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U.S. automakers unite in opposition to possible Trump vehicle tariffs

WASHINGTON — The U.S. auto industry urged President Donald Trump's administration on Monday not to saddle imported cars and auto parts with steep tariffs, after the U.S. Commerce Department sent a confidential report to the White House late on Sunday with its recommendations for how to proceed. Some trade organizations also blasted the Commerce Department for keeping the details of its "Section 232" national security report shrouded in secrecy, which will make it much harder for the industry to react during the next 90 days Trump will have to review it. "Secrecy around the report only increases the uncertainty and concern across the industry created by the threat of tariffs," the Motor and Equipment Manufacturers Association said in a statement, adding that it was "alarmed and dismayed." "It is critical that our industry have the opportunity to review the recommendations and advise the White House on how proposed tariffs, if they are recommended, will put jobs at risk, impact consumers, and trigger a reduction in U.S. investments that could set us back decades." Representatives from the White House and the Commerce Department could not immediately be reached. The industry has warned that possible tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially devastate the U.S economy by slashing jobs. Administration officials have said tariff threats on autos are a way to win concessions from Japan and the EU. Last year, Trump agreed not to impose tariffs as long as talks with the two trading partners were proceeding in a productive manner. "We believe the imposition of higher import tariffs on automotive products under Section 232 and the likely retaliatory tariffs against U.S. auto exports would undermine - and not help - the economic and employment contributions that FCA, US, Ford Motor Company and General Motors make to the U.S. economy," said former Missouri Governor Matt Blunt, the president of the American Automotive Policy Council. Some Republican lawmakers have also said they share the industry's concerns. In a statement issued on Monday, Republican Congresswoman Jackie Walorski said she fears the Commerce Department's report could "set the stage for costly tariffs on cars and auto parts." "President Trump is right to seek a level playing field for American businesses and workers, but the best way to do that is with a scalpel, not an axe," she added.

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, Chrysler and Mazda expand scope of Takata airbag recalls

The scope of the Takata airbag inflator recall is ballooning once again across the United States. Where Honda has elected to take its driver-side airbag campaign nationwide, Chrysler Group and Ford have now announced expanded regional actions to cover some passenger-side airbag inflators. Mazda is adding more regions, as well. For Chrysler Group, the campaign covers the inflators on 149,150 examples of the 2003-model-year Ram 1500, 2500 and 3500 pickups. The recall is limited to vehicles sold or ever registered in Alabama, Florida, Georgia, Hawaii, Louisiana, Mississippi, Texas and the territories of American Samoa, Guam, Puerto Rico, Saipan, and the Virgin Islands. The company will begin notifying affected customers on January 19. According to Chrysler's announcement of the action, the passenger side inflators in these trucks "are of a type that is not used in any of the other vehicles affected by Chrysler Group's regional field action." The automaker says that it's not aware of any actual failures or accidents in these pickups and even claims there are no "observed failures in laboratory testing of its airbag modules." The company is continuing to study the problem, though. Ford is taking a similar step by issuing a recall of inflators for 38,500 examples of the 2004-2005 Ranger and 2005-2006 Ford GT. The campaign only affects vehicles originally sold or ever registered in Florida, Hawaii, Puerto Rico and the US Virgin Islands. Certain zip codes of Georgia, Alabama, Mississippi, Louisiana, Texas, Guam, Saipan and American Samoa are also covered. There's already precedent for passenger-side airbags to be covered under the Takata inflator recall. When many automakers announced campaigns in June, BMW, Chrysler, Ford, Honda, Mazda, Nissan and Toyota all included that side in some of their repairs. Subaru subsequently did, as well. In addition, Mazda is expanding the scope of its recall to add Florida, Puerto Rico, Hawaii, Saipan, Guam, American Samoa, US Virgin Islands, Georgia, Alabama, Louisiana, Mississippi and Texas to the affected areas. The company estimates that it has a total of 86,773 vehicles in need of repair. Mazda is also teaming with Toyota to begin independent testing of the Takata inflators. Scroll down to read all of the automakers' announcements of these newly expanded recalls. Statement: Air-Bag Inflators December 3, 2014 , Auburn Hills, Mich.