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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.

Jaguar brings the new XKSS to Jay Leno's Garage

Jay Leno is no stranger to the Jaguar XKSS, having driven Steve McQueen's no less. But that doesn't mean he would turn down a chance at another one, and certainly not the continuation model seen in this week's Jay Leno's Garage. This particular XKSS is the first of nine cars built to complete the car's original 1957 production run, which was cut short in a factory fire. The video covers many of the fascinating details that went into recreating the XKSS. Among them are Jaguar's acquisition of an original D-Type engine block to make new castings, and even replicating the type of type of steering wheel used back in the day. Most of the vehicle is made to be identical to the originals, with only a few changes made for usability. This includes better quality materials for the brake lines, and ethanol-resistant materials for the fuel tank. Because this particular XKSS was on its way to the LA Auto Show (where we saw it debut at the Petersen Museum), Leno didn't get a chance to take it for a spin. However, snippets of his drive in McQueen's car were added, since it's the same car for all intents and purposes. What Leno emphasizes is how modern the car feels, also noting that it feels lighter than many other classic Jaguars. To see all the details and impressions, check out the video above. Related Video:

Jaguar F-Type Coupe proves sexy can't be disguised

Jaguar's new F-Type is a pretty potent little pouncer. And while we do love a good roadster, many of us at Autoblog are perhaps more excited about the upcoming hardtop version of Jag's stylish new entry-level sports car. Why? Because even here in heavily camouflaged prototype form, the thing looks really, really good - the sleek roofline blending rather nicely into the F-Type's shapely rump, allowing for better distinction of its pronounced hips over the rear wheel wells.
Mechanically speaking, the F-Type Coupe should be identical to its droptop sibling. That means the supercharged 3.0-liter V6 and 5.0-liter V8 engine lineup should carry over unchanged, though we've heard rumors about a four-cylinder application as well. There's also talk of hotter R, R-S or R-S GT models coming down the pipeline, and based on what we've experienced in things like the XKR-S, we certainly can't deny the allure of such a model.
It's unclear exactly when Jaguar will show the production F-Type Coupe (at the Frankfurt Motor Show, perhaps?), but the car is expected to go on sale sometime in 2014. Check it out in our latest spy gallery, above.