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Jim Hackett says metal tariffs costing Ford $1 billion in profits

Ford CEO Jim Hackett divulged in an interview with Bloomberg that the Trump administration's tariffs on metals imported from the European Union, Canada and Mexico have affected the automaker's balance sheet, adding that trade disputes need a quick resolution. "From Ford's perspective, the metals tariffs took about $1 billion in profit from us," Hackett told the outlet. "The irony is we source most of that in the U.S. today anyways. We're in a good place right now, but if it goes on longer there will be more damage." Hackett did not specify what period the $1 billion covered, but a Ford spokesman said the CEO was referring to internal forecasts at Ford for higher tariff-related costs in 2018 and 2019. President Trump in March announced his intention to enact 25 percent tariffs on steel imports and 10 percent on imported aluminum from the three trade zones as a way to protect the U.S. steel industry. The move sent U.S. automakers' stock prices plunging at a time when they were coming off weak monthly sales reports. Separately, President Trump has targeted China with two rounds of tariffs targeting a combined $260 billion worth of imports. China has responded by enacting 25-percent tariffs on U.S. goods including vehicle imports. In the interview, Hackett said that has hurt demand for Lincoln, which has found a growing market for its luxury vehicles in China, and made the price of the Lincoln MKC less attractive to Chinese buyers. The MKC is built at the company's Louisville, Ky. assembly plant. "We've had to move people in that factory to other operations because of that trade problem," he said. It's not clear what those moves entail or how many workers were involved. Autoblog sought comment from a Ford spokeswoman and will update this story if we hear back. Ford last month announced it was scrapping plans to import the Focus Active small crossover to the U.S. from China because of the new 25-percent tariffs on Chinese imports. Material from Reuters was used in this report Related Video:

Ford workers vote to ratify new four-year UAW contract

DETROIT — The United Auto Workers union said on Friday that rank-and-file members at Ford have voted in favor of a new four-year labor contract with the No. 2 U.S. automaker. The UAW will now focus on Fiat Chrysler Automobiles (FCA), the sole remaining Detroit automaker without a new labor contract. Talks with FCA are expected to begin on Monday, a UAW spokesman said. The union said 56.3% of Ford's hourly workers voted to approve the deal, which allowed the company to avoid a strike like the one that cost its larger rival General Motors about $3 billion (GBP2.3 billion). UAW leaders said earlier this month that Ford under the deal agreed to invest more than $6 billion in its U.S. plants, and to create or retain more than 8,500 UAW jobs. The deal also includes pay raises and lump-sum payments over the life of the contract, a pathway to full-time employment for temporary employees and unchanged healthcare coverage. Workers at GM approved a deal in late October that ended a contentious 40-day U.S. strike, the longest automotive labor stoppage since 1970. Detailed terms of the Ford deal — released just a week after GM workers approved their new contract — echoed those agreed to with GM, as the union typically uses the first deal as a template for those that follow. UAW leaders managed contract negotiations with Ford and GM, including the lengthy strike, while struggling with an ongoing federal corruption probe. To date, 10 people have pleaded guilty in connection with the criminal investigation into illegal payoffs. Just last week former UAW vice president and former GM board member Joseph Ashton was charged with conspiracy to commit money laundering and wire fraud. Earlier this month the UAW said that its president, Gary Jones, who had been linked to the ongoing corruption probe, was taking a leave of absence. Rory Gamble, the union's acting head, said last week he will examine every department of the union in response to the spreading federal corruption probe to prevent future misuse of members' dues.

Ford UK exec says EVs are a good way to lose a fortune

Stateside, Ford execs are quick to point out the automaker's expansion in the plug-in sector. And despite a minimal presence in the pure EV space, the Blue Oval has been promoting its plug-in vehicles as part of an overall effort to boost fleetwide fuel economy. Too bad the company's UK chief didn't get the memo. There's "no point in us getting behind [EVs] and losing a fortune" - Ford's Mark Ovenden Mark Ovenden, speaking rather frankly at the Geneva Motor Show recently, said he didn't have real high hopes for substantial electric-vehicle adoption and said the company's money was better spent on smaller gas- and diesel-powered engines, the UK's Daily Mail says. Ovenden said of EV development that there was "no point in us getting behind it and losing a fortune," adding that his goal was to have variants of Ford's EcoBoost engine in 40 percent of the company's vehicles. Ford has about a 15-percent market share in the UK. The UK doesn't appear to be as kind to the EV as the US. Nissan last year cut the price of its all-electric Leaf there last year by about $4,000, while the company rolled out a promotion for the Leaf late last year, including allowing Leaf drivers to borrow a gas- or diesel-powered Nissan for free for as long as two weeks a year during the first three years of Leaf ownership. In the US, Ford sold just 229 Ford Focus Electrics during the first two months of the year after moving 1,738 units in 2013.