2014 Volkswagen Jetta S 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.

2015 Volkswagen Touran is the Euro MPV exemplified [w/video]

Among the vehicles Volkswagen doesn't sell in the United States, we retain a soft spot for the tiny Touran MPV. Five doors, a reasonably sized trunk, clean sheet metal and an attractive cabin is an appealing combo, after all, regardless of the form factor. For the 2015 Geneva Motor Show, VW updated the popular compact van for European audiences. Like the Golf-inspired styling of the second-generation model, the popular hatchback's looks are clearly evident in the third-generation Touran. The Golf's small upper character line is more dramatic on the van, although the general taillight and headlight shapes are remarkably similar. The grille, meanwhile, is more Passat than anything else, with a conservative three-bar design. The R-Line model gets more dramatic front and rear bumpers, with black accents on the former and a pair of chromed exhaust tips jutting out underneath the latter. The cabin is typical of Volkswagen, with handsome materials throughout. Piano black is the dominant accent material, found on the dash and steering wheel, while the leather-wrapped steering wheel and hide seats both look like nice enough. Check out our full gallery of images of the new, third-generation Touran from the 2015 Geneva Motor Show. Volkswagen presents the new Touran - Germany's best-selling MPV completely redeveloped - More room; smart new design - New engines up to 19 per cent more economical Volkswagen presents the new Touran. The completely redesigned MPV was showcased before an audience of international media representatives at the Autostadt in Wolfsburg, not far from the production site where the popular family car is made. The interior of the new model has undergone a significant increase in size and is highly configurable. Refinements have been made all around the vehicle, which boasts a range of six new economical engines and an extensive line-up of assistance and infotainment systems. The public premiere of the new Touran will take place in the coming week at the Geneva motor show. Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, explained: "As one of the most successful family cars in the world with 1.9 million units sold, the Touran is indisputably Germany's top MPV.

The best Super Bowl car commercials from the last 5 years

If you've been dipping into the Autoblog feed over the past days and weeks, you wouldn't even have to be a sports fan to know the Super Bowl is coming up. Automakers have been teasing their spots for the big game, dropping them days early, fully-formed onto the Internet and otherwise trying to amp up the multi-million-dollar outlays that they've made for air time on the biggest advertising day of the year. And, we're into it. The lead up to the Super Bowl is almost akin to a mini auto show around these parts; with automakers being amongst the most prolific advertisers on these special Sundays. The crop of ads from 2015 looks as strong as ever, but we thought we'd take a quick look back at some of our favorite spots from the last five years. Take a look at our picks – created from a very informal polling of Autoblog editors and presented in no particular order – and then tell us about your recent faves, in Comments. Chrysler, Imported From Detroit Chrysler, Eminem and a lingering pan shot of "The Fist" – it doesn't get much more Motown than 2011's Imported From Detroit. With the weight of our staffers hailing from in and around The D, it's no wonder that our memories still favor this epic Super Bowl commercial (even though the car it was shilling was crap). Imported really set the tone for later Chrysler ads, too, repeated the formula: celebrity endorsement + dramatic copy + dash of jingoism = pulled car-guy heartstrings. Mercedes-Benz, Soul teaser with Kate Upton One of our favorite Super Bowl commercials (and yours, based on the insane number of views you logged) didn't even technically air during the game. Mercedes-Benz teased its eventual spot Soul with 90-seconds worth of Kate Upton threatening to do her best Joy Harmon impression. (Teaser indeed.) It doesn't win points for cleverness, use of music, acting, or any compelling carness, but it proved that Mercedes' advertisers knew how to make a splash in the Internet Age. And, hey, it's still classier than every GoDaddy commercial. Kia, A Dream Car. For Real Life Like the Mercedes video above, the initial draw here is a pretty lady; in this case the always stunning Adriana Lima. But this Kia commercial really delivers the extra effort we expect while scarfing crabby snacks and homemades, too. First of all, Motley Crue. Second, a cowboy on a bucking rhino. Enjoy yet again.