White 2005 Ford Excursion Eddie Bauer Diesel 4x4 on 2040-cars

Auto blog

Ford taken to task by gov't for Chicken Tax end-around

Ford is in a bit of a pickle for importing and selling Turkey-built Transit Connect cargo vans as passenger vehicles in the US, then converting them to commercial-vehicle specification stateside in an effort to bypass a 25-percent tax imposed on vehicles imported for commercial use. Automakers are required to pay a 2.5-percent tax on imported passenger vehicles.
The Blue Oval got into trouble for this in a January ruling in which U.S. Customs and Border Protection officials asked Ford to stop the practice of importing the Transit Connect vehicles with passenger seats, then removing and shredding them. Now Automotive News reports that Ford is appealing the ruling. The 25-percent "Chicken Tax," as the tariff is often called, is 50 years old and was enacted as a response to a German tariff on chickens. Like Ford, Chrysler bypasses the higher tariff, but it does so in a different manner. It partially disassembles Sprinter cargo vans before shipping them to the US, then rebuilds them at a plant in South Carolina.
But the ruling against Ford's strategy states that it "serves no manufacturing or commercial purpose" and is there to "manipulate the tariff schedule," Automotive News reports. As Ford's appeal goes through, it is importing the Transit Connect and paying the higher tax, hoping for a favorable outcome and planning to build the next-generation Transit Connect, which it plans to launch before the end of the year, in Spain.

Ford shares falling on news of lower-than-expected profits next year

Ford has released projections for its 2013 profits, along with predictions of its 2014 earnings, and the news has forced the company's stock to stumble, falling over seven percent as of this writing. The Blue Oval is expecting earnings of $8.34 billion for 2013, although the bulk of that is coming largely from its North American operations, as troubles abroad continue to take a toll.
Calling 2013 an "outstanding" year, Ford expects its revenue to be up about 10 percent, thanks to gains in market share everywhere but Europe. But it's 2014 predictions that are causing stock prices to fall, as the Dearborn-based manufacturer expects pre-tax profits to fall to $7 to $8 billion, because of troubles in both Europe and South America, according to a report from Reuters. This is despite an expansion plan that will see it open an additional factory in the southern hemisphere, as well as two plants in China, all in a bid to launch 23 new or refreshed products next year.
The issues in South America aren't so much related to a fall in sales - Ford expects improved profits in Brazil and Argentina - but because of currency devaluations in Venezuela that are projected to cost it around $350 million. While that would still allow it to break even with 2013, Ford cites continued economic risks that could push losses even higher.

Expert: 54.5 mpg CAFE standard can be reached without many plug-ins

Johnson Controls executive Brian Kesseler isn't likely to get any holiday presents this year from Nissan chief Carlos Ghosn or Tesla Motors head Elon Musk, but lots of other folks might be happy with what he has to say about automakers' efforts to reach stricter fleetwide fuel-economy standards. Speaking at the Automotive News World Congress, Kesseler said automakers wouldn't need to sell an extensive number of plug-in vehicles in order to meet the 54.5 mile per gallon Corporate Average Fuel Economy (CAFE) standard the US government set in 2012 for 2025 model-year vehicles. In fact, he said, components such as stop-start engine technology, turbochargers and direct injection may actually do the trick. Already, things like smaller engine sizes and lighter cars are already playing major roles in spurring fuel-efficiency gains. Of course, Johnson Controls sells batteries specially built for stop-start systems, so Kesseler does have a bit of skin in this game. The 54.5-mpg CAFE standard equates to about a 40-mpg "real world" fuel-efficiency level. To put that into perspective, the Environmental Protection Agency (EPA) said in a report late last year that model-year 2013 average fuel economy was an even 24 mpg. That was up from 23.6 mpg for the 2012 model year and 22.4 mpg for 2011. News Source: Automotive NewsImage Credit: AP Government/Legal Green Ford Fuel Efficiency mpg CAFE standards ecoboost johnson controls