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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.

Inside the Ford GT's interior

Ford has crafted a simple yet high-tech interior for the GT supercar, which has been on display at auto shows around the world this year. The instrument panel has a two-tier design with a floating wing. There are soft-touch materials and carbon fiber, which also is used for the passenger cell. Still, the GT's interior has been shrouded in more mystery than the rest of the car. To cast some light on the GT's cabin, we caught up with Ford design vice president Moray Callum, who explained the ins and outs of the future icon's interior. Put simply, "there's not a lot of excess materials," Callum said. But what is there is pretty cool. In case you haven't heard, Ford plans to launch the GT in 2016. It will run a mid-mounted twin-turbo EcoBoost V6 paired with a seven-speed dual-clutch gearbox and make extensive use of carbon fiber for the body structure. Related Video:

Ford will put solid axles under the Bronco as the off-roading gods intended

We've been wondering what sort of creature the Bronco would be since we first heard of the thing last October, when a union chairman spilled the beans on the SUV and the Ranger pickup. Ford confirmed a 2020 arrival date for the Bronco at the 2017 Detroit Auto Show, but at that point pretty much all we were sure of was that the Ranger and Bronco would be returning. The open question would be how hungry Ford was to spoil the Jeep Wrangler's solo party as a compact(ish) off-roader with dual solid axles, since the easiest thing would be to carry over the suspension design of the presumably related international Ford Ranger and its Everest SUV version: independent front suspension with either a leaf- (Ranger) or coil-suspended (Everest) solid rear axle. Enter Dana, the long-time supplier of Jeep stick axles, to confirm that the 2020 Bronco is getting a pair of them. That means solid axles front and rear, just like under a Wrangler. So reports Automotive News, citing an investor presentation from Dana. All signs so far, such as the report that the Bronco would be engineered by the same team in Australia that created the Ranger pickup, indicated that the Bronco would share a platform with the Ranger and thus be body-on-frame. The solid axle confirmation essentially confirms that theory. Some off-road-capable vehicles have paired solid axles with unibody frames, like the Jeep Cherokee (XJ generation) and Grand Cherokee (ZJ and WJ generations), but they are outliers. Generally, if you've got solid axles at both ends, they're going in a vehicle with a ladder frame. It also lends credence to the notion that our Bronco won't simply be an imported Everest, which might be too understated to stand out from lesser crossovers anyways. This is good news if you have Blue Oval in your blood and pine for a modern SUV that'll show up the Jeep guys on the trail. Less directly, it could mean a wholesale assault on the formula that makes Jeeps successful in the first place: the massive aftermarket of off-roading equipment and dress-up bits that appeal to Jeep buyers almost as much as a Trail Rated badge. At a minimum, Bronco enthusiasts can breathe easy that the reborn SUV won't merely be a light-duty crossover with styling "inspired" by true off-roaders. There's still a lot left to learn about the Bronco. Keep up to date with our running summary of everything we know about the returning off-roader.