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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.

Highlights from the Goodwood Festival of Speed, including the McLaren P1 and a Ford Transit running the hill

The sole purpose of this post is as a time-waster, and since you shouldn't have to work to waste time, we've done it for you. In the numerous videos below you'll find cars that have lately been in the news tramping all over the grounds of Lord March's estate in Goodwood, England.
There's the McLaren P1 heading up the hill, the Jaguar Project 7, then a casually-driven Porsche 917 followed by an even-more-casually-driven Porsche 956, topped off by a Porsche 936 that is anything but casually driven. The next round is the flame-spitting Peugeot 405 T16 Pikes Peak from Climb Dance, a camera mounted on the Peugeot RCZ R after it showing you what the whole, uninterrupted run up the hill looks like. For a real head-turner, we couldn't embed it but there's Andy Reid blasting up the hill in a Ford Transit Supervan with a Cosworth 3000 V6 engine.
The modern racing contingent has Allan McNish doing the hill in the Audi R18 e-tron quattro he used to win Le Mans and Lewis Hamilton making lots of tire smoke in the Mercedes-AMG Petronas MGP-W02. For comparison, that's followed by Nick Heidfeld's record-setting run up the hill in 1999 in the McLaren MP4/14 . The classic racing contingent is headlined by 71-year-old Giacomo Agostini on an MV Agusta.

Jaguar I-Pace EV has a new pedestrian warning sound: Listen to it here

Jaguar's production of its first electric car means it also has to deal with a problem everybody else has been trying to solve: noise, or rather, the lack thereof. People can hear an engine at low speeds when they're walking along a sidewalk. The same can't be said for silent-operating electric cars. We wrote about Chevrolet's latest solution to the noise problem a few weeks back, and now Jaguar is sharing what it came up with for the I-Pace. The noise it didn't use is almost more interesting than the one it did, though. Jag says its first iteration was meant to be spacecraft/UFO inspired, but apparently it was so convincing that people tended to look up at the sky instead of at the road. Engineers switched it to what seems like a pretty general hum sound for production. Take a listen yourself in the video above — you'll hear the noise at the 40-second mark, and a few other spots after that. The sound is emitted from a speaker behind the grille at speeds up to about 12 mph. It'll change in pitch and volume to correspond to the increasing or decreasing speed of the vehicle — it even changes tone when you shift into reverse to signal a change in direction. Jaguar says the noise is no longer needed at speeds above 12 mph because tire and wind noise become sufficient enough at that speed. Chevy turns the noise off on the Volt at about 20 mph, however, showing that manufacturers haven't really come to a consensus on what should be happening. A U.S. law that hasn't gone into effect yet will ask manufacturers to keep the noise at up to 18.6 mph, though. We happen to be partial to the jaguar growl heard right at the end of the video as a warning sound. That's how you make an entrance with a Jaguar. These kinds of systems are necessary to warn those who might be blind or visually impaired, but distracted walkers are a huge demographic of people needing a warning too. Everybody walks around with their head buried in a phone nowadays, making silent vehicles a hazard of our own habits. Jaguar says it specifically engineered the noise so that it doesn't intrude upon the cabin, so only pedestrians are bothered by the hum when slowly plodding through cities. Jaguar I-Pace pedestrian warning sound View 10 Photos Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Green Jaguar Green Driving Technology Crossover SUV Electric Luxury pedestrian safety jaguar i-pace