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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.

Ford Apollo edition Mustang nets $230K for charity

Ford's Apollo Edition Mustang won't be going to the moon anytime soon, but the specially modified pony car will be helping young people learn to fly thanks to the $230,000 raised from its charity auction during AirVenture in Oshkosh, WI. All of the funds go to the Experimental Aircraft Association's Youth Aviation Programs that assist kids in becoming pilots. Eight specially modified Mustangs are responsible for raising about $3 million for the charity to date. With inspiration from the Apollo Program and a 2015 Mustang GT as a canvas, Ford Design manager Melvin Betancourt needed to create a road-going rocket ship dedicated to this massive engineering accomplishment. He definitely succeeded. The car is ready to takeoff with its supercharged 5.0-liter V8 pumping out 627 horsepower and 540 pound-feet of torque. The orange LEDs underneath make it look ready to blast into orbit, too. The exterior mixes patriotic imagery with lightweight carbon fiber performance parts, and on the interior, additional embroidery pays homage to the whole project of reaching the moon. Each year Ford returns to AirVenture with a new, customized 'Stang. In 2014, the car took inspiration from the F-35 Lightning II. The US Air Force Thunderbirds tribute car in 2013 and the Navy Blue Angels version in 2011 both raised $400,000 for the EAA charity. The SR-71-inspired example from 2010 went for another $375,000. Related Video: Ford Apollo Edition Mustang Celebrating the Apollo Missions Raises $230,000 to Support EAA Youth Aviation Programs • U.S. Apollo spaceflight program inspired one-of-a-kind 2015 Ford Apollo Edition Mustang sold at charity auction July 23 at EAA AirVenture in Oshkosh, Wisconsin • 100 percent of proceeds benefit EAA youth aviation education programs, including Young Eagles • Unique Ford vehicles have raised approximately $3 million for EAA youth aviation programs, including Young Eagles DEARBORN, Mich., July 30, 2015 – The one-of-a-kind Apollo Edition Ford Mustang, developed by Ford Motor Company, raised $230,000 at the Gathering of Eagles charity event July 23. Proceeds from the auction – held during the Experimental Aircraft Association AirVenture Oshkosh 2015, the World's Greatest Aviation Celebration – benefit youth aviation education programs, including the Young Eagles. The Young Eagles has provided free introductory flights to more than 1.9 million young people since 1992, helping to grow the next generation of aviators.

Volkswagen Golf, Ford F-150 named 2015 North American Car and Truck/Utility of the Year

Congratulations, Volkswagen Golf/GTI and Ford F-150. You've just been named the 2015 North American Car and Truck/Utility of the Year, kicking off the first press day of the Detroit Auto Show. The Golf faced some seriously stiff competition from its runners-up, the Ford Mustang and Hyundai Genesis. But the Golf has been a highly awarded vehicle since its launch, including recently being named Motor Trend's Car of the Year. As for the Truck/Utility award, it wasn't immediately clear that the aluminum-bodied Ford F-150 would win the North American honor, topping the Chevrolet Colorado and Lincoln MKC. The Chevy, after all, has been widely praised since arriving this fall, including taking home MT's Truck of the Year award. In 2014, Chevrolet had a sweep of the NACTOY awards, with the Corvette Stingray and Silverado taking top honors. Here's a look at the 2015 North American Car and Truck/Utility of the Year voting breakdown. As you can see, it wasn't exactly neck and neck. Car of the Year Volkswagen Golf/GTI – 256 points Ford Mustang – 204 points Hyundai Genesis – 110 points Truck/Utility of the Year Ford F-150 – 297 points Chevrolet Colorado – 205 points Lincoln MKC – 68 points The winners were determined by the votes of 57 North American jurors who work in all forms of media – magazine, newspaper, television, online and radio, and their ballots were tabulated in secret by accounting firm Deloitte & Touche. Autoblog editors Sharon Carty and Chris Paukert are members of the North American Car and Truck/Utility of the Year jury. Featured Gallery 2015 Volkswagen Golf TSI View 16 Photos Related Gallery 2015 Ford F-150 View 36 Photos Detroit Auto Show Ford Volkswagen Truck Hatchback 2015 Detroit Auto Show NACTOY