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Five reasons to love, or hate, the culture of German cars

A few months back, we took a 500-foot view of the culture of American cars, dissecting prides and prejudices on our way to the conclusion that automotive allegiances can be simultaneously embraced and derided. We had so much fun with the narrative that we decided to do it again, this time taking a look at Germany and its world-renowned lineup of automakers, including the likes of Audi, BMW, Mercedes-Benz, Porsche and Volkswagen, among others. Join us below as we discuss the points and counterpoints that make or have made the German auto industry what it is today. And remember, Germany did pretty much invent the automobile, after all... The V12 Engine If America is known for the proliferation of the V8 engine, an argument could be made that Germany owns the V12. Yes, of course, other companies have created V12 engines – Ferrari, Jaguar and Lamborghini immediately come to mind – but the big 12-cylinder powerplants from BMW and Mercedes-Benz, in particular, have proven to be some of the most effortless, luxurious and downright over-built engines the world has ever seen. These days, having 12 cylinders is more a case of wretched excess than ever before, and yet, you can still stroll into your local BMW or Mercedes dealership and get a brand-new 760i, S600 or even an over-the-top G65 AMG, efficiency be damned. Best of all, since the majority of these German powerhouses depreciate as fast as an anchor sinks, nearly any auto enthusiast who dreams of a dozen cylinders can satisfy their carnal desires. Current Star: 2016 Mercedes-Maybach S600 View 28 Photos Diesel Engines Remember how we talked about those glorious V12 engines? Well, you can even get one from Audi that runs on diesel. If your compression-ignition fantasies err more on the side of fuel savings, that's no problem, either. Audi, BMW, Mercedes and Volkswagen have got you covered, with engines starting as small as 800 cubic centimeters (Smart Fortwo). If you want something a little more practical, it's hard to argue with a VW Golf TDI, which will provide plenty of space for you and three of your best friends, plus a fair bit of luggage, all while returning 50-ish miles per gallon. For the purposes of this discussion, we'd rather focus on the asinine levels of torque provided by Germany's high-end diesel engines than the lower-end fuel sippers.

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.

Volkswagen finds CO2 'irregularities' for 800k vehicles

The latest issue for Volkswagen affects another 800,000 vehicles, and this time its for irregularities in CO2 emissions certifications. VW estimates this issue could cost the company $2.2 billion to fix. The company officially makes no specific mention of which engines are covered, the models they are in, or even where they are located. VW discovered the situation during its ongoing internal investigation, and, according to the automaker, "it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process." Most of the affected vehicles are diesels, and the company is now reaching out to "the responsible type approval agencies" to figure out the next step. While VW isn't officially confirming which models and engines are involved, Automotive News reports that it affects some 2012 and later VW, Audi, Seat, and Skoda models with the company's 1.4-, 1.6-, and 2.0-liter diesel engines, as well as the 1.4-liter ACT gasoline engine. The issue mainly affects vehicles sold in Europe. "The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency," CEO Matthias Muller said in the announcement. Volkswagen Group of America spokesperson Jeannine Ginivan was able to provide some further clarification to Autoblog. "This is not related to US-certified vehicles," she said. Clarification moving forward: internal investigations at Volkswagen identify irregularities in CO2 levels Matthias Muller: "Relentless and comprehensive clarification is our only alternative." Around 800,000 Group vehicles could be affected Initial estimate puts economic risks at approximately 2 billion euros The Volkswagen Group is moving forward with the clarification of the diesel issue: during the course of internal investigations irregularities were found when determining type approval CO2 levels. Based on present knowledge around 800,000 vehicles from the Volkswagen Group could be affected. An initial estimate puts the economic risks at approximately two billion euros. The Board of Management of Volkswagen AG will immediately start a dialog with the responsible type approval agencies regarding the consequences of these findings. This should lead to a reliable assessment of the legal, and the subsequent economic consequences of this not yet fully explained issue.