLE CHARGING INFRASTRUCTURE BY 2016 Feb 10, 2015 Washington, D.C., February 10, 2015 – Jorg Sommer, vice president, product marketing and strategy, Volkswagen of America, today presented Volkswagen's holistic approach to e-mobility surrounding the launch of the zero-tailpipe emissions 2015 e-Golf, including a $10 million commitment to support electric vehicle infrastructure by 2016. During a presentation delivered at the 2015 Electric Drive Congress in Washington D.C., Sommer stated that Volkswagen believes continued legislative support is needed to reach the next level of electric vehicle adoption. "Automakers have effectively delivered electric vehicles that can satisfy the needs of most American drivers," said Sommer. "In addition to the investment we and other companies and industries are making, we would like to see Federal financing support for establishing fast charging networks in urban areas and interstate corridors. We'd like to see more state and federal organizations commit to cleaner fleets by purchasing EVs and PHEVs. This should be a U.S. Government priority, and federal purchasing guidelines should reflect that by giving fleet purchasers the flexibility they need," Sommer said.

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.