Tax Dodging - Ford Could Face $1B Federal Penalty Over Transit Connect vans

SID297

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Cliff's - Ford tried to avoid the 25% import tariff (chicken tax) on trucks and cargo vans by installing a temporary passenger seat in the back of the Transit Connect Cargo Van (made in Turkey), then removing it once it cleared US Customs. That cheap bench seat which didn't match the rest of the interior allowed them to only pay a 2.5% tariff.

The full article:

Ford may face $1B penalty after dispute over Transit Connect vans

Here's a good video explaining the situation:


Here's a review we did of the Transit Connect Cargo Van. It's a really good little truck:

 

7998

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We still have ours, 140k miles and counting. Had an issue with 6th gear covered under warranty.
 

Black02GT

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Huh, well that explains the crappy jump seat in the back of Nissan vans.
 

Silverstrike

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And this is why there was no way GM was ever going to import the Holden Utes into the states no matter how hard all the tire kicker ( phantom buyers) screamed as they knew it would of been a disaster as only a fraction of them would of been sold with that 25% tariff in place.
 

CobraBob

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Ouch! Well, Ford had to have known the risks if caught by the Feds, so while it’s a hefty fine they are likely prepared for it. JMO.



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GTSpartan

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The optics are bad and ford won’t risk being publicly dragged through the mud as a “tax cheat”. They’ll negotiate a settlement and pay a fine.
 

SID297

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This will be in the court system for decades since it was technically legal.

Are you sure about that? It seems the pertinent part of the regulation is "principally designed for passenger transport." How do you define "principally designed"? If I were a jurist task with defining it I may ask myself things like; if Ford ever offered the van to the public in the as-imported configuration, and if so what was the ratio of that configuration sold versus the cargo version.

There's two issues at play. The judge will have to define exactly what "principally designed" means, then the tryer of fact will have to determine whether Ford lived up to the definition. I have a feeling this one doesn't pass the smell test.
 

Great Asp

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I bought one a couple years ago for the service department. It has been reliable and only the big boys do not like driving it. (cuz they are BIG boys).

E
 

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