1977 Westfalia Bus / Vanagon on 2040-cars

Auto blog

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.

Editors' Picks March 2022 | Acura RDX, VW GLI and a Rolls-Royce

This month's Editors' Picks offer a little something at every budget. We call out a performance car as cheap as the Volkswagen GLI, but the Rolls-Royce Ghost also manages to make its way on to the list. Of course, very few folks can afford a Ghost, but that doesn't change the fact that it's an engineering master class. In addition to these options, we also dive into the compact luxury SUV market, one that is bursting with choices. In case you missed our previous Editors' Picks posts, here’s a quick refresher on whatÂ’s going on here. We rate all the new cars we drive with a 1-10 score. Cars that are exemplary in their respective segments get EditorsÂ’ Pick status. Those are the ones weÂ’d recommend to our friends, family and anybody whoÂ’s curious and asks the question. The list that youÂ’ll find below consists of every car we rated in March that earned an EditorsÂ’ Pick. 2022 Acura RDX Quick take: The RDX ticks a lot of boxes for a great price. It drives better than expected, offers excellent tech, has plenty of room and even looks the part. Score: 7.0 What it competes with: Mercedes-Benz GLC-Class, BMW X3, Volvo XC60, Audi Q5, Lexus NX, Infiniti QX50, Alfa Romeo Stelvio, Genesis GV70, Porsche Macan, Jaguar F-Pace, Lincoln Corsair Pros: Value, driving dynamics, space Cons: Infotainment is polarizing, midgrade interior From the editors Road Test Editor Zac Palmer — "The RDX is a bit of a sleeper in this segment. It drives far better than many of its competitors, and it doesn't let you down in any particular area. If you were thinking of buying an entry-level option from one of the Germans, make sure you take the RDX into account, because you'll likely end up with more tech and features for an even lower price. News Editor Joel Stocksdale — "The Acura RDX is an impressive value in the small luxury SUV segment. It starts in the low $40,000 price range, and provides loads of standard convenience and safety features. Everything is packaged in a sharp and surprisingly spacious package, too. It's also nimble and has a punchy engine that makes it fun to drive. You may find some competitors that surpass it in some areas, but the Acura offers about the most for the money of anything in the segment." In-depth analysis: 2022 Acura RDX Review | Value-packed and surprisingly sporty   2022 Volkswagen Jetta GLI Quick take: The GLI offers excellent driving dynamics and great styling for someone who doesn't want a hatchback. It's pricey, but it's worth it.

Ex-Fiat exec: VW diesel scandal will hurt plug-in hybrids

It doesn't sound right at first blush, but former Fiat executive and noted diesel-powertrain expert Rinaldo Rinolfi thinks that plug-in hybrid sales may be more impacted by the VW diesel-emissions scandal than diesel sales. Rinolfi, who worked for Fiat for 40 years, told Automotive News Europe, said that the Euro 6 emissions rules that went into effect in 2015 have already increased diesel-engine production costs enough to raise prices and ultimately flatten demand. By the end of the decade, diesel-vehicle sales will settle in at a 40-percent market share of new European vehicles, and that was going to happen with or without the scandal. "Every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions." - Rinaldo Rinolfi Makers of plug-in hybrids have more to lose, though, because every PHEV maker has figured out a way to keep emissions figures artificially low, Rinolfi said. Under New European Driving Cycle (NEDC) standards, PHEVs can be tested part of the time with the electric motor in action, meaning emissions get driven down to 30 percent to 40 percent less than real-world figures. With the VW scandal pushing regulators to use real-world figures, those PHEV emissions numbers are expected to rise substantially. To a lesser extent, hybrid emissions figures are also tested as artificially low. "Over the years, even without defeat devices, every carmaker has found ways to achieve fuel consumption and emissions results that have progressively diverged from the real driving conditions the customer experiences," Rinolfi said in the Automotive News Europe interview. Rinolfi is a little sunnier about compressed natural gas (CNG) vehicles, estimating that CNG emissions are as much as 25 percent lower compared to conventional vehicles. As for battery-electrics, he's not so optimistic, estimating that there needs to be at least a tenfold improvement in energy efficiency for EVs to be truly competitive with conventional vehicles. "I've been waiting for a true breakthrough for the past 25 years, but I've not seen it yet," Rinolfi said about EVs in the Automotive News Europe interview. Related Video: News Source: Automotive News Europe-sub.req.Image Credit: Arnd Wiegmann / Reuters Green Fiat Volkswagen Diesel Vehicles Electric Hybrid diesel emissions scandal nedc