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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.

Autoblog's top 50 car photos of 2016

This one shouldn't need much explanation. We like cars a whole lot, and that includes not just driving them but taking great pictures of them. We've collected our 50 favorite images from this year in the mega-gallery above. It's a mix of old and new, with a healthy dose of vintage and modern race cars mixed in, and not one single shot under the harsh lights of an auto show. So click through and enjoy. Featured Gallery Autoblog's Top 50 Photos of 2016 View 50 Photos Image Credit: Copyright 2016 Autoblog.com Audi BMW Chevrolet Dodge Ferrari Ford Lamborghini Mazda McLaren Mercedes-Benz Porsche Rolls-Royce Volvo Convertible Coupe Motorcycle Luxury Racing Vehicles Performance Supercars Classics

UK auto magazine says this is the best car commercial of all time [w/videos]

There have been many great car commercials over the years, but is it possible to define the best? Well, Ad Week recently took a crack at it by rating the top commercials of the year by looking at their view counts on YouTube, but Auto Express took a more democratic approach by putting the decision to a vote. Just after Thanksgiving, Auto Express came up with a list of the 20 popular commercials, and it tasked its readers with choosing the winner for the best car ad of all time. The winner? Honda's 2003 commercial for its then-new European Accord titled "The Cog."
While the ad never aired in the US, most car people have surely seen the impressive Rube Goldberg-style spot. In fact, the only commercial on this list that we saw on US television was the Volkswagen ad "The Force," but many of the others have become viral videos, including transforming and dancing Citroën C4. Of the 19 other commercials that vied for the title of best ad of all time, only the Ford Puma "Steve McQueen" commercial gave Honda a run for its advertising money.
Scroll down to watch Auto Express' top five commercial in order and to check out a press release, then let us know some of your favorite car commercials in Comments.