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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 issues six recalls covering 101,000 vehicles for multiple issues

Ford is announcing six separate recalls for a variety of issues affecting a dozen models and a total of 100,610 vehicles in North America. However, according to Ford spokesperson Kelli Felker, "None of them have caused accidents or injuries." Half of them cover fewer than 1,000 cars.
The largest recall covers 92,022 North American examples (about 83,250 in the US) of some models of the Ford Taurus, Lincoln MKS, Ford Interceptor, Flex and Lincoln MKT from the 2013 and 2014 model years; the 2012-2014 Edge and the 2014 Lincoln MKX. All of them have a potential issue with the halfshaft on the right side that might not be fully seated and could move outward over time. If it shifts too far, the models may no longer be able to drive, and the condition could also allow the vehicles to roll away, even when in Park. Dealers will inspect the shaft to make sure it's seated and will replace the part if necessary.
The next-largest recall covers 5,264 North American examples (4,867 in the US) of the Ford F59 Commercial Stripped Chassis from the 2011-2014 model years. It's possible that an electrical junction box can corrode in areas with salty roads and short circuit. The problem could potentially cause a fire. Dealers will replace the box with an improved design.

Farley says Lincoln learnings in China could influence brand in US

Automotive News reports Lincoln is looking to Chinese luxury shoppers for customer service ideas. Those notions may eventually make their way back to the US in the form of new dealership training. Jim Farley, the executive vice president of global marketing for Ford, tells Automotive News, "In many ways, China will be a listening post for Lincoln in the United States. Soon China will be the largest luxury market in the world." Farley also said that in China, the Lincoln brand is currently where Lexus was when the Japanese brand first landed in the US.
Lincoln is slated to open its first Chinese dealerships in 2014. The brand is largely unknown in Asia, and Lincoln representatives have been visiting other luxury dealers in China for an idea of what buyers there expect. Lincoln has also studied non-automotive luxury shopping, paying special attention to high-end retail branding.
Of course, this whole song and dance feels awfully familiar. Lincoln has focused heavily on remaking the brand and recrafting its marketing here in the States, thus far without sufficient product to back the play. Lincoln is already late to the China game, and without the necessary products to lure buyers away from established bodies like Buick and Cadillac, Lincoln may be doomed to repeat its fate here in the US.