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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.

Feds looking into Ford Explorer exhaust leak complaints

There may be a burgeoning problem with exhaust leaks in the 2011-2014 model year Ford Explorer. The National Highway Traffic Safety Administration is examining multiple complaints of a gasoline smell in the cabin of these SUVs. However, the exact cause of this problem is still unknown.
"The agency is reviewing all available data and will take appropriate action as warranted," said a NHTSA spokesperson in an email to Automotive News. Owners seem to generally complain on the regulator's website of the smell entering the cabin through the air vents. At this time, the government organization has not yet opened an official investigation into the problem, though. When it does begin inspecting vehicles, NHTSA posts a detailed breakdown of its public data online.
Similar problems have been reported about the Explorer in the past, though. In 2013, Ford issued a recall for the 2013 model year of the SUV due to a fuel leak that could cause drivers to smell a gasoline odor and repaired them again later for another possible leak. In response to Autoblog's questions, Ford responded via email: "We are not aware of a NHTSA investigation. We are currently reviewing the case and in the event that any action is required, we will address it promptly."

Ford will keep Escape and MKC plant open an extra week to meet demand

Crossovers keep selling like popular pastries, and for Ford, that means it needs to keep production going. The company announced that, rather than the usual two-week shutdown, its Louisville, Ky., assembly plant will be open for one of those weeks. The plant builds the Ford Escape and Lincoln MKC, which Ford reports have had record sales. According to Ford, Escape sales through May are up 3 percent, and MKC sales are up 10 percent compared with last year. In total, the Escape has sold about 130,000 units through May, and the MKC has sold around 11,000. Keeping the Louisville plant open will allow the company to build an additional 8,500 vehicles. Ford stated that all other assembly plants will continue with the two-week shutdown as scheduled. Related Video: Featured Gallery 2017 Ford Escape: First Drive View 24 Photos Image Credit: Drew Phillips Plants/Manufacturing Ford Lincoln Crossover SUV Economy Cars Luxury lincoln mkc