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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 recalls 9,900 vehicles across two campaigns

Ford is recalling a total of 9,885 vehicles in two campaigns. The Basics: In one recall, Ford will recall 9,017 examples of the 2013 Escape with build dates from January 11, 2012, to April 1, 2013, and the 2013-2014 Focus ST produced between May 3, 2012, and October 14, 2013. The Problem: Splices in the engine wiring harness might not have enough compression, and this can cause the manifold absolute pressure sensor to send incorrect signals to the powertrain control module. This issue could cause the engine to stall. Injuries/Deaths: None reported. The Fix: Dealers will replace the current crimped splices with new splices, according to the National Highway Traffic Safety Administration. If You Own One: The repair campaign will begin on January 4, 2016. More Information: Ford recalled the 2013 Escape and Focus ST in August 2014 for the same problem, and this is an expansion of that campaign, according to company spokesperson John Cangany to Autoblog. The Basics: In the smaller of the two campaigns, Ford will recall 868 examples of the 2013 Explorer, Explorer Police Utility, Taurus, Taurus Police Interceptor, Flex, Lincoln MKS, and MKT. The Problem: The fuel delivery module can crack, which would cause a fuel leak. Injuries/Deaths: None reported. The Fix: Dealers will replace the fuel delivery module. If You Own One: Owners should receive notice soon because NHTSA's report says the recall begins in December. More Information: According to Cangany, this recall is an expansion of a campaign from 2013 for these vehicles. RECALL Subject : Engine Wiring Splices may cause Stall Report Receipt Date: DEC 02, 2015 NHTSA Campaign Number: 15V813000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 9,017 All Products Associated with this Recall Vehicle Make Model Model Year(s) FORD ESCAPE 2013 FORD FOCUS 2013-2014 Details Manufacturer: Ford Motor Company SUMMARY: Ford Motor Company (Ford) is recalling certain model year 2013 Escape vehicles manufactured January 11, 2012, to April 1, 2013, and 2013-2014 Focus ST vehicles manufactured May 03, 2012, to October 14, 2013. Insufficient compression in the engine wiring harness splices to the Manifold Absolute Pressure (MAP) sensor may provide incorrect signals to the powertrain control module (PCM). CONSEQUENCE: The incorrect signals could cause the vehicle to hesitate or the engine to stall, increasing the risk of a crash.

For thousands of US auto workers, the downturn is already here

LORDSTOWN, Ohio - Wall Street is fretting that the auto industry is heading for a downturn, but for thousands of workers at General Motors factories in the United States, the hard times are already here. Matt Streb, 36, was one of 1,200 workers laid off on Jan. 20 - inauguration day for President Donald Trump - when GM canceled the third shift at its Lordstown small-car factory here. Sales of the Chevrolet Cruze sedan, the only vehicle the plant makes, have nosedived as consumers switch to SUVs and pickup trucks. Streb is looking for another job, but employers are wary because they assume he will quit whenever GM calls him back. "I get it," said Streb, who has a degree in communications, "but it's frustrating." Layoffs at Lordstown and other auto plants point to a broader challenge for the economy in Midwestern manufacturing states and for the Trump administration. "This is about economics, not what Trump says. Even if Trump went out and bought 10,000 Cruzes a month, he wouldn't get the third shift back here." The auto industry's boom from 2010 through last year was a major driver for manufacturing job creation. The fading of that boom threatens prospects for US industrial output and job creation that were central to Trump's victory in Ohio and other manufacturing states. "This is about economics, not what Trump says," said Robert Morales, president of United Auto Workers (UAW) union Local 1714, which represents workers at GM's stamping plant at Lordstown. "Even if Trump went out and bought 10,000 Cruzes a month, he wouldn't get the third shift back here." Last week the Federal Reserve said factory output fell 0.4 percent in May, the second decline in three months, due partly to a 2 percent drop in motor vehicles and parts production. Mark Muro, a senior fellow at the Brookings Institution, has compiled data from government sources that show the auto industry punching higher than its weight in job creation in recent years - accounting for between 60 percent and 80 percent of all US manufacturing jobs added in 2015 and 2016. In the first quarter of this year, the auto industry accounted for less than 2 percent of the 45,000 manufacturing jobs created. "There's no argument with the idea that auto has been pulling the manufacturing sled up the mountain for the last three or four years," Muro said.