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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 boss confirms Subaru-aping Golf Alltrack for US

Subaru needs to watch out, because the Japanese brand with a utilitarian image has a big bull's eye on its back. Not only is Acura considering going 100-percent all-wheel drive in a bid to mimic the successful automaker, Volkswagen has just confirmed that the Golf Alltrack is coming to the US as another competitor for Subaru's popular Outback crossover. Volkswagen Group of America CEO Michael Horn has confirmed the addition of the higher-riding, all-wheel drive version of the Golf SportWagen to Automotive News, indicating that the model will arrive in the US in 2016. "That's what our dealers, our customers, are asking us for," he said to the industry publication. The Golf Alltrack, which debuted at the Paris Motor Show in early October, has an extra 0.75 inches of ride height and protective black cladding all the way around. Its biggest mechanical differentiator from other Golfs is its Haldex all-wheel drive system, a setup that can completely unhook from the rear axle when not needed to save fuel. In Europe, the Alltrack is available with a turbocharged 1.8-liter with 178 horsepower and two diesels offering between 109hp and 182 hp. However, Horn made no mention of likely powertrains for the US. Horn tells Automotive News that all-wheel drive tooling is currently being installed at the Puebla, Mexico, factory where the standard Golf Sportwagen is built. VW might have tipped its hand about this possibility several months ago when press shots of the wagon were released for the US with TDI and 4Motion badges. Horn says he expects even the front-wheel drive version to be a sales hit here, suggesting it may eventually account for 50 percent of the Golf range's volume.

2015 VW Beetle GRC packs 553 rallycrossing horsepower

In case you couldn't tell from all the wings and vents, this is not your average Volkswagen Beetle. It's the rally machine Tanner Foust and Scott Speed will be driving in the Global Rallycross Championship this year. Don't let the retro form fool you – it is an absolute beast. Last year's Beetle GRC packed a 1.6-liter turbo four good for an astonishing 544 horsepower and 387 pound-feet of torque, but the new one does one better: it now features a 2.0-liter turbo four good for 553 hp and 465 lb-ft. That's right – in a Beetle. It's also got ZF dampers, 9.5 inches of suspension travel, 14-inch front brake discs with four-piston calipers packed into 17-inch wheels and, of course, all-wheel drive. The result? 0-60 in – wait for it – two seconds flat (or thereabouts). It's geared low so it'll only top out at around 125 miles per hour, but that's all it needs for the short tracks on which it's designed to compete. Foust and Speed will be driving this beast for Andretti Autosport in the 2015 championship that kicks off at the end of May in Ft. Lauderdale. Both have quite the act to follow as Foust won back-to-back titles in 2011 and 2012, and former F1 driver Speed won three rounds last season to finish third in the standings. Related Video: VOLKSWAGEN ANDRETTI RALLYCROSS TEAM UPDATES BEETLE GRC CARS FOR 2015 SEASON Tanner Foust and Scott Speed will contest the 2015 Red Bull Global Rallycross Championship with a pair of 2.0-liter Beetles Indianapolis, IN (April 29th, 2015) - After a strong performance in its inaugural season, the Volkswagen Andretti Rallycross team is ready to challenge for this year's driver and manufacturer titles in the Global Rallycross Championship. In 2015, the team will be on the attack with two Beetle GRC race cars, which debuted in the final races of 2014. This rallycross car is the ultimate expression of the third-generation Beetle. Designed and engineered from the outset as a GRC car, it features a sequential six-speed transmission, with a fixed-ratio all-wheel-drive system that features multiplate limited-slip differentials at the front and rear. For the 2015 season, the team has chosen to change the engine specification from the car that ran in selected rounds of the 2014 series. In place of that car's 1.6-liter turbocharged and intercooled TSI® four-cylinder engine, there is now a 2.0-liter TSI engine that produces 553 horsepower and 465 pound-feet of torque, compared to 544 hp and 387 lb-ft for the 2014 car.