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To Outfox the Chicken Tax, Ford Strips Its Own Vans
The Wall Street Journal ^ | SEPTEMBER 23, 2009 | MATTHEW DOLAN

Posted on 10/03/2009 12:44:33 PM PDT by 1rudeboy

Logic Takes a Back Seat -- and Windows, as Auto Maker Plays Tariff Games

BALTIMORE -- Several times a month, Transit Connect vans from a Ford Motor Co. factory in Turkey roll off a ship here shiny and new, rear side windows gleaming, back seats firmly bolted to the floor.

Their first stop in America is a low-slung, brick warehouse where those same windows, never squeegeed at a gas station, and seats, never touched by human backsides, are promptly ripped out.

The fabric is shredded, the steel parts are broken down, and everything is sent off along with the glass to be recycled.

Why all the fuss and feathers? Blame the "chicken tax."

The seats and windows are but dressing to help Ford navigate the wreckage of a 46-year-old trade spat. In the early 1960s, Europe put high tariffs on imported chicken, taking aim at rising U.S. sales to West Germany. President Johnson retaliated in 1963, in part by targeting German-made Volkswagens with a tax on imports of foreign-made trucks and commercial vans.

The 1960s went the way of love beads and sitar records, but the chicken tax never died. Europe still has a tariff on imports of U.S. chicken, and the U.S. still hits delivery vans imported from overseas with a 25% tariff. American companies have to pay, too, which puts Ford in the weird position of circumventing U.S. trade rules that for years have protected U.S. auto makers' market for trucks.

The company's wiggle room comes from the process of defining a delivery van. Customs officials check a bunch of features to determine whether a vehicle's primary purpose might be to move people instead. Since cargo doesn't need seats with seat belts or to look out the window, those items are on the list.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Foreign Affairs; Front Page News; Government
KEYWORDS: automakers; ford; fordmotor; recycling; stupidlaws; turkey
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Rob Stevens, chief engineer for Ford's commercial vehicles, says the auto maker decided against shipping the seats back to Turkey for use in the next wave of vans for the U.S.

"We thought going through the recycling process was best," he said. "The steel is valuable."

1 posted on 10/03/2009 12:44:34 PM PDT by 1rudeboy
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To: Toddsterpatriot; Mase; expat_panama

Hilarious.


2 posted on 10/03/2009 12:44:57 PM PDT by 1rudeboy
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To: 1rudeboy

I am encouraged. If obama care pases, there will be work arounds....................


3 posted on 10/03/2009 12:49:58 PM PDT by PeterPrinciple ( Seeking the truth here folks.)
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To: 1rudeboy

The company I work for just recieved delivery of one of these vans for use by service technicians.


4 posted on 10/03/2009 12:51:26 PM PDT by TaxPayer2000 (The United States shall guarantee to every state in this union a republican form of government,)
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To: 1rudeboy

Government, you have to love it. I feel protected already.


5 posted on 10/03/2009 12:52:10 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: TaxPayer2000

forgot to mention.....it came complete with a ladder rack on top......


6 posted on 10/03/2009 12:52:58 PM PDT by TaxPayer2000 (The United States shall guarantee to every state in this union a republican form of government,)
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To: PeterPrinciple
Some things never change.

“Tell me the rules and I'll play the game.” — anonymous

7 posted on 10/03/2009 12:58:16 PM PDT by shove_it (and have a nice day)
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To: Toddsterpatriot

8 posted on 10/03/2009 12:58:58 PM PDT by 1rudeboy
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To: 1rudeboy

If we did MORE of this, then we could put more people to work shredding car seats.

Obama, take notice! LBJ has an idea for you!


9 posted on 10/03/2009 1:07:25 PM PDT by Cicero (Marcus Tullius)
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To: 1rudeboy
If aliens came to earth, they'd think we were the stupidest people in the universe. Bizzaro world, indeed.


10 posted on 10/03/2009 1:07:42 PM PDT by Clock King (There's no way to fix D.C.)
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To: Cicero

“If we did MORE of this, then we could put more people to work shredding car seats.”

Government induced economic stimulus.


11 posted on 10/03/2009 1:13:53 PM PDT by HereInTheHeartland (Just say no to Soylent Green health care)
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To: Clock King

I never noticed until now how much Michelle Obama looks like Bizarro Lois.

BTW, Clock King?! As far as super-villains go, he’s not too fear inducing.


12 posted on 10/03/2009 1:38:32 PM PDT by Dr. Sivana (There is no salvation in politics.)
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To: 1rudeboy

Always wanted one of those...:) sadly i was a child when they were new and now well I don’t want to think about what kind of maintenance nightmare one might be.


13 posted on 10/03/2009 2:16:54 PM PDT by BudgieRamone (...or I coud've been a waiter....except I can't lift weights)
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To: 1rudeboy

Rube Goldberg Motors


14 posted on 10/03/2009 2:57:36 PM PDT by GeronL (meow)
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To: 1rudeboy

You would think that after 46 years someone might have thought this needed to be dumped?


15 posted on 10/03/2009 2:58:07 PM PDT by GeronL (meow)
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To: shove_it

There are no rules, their being made up as we go along. Business thrives on predictability so an admin that hates business won’t give them that. Just like back when FDR was President.


16 posted on 10/03/2009 3:00:01 PM PDT by GeronL (meow)
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To: 1rudeboy

Bump


17 posted on 10/03/2009 3:29:07 PM PDT by Enterprise (When they come for your guns and ammo, give them the ammo first.)
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To: 1rudeboy

You realize those vans could have been made by poor, starving underage waifs who were paid slave wages, don’t you?! Moreover, why would German chicken farmers in good conscience allow dirty, disease-ridden American chickens into their country?


18 posted on 10/03/2009 3:31:03 PM PDT by dr_who
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To: 1rudeboy
And you wonder why your cars cost so much?

You don't know the half of the BS they go through to design and build ....

BTW, this car is selling quite well. What is ugly about all of this is, with the seats it will be a niche car for customizers, small families needing a around the town scooter, and that is just for starters.

To saddle a success story with such nonsense is could be construde as a reason we have tea-parties, no common sense in Washington or in Intl affairs....

19 posted on 10/03/2009 3:37:58 PM PDT by taildragger (Palin/Mulally 2012)
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To: GeronL

Aren’t we still paying some tax on our phone bills meant to help fund the Spanish-American War?


20 posted on 10/03/2009 3:51:13 PM PDT by 1rudeboy
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