2019 Ford F-250 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:

Ford and BraunAbility team up for wheelchair-accessible Explorer

BraunAbility, a creator of wheelchair-accessible vehicles that are usually based on minivans, has teamed up with Ford to create the MXV, a vehicle the company hails as the first of its kind. In addition to the obvious exterior modifications that include sliding doors, this Explorer-based mobility vehicle has removable driver and passenger seats and a powered ramp that nestles into the vehicle's floor. Modifications to the regular Explorer platform will allow wheelchair users to operate the MXV from the driver's position with the normal seat removed, ride along as a front passenger, or enjoy 56 inches of cabin height in the middle row, which is large enough to accommodate most power wheelchairs. Best we can tell, there are no changes to the Explorer's powertrain, which means a 3.5-liter V6 engine with 290 horsepower and 255 pound-feet of torque will provide motivation, not to mention 5,000-pounds worth of towing capacity. Fuel economy from the MXV matches that of the Explorer, with 17 city, 24 highway, and 20 combined. The twin-turbo EcoBoost V6 isn't available. Unfortunately, all-wheel drive also isn't available from BraunAbility due to the lowered floor necessary to make the vehicle large enough to work as a proper mobility vehicle. Even so, the Explorer looks like a pretty nice platform with which to build such a wheelchair-accessible vehicle, with good looks, good driving manners, and the kind of rugged looks you can't find in a minivan. Expect to see the MXV at BraunAbility dealers this fall, but don't expect to be first in line. Vehicle No. 1 has been promised to wounded veteran Mike Delancey, a United States Marine paralyzed by a sniper's bullet while serving in Iraq in 2006. Take a look at the images above, and feel free to peruse the press release for all the details below. Related Video: BraunAbility – the World Leader in Mobility Vehicles – Selects Ford Explorer to Create First-Ever Wheelchair-Accessible SUV • BraunAbility introduces its first-ever wheelchair-accessible sport utility vehicle – the BraunAbility MXV™ • BraunAbility-customized Ford Explorer – the best-selling SUV in the U.S. for the last 25 years – will be the company's first mass-produced wheelchair-accessible SUV • BraunAbility revolutionized what independence means to wheelchair users, and has established itself as a world leader in the mobility business DEARBORN, Mich.

Second-tier UAW workers promoted for first time after Ford hits quota

The United Auto Workers put out a statement on Friday that 55 Ford workers chosen by seniority would be moved from the Tier 2, entry-level pay rate of around $19 per hour to the Tier 1, non-entry-level rate of about $28 per hour. One of the stipulations in the 2011 UAW-Ford agreement was that only 20-percent of the total hourly workforce could be paid the Tier 2 wages agreed upon in 2007; after that, those workers had to be moved to Tier 1. Even so, the new Tier 1 status makes them less expensive to Ford than veteran Tier 1 workers because they receive fewer benefits. However, Automotive News had reported that same day that Ford was 69 workers shy of the limit, and when AN asked Ford about the situation Ford said it had "some room" on the entry-level roster. If workers do move to the higher pay grade, it will be the first time that's happened since the two-tier system was agreed. But it sounds like there's going to be some haggling between the UAW and Ford before that happens. Ford is the only one of the Detroit 3 automakers to have to work with a cap, since it didn't go through bankruptcy proceedings during The Great Recession; General Motors and Chrysler jettisoned the cap in 2009. GM is said to have 16 percent of its hourly workers at Tier 2 while Chrysler has 42 percent, but Fiat-Chrysler CEO Sergio Marchionne has long been opposed to the two-wage system. The UAW is preparing for its 2015 negotiations with the US automakers. It wants to eliminate the difference in pay by going to the higher scale, if there is a consensus among automakers it seems to be that they also want a single wage, but less than the higher scale, with the addition of profit-based bonuses. The recent statement from the labor union is below. UAW President Dennis Williams and UAW-Ford Vice President Jimmy Settles announced today that the union is delivering on its promise to convert workers DETROIT, Jan. 30, 2015 /PRNewswire/ -- UAW President Dennis Williams and UAW-Ford Vice President Jimmy Settles announced today that the union is delivering on its promise to convert workers making entry-level wages to traditional employees. "The 2011 UAW-Ford agreement allows for a contractual limit of entry-level employees. Once that threshold is surpassed, entry-level employees convert by seniority to 'regular, non-entry level employment.' At this time, fifty-five UAW-Ford workers will receive the wage increases, which put them in the category of non entry-level employment.