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Ford's cars being held up in Chinese ports in trade tensions with U.S.

BEIJING — Ford Motor Co's imported vehicles are being held up at Chinese ports, three people with knowledge of the matter told Reuters, underscoring how U.S. goods are facing increased customs scrutiny in China amid a tense trade standoff. The three people said Ford and Lincoln vehicles were facing unusual delays at customs, with officials asking for extra technical checks. Two of the people said U.S.-made models of some German carmakers, mainly SUVs, being brought into China, were also affected. Ford was being asked to do extra checks on emission components, said a China-based Ford executive familiar with the matter, asking not be named because of the sensitivity of the issue. China's customs agency did not immediately respond to requests for comment. The holdups add to a growing list of American products facing issues at China's borders, as officials try to avert a full-blown trade war. Some trade experts said they believe Beijing is sending a defiant warning to Washington in response to sweeping U.S. trade demands made on China last week. Reuters reported Tuesday that China had ramped up inspections of pork shipped from the United States, after the country's customs agency said it would step up quarantine checks on American apples and logs. The second person, a China-based industry official with knowledge of the matter, said the delays for Ford — as well as some U.S.-made cars from BMW and Mercedes-Benz — had been going on for the last two weeks. "Customs pretends there are technical non-conformities of some nature that won't allow them to clear these U.S.-made cars through customs, but the U.S.-China trade frictions must be the background to this," he said. "Although no one will officially admit it." Responding to a request for comment from Reuters, a BMW spokesman said that "U.S.-made BMW cars have not been delayed at the ports as of last week and before." A Daimler spokeswoman said it was "monitoring the situation closely" regarding ongoing trade talks between China and the United States, but that she could not speculate further on other matters. The third person said the Ford issue, which had been noted by the United States government, and other holdups facing American goods, were clearly related to the trade dispute. A Ford spokeswoman in Shanghai when asked about the matter said: "We are closely monitoring our situation at the port." She declined to comment further.

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.

24 Hours of Le Mans live update part one

We tasked surfing journalist Rory Parker to watch this year's live stream of the 2016 24 Hours of Le Mans. What follows is an experiment to experience the world's greatest endurance race from the perspective of a motorsports novice with a profanity-laden stream-of-consciousness writing style. Parker lives in Hawaii and spends far more time spearfishing than behind the wheel of a car. Jump ahead to Part Two here, and Part Three here. Big Money and billionaire hobbyists and rockets on wheels. Jets belching French color smoke overhead. Balance of power fuckery. Plenty of water on the ground this morning. Absurdly expensive motorcars lined up in the pissing rain. Fast twitch lunatics behind the wheel. Chomping at the bit. Let's go let's go let's go! Race hasn't even started, Ford #67 maybe dealing with clutch issues. Karma? That beautiful bastard Brad Pitt's out on the track, waving the tricolor flag. It's a standing start in "Noah's Ark" weather and the 2016 24 hours of Le Mans is go! First lap takes place behind the safety car, finished in a record setting 8 minutes 27 seconds. Wrong kind of record maybe, but this is the first time I've set my mind to watching the whole damn race. Feel like I'm part of history. 3:00 AM on Kauai, a little too early for life. Sucking down coffee like a maniac. Don't fall back asleep. Got my hands on four hours of rest, how much more can I need? Better be enough for the next twenty four hours. Gonna get kinda punchy toward the end. Jason Statham on the scene. Four feet of solid muscle, non-existent hairline. Lovely wife peanut gallery sitting next to me calls him the "best race car drive in the world." Not sure if she's serious. Toss up, could go either way. Statham's a funny guy. Heir to the Bruce Willis comedy action crown. Really good in the movie where the fat comedy lady plays a spy. Ford's on the road. Problems with gearbox pressure, apparently. Nearing a half hour in and the safety car is still on the track. Hellish amounts of water on the ground, in the air. Visibility is garbage. Getting better. Twitter wags, "Not with a bang but a whimper." Just building suspense. Mother Nature felt like killing some people today, race officials need to dial back the drivers until it dries a tad. Normal inclination would've seen 'em flying, guaranteed early lap wrecks. Sad news for that bloodthirsty part of my lizard brain I try and keep suppressed. Good news for humanity. #12 in the pit for a bit.