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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.

2018 Ford F-150 Powerstroke vs. 2018 Ram 1500 EcoDiesel: comparing the specs

Now that Ford has finally released specifications for its diesel Ford F-150, we can finally see how it stacks up against its sole competition, the Ram 1500 EcoDiesel. Naturally, since we haven't driven the new diesel F-150, we can't tell you which is better on the road, but there are interesting things we can glean from the numbers. Compare these and other potential new vehicle purchases using our tool. For one thing, the two trucks are extremely similar from a powertrain perspective. Both trucks use a turbocharged 3.0-liter V6 diesel, with the Ford using a 10-speed automatic, and the Ram using an 8-speed automatic. The Powerstroke engine is built in the U.K. but specifically tuned by Ford for American pickup truck duty. It is also is related to the diesel V6 used by Jaguar and Land Rover. The Ram 1500's engine is made by VM Motori. Only 10 horsepower and 20 pound-feet of torque separate the two, with the Ford getting the slight advantage. The Ford also produces its horsepower and torque slightly sooner than the Ram. Peak power in the Ford comes at 3,250 rpm compared to 3,600 rpm in the Ram, and peak torque arrives at 1,750 rpm in the Ford, and 2,000 rpm in the Ram. View 9 Photos More significant differences become apparent in the payload and towing area, both of which put the Ford at an advantage. The F-150 Powerstroke can carry 2,020 pounds of cargo, or tow 11,400 pounds. The Ram EcoDiesel, depending on configuration, can carry 1,100 to 1,600 pounds of cargo, and tow between 7,560 and 9,210 pounds. Fuel economy might go to the Ford if it hits the company's target of 30 mpg highway. That would beat the Ram's 27 mpg highway. We don't know what Ford's target city mpg is, but the Ram manages 20 in town with two-wheel drive. Four-wheel drive drops the city rating to 19 mpg. View 6 Photos The biggest decider between the trucks might be cost. Ford is only offering its diesel engine on higher end trims, which means that the cheapest diesel F-150 starts at $46,315. That's for a two-wheel drive Lariat extended cab with a 6.5-foot bed. Ram on the other hand, offers the diesel in everything from its ultra-bare-bones Tradesman pickup, allowing for a base price of just $28,585, up to the fancy Laramie Longhorn and Limited trims. Ram's diesel is also available with all cab variants, while Ford's is only offered in extended- and double-cab body styles.

Rolls-Royce Cullinan, Mercedes-AMG E 53 and BMW 2 Series | Autoblog Podcast #734

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore and Senior Editor, Consumer, Jeremy Korzeniewski kick things off with a discussion of the Rolls-Royce Cullinan and the future of the brand. The Mercedes-AMG E-Class is next up, followed by the BMW 2 Series Coupe.  Next, Senior West Coast Editor James Riswick reports from the ground at the first drive of the latest Honda HR-V. Our hosts revisit the week's news, including automakers requesting a lift of the EV federal tax credit cap, Chevy giving us a peek at its electric Blazer, and Ford recalling millions of vehicles, including about half of all the Mustang Mach-E EVs it has sold. Finally, our guys dig through the mailbag to help a reader decide whether to purchase a Ford Focus ST or another hot hatch. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #734 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving Rolls-Royce Cullinan Mercedes-AMG E 53 BMW 2 Series Coupe Dispatch from the 2023 Honda HR-V first drive event GM, Ford, Toyota, Stellantis CEOs want EV tax credit cap lifted 2024 Chevy Blazer EV partly revealed, details coming in July Ford recalls Mustang Mach-E, includes stop-sale order Ford recalls 3 million other vehicles Spend my money Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: