Along with a trio of models that it builds in Mexico and sells in the U.S., The Blue Oval has been facing new tariffs on one other vehicle, in particular – the Lincoln Nautilus, which just received a redesign for the 2024 model year. As part of that major update, Lincoln Nautilus production moved to China, where it’s currently built and imported into the U.S. – making it susceptible to some rather high tariffs that U.S. President Donald Trump just imposed on that country. Despite this, Ford has no plans to move production of the Lincoln Nautilus from China, it seems.
“We continue with our shipments, we haven’t made any changes to our production and we have good stock,” outgoing Lincoln President Dianne Craig told Automotive News at a media event recently. “Right now we’re just trying to learn more and scenario-plan for how we can work through it. At some point, yes, it might be likely that we’re going to have to take some level of pricing, but we also know we have to understand what happens with the competitive environment, we have to understand how much can consumers actually absorb, how much can we pass along, and it really comes down to where the tariff lands. It remains to be seen. The question will be how much and when?”
The Lincoln Nautilus is now subject to a 125 percent tariff in the U.S., but Craig added that the luxury brand isn’t too impacted on the flip side, as it builds all of its models sold in the domestic Chinese market in that country – except for the Navigator, which sells in relatively low volumes.
Meanwhile, Ford continues to work to mitigate the impacts of these tariffs after Trump paused most of them for 90 days, albeit, not for the automotive industry. The automaker has resigned to the fact that it will have to pay tariffs on imported automobiles and major components, but is lobbying the Trump administration to reduce or eliminate levies on low-cost parts build in other countries using cheap labor – a problem that even stands to impact its OEM EV charging adapter, too.
Comments
And sales will head to zero, especially once potential buyers discover the China connection, which won’t be a secret any longer.
It’s not a secret now and anyone can see where it is built on the manufacturer and window sticker.
Every time you comment I just laugh at how idiotic you are.
You are 100% correct.
What happened when Apple iPhone customers discovered the ‘China connection’?
No secret Suzy
At some point these dimwitted executives will come to realize that for any tariff relief, a good chunk of production will have to be repatriated to the US. As it stands now they’re almost cutting off their noses to spite their face.
The Nautilus is nearly impossible to re-patriot because the supply chain is locked up in China, especially the Hybrid engine. It would be too expensive for a low volume vehicle, especially since they don’t have a suitable US plant. Unless Tariffs ease (which seems likely), they would have to discontinue the Nautilus entirely and move onto one of Ford’s electric platforms. They are losing the Corsair plant to the new EV platform as well so that’s another fire to put out if they also lose Nautilus. Ford is just not developing the platforms Lincoln needs right now, they are mostly focused on trucks and off-roaders.
Ford is shortsighted converting Louisville to EV production. Like GM, they are going to replace product that turns 200k units a year with one that would be lucky to generate a quarter of that. It seems like Ford and GM are in a race to see who can destroy their respective companies the fastest.
Best before date for the “big three” just got a lot closer. Good riddance.
Ford does have Bronco Sport and Maverick as an alternative to Escape. Ford is really lacking affordable EVs with a lean vertically integrated supply chain that they can make closer to home. As trade borders go up, I think the move at Louisville with the Skunkworks EV is brilliant timing…for once! I just worry they aren’t planning for enough scale with enough model diversity. I think 120K/annual is what they have planned, which doesn’t leave allot of room for Lincoln if they are to take advantage of that platform and facility.
Flat Rock has been underutilized for over a decade. Should have made that a dedicated Lincoln plant.
It is selling well as a new model, have to see if they can keep the price down. Quiet and very smooth ride.
I personally can’t see how Lincoln can survive with the limited number of models they have. They will lose the Corsair after this year with no planned replacement. The Nautilus’s price will have to be increased due to tariffs probably to the point where it’s unaffordable for most folks and the sales volume of the Aviator and Navigator isn’t enough to keep Lincoln afloat. Lincoln has been very quiet about product plans for the next 5 years and introducing a new EV or two will not produce enough sales volume to make up for the loss of the Corsair and reduced sales for the Nautilus. I just can’t see a way forward for the brand. Hope I am wrong
The ‘OUTGOING’ Lincoln President Dianne Craig should have kept Nautilus production at Ford’s Oakville Assembly Complex in Ontario Canada.
It costs a lot more than people realize to retrofit a factory and resourse distribution. Ford is gambling on the Nautilus that this trade war is short lived. We all should hope that is the outcome. If it goes longterm, than Ford is making a mistake and will pay the price. As a Corsair owner I am dissapointed with their decision to kill the Escape/Corsair. But even with that, the wheels have been turning to transition to bev and it cannot just be stopped even though Trump thinks it can be. Do I think they are wrong big picture, yes.. I do. They should have retro fitted factories, they should have continued to build the big Mexican factory several years ago and they should continue to make all of the cars plus BEV. With that, lets remain optimistic that this trade war will be relatively short. Companies cannot just build factories and replace distribution sourses over night.
The trade war’s here to stay. The US with its trillions of dollars of trade deficits has been dumped on for too long.
I really enjoy my 2020 Nautilus, and it has been one of the best cars I have ever owned. But, Ford made a serious mistake in eliminating the Edge and Nautilus joint production. I am never going to buy a truck or a battery car. (I was born a male)
Why in the heck, would Ford ever relocate an entire assembly plant to China? Doesn’t seem right. A communist enemy of the United States. Like Richard above, I own a 2020 Nautilus (not made in China ) and totally enjoy it. A very popular well built vehicle.
Shortsighted CEOs that are only concerned with the next quarter’s profits and their next bonus.
My dealer advised that his Chinese built Nautilus stocking order has been cancelled. The Nautilus should be built in the same place the old EDGE was built. I suspect Ford will be bringing that production back home. I also think that future prospects for selling American cars built in China will be a dead business soon.
Nautilus= China = no buy !
With 145% tariffs on any product imported from China, MSRP (and destination charge and no options) of this vehicle will be well over $100,000, I would be very surprised if sales of this vehicle exceed 1000/year.