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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:

A tribute to William Clay Ford

The passing of William Clay Ford has been a big event for the company he spent most of his life helping run. Ford spent 57 years working for his family's company. Considering the Blue Oval has been around for over 100 years, WCF's passing is the end of an era for the Dearborn-based manufacturer.
Ford's YouTube channel has issued a short memorial video highlighting the life of the longest-lived grandson of company founder Henry Ford. It follows William Clay from his time as a boy, showing him alongside his grandfather, through his younger years, and into his twilight, as the patriarch of the Ford family.
Take a look below for this touching memorial video on William Clay Ford.

Malcolm Gladwell reflects on engineering, recalls, and compromise

Journalist Malcolm Gladwell has made a career taking on big, complicated topics and humanizing them to make the unwieldy understandable. He has already done this in bestsellers like The Tipping Point and Outliers, and now he has brought the same approach to automotive recalls in a long piece for The New Yorker. The article titled The Engineer's Lament is framed around an interview with the former head of Ford's recall office about the famous Ford Pinto campaign where the position of the compact's fuel tank could cause it to explode in rear-end collisions. Plus, there are detours into Toyota's unintended acceleration cases and the General Motors ignition switch problem. While all the history is illuminating, the heart of the story comes from an examination at the thought process of engineers, and how their thinking differs from other professions. Gladwell comes off as sympathetic to auto engineers in this piece. While he admits that they often approach problems in a sterile way, the writer doesn't try point that out as a failing. It's merely a fact to be understood. The story itself is quite lengthy, but well worth a read if you have the time for an insiders view into how these recalls are assessed on the inside.