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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.

2018 Jaguar E-Pace Video Review | Jag's smallest SUV is a high-priced hit

The following is the transcript from our above 2018 Jaguar E-Pace video review. To read more about this compact luxury SUV, read our E-Pace first drive review. There's nothing like some Sunday morning driving. And today I am driving the 2018 Jaguar E-Pace, which is Jaguar's latest gasoline-fueled crossover offering, not to be confused with the I-Pace, which is their electric vehicle. This particular model is powered by a 246-horsepower turbocharged, 2.0-liter, four-cylinder engine that makes 269 pound-feet of torque. It's mated to a nine-speed ZF automatic transmission, and my biggest gripe about the engine is that it can be a bit laggy, especially driving around in the mountains, particularly in Comfort mode. I would also appreciate paddle shifters on all of the models, not just the R-Dynamic, the lack of which on a $54,000, so-called sporty crossover is pretty disappointing. My disappointment doesn't linger very long, however, as the nicely weighted steering in this cub makes driving on these mountain roads pretty enjoyable. All-wheel drive does come standard on all varieties, and each feature four drive modes: Comfort, Dynamic, Eco, and then Rain/Ice/Snow. Let's talk about looks. Jaguar chief designer Ian Callum knows how to design an SUV. The F-Pace is my favorite looking vehicle in the segment and the style translates nicely to the smaller E-Pace. While it's not as good looking as its big brother, in my opinion, it definitely takes the crown over the Range Rover Evoque and the Discovery Sport, both of which share its platform. In fact, the E-Pace would rather easily be the best-looking vehicle in its class, if not for the newly-released Volvo XC40. This Cesium Blue paint is one of my favorite colors on the market, well worth the $590 price tag, in my opinion. I'm not a huge fan of chrome in general, and while this car is no exception, you can opt for the Blackout Pack, which replaces all the chrome on the car with gloss black paint. My biggest gripes with the F-Pace? Interior, infotainment and price. Those issues remain in its smaller sibling. When it comes to interiors, the Germans and the Swedes do a much better job, and when it comes to price, there are much better interiors out there. Most of the materials inside that you touch do feel pretty nice, but there are still a few cheap-feeling plastics around the cabin. And until there's a significant update to the infotainment system, JLR is always going to be behind the competition.

Jaguar Land Rover recalls Takata airbag-equipped cars

In the latest chapter of what feels like the never-ending recall, Jaguar Land Rover announced that it's calling back 2009-2011 Jaguar XFs and 2007-2011 Land Rover Range Rovers for defective Takata airbags on the front passenger side. These Takata airbags have propellant that may have degraded and, if activated, could release metal shrapnel. The company is breaking up the recall into four phases, since currently there are not enough parts to do a full recall. Since the airbags can be more seriously affected by high heat and humidity, the first phase will cover vehicles that were sold and/or registered in regions with high temperatures and humidity. The regions included are as follows: Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the US Virgin Islands. Other phases will begin as parts become available, and priority will be given to regions at greater risk of having defective equipment. Jaguar Land Rover encourages owners of affected vehicles to go to www.SaferCar.gov to check if their vehicle is included in the current recall. The first phase includes 54,000 of 108,000 affected vehicles. The company is also notifying owners of the issue, who will eventually get a second notification when parts are available so they can schedule a time to have the airbags replaced. Related Video: