2004 Ford E-150 Base Standard Cargo Van 2-door 4.6l 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.

Junkyard Gem: 1991 Ford Festiva with 317K miles

Most cars that make it to astoundingly high mileage figures tend to fall into one of two categories: engineering masterpieces that ended up being hard to kill (and got a lifetime of at least the most important maintenance items) or machines that inspired unquestioning love from owners willing to keep opening their wallets for decades to keep them on the road. Today's Junkyard Gem falls into neither of those groups; it's a penny-pinching Ford Festiva, one of the cheapest cars available in its time … and yet it cracked the magical 300,000-mile mark before getting discarded. So, a total of 317,207.3 miles over its nearly 30 years on the road. We just saw a discarded 1989 Honda Civic with a mere 308,895 miles on the clock, and this Festiva comes close to topping this 1993 Honda Civic DX. The highest-mileage junkyard car I've ever found (keep in mind that most cars before the middle 1980s had 5-digit odometers, and most cars this century have unreadable-in-the-boneyard electronic odometers) is this 1987 Mercedes-Benz 190E with an amazing 601,173 miles. This Mercedes-Benz 300D came close, with 535,971 miles. Detroit went to six-digit odometers late in the game, but this 1986 Olds Calais reached 363,033 miles, and this Ford Crown Victoria Police Interceptor reached the 412,013-mile figure thanks to a second career as a taxi. A Festiva surpassing the 300k mark, though, is not something I ever expected to see. These cars were sold as cheap, no-frills transportation, period. The MSRP on a base-level Festiva started at $6,620 in 1991, or about $12,610 in 2020 bucks. Not many cars could squeeze under that price at that time; the Subaru Justy could be purchased for $5,995, the Hyundai Excel 3-door hatch cost $6,275, and the Yugo GV (yes, it could still be obtained new as late as 1991) had a hilarious $4,435 price tag. Even the lowly Geo Metro, Pontiac LeMans, and Toyota Tercel EZ cost more than this Festiva. Still, this car came with snazzy pinstripes, now faded to near-invisibility by the Colorado sun. You can see the cover plate in the spot where the air-conditioning button would have gone, had the original buyer of this car been willing to squander precious dollars on such frivolity. Five-speed manual transmission, naturally. You could get an automatic in the Festiva, but anyone willing to spend that kind of money on extras would have been able to afford a much nicer Tercel EZ.

Ford to add more than 2,000 jobs in Kansas City

Continued high demand for the Ford F-150, along with the addition of the all-new Transit series of commercial vehicles, has led Ford to announce that it will add over 2,000 jobs at its Kansas City Assembly Plant. At the time of the announcement, the plant boasts 2,450 hourly employees working on two shifts. All told, Ford will invest $1.1 billion in the Kansas City plant to expand truck production and begin producing the Transit series.
According to the automaker, fullsize truck sales are up 19 percent through April of 2013, leading to an additional 900 workers and a third shift of production for the F-150. Production of the Transit series will begin in the fourth quarter of this year, requiring an additional 1,100 workers. In addition, Ford estimates that a total of 18,000 jobs will be created by suppliers to its Kansas City plant to support the additional vehicle production.
Want to know more? Scroll down for the complete press release.