1969 Lincoln Continental Mk Iii on 2040-cars

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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:

2020 Lincoln Aviator First Drive | The Real Deal

NAPA VALLEY, Calif. – We're in Yountville, a town that's equal parts hoity and toity. The restaurants are adorned with the names of Top Chef Masters and the gas station offers wine tasting. A store that exclusively sells Panama hats will be opening soon. It's in places like these where the 2020 Lincoln Aviator needs to be taken seriously. When the local bakery is a Bouchon, chances are the local populace isn't going to be fooled out of their Audis, BMWs and Mercedes by sub-standard merchandise. The Aviator needs to be the real deal.  It is. There is a sophistication to its engineering and driving experience, plus a distinctive, tasteful style that should collectively meet lofty expectations and attract the desired inquisitive responses from fellow Yountvillians. Indeed, this three-row luxury crossover is no half-hearted, badge-engineered effort as Lincolns of the past were. Though it shares its rear-wheel-drive architecture with the new Ford Explorer, the two differ greatly, and Lincoln's own engineers casually speak of the advantages of "developing their own platform from the ground up." As in, this platform is as much their baby as Ford's, and not something that was sent over from HQ with orders to slap on some different styling and call it a day. For instance, the front and rear suspension designs are different, in part to accommodate the Aviator's unique pair of available damping systems: standard adaptive dampers and an optional air suspension that's height-adjustable, load-leveling and reactive to input from a forward-facing camera to pre-set itself for bumps in the road. We only sampled the latter, and despite our test Aviator being shod in massive 22-inch wheels, it soaked up the gnarled pavement around Napa Valley with no nervousness over smaller bumps or impact harshness over bigger ones. It also doesn't bound about as the springy new Explorer does. The Aviator is impressively planted, even in its most comfort-oriented driver mode of "Normal," and possesses a composure that was not expected given Lincoln's emphasis on comfort, effortlessness and "quiet flight." 2020 Lincoln Aviator Interior View 9 Photos Indeed, the Aviator can be hustled quite capably around some pretty serious mountain roads thanks to the advanced suspension and inherent chassis balance afforded by its rear-drive-based architecture (all-wheel drive is optional).

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.