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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.

Martin Smith retires, Joel Piaskowski in as Ford Europe design chief

The mind behind the look of much of the modern Ford global range is retiring. Martin Smith, Head of Ford Design in Europe, will give up his position on July 1 and will leave the company altogether at the end of the year. He will be replaced by current Strategic Concepts Group leader Joel Piaskowski (pictured above).
Smith has led Ford of Europe design for the past 10 years, and he was partially responsible for the brand's Kinetic Design language with a large grille and swept-back headlights found on the Focus, Fiesta and C-Max, as well as several other vehicles abroad. After stepping down on July 1 until his retirement at the end of 2014, Smith will work on a project to decide the future direction of the company's look with Moray Callum, its vice president of design.
Piaskowski already has some impressive credentials in terms of automotive design as well. He joined Ford in 2010 as director of exterior design and led the teams responsible for the 2015 Ford Mustang and next-generation F-150. He was also previously design director at Ford Asia Pacific. Before working at the Blue Oval, Piaskowski held positions at Mercedes-Benz, Hyundai and General Motors. Scroll down to read the complete announcement of this changing of the guard.

Ford posts record pre-tax Q3 profit of $2.6B

Ford took in $2.6 billion in pre-tax profits in the third quarter of the year, making for a record trio of months that saw the Blue Oval's year-over-year earnings increase by $426 million. The earnings are being attributed not just to improvements in North American sales, but sales around the globe.
Revenue was up 12 percent, to $36 billion, although net income took a hit, dropping $359 million to $1.3 billion. Ford was dinged with $498 million in pre-tax charges, which are being blamed for the drop in net income.
The news has boosted Ford's hopes for full-year results, bumping it's total profits up past $8 billion, according to Automotive News. The Dearborn, MI-based manufacturer is still expecting a loss in Europe, although it's forecasted less than the $1.73 billion it burned in 2012. In fact, according to CFO Bob Shanks, Ford's European losses dropped by 51 percent year-over year, a huge improvement for the brand.