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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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To: Clock King
As Ruby explained to the haughty Aurorian, "Sure, we're the laughingstock of the Galaxy. But at least we're trying!"

From the ZBS production The Adventures of Ruby: Glactic Gumshoe.

61 posted on 01/11/2010 7:38:10 AM PST by Erasmus (She was a BBC newsreader, marrying above her station.)
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To: 1rudeboy

I had one of these for a short time. Dealer messed up the motor doing a tune up and it started burning oil. Got rid of it and went back to Fords.


62 posted on 01/11/2010 8:28:05 AM PST by OrioleFan (Republicans believe every day is the 4th of July, democrats believe every day is April 15)
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To: SunkenCiv

Fordlandia worked for a while.


63 posted on 01/11/2010 8:36:02 AM PST by OrioleFan (Republicans believe every day is the 4th of July, democrats believe every day is April 15)
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To: 1rudeboy

And people will entrust their healthcare to the adminstrators of
“the chicken tax”.

Welcome to the age of EXTREME madness.


64 posted on 01/11/2010 8:54:03 AM PST by VOA
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To: SunkenCiv

“Here’s an idea — build the vans in the US.”

-

Yeah no kidding. We are committing national suicide. And so many otherwise patriotic, sensible conservatives are without thought, advocating for and cheerleading the process, of destroying US jobs.

AMERICA FIRST.


65 posted on 01/11/2010 9:01:25 AM PST by Cringing Negativism Network (2012: Repeal it all... All of it!)
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To: OrioleFan; Cringing Negativism Network

Thanks, reviving old topics is supposed to be *my* job. ;’)


66 posted on 01/12/2010 7:26:34 PM PST by SunkenCiv (Happy New Year! Freedom is Priceless.)
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To: SunkenCiv

Just think of us as life support for old topics.


67 posted on 01/12/2010 9:25:13 PM PST by OrioleFan (Republicans believe every day is the 4th of July, democrats believe every day is April 15)
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