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Ford dinged by OSHA for asbestos at Buffalo plant

Ford has come under fire from the Occupational Safety and Health Administration (OSHA) for violations regarding asbestos exposure in a company metal stamping plant in Buffalo, NY. OSHA has cited Ford for eight violations in total, according to an Automotive News report, and faces fines of up to $41,800. 537 workers are employed at the stamping facility.
The violations include a pipefitter at the facility being exposed to asbestos-containing material while working on a steam line, other workers exposed to the material without respiratory protection and work areas that were not designed to limited the number of workers in contact with asbestos. Further, areas in which asbestos was present were not properly restricted, and levels of asbestos in the air were not monitored.
According to an unnamed Ford spokesperson in the AN report, the company feels that the OSHA citation is erroneous saying, "We have fully cooperated with the local OSHA officials and we don't believe the citations are warranted." Ford also maintains that it will work with the authorities to resolve the issue.

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.

2015 Ford F-150 to get up to 26 miles per gallon

The 2015 Ford F-150 is one of the most important US vehicle debuts in years, be it in the pickup segment or the entire marketplace. While we've already known about the truck's engine lineup, its payload ratings and we've even learned a bit about how it drives, the truck's EPA-estimated fuel economy ratings have remained a mystery. The wait is finally over. Ford has announced numbers that put the latest F-150 as the mileage leader among gasoline-powered, full-size pickups in the US, with its new 2.7-liter EcoBoost V6 topping the charts. Starting with the entry-level naturally aspirated 3.5-liter V6, the rear-wheel-drive F-150 is rated at 18-miles-per-gallon city, 25-mpg highway and 20-mpg combined. Opting for four-wheel drive drops those numbers slightly to 17/23/19. If fuel economy is your absolute priority, then upgrading to the 2.7-liter EcoBoost V6 is the hot ticket. It improves things further to 19/26/22 in rear-wheel drive trim or 18/23/20 with four-wheel drive. The carryover naturally aspirated 5.0-liter V8 is rated at 15/22/18 as a 4X2 or 15/21/17 as a 4X4. Finally, the flagship 3.5-liter EcoBoost V6 tops the range in available torque and offers buyers 17/24/20 ratings with rear-wheel drive or 17/23/19 with four-wheel drive. "We are delivering with the toughest, smartest and most capable F-150 ever – and now the highest EPA-estimated fuel economy ratings of any full-size gas-powered pickup in America," said Raj Nair, Ford group vice president, Global Product Development, in the company's announcement. Depending on engine and drivetrain configuration, Ford contends that the 2.7-liter EcoBoost's top rating puts fuel economy up between 5 and 29 percent over the current generation, thanks in large part to the truck's lighter aluminum construction. Obviously, these are EPA estimates, and your mileage may vary – ours has. Recently, Autoblog team members have had real difficulty even approximating government mpg estimates on many EcoBoost models, including the new F-150. Scroll down to read Ford's full announcement, including comparisons to rival models.