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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.

Watch four hours of fantastic machinery at Le Mans Classic 2016

The 24 Hours of Le Mans came and went, but it wasn't the end of the automotive activities at Circuit de la Sarthe. This past weekend, the venerable racetrack was host to the 2016 Le Mans Classic, in which seven decades of vintage racecars once again competed for glory. The event started with qualifying on Friday, July 8, and racing on the following Saturday and Sunday. Six "grids" of cars each included a different historic racing era, including the early days from 1923 to 1939, as well as that famous period from 1966 to 1971 that featured the all-conquering Ford GT40. The wide range of eligibility also permitted some unusual machines to show up, such as a 1950 Cadillac Series 61 and a 1974 Dodge Charger. This year also marked the debut of the Group C class for more recent Le Mans racers from 1982 to 1993. The 1991 Le Mans-winning Mazda 787B was not present, but one of the Peugeot 905 race cars that gave the marque a remarkable 1-2-3 finish at the 1993 Le Mans came back for the event. The Le Mans Classic also featured the Jaguar Classic Challenge just for cars made by the feline automaker, and the race attracted a bit of human star power. Chris Harris of Top Gear participated in the marque-specific race while behind the wheel of a new continuation Lightweight E-Type. And although the event happened over the weekend, you can catch most of the action via the recorded live stream above. It features a full four hours of vintage racing with commentary in both French and English. It's a great chance to see one of the best combinations of classic cars and historic venues out there. Related Video: Related Gallery Jaguar Continuation Lightweight E-Type View 46 Photos Image Credit: Le Mans Classic Jaguar Automotive History Classics Videos France chris harris vintage racing le mans classic circuit de la sarthe

Jaguar takes bite out of Mercedes' Magic Body Control chicken ad

We were quite impressed by Mercedes-Benz when it aired its Magic Body Control commercial, starring a group suitably funky chickens demonstrating their ability to jive to Diana Ross and the Supremes. Now, Jaguar has taken the opportunity to poke some fun at its German rival, releasing its own take on the Magic Body Control spot, and um, there's a big cat involved.
You'll really want to take a look at this video, which is just another sign that in terms of clever ads, Jaguar is doing quite well. We aren't sure if "Jaguar vs. Chicken" will make it onto TV any time soon, but it's still fun to see the British brand take the mickey out of Mercedes - it's rare to see automakers go after each other so bluntly in their marketing efforts. Scroll down to watch the video (we've also included a bonus video, Jag's recent "Cat In A Box" spot).