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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.

Cadillac Escalade gets $5,000 discount to ward off Lincoln Navigator

General Motors apparently isn't going to let early good reception for the redesigned Lincoln Navigator steal thunder from its own luxury SUV without a fight. It's offering a $5,000 discount on the purchase or lease of the Cadillac Escalade this month to any buyer who trades in a 1999 or newer Lincoln model, Bloomberg reports. GM spokesman Jim Cain told Bloomberg the incentive is being offered to keep prices competitive for the Escalade. The 2018 Navigator starts at $72,055, compared to $73,995 for the Escalade, but the outgoing version of the Navigator is selling for an average of around $53,000, compared with more than $80,000 on average for the Escalade, he said. The Escalade was the top-selling domestic luxury SUV in October and No. 4 in the segment, according to Motor Intelligence. It far outsold the Navigator, which last saw a refresh in 2015 and a full redesign in 2007. But Ford is hoping to gain back some ground with the new Navigator and updated Expedition, which also trails the Chevrolet Tahoe and Chevy Suburban in its segment. Bloomberg notes that one Morgan Stanley analyst estimates that GM owns a $2 billion annual pretax profit edge in the lucrative luxury sport utility segment. Our recent First Drive review called the new Navigator "far superior to its primary competitor, the Cadillac Escalade."Related Video:

Next Ford Raptor spotted wearing aluminum skin

Well, look at what we have here. Judging from these spy shots, Ford is indeed working on the next generation of its off-road-ready F-150 Raptor pickup truck. We've made no attempt to hide our appreciation for the Baja-style truck, which combines most of the usability of a fullsize truck with heavy-duty suspension components to make a kind of performance vehicle that is unique in the market.
What we haven't known, until now, is whether Ford would push forward with its Raptor program now that it has a completely new F-150 to serve as its base. And that's especially true since Ford made the bold move of switching the bodywork of its best-seller from tried-and-true steel to aluminum. As you can see above, the front and rear of this silver truck are clad in current-gen Raptor bodywork, while the center section that houses the occupants appears to come from the upcoming 2015 F-150.
Dissecting the views above, we note a few interesting tidbits. First, there looks to be a bulge in the truck's hood. Second, we see a new grille between the current Raptor's headlights, sporting a mesh finish and two horizontal bars. Lastly, our eyes can't help but lock in on those burly A-arm suspension pieces down below, not to mention all that ground clearance the specialty suspenders bring to the table.