2004 Volkswagen Gls on 2040-cars

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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.

VW Jetta and Golf family earn IIHS TSP+ [w/video]

Volkswagen is the latest manufacturer to add vehicles to the growing list of cars, trucks and SUVs certified as Top Safety Pick+ by the Insurance Institute for Highway Safety. The non-profit has awarded its highest safety ranking on the 2016 Golf and Jetta families. Earning a TSP+ rating, while increasingly common, is still a challenge for automakers thanks to IIHS' strict testing regime. Vehicles must net "Good" ratings – the highest grade available – in the moderate overlap, front, side, roof, and head-restraint tests, while also scoring an "Acceptable" rating on the notoriously tricky small-overlap test. On top of that, the automated crash-prevention systems need to be rated as either "Advanced" or "Superior." For 2016, the Jetta, Golf, and their performance variants retained 2015's "Good" ratings across the board, while also receiving an "Advanced" crash prevention rating, thanks to the new-for-2016 Forward Collision Warning and Autonomous Emergency Braking systems. "This year's Top Safety Pick+ awards demonstrate Volkswagen's longstanding commitment to vehicle safety and the development of innovative technologies," Mark Barnes, VP of Sales for VW of America, said in the attached statement. "Our available driver assistance systems and safety features show Volkswagen's commitment to introduce systems that were once only seen on high-end luxury and premium vehicles, such as Adaptive Cruise Control and Lane Departure Warning." Scroll down for the official press release from VW and video of the crash test (and yes, that's a 2015 shown in both the lead image and video – the only difference between the two years was the availability of more advanced crash-prevention systems). This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2016 VOLKSWAGEN GOLF, GOLF SPORTWAGEN, GOLF GTI AND JETTA EARN A 2015 TOP SAFETY PICK + RATING FROM THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY Aug 12, 2015 Herndon, VA — Volkswagen of America, Inc. today announced that the 2016 Volkswagen Golf 4-door, Golf SportWagen, Golf GTI 4-door, and Jetta models, when equipped with the optional Forward Collision Warning and Autonomous Emergency Braking (Front Assist) system, have been awarded 2015 TOP SAFETY PICK+ ratings by the Insurance Institute for Highway Safety (IIHS).

Mercedes-Benz, Volkswagen, and Audi announce Takata recalls

Daimler, Volkswagen, and Audi will recall nearly 1.7 million total vehicles in the US to replace their Takata airbag inflators. The Japanese parts supplier and the National Highway Traffic Safety Administration announced in late January that several automakers would need to fix around five million more vehicles, and the various companies have been releasing the details since then. Daimler has a recall for 841,000 vehicles in the US, including 705,000 from Mercedes-Benz and 136,000 from the company's van division. Reuters reports the affected models consist of 2005-2014 examples of the SLK-Class, C-Class, E-Class, M-Class, GL-Class, R-Class, and SLS-Class. The vans comprise the 2007-2014 models of the Dodge, Freightliner, and Mercedes Sprinter. Autoblog reached out to Mercedes USA to confirm these details, and we're awaiting a reply. Daimler expects the repair campaign to cost 340 million euros ($382 million at current rates). The company will book the costs as part of its financial year 2015 results, and net profit for that year will fall to 8.7 billion euros ($9.8 billion). Volkswagen's recall covers 680,000 vehicles in the US to replace their driver side airbags. The affected models have Takata's SDI and PSDI-5 inflators, which could rupture in an crash, but the automaker isn't aware of any explosions for these parts in its products. This campaign includes: 2006-2010 Passat Sedan and Wagon (German Production) 2012-2014 Eos 2010-2014 Golf 2010-2014 Jetta SportWagen 2012-2014 Passat (U.S. Production) 2009-2014 CC There are also 170,000 Audi vehicles with the SDI and PSDI-5 inflators in the US, but there are no reports of the parts rupturing in the company's models. The affected products are: 2005-2013 A3 2006-2009 A4 Cabrio 2009-2012 Q5 2010-2011 A5 Cabrio VW and Audi are still working to identify the specific VINs for these vehicles. Afterwards, they will notify affected owners. Ford, Mazda, and Honda already announced details for their new round of Takata repairs. VW and Audi also recalled a small number of Tiguans and Q5s to replace their side airbag inflators from the Japanese company. NHTSA still expects BMW and Saab to detail expanded safety campaigns.