2014 Ford Fusion Se 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 bringing 10 custom Transit Connects to SEMA

With 57 vehicles planned for its SEMA display, it comes as little surprise that Ford has plenty of teasers for its show cars. After showing us what it has in store for the Mustang, Fiesta and Focus ST, now we're getting a look at some of the custom creations based on the redesigned 2014 Transit Connect van.
These nine Transit Connects are decked out to various degrees of customization, but our favorite might be the chopped and lowered Transit Connect from Mob Steel (shown above), which has a similar slammed stance that we see on some custom VW Buses. On the opposite extreme, LGE & CTS Motorsports has jacked up a Transit Connect to make a Cross Country cruiser that we wouldn't mind taking on a road trip.
There are seven other teasers from various companies, and you can check them all out in the gallery above or in the press release below. Ford is also promising a tenth Transit Connect for SEMA, so stay tuned for that as well.

Lincoln electric SUV to use Ford-backed Rivian's 'skateboard' chassis

DETROIT — A battery-powered Lincoln SUV, due in mid-2022, will be the first Ford Motor Co. vehicle built on a custom electrified chassis that resembles a skateboard, which was developed by Ford-backed startup Rivian, according to several people familiar with the program. The all-wheel-drive Lincoln SUV could compete against Rivian's R1S, an electric sport utility vehicle slated to go into production in early 2021 that will be priced from $72,500. Both models will use Rivian's so-called skateboard, a flexible platform that combines electric motors, batteries, controls and suspension. On Tuesday, Ford declined to comment. Rivian did not respond to a request for comment. The new Lincoln, which carries the internal program code U787, also could compete with premium offerings from others, including General Motors Co <GM.N>, which plans to introduce at least two new electric SUVs by 2023, one for Cadillac and one that could revive the Hummer name, sources have said. Ford invested $500 million in Rivian this year and plans to help it begin production next year at a former Mitsubishi plant in Normal, Illinois. When Ford made the investment, it said it would use Rivian's skateboard to develop its own electric vehicle, but did not disclose details. It is not clear where Ford intends to build the Lincoln SUV, which will be among the first of several battery-powered utility vehicles planned for Ford's premium brand in North America and China, according to supplier sources familiar with those programs who asked not to be identified. Ford expects to introduce a compact Lincoln electric crossover in late 2021 or early 2022 and a mid-size companion in 2023, the sources said. The U.S. auto industry plans to invest billions of dollars over the next few years to build all-electric pickups and SUVs, sectors of the market that have been among the most profitable, especially for Detroit-based automakers. But analysts have questioned whether demand from consumers and commercial customers will come close to matching production. Founded in 2009, Rivian has raised $1.9 billion from investors, including e-commerce giant Amazon, which has ordered 100,000 electric delivery vehicles from Rivian. The first Amazon vans will be built in Normal and are to be delivered in 2021. Ford aims to sell an electric F-series pickup in late 2021, sources have said.