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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.

NACTOY winners, and driving the Genesis GV60, Polestar 2, Mercedes-AMG GLS 63 | Autoblog Podcast #813

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Electric, John Beltz Snyder. This week, we discuss the North American Car, Truck and Utility of the year winners: The Toyota Prius, Kia EV6 and Ford Super Duty (and Greg explains his votes). In other news, we talk about GM offering $7,500 incentives for EVs that lost their tax credits, another possible calendar change for the Detroit Auto Show and Stellantis potentially scaling back its auto show presence. Greg spent his winter break with the Genesis GV60 and Polestar 2, while John has been driving the Toyota Prius Prime and Mercedes-AMG GLS 63. Finally, they take to Reddit for this week's Spend My Money question, and pick a sedan under $6,000. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #813 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 Toyota Prius, Ford Super Duty, Kia EV9 are 2024 North American Car, Truck, Utility of the Year winners GM offers $7,500 incentive for EVs losing tax credit Detroit Auto Show going back to January? Stellantis done with auto shows, or is it? Cars We're Driving: 2024 Genesis GV60 Performance AWD 2024 Polestar 2 RWD 2023 Toyota Prius Prime XSE Premium 2024 Mercedes-AMG GLS 63 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: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Green Podcasts Ford Genesis GM Kia Mercedes-Benz Toyota Truck Crossover SUV Electric Hybrid Luxury Performance Sedan Polestar

NHTSA closes rollaway investigation into 1.56M Ford SUVs

It's taken four years of study, but the National Highway Traffic Safety Administration has finally closed the books on its investigation into rollaway accusations surrounding 1.56-million Ford SUV models.
The probe, which centered on the 2002-2005 Ford Explorer, 2002-2005 Mercury Mountaineer and 2003-2005 Lincoln Aviator, ends without the federal agency calling for a recall. According to The Detroit News, the investigation was closed due to a "low number of complaints" - NHTSA documented 180 such complaints that resulted in 14 crashes and six minor injuries, but the number of incidents have been slowing. The suspected defect rate for the trucks' automatic transmissions was found to be 4.4 per 100,000 units, and the brake-shift interlock mechanism failure rate was judged to be even lower at 3.4 per 100k.