2006 Jaguar Xk8 Base Convertible 2-door 4.2l on 2040-cars

Auto blog

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 Land Rover to recall 44,000 vehicles over excessive diesel emissions

Jaguar Land Rover is recalling 44,000 vehicles in the U.K. due to some of its vehicles emitting higher CO2 emissions than were officially stated. The recall is said to affect vehicles equipped with JLR's 2.0-liter diesel engine in cars built between 2014 and 2018. Quite a few models are affected, including the Jaguar XE, XF, E-Pace, F-Pace, along with the Land Rover Discovery Sport, Range Rover Evoque, Range Rover Velar and Range Rover Sport. The excessive CO2 emissions were discovered by the British vehicle certification agency, who then reported it to JLR. The company is reportedly working on a fix that will satisfy the agency and bring the cars back in line with their stated CO2 emissions. As of now, JLR is not saying what the fix will entail. A statement from JLR reads: "The modifications will be made free of charge, and every effort will be made to minimize inconvenience to the customer." The U.K. magazine Which? said JLR told them owners might experience minor changes to the "overall vehicle experience." Reading between the lines there, that sounds like there could be some pretty serious tampering with the engine software, but we'll leave the speculation to a minimum for now. CO2 emissions numbers are used in the U.K. to set tax levels for vehicles, which means JLR could have gotten out of some taxation with its artificially low CO2 numbers. At this point we don't know how badly the numbers are off, so it's impossible to know how egregious the mislabeling is. There also isn't any explanation for why the CO2 numbers are off, but this is all information that could be forthcoming. The 44,000 number could rise, too, because the UK vehicle standards agency says that some gasoline models could also be involved. That would open a whole new can of worms for JLR. Some Jaguar vehicles (XE, XF and F-Pace) offer a 2.0-liter diesel option for the U.S., but Land Rover's only diesel it sells here now is the 3.0-liter V6. For the time being there's no recall out on the diesel or gas engines from JLR in the U.S. There's no chatter surrounding emissions cheat devices like those involved with Volkswagen's diesel emissions scandal. Nor does the scale of whatever the problem is come anywhere near the amount of Volkswagen diesels that needed to be recalled or taken off the roads. We'll be keeping tabs on the situation to see if this expands any further than the U.K. Green Recalls Jaguar Land Rover SUV Diesel Vehicles Luxury Sedan

Jaguar's next-generation XJ will be electric, but it won't bend design rules

Jaguar's next-generation XJ won't roar like a lion or purr like a kitten. It will ditch gasoline-powered six- and eight-cylinder engines in favor of electric power, the British company confirmed, but that's not an excuse to completely change its proportions. It will still be recognizable as a member of the decades-old XJ family. "We're there to make the best-looking cars we possibly can, so the new XJ, it does have a [hood] on it. It's a very, very elegant shape; it's probably a little bit more traditional than the I-Pace," explained Julian Thomson, the man who replaced Ian Callum as Jaguar's head of design, in an interview with magazine Auto Express. The aforementioned I-Pace is a segment-bending crossover with short overhangs and an unusually spacious cabin; it takes full advantage of the possibilities offered by compact electric technology, and it looks like nothing else on the road. Thomson confirmed his team won't take the XJ in this direction, and spy shots (pictured) taken far north of the Arctic Circle illustrate his point while keeping finer details under a swirly black and white wrap. Although it's built on a massive lithium-ion battery pack, the next-generation XJ seemingly wears the typical long front, short back proportions that have characterized the model for generations. The most dramatic change is the presence of a hatch instead of a trunk lid. It was added to give the sedan a more fastback-like appearance than its predecessor; it has nothing to do with what's under the sheet metal. The XJ has been the segment's underdog for many years so keeping the classic three-box silhouette would have been marketing suicide. "It's going to be a very, very luxurious, very, very calm, tranquil piece of transportation. But, it's not overtly flashy, it's not overtly expensive," summed up Thomson. His comments suggest it will be a better match for the Mercedes-Benz EQS, which is being designed around comfort the firm is known for globally, than for the Porsche Taycan, which stays true to the badge on its nose by putting a greater focus on performance. The electric version of the seventh-generation BMW 7 Series due out in the early 2020s will split the difference. Jaguar is putting the final touches on the next-generation XJ, and it plans to introduce the model before the end of 2020. It's too early to tell if the big, silent cat will make its debut at one of the few auto shows left on the calendar, at a standalone event, or online.