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Toyota Camry, Honda Civic inventories mounting as US automakers make inroads

Two of the hottest-selling cars in America aren't quite as hot as they used to be. The Toyota Camry and Honda Civic are both seeing dealer supplies increase in the face of renewed competition from the much-improved Detroit Three.
According to a report from The Detroit News, the Camry's dealer inventory is 15 days higher than its seasonal average, while the Civic is 25 days above average. Things aren't expected to get better for Toyota and Honda, as RBC Capital Markets analyst Joseph Spak marked the two Japanese offerings as "at risk for reduced output."
The Detroit Three, meanwhile, are seeing supplies dwindle as demand increases, especially for the Ford Fusion, which has seen an 18-percent increase in 2013 sales, and the Chevrolet Cruze, which was second only to the Camry in June 2013 sales.

Ford Police Interceptor with 2.0L EcoBoost rated most fuel-efficient police sedan

Back in September, Ford announced a non-pursuit version of its Police Interceptor Sedan, which swaps out a choice of two V6 engines for a fuel-efficient 2.0-liter EcoBoost inline four-cylinder. This Special Service Police Sedan will be marketed to law enforcement agencies looking to cut fuel costs and don't need the extra power.
For college campuses, detectives and the like, this new police car has now been certified with EPA fuel economy estimates of 20 miles per gallon in the city, 32 mpg on the highway and a combined rating of 24 mpg. These figures represent a decrease of two mpg in city and combined ratings compared to the civilian-spec 2014 Taurus. These police cars still offer active grille shutters for better aerodynamics, although we're guessing agencies upfitting their cars with light bars and push bumpers aren't exactly concerted with aerodynamics. The true benefit of the SSP version is when it's compared against other police sedan options like the Dodge Charger, Chevy Impala, Chevy Caprice and even the V6 Police Interceptor Sedan.
Ford claims the new Police Interceptor Sedan SSP is the most fuel-efficient current option for police departments, saying that this car can save $1,720 per car over three years and almost $260,000 over the same span of time for fleets with 150 vehicles. There is an official press release posted below, and also check out the gallery of images from Ford collected from various police agencies across the US (although none show the 2.0-liter SSP model). Head on over to Ford's Police Interceptor mini-site for even more pictures of the Police Interceptor Sedan and Utility.

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.