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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 Shelby GT350 shows off HUD shift light [w/video]

We're getting pretty geeked about the upcoming Ford Shelby GT350 as Ford continues the slow trickle of news about the upcoming Mustang track beast. To review: 526 horspower, optional carbon-fiber wheels, and a wicked exhaust note from the flat-plane crank V8. And the latest piece is a programmable shift light that projects onto the windshield The head-up display, officially called Performance Shift Light Indicator, throws a line of amber lights in front of the driver's line of sight. Chevrolet uses a similar system on Camaro and Corvette models with an optional head-up display. While the GM HUD offers additional information like vehicle speed and a tachometer, the Ford system is more customizable. Depending on which of three modes, the lights flash in different patterns: Tach mode moves left to right, Track mode moves from the outside to the end until it makes a solid line, and Drag mode flashes all the light when the rpm limit is his. On the Shelby, the Performance Shift Light Indicator settings are programmed through menus in the instrument cluster's multifunction display. Stay tuned for more GT350 news next week, and check out the full press release below. View 6 Photos Ford Shelby GT350 Gets Racing-Inspired Customizable Shift Light Indicator to Help Drivers Optimize Track Time • Shelby GT350® Mustang features Performance Shift Light Indicator display with Track, Tach and Drag mode • Performance Shift Light Indicator provides the benefits of a shift light while allowing drivers to keep their eyes on the track at all times • Heads-up shift light was developed by reimagining existing hardware and is standard on all-new Shelby GT350 and Shelby® GT350R DEARBORN, Mich., July 23, 2015 – When driving the high-revving, 526-horsepower Shelby GT350® Mustang, drivers would do best to keep eyes on the road. So that's where Ford put the Performance Shift Light Indicator. For decades, race drivers have used shift lights that signal the perfect engine speed for the shift point for maximum acceleration and lower lap times during the intensity of on-track driving. Shift lights allow drivers to concentrate on the road in front of them rather than watching a tachometer. However, most shift lights either obscure the forward field of view or are located low in the instrument cluster where the driver must look down to see it. The Performance Shift Light Indicator is a heads-up display located in front of the driver.

Why Edmunds took a sledgehammer to its 2015 Ford F-150

The discussion around repair bills for the aluminum-bodied 2015 Ford F-150 pickup continued from the beginning of last year to the end, and haven't abated; as an aside, some Tesla Model S owners have been shocked at disquieting repair estimates for minor damage to their aluminum wunder-sedans. Edmunds decided to inject some fact into the fray: it bought a $52,000 long-term 2015 F-150 and clouted it with an eight-pound sledgehammer. Twice. The rear of the bedside took the impacts since it couldn't be replaced, it would have to be repaired. To the pickup's credit, the only reason associate editor Travis Langness hit it twice was that the first sledgehammer blow didn't do as much damage as Edmunds wanted. After the second, the visible damage included the two direct impacts, a few creases, and a cracked taillight, so they drove the pickup to Santa Monica Ford to get an estimate, complete with a fictitious story about how the damage occurred and the mercy plea that Langness was paying for the repair out-of-pocket. In Part 2 Langness hits on some of the details with getting the truck fixed, such as the massively expensive taillight and the list of tools Ford recommends dealers have to work on aluminum. But he was promised he'd have his truck back in seven days, and Santa Monica Ford got it back to him in seven days. In Part 3 we get the bill. It's not small, but it's quite a bit less than it could have been if the service manager had charged Edmunds the official labor rate for aluminum. We're not going to spoil it here, so check out the videos above and below for the beginning and the end, and head over to Edmunds for the complete story about how it all happened and some riffing on the repair numbers. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Related Video: