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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 Mustang GT500 successor spied near SVT

Details about the next-gen Ford Mustang are scarce, and there's even less information out there about the upcoming replacement for the Shelby GT500. Previously rumored to drop the Shelby name and wear the GT350 moniker, the highest-performance Mustang has just been spotted testing near Ford's SVT operations.
Despite being cloaked in heavy camouflage, we can instantly tell this prototype is different from other Mustang spy shots we've seen in the past. Aside from the Shelby-spec wheels, quad exhaust outlets (previous spy shots show only two) and beefier brakes, this car also has air intakes on the hood and front fenders. These elements help to neither prove nor dismiss rumors that the next SVT Mustang will be naturally aspirated. It also looks like Ford is may be planning some changes to this car's rear suspension, as there is some extra camouflage added beneath the rear end of this prototype.
As a bonus, these spy shots also give us our first look inside the new Mustang, revealing a new steering wheel (with more buttons) and a glimpse of the dual-pod instrument gauges. Check out past spy shots of the 2015 Mustang showing off its new face and driving around town.

Chevy's latest Silverado videos assume we're idiots

UPDATE: This article has been revised to reflect that any mention of materials used in a future Chevrolet Silverado is speculation. Can we have a sound, rational debate about the merits of aluminum versus steel? According to Chevrolet's latest marketing videos pitting the Silverado against the Ford F-150, the answer is no. The tone of all three ads is almost Orwellian: steel good, aluminum bad. Of course, this will all be a hilarious joke when an aluminum-bodied Silverado comes in 2018. That's an if, as a member of the General Motor public relations team has reminded me that any articles regarding future product are pure speculation. Until then Chevy needs to sell the current Silverado, with its body comprised chiefly of steel, against the Ford F-150's lightweight aluminum panels. Instead of touting the merits of the "most-dependable, longest lasting pickup," the strategy seems to center around negative propaganda towards the 13th element. The tone of all three ads is almost Orwellian: steel good, aluminum bad. Of the three videos, the most fair is Silverado vs. F-150 Repair Costs and Time: Howie Long Head to Head. Basically: aluminum costs more than steel, it's more difficult to repair, and requires special equipment for body shops. In terms of Chevy versus Ford, the blue oval truck costs more and takes longer to repair - an average of $1,755 more and 34 more days in the shop, according to the ad. But why stop there when you can have pitchman Howie Long raising an eyebrow at random facts? When Silverado Chief Engineer Eric Stanczak says of the Ford, "It's manufactured in a way that combines aluminum, rivets, and adhesive in a process that's different than Silverado." Long responds, "Huh. Interesting." At the end of the video, Long says "I'd be interested to know what happens to insurance costs." Note he's not saying anything substantive. If Chevy's legal team could sign off on some facts about insurance rates, it would be in this ad. On our Autoblog Cost to Own calculator, there is no significant difference in projected insurance costs between the two trucks. But at least that ad has facts. The other two videos are pure hype. In Cages: High Stength Steel, real people are asked what they think of aluminum and steel in a room with two cages. Then a bear is released into the room, and the subjects scurry to the safety of the steel cage.