2004 Lincoln Town Car 10 Passenger Limousine 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's $5B revival bid hinges upon new D6 chassis

It's no secret that Lincoln has received short shrift from the Ford Motor Company for years, and former CEO Alan Mullay even wanted to kill the whole thing off when he ran things. Today, things appear to be trending in a different direction. Fresh investment has helped enable a sizable marketing push for its well-regarded MKC compact crossover, a couple of awards for the company and plant the seeds for a major expansion into China. While the situation is still in the early going, it looks like Lincoln is on a tentative (if long) path towards a turnaround. If new reports are accurate, the brand is poised to build on that momentum with its largest investment in new products in years thanks in large measure to a new modular platform codenamed D6.
According to four unnamed insiders speaking to Reuters, FoMoCo is investing over $5 billion over the next five years, partially to create a new modular platform to underpin multiple Lincoln vehicles - and possibly some Ford products, too. Development is reportedly being overseen by the division's new boss, Kumar Galhotra. At the moment, specific details about the D6 chassis aren't yet known, but it's rumored to have the flexibility to support front-, rear- and all-wheel drive vehicles. According to Reuters, the first model using the framework could be an MKZ replacement and seven-passenger MKT successor in 2019.
Until the D6-based models hit, expect to see continued expansion from Lincoln. Ford management isn't trying to turn around the division overnight and is planning "in terms of generations of products," according to current CEO Mark Fields. The strategy unsurprisingly includes a production version of Lincoln's recent MKX Concept, as well as an all-new Navigator using aluminum-intensive architecture. Reuters also claims the MKS is due for renewal in the meantime, including with a longer-wheelbase version to appeal to the brand's new Chinese buyers.

2020 Lincoln Aviator fuel economy revealed

Ford finally revealed some of the last details, such as fuel economy, for the non-hybrid 2020 Explorer. So it's no surprise that its classier corporate twin, the 2020 Lincoln Aviator, has had its own fuel economy data released by the EPA. Though, like the Explorer, we only have information for the non-hybrid versions. The 2020 Lincoln Aviator has just two engine options, a base turbocharged 3.0-liter V6 with 400 horsepower and 400 pound-feet of torque, and the same engine coupled to a hybrid system with 450 horsepower and 600 pound-feet of torque. That base engine is the one we have fuel economy numbers for, and it's shared with the Ford Explorer ST, though the ST's version makes an extra 15 pound-feet of torque. With all-wheel drive it gets nearly the same fuel economy as the fast Ford with 17 mpg in the city, 24 on the highway and 20 in combined driving. The Explorer ST gets one more mpg in town. Unlike the Explorer ST, the Aviator does offer rear-wheel drive with this turbocharged V6. This model gets improved fuel economy of 18 in the city, 26 on the highway and 21 in combined driving. This isn't too surprising, since all-wheel-drive vehicles often do a little worse when it comes to fuel economy. We'll be especially curious as to how the Aviator hybrid performs. We doubt it will match the Ford Explorer hybrid, since that crossover relies on a less-powerful naturally aspirated 3.3-liter V6. But it might give the all-wheel-drive four-cylinder Explorer a run for its money, since the rear-drive V6 Aviator is only 1 to 2 mpg behind it. Related Video: