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As US exports top 2 million, is America becoming the world's source of cheap cars?

North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production

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 F-150 extended cab struggles in IIHS small overlap test

Update: Ford issued a statement to Autoblog to clarify the results of the test and dispute the IIHS repair cost estimates. A quote from a Ford representative has been added to the story. See the full statement below the IIHS press release. Of all the vehicles undergoing crash tests this year, few will be as closely watched as the new 2015 Ford F-150. That's not only because it remains the top-selling vehicle in America year after year, but also because it features an aluminum body instead of steel. While the F-150 performed well in the Insurance Institute for Highway Safety test, one factor prompted the institute to undertake a second round of testing that uncovered a problem. Like most full-size pickups, the F-150 is available in several cab styles: the regular two-door, the extended SuperCab and the four-door SuperCrew. The IIHS typically takes the most popular version of a particular model for testing, and in the Ford truck's case that meant the SuperCrew. The F-150 performed well in all the tests the IIHS put it through, including the small overlap test in which the vehicle is driven 40 miles per hour into a five-foot-tall barrier impacting the front left corner of the vehicle. Its overall performance in the tests earned the F-150 a Top Safety Pick rating, missing out on the higher Top Safety Pick + rating only because it doesn't have an automatic braking system. But how do the other versions of Ford's best-seller hold up? Given that even less popular versions of the F-150 still sell more than many other vehicles on the market, the IIHS put an extended cab through the same battery of tests. It performed comparably except in one area: the small overlap test. In that case, the extended cab model's steering column was pushed eight inches into the cabin (dangerously close to the crash test dummy's chest), the dummy's head missed the airbag almost entirely and hit the instrument panel, and the dummy's legs would risk sustaining "moderate" injuries. The reason for the disparity is that "Ford added structural elements to the crew cab's front frame to earn a good small overlap rating and a Top Safety Pick award but didn't do the same for the extended cab," according to the Institute's chief research officer David Zuby. "That shortchanges buyers who might pick the extended cab thinking it offers the same protection in this type of crash as the crew cab.