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Jaguar's design boss wants to build another sports car model

The global sports car segment is facing a strong, glacial headwind, but Jaguar believes smoother waters are right around the corner. One of the company's top executives predicted the market will recover in the coming years, and he wants his team to be ahead of the curve when that happens. "Jaguar will always build sports cars. I'd love to do more than one," affirmed Julian Thomson, the man who replaced Ian Callum at the head of the brand's design department, in an interview with British magazine Auto Express. The only sports car currently in the Jaguar portfolio is the F-Type. While enthusiasts still love sports cars, the run-of-the-mill buyers that keep automakers profitable have rejected them in favor of crossovers and SUVs. And, requests for cleaner, more efficient cars make developing fun cars considerably more difficult; even Mazda is looking into taking the Miata into hybrid or electric territory. Jaguar faces the same challenges, but Thomson expects the sports car segment will rise up from its ashes when motorists realize they're trapped in a sea of crossovers. "In this day and age of electrification and autonomous technology, a part of me thinks there may be a resurgence of people enjoying transportation for transportation's sake, and driving for driving's sake," he said. "Whether that makes the market bigger I don’t know, but I think there is a threat to volume production cars, and they are going to struggle to find a position on what they do. IÂ’d hope that truly special and luxury cars, sports cars, will find a place where they have the option to be more exotic." He stopped short of confirming a second sports car is under development, so it's far too early to pinpoint the segment it would compete in. In the meantime, Jaguar just gave the F-Type a facelift (pictured), and its vehicle development team has already started working on the model's successor. The rumor mill has started spinning; we've heard reports of the nameplate pulling a Corvette by going mid-engined, adopting BMW's 4.4-liter V8, and getting a battery-electric powertrain. The latter option would slot neatly into Jaguar's electrification push, but Thomson hinted it's easier said than done. He explained making an electric sports car with a huge amount of power, like the 2,000-horsepower Lotus Evija, is not the answer.

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.

Recharge Wrap-up: Tesla store reboot, Jaguar "EV-Type" an electric F-Pace?

The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program is creating demand for EVs. $1 million has been set aside for rebates ranging from $750 to $3,000 per car, depending on battery size (in addition to federal incentives). Dealers also get an incentive of $150 to $300 per vehicle to help motivate them to promote EVs. "This is the type of program that can be a win-win-win for the state, auto manufacturers, dealers and consumers," says Chevrolet dealer Leo Karl, who has seen a jump in demand for the Volt under the CHEAPR program. Karl expects the funds to run out as early as this fall. Read more at Automotive News. The Mitsubishi Outlander PHEV is scheduled to go on sale in the US in May 2016. As Mitsubishi makes some changes, including plans to ditch its Normal, IL assembly plant, the company's future in the US is being called into question. The new date for the plug-in hybrid version of the Outlander comes after multiple delays. Mitsubishi also plans to offer a 2016 model of the i-MiEV despite slowing sales. Read more at Automotive News. Tesla is overhauling its stores in advance of the Model X going on sale. The revamp includes informative interactive displays and a heavier emphasis on Tesla merchandise sales. The displays provide information about safety, Autopilot technology, the charging network, electric motors and other information to help familiarize customers with Tesla. The Tesla Design Collection - which includes luggage, apparel and other gear - also helps position Tesla as a luxury lifestyle brand, rather than just a mere automaker. Expect the stores to be continually updated over time. "Tesla is able to pivot in their stores the way they release new software," says Cadent Consulting Group's Ken Harris. "This is important to an emerging brand." Learn more from Bloomberg. Could Jaguar be planning an electric F-Pace called the EV-Type to compete with the Tesla Model X? Autocar is reporting that the upcoming SUV from Jaguar could spawn a whole family of vehicles, including an all-electric version. Jaguar has registered the trademark for the EV-Type name, and that vehicle would likely be built at the Magna Steyr factory in Graz, Austria. That would free up capacity to build the traditionally powered F-Pace in the UK. Read more at Green Car Reports, or at Autocar.