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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:

Lincoln electric SUV to use Ford-backed Rivian's 'skateboard' chassis

DETROIT — A battery-powered Lincoln SUV, due in mid-2022, will be the first Ford Motor Co. vehicle built on a custom electrified chassis that resembles a skateboard, which was developed by Ford-backed startup Rivian, according to several people familiar with the program. The all-wheel-drive Lincoln SUV could compete against Rivian's R1S, an electric sport utility vehicle slated to go into production in early 2021 that will be priced from $72,500. Both models will use Rivian's so-called skateboard, a flexible platform that combines electric motors, batteries, controls and suspension. On Tuesday, Ford declined to comment. Rivian did not respond to a request for comment. The new Lincoln, which carries the internal program code U787, also could compete with premium offerings from others, including General Motors Co <GM.N>, which plans to introduce at least two new electric SUVs by 2023, one for Cadillac and one that could revive the Hummer name, sources have said. Ford invested $500 million in Rivian this year and plans to help it begin production next year at a former Mitsubishi plant in Normal, Illinois. When Ford made the investment, it said it would use Rivian's skateboard to develop its own electric vehicle, but did not disclose details. It is not clear where Ford intends to build the Lincoln SUV, which will be among the first of several battery-powered utility vehicles planned for Ford's premium brand in North America and China, according to supplier sources familiar with those programs who asked not to be identified. Ford expects to introduce a compact Lincoln electric crossover in late 2021 or early 2022 and a mid-size companion in 2023, the sources said. The U.S. auto industry plans to invest billions of dollars over the next few years to build all-electric pickups and SUVs, sectors of the market that have been among the most profitable, especially for Detroit-based automakers. But analysts have questioned whether demand from consumers and commercial customers will come close to matching production. Founded in 2009, Rivian has raised $1.9 billion from investors, including e-commerce giant Amazon, which has ordered 100,000 electric delivery vehicles from Rivian. The first Amazon vans will be built in Normal and are to be delivered in 2021. Ford aims to sell an electric F-series pickup in late 2021, sources have said.

2018 Lincoln Navigator First Drive | From black sheep to flagship

This is Lincoln's flagship. It's the most luxurious, comfortable and expensive vehicle the brand sells. It's quite obviously the biggest and heck, like every Lincoln flagship of yesteryear, it even features body-on-frame construction. Crucially, though, this all-new 2018 Lincoln Navigator is also very good. It's distinctive, capable, and competent in ways that will stand up well in the upper echelon of the SUV hierarchy. And we'll get this out of the way now: it's far superior to its primary competitor, the Cadillac Escalade. And yet, the Navigator's flagship status is a comeback story. It wasn't too long ago that it was a black sheep confined to the distant back row of Lincoln family promotional photos along with the Town Car and a fichus added for decoration. It was never given one of the new-fangled MK names, and its V8-powered, truck-based status made it a thirsty dinosaur at a time of rising gas prices and an increasing number of crossovers. Livery services bought them in black-painted droves, but it was otherwise forgotten even as a substantive refresh for 2015 arguably made it a better, more practical bet than its Caddy nemesis. Like its predecessor, and indeed every Navigator since the second generation dawned for 2007, the third-generation 2018 model features an independent rear suspension rather than the live axle in GM's SUVs. First and foremost, this reaps benefits for those sitting in the third row. Full-sized adults enjoy an abundance of room back there on par (or perhaps even better) than a minivan. There's a USB port on each side, the seatbacks power recline and its three seat belts allow for an eight-passenger max. There's even enough room behind the raised third-row for creatively stacked suitcases. Compare this to a regular-wheelbase Escalade with its third row stuck to the sky-high floor; its occupants' knees jammed against the second row and/or stuck into their own chins. It's a wasteland back there, but to be fair, not much worse than an Infiniti QX80 or Lexus LX 570. Yes, the extended-wheelbase Escalade ESV helps, but there's still less space than the standard Navigator. In fact, the Navigator L model offers the exact same third-row – only the cargo area behind it expands. That rear suspension also pays dividends in the ride and handling department.