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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:

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.

Mustang parts under the new Lincoln Aviator mean good things for Ford

NEW YORK — As we mentioned last night, underneath the new Lincoln Aviator "concept" there appears to be an independent rear suspension lifted right from the Ford Mustang parts bin. And while it's pretty cool on its face that Mustang rear-drive platform bits are being reused in the broader Ford universe, what this means for the next Explorer could be really cool. A quick caveat: The Aviator here in New York is very close to the production version, but it's not technically a production car. It looks hand-built, with temporary exhaust and some show-car touches. The suspension underneath looks exactly like a Mustang's, but the actual production Aviator will almost certainly use beefier components with the same basic design and geometry, since the Aviator will be much heavier than the smaller Mustang. That being said, we're fairly confident that even at this early stage, the Mustang-derived suspension seen in New York is a preview of what'll be under the production Aviator. Furthermore, Ford won't say it, but based on what we're seeing on Aviator, it's a safe bet that Ford will utilize the Aviator platform for the next Explorer. That would enable the economies of scale necessary to produce a brand new rear-drive-based SUV platform in the first place. It also means that the Explorer should be available without AWD — and given the stable of powerful EcoBoost engines, and the competent 10-speed automatic in the parts bin, a rear-drive Explorer has a shot at being a decent driver. Aviator wouldn't go rear-drive-based if driving dynamics weren't important; Explorer should inherit these priorities. More evidence: The Explorer spy shots we saw back in February sure share the Aviator's general proportions. Even back then, before Aviator was revealed, we were hypothesizing that an EcoBoost 3.5-liter-powered version could boast as much as 400 horsepower, if the Expedition's tune were adopted. Suddenly, the Explorer seems very interesting. So, an EcoBoost, rear-drive Explorer sure sounds like something Ford Performance would be interested in, right? We knew an Explorer ST is coming, but with 365-400 horsepower potential and a chassis designed with dynamics in mind, it doesn't seem like as much of a stretch as the Edge ST. And a performance-oriented AWD system is a possibility, too. That's an area where Ford has been gathering experience at a rapid pace. What do we not expect from a new Explorer? A V8.