Lariat on 2040-cars

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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 readying three-row Edge for China

The next-generation Ford Edge will be available with quite a growth spurt for its debut in China next year, with newly announced plans also to build and sell a three-row version exclusively in the People's Republic. However, markets outside of there likely won't see the larger model. Ford marketing boss (and future head of Ford of Europe) Jim Farley announced the three-row version of the crossover at the Los Angeles Auto Show, according to Automotive News. To create the extra room, Ford made the Chinese-built variant about 16 inches longer than its two-row counterpart. Farley didn't specify at which of the Blue Oval's plants in the country this model would be assembled. The Explorer and forthcoming Everest already offer three rows from the Ford lineup in China, but the company thinks the market can easily support all of them. According to Farley to Automotive News, the utility segment is up 485 percent in the country since 2008. Customers in the US can still look forward to the two-row Edge hitting dealers early next year. It'll be the first model in the Blue Oval's lineup here to come standard with EcoBoost power.

40+ cars that barely avoid the gas guzzler tax

The Gas Guzzler schedule, with mpg ratings and charges that haven't changed since 1991, lays out which fuel-swillers owe what to Uncle Sam.
I started thinking about the "Gas Guzzler Tax" - considerably less well known as The Energy Tax Act of 1978 - when I was driving Dodge's new Challenger SRT Hellcat last week. Unsurprisingly for a car that can burn 1.5 gallons of gas per minute at max tilt, theoretically able to empty a full tank of premium in about 13 minutes, the Hellcat will be subject to the Gas Guzzler Tax schedule when it goes on sale.