This morning in metals news: Volvo plans to expand its electric vehicle production in South Carolina; U.S. import prices increased by 1.1% in May; and, lastly, Ford Motor Co. says Q2 2021 EBIT will come in higher than its expectations.
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Volvo to expand EV production in South Carolina
Automaker Volvo said it plans to invest in the expansion of electric vehicle production at its Ridgeville, South Carolina plant.
Volvo will invest an additional $118 million to build the Polestar 3 for its affiliate, Polestar Cars. Volvo and Geely Holding launched Polestar, the Swedish electric performance brand, in 2017.
Currently, the Ridgeville plant produces the Volvo S60 luxury sedan for the U.S. and export markets.
U.S. import prices rise in May
U.S. import prices rose by 1.1% in May, the Bureau of Labor Statistics reported.
The rise follows a jump of 0.8% in April.
Meanwhile, export prices gained by 2.2% in May after rising by 1.1% in April.
“Prices for U.S. imports have not recorded a decline since the index edged down 0.1 percent in October,” the BLS reported. “The price index for U.S. imports advanced 11.3 percent for the year ended in May, the largest 12-month rise since a 12.7-percent increase from September 2010 to September 2011.”
Ford: Q2 EBIT to come in above expectations
Circling back to automotive, Ford said its earnings before interest and taxes (EBIT) for Q2 2021 is going to come in higher than its expectations.
“The company provided the insight ahead of President and CEO Jim Farley’s participation this afternoon in Deutsche Bank’s Global Auto Industry Conference,” Ford said in a release.
“Farley will tell conference attendees that Ford is seeing improvement in its automotive business since providing full-year operating guidance on April 28, despite continuing uncertainty about supplies of semiconductors. The improvement in automotive is being driven by lower-than-anticipated costs and favorable market factors. Additionally, higher vehicle auction values are benefitting Ford Credit.”
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