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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.

Jaguars and Land Rovers to feature in 007's Spectre

James Bond may be more closely associated with Aston Martin, but Jaguars and Land Rovers have featured in 007 movies new and old. Skyfall, the most recent installment in the series, opened with Bond and Moneypenny ripping through the streets of Istanbul in a Defender and saw M being chauffeured around London in an XJ. And the upcoming feature Spectre is set to feature some of JLR's finest as well. While Bond himself will be piloting the new Aston Martin DB10, the movie will also feature a Jag and a couple of Landies. The Jaguar C-X75 concept, as we know, will be part of a chase scene against the DB10, now revealed to be set in Rome. But the movie will also include the new Range Rover Sport SVR (with what looks like some auxiliary lighting) and at least two Defenders modified by JLR Special Operations to "Big Foot" specifications with 37-inch off-road tires, upgraded suspensions and added bodywork protection. As you may recall, a couple of months ago a fleet of nine vehicles used in the film were stolen from a garage in Dusseldorf, including five Range Rover Sports. This is the first confirmation we're seeing of any of them being SVR models, or of the Big Foot Defenders being part of the mix as well. The scenes including the Land Rovers have already been filmed in Austria, and we're looking forward to seeing them all on the silver screen come November. Related Video: JAGUAR AND LAND ROVER ANNOUNCE PARTNERSHIP WITH SPECTRE, THE 24TH JAMES BOND ADVENTURE - Continuing Jaguar Land Rover's successful involvement with the Bond franchise, Jaguar C-X75, Range Rover Sport SVRandLand Rover Defender Big Foot to feature in new James Bond movie, SPECTRE - C-X75 concept vehicles will form part of spectacular chase scene in Rome Monday 9 Feb 2015 12:01 GMT: Jaguar Land Rover has announced its line-up of vehicles set to feature in SPECTRE, the 24th James Bond adventure, from Albert R. Broccoli's EON Productions, Metro-Goldwyn-Mayer Studios, and Sony Pictures Entertainment. These will include the Jaguar C-X75, Range Rover Sport SVR and Defender Big Foot, which have been provided by Jaguar Land Rover Special Operations. The Jaguar C-X75 will feature in a spectacular car chase sequence through Rome alongside the Aston Martin DB10. The C-X75 vehicles used in filming have been built in collaboration with Williams Advanced Engineering facility in Oxfordshire, England.

Jaguar Land Rover considering Mexican plant

Jaguar Land Rover has been expanding its production out of the UK and into overseas markets, and according to the latest word from Bloomberg, the British automaker is considering spending more than half a billion dollars to build a new assembly plant somewhere in Mexico. Since the Range Rover Sport and Evoque are two of the company's top sellers in the US, those would reportedly be the most likely to be manufactured at the Mexican plant, although Jaguars could follow as well. The automaker was previously said to be leaning towards a location in the Southern US, and while it could conceivably proceed with plans for both, it would be more likely to go with one or the other. State and local authorities below the Mason-Dixon line have been soliciting the business with various incentives, but lower labor costs South of the Border could prove more attractive to JLR and its parent company Tata. It wouldn't be the first, after all. Over the past month alone, General Motors committed to building the next Chevy Cruze in Mexico, Toyota did the same with the Corolla, Hyundai was reported to be considering a similar step, and Ford announced two new plants in the country amounting to a $2.5-billion investment. Luxury automakers like Audi, BMW and Mercedes have also been delving into Mexican production as well, blazing a path that JLR could potentially follow. The British automaker recently opened a plant in China and another in Brazil, while investing in additional facilities in the UK as well.