2012 Volkswagen Beetle Turbo Hatchback 2-door 2.0l on 2040-cars

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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.

Recharge Wrap-up: Jaguar Land Rover talks EVs, Batteries should be modular

A new study out of Germany suggests adopting a modular approach to battery offerings in plug-in hybrid and extended range electric vehicles. Automakers could offer the same car with different battery sizes (and different costs, accordingly) to drivers depending on their driving ranges. This would optimize the total cost of ownership for various drivers better than the current approach. Developing a modular battery design and offering appropriate batteries for different customers "is the key for electric powertrains to meet customer expectations and become cost competitive against conventional technologies," according to the report from the Institute of Vehicle Concepts, German Aerospace Center. Learn more at Green Car Congress. Jaguar and Land Rover are looking to offer more electric driving from their vehicles. Wolfgang Ziebart, head of product development for Jaguar Land Rover, said in an interview that its hybrid system is being tweaked for more electric power and "downsized" combustion. He also said the likely target market for EVs would be second and third vehicles, rather than primary vehicles for urban driving. Within that market, Europeans look for something smaller, while American drivers lean toward larger luxury vehicles for their second car. Ziebart uses the Tesla Model S as an example of American tastes, and compares its size to that of the Jaguar XJ. Read more at Automotive News Europe. Thailand will likely approve a Volkswagen factory as early as next week. A German newspaper suggests that Thailand's Board of Investment is set to greenlight the plant, which is planned for a site near the Port of Bangkok. Thailand is a relatively large and growing auto manufacturing country, which seeks to be a major producer of eco-friendly vehicles. The country's "Eco2" program would provide incentives to Volkswagen if it builds clean cars and meets certain production targets. Read more at Reuters. Formula E has chosen Sky Deutschland for broadcasting rights in the German market. The deal includes television rights, as well as online broadcasting. Sky Deutschland has 3.8 million subscribers in Germany and Austria. Showing the races on Germany's largest pay television provider should help generate interest for the series, particularly the Berlin ePrix - the inaugural season's penultimate race - scheduled for May 30, 2015. Read more at the Formula E website.

Top 10 small cars with the longest total driving range

Editor's Note: Since this article was originally posted in the spring of 2015, much has changed in the automotive landscape, especially among those shopping for small car economy. With thanks to Volkswagen for their blatant cheating – and subsequent cover-up – on diesel emissions, the largest player in the diesel passenger car segment isn't playing – they're paying; billions are going for both car buybacks and federally-imposed penalties. And for a few VW execs there exists the very real possibility of jail. With the absence of a big player and the abrupt entrance – via Chevy's new Bolt – of an affordable EV with 200+ miles of range, we've limited the diesel listings to Jaguar's new XE. And for those wanting an updated look at efficiency and range, Autoblog has it – or the EPA has it. Long before electric vehicles were part of the mainstream conversation, car lovers and skinflints alike would boast about the total range of their vehicles. There's something about getting farther down the road on one tank of gas that inflames the competitive spirit, almost as much as horsepower output or top speed. Of course, the vehicles with the very best range on today's market are almost all big trucks and SUVs; virtually all have the ability to carry massive reserves of fuel. Top up a standard Chevy Suburban and you can expect to travel almost 700 miles (you'll need to stop before the Suburban stops...), while a diesel-fed Jeep Grand Cherokee manages almost as many. But what about vehicles that are smaller? The EPA has, essentially, three classifications for 'small' vehicles: Minicompact, Subcompact and Compact. All three are measured based on interior volume, meaning that some cars with rather large exterior dimensions and engines slot in next to traditional small cars. But even though impressive GT coupes from Porsche, Bentley and Mercedes-Benz may have much larger gas tanks to feed their powerful engines, that capacity is offset by higher rates of consumption... in most cases. We used the EPA's Fuel Economy Guide for model year 2017 cars as a start, calculating the official highway miles per gallon rating with each vehicle's tank capacity. The resulting numbers aren't necessarily real world, but they do offer a spectrum for total theoretical range. The eventual top ten surprised me on a few occasions, and comprised quite a varied list of vehicles. 10.