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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.

Jaguar's V8-powered XE looks to take aim at the BMW M3

It seems that Jaguar's littlest sedan is about to get one of the company's biggest engines. One of our spy photographers caught the company testing a disguised XE. While most people's first instincts would be to dissect the car, our photographer paid some extra attention to the number plate, and looked up the car's registration. He says the registration reveals that this little car is packing a 5.0-liter V8. The only sort of 5.0-liter V8 Jaguar makes is supercharged and makes 550 horsepower or more. So what we're probably looking at is a future 550-horsepower XE R. On the car itself, there appear to be larger intake vents on each side of the front bumper, likely for cooling off a much bigger, hotter engine. And of course a more aggressive appearance. The V8 theory is further backed up by the quad-tip exhaust that clearly needs more development. Aside from these changes, this XE looks pretty similar to the sportier models in the current range. It has the same side skirts as the XE R-Sport and XE S. It also uses the same wheels as the XE S. We can safely say that at least the wheels will be different when the V8 model reaches production. As for when that will be, we'd say don't expect to see a revealed production model for at least a year, and possibly more, since there appears to be a decent amount of development left to do. Related Video:

Jaguar Buys World's Largest Collection Of British Classic Cars

This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Jaguar's Special Operations division announced today it has bought the world's largest collection of classic British cars. The 543 cars had belonged to wealthy dental entrepreneur Dr. James Hull, who sold the entire collection to the British automaker for $170 million dollars. Jaguar scored 130 of its own vehicles in the lot, including a XK, SS, C, D and E-types, XJ as well as a few rare Land Rovers, according to Road & Track. The division that bought the cars is not only responsible for the heritage museum, but also for special projects. Special Operations finished the 18-car run of the lightweight E-types, albeit 50 years late. Jaguar plans to use the cars as promotional pieces to highlight the history of the brand, according to Cars UK. Related Gallery Retro Features Car Shoppers Still Want