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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 announces fix for 2021 Expedition and Lincoln Navigator fires

In the middle of May, Ford announced a recall of around 39,000 Ford Expeditions and Lincoln Navigators from the 2021 model year due to fires starting under the hoods of the SUVs. At the time, Ford had received 16 incident reports, 14 of them happening with rental vehicles. The automaker cautioned owners to park their vehicles outside and away from structures while engineers figured out what was happening and how to fix the problem. Since that May announcement, five more fires have been reported, four of them rental vehicles, and there's been one burn injury. The company announced it understands the problem and has a fix, at the same time widening the scope of potentially affected vehicles. Instead of recalling 39,013 units built between December 1, 2020, and April 30, 2021, the recall now includes 66,221 vehicles assembled from July 27, 2020, to Aug. 31, 2021. The suspected culprit is a circuit board provided by a supplier that changed manufacturing location during the pandemic. Ford's press release on the matter stated that "circuit boards produced at this facility are uniquely susceptible to a high-current short." The affected vehicles are fitted with either an 800-watt or 700-watt cooling fan system. About a third of the recalled population are fitted with the former, and should get a quick fix at the dealer. On these SUVs, techs will inspect the battery junction box. If they find evidence of melting, they'll replace the whole box. If not, they'll simply remove the engine fan ground wire that runs to the battery junction box; since this ground relay is redundant, the change doesn't alter operation of the fans.  Owners with the 700-watt system might need to wait until September for a fix. These vehicles need an auxiliary relay box with a wire jumper, but the parts aren't available now.   Ford's notifying all owners via the FordPass app, and will follow up with owners of the 700-watt cooling system once the parts are in stock. Until their vehicles are fixed, Ford says the SUVs are safe to drive but that they should still be parked outside and away from structures. The somewhat mixed messaging — 'Yes, your cars are safe to drive, but they could catch fire so don't park them near anything flammable' — encouraged a group of owners to file suit against Ford. Owners with questions can contact Ford customer service at 866-436-7332 and reference recall No. 22S36.

Art students explore what a Lincoln might look like in 2040

Lincoln gave students at the ArtCenter College of Design an unusual challenge. It asked them to sketch their idea of what its cars will look like in the year 2040, and it instructed them to team up with students specializing in other fields (including film and illustration) to create a short movie that depicts their concept, the environment it operates in, and the folks who drive it. Over a year in the making, the final submissions have been presented to the public. "More than just the vehicles themselves, we were looking for that great narrative development, that rich storytelling. It's so important to understand the future ecosystem in which a concept vehicle will live," explained Jordan Meadows, the global strategic design specialist for Lincoln, in a statement.  Four teams of students participated in the project, which Lincoln called Quiet Flight 2040. Students received a basic set of guidelines that helped them create what the Ford-owned firm referred to as "the ultimate beautiful gliding human sanctuary," a term that's intentionally open to interpretation. Four body styles were chosen: a two-passenger car, a four-passenger vehicle, a different four-passenger model with a higher, SUV-like ride height and a six-seater. Participants created the concepts from scratch and showcased them in short films. The design studies are crammed with futuristic features, including autonomous driving systems, a technology that displays images on the dashboard, touchscreens embedded into the door windows, and a lounge-like interior that wouldn't look out of place at the Consume Electronics Show (CES). One is a crossover with a fastback-like roof line, another is a stately sedan, a third is an elegant coupe and the last is a van-like vehicle that looks like nothing Lincoln has ever built before. Nothing suggests these concepts will be built, let alone approved for production. What's certain is that, from a student's perspective, Lincoln's future looks a lot different than Polestar's. Volvo's upmarket offshoot held a similar contest in late 2020, and the finalists returned with a sci-fi blimp, an electric yacht and an autonomous pod. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Lincoln Aviator Back Seat Review | Autoblog