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Welcome Audi RS6 Avant, goodbye Lincoln Continental | Autoblog Podcast #592

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder and Assistant Editor Zac Palmer. Our editors cover a lot this week, starting with the news. They geek out over the Audi RS6 Avant coming to America, and mourn the loss of the Lincoln Continental. They address rumors of the Toyota Land Cruiser's demise, and analyze spy photos of the Ford Mach E electric crossover. They also honor the memory of the godfather of spy photography, Jim Dunne. Finally, they talk about driving the BMW Z4, Ram 1500 EcoDiesel, and another diesel, the diesel-powered Mazda CX-5 Skyactiv-D. Autoblog Podcast #592 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Audi RS6 Avant headed to U.S. Lincoln Continental discontinued Rumor: Toyota Land Cruiser to be canceled Ford Mach E spied RIP spy photographer Jim Dunne Cars we're driving: 2019 BMW Z4 sDrive30i 2020 Ram 1500 EcoDiesel 2019 Mazda CX-5 Diesel Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:      

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.

2016 Ford Focus RS may yet be AWD, US sales likely

When it comes to forbidden fruit, few vehicles are spoken of in as hushed a tone as the Ford Focus RS. The turbocharged, five-cylinder hot hatch could only be seen from afar by American customers as it tore up the roads of Europe. And while it's safe to say that Ford's Yankee fans are quite happy to now be on equal footing with drivers in the old country thanks to the Focus ST, we doubt there'd be much protestation over a successor to the RS arriving stateside.
Of course, we've seen images of the new RS undergoing testing, but a new story by Road and Track aims to fill in some very large blanks in our knowledge of that car, thanks to a pair of mysterious insiders at the Ford. Chief among those is this - the RS will almost certainly make its way to the US, albeit in limited quantities. It gets better, though.
Under hood, the new RS is unsurprisingly expected to borrow the 2.3-liter, turbocharged four-cylinder from the 2015 Ford Mustang and 2015 Lincoln MKC. While that twin-scroll turbo produces 310 horsepower in the Mustang and 285 ponies in the MKC, R&T expects the RS to deliver quite a bit more firepower - 325 to 350 hp, with preference going to the higher output due to the limited-edition nature of the RS. This roughly fits with previous reports.