1995 Lincoln Town Car Executive Limousine 4-door 4.6l on 2040-cars

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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:

Lincoln announces its first EV will be built on Rivian platform

Confirming months of reports, Lincoln announced that its first fully electric vehicle will be based on the Rivian electric platform. That platform will underpin the Rivian R1T pickup truck and R1S SUV. Lincoln didn't specify whether this EV will be a car, truck or SUV, but all signs point to an SUV. The company highlighted its revamp of crossover and SUV models and how they've helped increase the brand's sales. Rivian's CEO R.J. Scaringe also said previously that it would build an SUV for Lincoln. In that same report, Scaringe noted that the Lincoln electric SUV would launch sometime in 2022, and it would be built at the factory in Illinois where it will also build the R1T and R1S. The R1T and R1S are expected to go into production at the end of 2020. Based on what we know about the Rivians, it could have a range from 230 to 400 miles and output as high as 800 horsepower from a quartet of motors. The production of the Lincoln electric SUV on the Rivian platform in the Rivian factory may also be a factor in Rivian lowering the prices of its vehicles. The base R1T was initially priced around $70,000 and the base R1S at around $72,000. But with the addition of the third Lincoln variant, now has more vehicles to recoup development costs. Related Video:    

Lincoln MKC Concept shows real promise [w/video]

Ford's efforts to resuscitate its moribund Lincoln luxury brand began in earnest with the introduction of its 2014 MKZ sedan, a model many labeled as the marque's make-or-break offering. Of course, one model does not a comeback make, and with the MKZ just now starting to trickle into dealers, it will be some time before America's jury of consumers comes in with their judgment. More to the point, it's likely to take better than a decade's worth of products and sustained marketing effort to even begin to figure out whether Lincoln has a shot at redemption or if it will die of Mercury poisoning. After all, rival General Motors has been pouring resources into Cadillac since the late '90s, and if the sales charts are any guidance, it's still probably too early to declare its rebirth a success.
Certainly, a brand with Ford's resources, free of distractions (read: the now-defunct Premier Auto Group and various other side projects) should be able to successfully market a single luxury brand, particularly one with such a rich - if distant - history. Especially now with the Blue Oval enjoying more consumer goodwill than at any time in recent history. So let's all give Alan Mulally and friends a little room to work, eh?
We can start by focusing on the compact crossover seen before you, the Lincoln MKC Concept. Riding atop the same global C-platform that underpins the Ford C-Max, Escape and Focus, the MKC showcar here presages a production small CUV that will stick its distinctive nose into one of the auto industry's fastest-growing segments.