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The Jaguar E-Pace shows off a rather cab-forward look in these spy shots

It seems the Jaguar F-Pace may be getting a little sibling soon. A smaller crossover, which we expect will be called the E-Pace, has been caught during winter testing. The SUV seen here appears to be sized like compact luxury crossovers such as the Audi Q3 and BMW X1. This also fits with Jaguar's brand director's statements that it has been considering an SUV for this class. Much of the car is well camouflaged, but taking a close look, this E-Pace has a surprisingly short dash-to-axle ratio. It's not as drastic as the electric I-Pace concept, but there's so little space between the bumper and the base of the windshield that we sincerely doubt that a longitudinal inline-4 or V6 could be lurking under the hood. And, if the E-Pace does in fact use a transverse-mounted engine, it probably doesn't share a platform with any of its rear-drive-based stablemates. It may seem strange that a company known for its rear-drive cars is considering a transverse, front-drive-based vehicle, but there are reasons it may be going this way. For one thing, Jaguar's brand director said he wasn't sure that the company's existing platforms could be scaled down far enough for such a compact crossover. That would seem to preclude using an existing rear-drive platform or developing a totally new one. In fact, it only leaves one real option in the Jaguar Land Rover line for this vehicle: the Range Rover Evoque platform, which is also shared with the Discovery Sport. It's a small SUV platform with a transverse layout. It's also currently available and should be cheap to adapt; perfect for capitalizing on the hot crossover market. We just hope Jaguar can inject some more fun into it than Land Rover did with the Discovery Sport. Using that platform also means Jaguar would probably borrow one or more engines from the Evoque and Discovery Sport. In the US, both models are only offered with a turbocharged 2.0-liter inline-4 making 240 horsepower. Overseas, both vehicles are available with 2.0-liter turbodiesel four-cylinders, making either 150 or 180 horsepower too. Considering that the 180-horsepower diesel model will arrive in the US under the hood of the Jaguar XE, it's possible that it will show up in the E-Pace as well. Don't expect any of the overseas manual transmissions to make the trip, though. Jaguar only offers a manual on the F-Type sports car in the US, so there really isn't any reason to add one to a small crossover.

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.

JLR confirms next Jaguar XJ will be all-electric

Jaguar-Land Rover confirmed today what has long been rumored: the next-generation Jaguar XJ will be all-electric. On stage to introduce the new Land Rover Defender, company CEO Ralf Speth made the announcement as a teaser image of the new electric XJ's full-width taillight bar appeared on screens behind him.  As quoted by AutoExpress, Speth said, "Based on our rich knowledge and experience gained from the I-Pace, Formula-E and I-Pace eTROPHY, our engineering team is in full swing to deliver the world's first, full-electric luxury sports saloon. The flagship of Jaguar: the all-new XJ." He continued, "The new, all-electric XJ - extraordinarily remastered for the 21st century - will offer spiritual freedom for our customers ... Gliding in elegance, new tranquility and new functionality, and in full consciousness taking care of the environment." Well, let's unpack that a bit, shall we? First, "the world's first, full-electric luxury sports saloon?" Even if you split hairs and deem the Tesla Model S a hatchback, there's a little thing called the Tesla Model 3. That's definitely a saloon, or as we in North America call it, a sedan. Unless he meant the North American definition of a saloon, in which case the Tesla is most definitely not that.  Also, the new XJ will help customers achieve spiritual freedom? Whatever. Jaguar's longest-running nameplate going all-electric isn't surprising, but it can only be good news for the British luxury brand, which could use a win. The current XJ made waves with its controversial styling, but that was nearly a decade ago. Thereafter, it never gained enough attention in America from wealthy buyers who'd otherwise buy a BMW 7 Series, Mercedes S-Class or even Porsche Panamera. Basically, what the Tesla Model S was able to achieve with distinctive styling, and of course, an all-electric powertrain. Plus, unlike the recently introduced Porsche Taycan, an all-electric Jaguar XJ should offer space more on par with Tesla's big sedan/saloon/hatchback.  AutoExpress also indicates in its story that the new XJ will still be built in England, as will its batteries. There will apparently be a new battery-producing facility opening in 2020 with the goal of producing enough batteries for as many as 150,000 Jaguar and Land Rover vehicles per year.