2013 Volkswagen Jetta on 2040-cars

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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.

The VW emissions carnage assessment with an upside

Bombs cause destruction. Even if they're intelligently guided and pinpoint, there's always collateral damage. The strange Volkswagen brew, which is still spontaneously combusting in plain sight, will result in aftershocks for years. And the professional end of the corporation's top leadership will not be the only casualties. Blows are striking shareholder confidence, the residual value of the cars involved, consumer confidence, and the German economy itself. A hard rain's going to fall elsewhere, too. Here are just four damage assessment areas. The High-Compression Past and Low-Compassion Future of Diesels Despite European and especially German manufacturers' high belief that diesel engines were a way to light-duty automotive salvation, VW's scandal started the last nail in the fuel's coffin. Regulations both in the U.S. and in Europe for particulates and nitrogen oxide (NOx) are getting much harder to meet, and this is at the very core of VW's deception. Even with the high-cost exhaust after-treatment systems, sky-high fuel pressure, and sophisticated electronics, the inescapable NOx realities won't be washable by technology in an affordable way. German engineering pride will have to work a real miracle to meet these looming regs and the stain of VW's scandal did the whole diesel movement no favors. Perhaps not so ironically, the E.U. adopted more stringent emission standards this year, which closely mimic the U.S. Tier 2, Bin 5 figures phased in for 2008. Indeed, when VW announced it was able to meet the stringent US NOx emissions standards in 2009 for its diesel engines without urea injection as an exhaust after-treatment, it was a particularly high point of engineering pride for the company. No other manufacturer had figured out how to do so. One Honda official at the time remarked that they had simply no idea how VW was achieving this feat and Honda couldn't come close. Well, neither could VW. On a macro scale, European cities are also starting to face government fines for air quality violations. This is forcing those cities to find various ways to cut smog-related causes like tailpipe emissions. In fact, Paris has gone to the length of restricting car use on a sliding scale when smog persists, while electric cars are free to roam. France's longer and larger plan is banning diesel fuel for light-duty transportation entirely. But why was there a frothy focus by the European manufacturers on diesels in the first place?

Volkswagen Golf GTE Sport Concept is good, clean, plug-in fun [w/video]

If racing and hypercars have shown us anything, it's that high performance and hybridization are not mutually exclusive. With the Golf GTE Sport Concept, Volkswagen is showing it understands that fact. This wild hatchback originally premiered at the annual Worthersee festival back in May, but it's making its auto show debut in Frankfurt. The Golf GTE Sport uses both gas and electric sources to develop 396 total system horsepower. That gas engine, a 1.6-liter, turbocharged four-cylinder, was swiped from the engine bay of Volkswagen's three-time World Rally Championship-winning Polo R WRC, and generates 295 hp on its own. A pair of electric motors – one per axle – each produce 113 hp, and are fed by a lithium-ion battery pack. Total electric range is an impressive 31 miles. Of course, you don't care about that. You care about what the Golf GTE Sport can do when you switch out of EV or hybrid mode and switch into GTE. In this setting, both the gas engine and electric motors kick in to deliver max performance. Sixty-two miles per hour arrives in just 4.3 seconds and the top speed is an impressive 174 mph. The styling is like a mix of older Golf concepts: VW's two Vision Gran Turismo cars, the Roadster and Supersport, with some of the current GTI thrown in. Check out our live images from Frankfurt and let us know what you think. World premiere of the Golf GTE Sport: Plug-in hybrid sports car catapults the GT idea to the future - Lightweight and high-strength body of the Golf GTE Sport is made of carbon - Concept car with a top speed of 280 km/h is a zero emission vehicle and a race car in one Five key facts about the Golf GTE Sport: 1. Golf GTE Sport is powered by a 295 kW / 400 PS plug-in hybrid system 2. Progressive Golf GTE Sport bridges the gap between road cars and racing sport cars 3. Avant-garde exterior design of the Golf GTE Sport perfects the idea of C-pillars with two-level construction 4. Golf GTE Sport debuts with digital instruments arranged on three levels and tailored to motor racing 5. Golf GTE Sport accelerates to 100 km/h in 4.3 seconds and has a top speed of up to 280 km/h on the racetrack Wolfsburg / Reifnitz, May 2015. Ringing in a new era: with the Golf GTE Sport presented as a world premiere at the legendary GTI event at Lake Worthersee on 14 May 2015, Volkswagen is catapulting the GT tradition into the future.