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Jaguar Land Rover considering Mexican plant

Jaguar Land Rover has been expanding its production out of the UK and into overseas markets, and according to the latest word from Bloomberg, the British automaker is considering spending more than half a billion dollars to build a new assembly plant somewhere in Mexico. Since the Range Rover Sport and Evoque are two of the company's top sellers in the US, those would reportedly be the most likely to be manufactured at the Mexican plant, although Jaguars could follow as well. The automaker was previously said to be leaning towards a location in the Southern US, and while it could conceivably proceed with plans for both, it would be more likely to go with one or the other. State and local authorities below the Mason-Dixon line have been soliciting the business with various incentives, but lower labor costs South of the Border could prove more attractive to JLR and its parent company Tata. It wouldn't be the first, after all. Over the past month alone, General Motors committed to building the next Chevy Cruze in Mexico, Toyota did the same with the Corolla, Hyundai was reported to be considering a similar step, and Ford announced two new plants in the country amounting to a $2.5-billion investment. Luxury automakers like Audi, BMW and Mercedes have also been delving into Mexican production as well, blazing a path that JLR could potentially follow. The British automaker recently opened a plant in China and another in Brazil, while investing in additional facilities in the UK as well.

Who picks car colors and materials? Designers like Hannah Custance

As automotive journalists, we're often asked "how did you get that job?" People usually didn't even know you could do such a thing. In this 7 Questions series, we're highlighting other jobs in the automotive industry that you might not have heard about before. What do they do, how'd they get to do it and other questions about their particular corner of the car world. Slowly but surely, the automotive landscape is becoming more colorful. Look beyond the unrelentingly conservative palette of white, black and gray most buyers opt for and you'll see the increased use of exterior trim types beyond the usual chrome. There's gloss black, of course, but also other metallic finishes like gold or copper. Those can be found inside, too, where there's also an increase in colorful leathers and trims, innovative fabrics, new wood types and finishes, and greater creativity in general. So where is this change coming from? The answer is designers like Hannah Custance, the color and materials design manager for Jaguar Land Rover. Her team's latest effort is also its magnum opus, the 2022 Range Rover. Although saddled with the expectations that comes with one of the automotive industry's classic nameplates, the all-new Range Rover is also a celebration of cutting edge manufacturing and fashion-forward materials selection. We sat down with Hannah at the L.A. Auto Show to find out more about color and materials designers, how she ended up in the industry, and advice she might have for young designers out there. It has been condensed for brevity. Autoblog: What does a color and materials design manager to do?Hannah Custance: I basically look after a team of designers who design finishes for every A surface on the car. So, that could be exterior finishes. It could be interior trim materials, soft materials, hard materials, chromes, metals, woods, ceramic – that's one of the new ones – anything you can kind of touch and see is color material design. Autoblog: How early in the design process does your team become involved.Hannah: Right at the very start. In fact, we look at materials that don't have a product assigned to them or a car assigned to them. So, it takes actually a very long time for us to get materials approved and fully validated. We have to find suppliers that are willing to work in automotive and our test standards are incredibly high, some of the highest in the industry.

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.