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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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To: 1rudeboy

I nthink so. They tried to remove it a couple of years ago but I think they devoted the fund for internet in schools or something


21 posted on 10/03/2009 3:54:07 PM PDT by GeronL (meow)
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To: 1rudeboy

“Hilarious.”

Government.


22 posted on 10/03/2009 4:12:32 PM PDT by dljordan
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To: Clock King

OMG! I remember that!


23 posted on 10/03/2009 4:13:17 PM PDT by dljordan
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To: 1rudeboy

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

I thought they were going to eliminate that. I once asked a Qwest billing agent what all the extra items were on my bill and she told me she couldn’t answer that.


24 posted on 10/03/2009 4:15:38 PM PDT by dljordan
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To: 1rudeboy
They finally killed that.

Feds cut off phone tax after 108 years

25 posted on 10/03/2009 5:10:55 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: GeronL
This particular rule goes back to LBJ - Ford is just playing the game.

I agree with you that 0bummer is now trying to dazzle us with BS.

26 posted on 10/03/2009 5:16:13 PM PDT by shove_it (and have a nice day)
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To: AdmSmith; Berosus; bigheadfred; Convert from ECUSA; dervish; Ernest_at_the_Beach; Fred Nerks; ...
vans from a Ford Motor Co. factory in Turkey
Here's an idea -- build the vans in the US.
27 posted on 10/03/2009 5:36:49 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/__Since Jan 3, 2004__Profile updated Monday, January 12, 2009)
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To: BudgieRamone
"Always wanted one of those...:)"

I was kind of shocked a few years back to learn that there was a very active restoration/collector thing for the Brat...ever since then I've wanted one too.

28 posted on 10/03/2009 5:58:58 PM PDT by norton
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To: SunkenCiv

Here’s a better idea: get the government out of the auto/truck business.


29 posted on 10/03/2009 6:01:23 PM PDT by 1rudeboy
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To: 1rudeboy

The described phenomenon has to do with trade protectionism, which is a stupid holdover and anti-conservative. Obviously the thing to do is get rid of those barriers. That will however result (in the short term) in the exporting of manufacturing jobs to the lowest cost locations, which has been happening anyway. Pursuit of lower costs led to mass-production by unskilled or semi-skilled labor at the expense of individual craftsmen.


30 posted on 10/03/2009 6:36:40 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/__Since Jan 3, 2004__Profile updated Monday, January 12, 2009)
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To: Abathar; Abcdefg; Abram; Abundy; akatel; albertp; AlexandriaDuke; Alexander Rubin; Allerious; ...



Libertarian ping! Click here to get added or here to be removed or post a message here!
(View past Libertarian pings here)
31 posted on 10/03/2009 7:34:43 PM PDT by bamahead (Avoid self-righteousness like the devil- nothing is so self-blinding. -- B.H. Liddell Hart)
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To: 1rudeboy

Bi-Racial Attack Vehicle. LOL


32 posted on 10/03/2009 7:38:49 PM PDT by headstamp 2
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To: 1rudeboy

I saw one of those just 3 weeks ago.


33 posted on 10/03/2009 7:57:51 PM PDT by gogogodzilla (Live free or die!)
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To: 1rudeboy

Taxes are like zombies, they cannot be killed.


34 posted on 10/03/2009 8:26:55 PM PDT by reg45 (Be calm everyone. The idiot children are in charge!)
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To: GeronL

Only took a 90 years for the telephone tax to fund the Spanish American war to end.


35 posted on 10/03/2009 8:37:12 PM PDT by art_rocks
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To: art_rocks

yay, war is over!


36 posted on 10/03/2009 8:39:53 PM PDT by GeronL (meow)
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To: 1rudeboy
The fabric is shredded,

Ford says some parts of my Mustang seats are made from recycled material.

37 posted on 10/03/2009 8:41:58 PM PDT by ColdWater
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To: art_rocks
There is still a 10% luxury tax on all fishing equipment including tackle boxes and lures paid by the manufacturer.
38 posted on 10/03/2009 8:55:27 PM PDT by dalereed
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To: 1rudeboy

In the 80’s there was an SUV tarrif on japanese imports. Isuzu imported the trooper without a backseat which allowed to avoid the tariff. The dealers offered the rear seat as a local option.


39 posted on 10/03/2009 8:58:03 PM PDT by Rebelbase (This is the time of year when ACORNS fall.)
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To: ColdWater

The padding inside trunks looks like it might be made from that stuff too.


40 posted on 10/03/2009 8:59:02 PM PDT by HiTech RedNeck (The Democrat party is a criminal enterprise.)
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To: SunkenCiv
That will however result (in the short term) in the exporting of manufacturing jobs to the lowest cost locations,

Just to be fair, has this story EVER played out to the long term?

41 posted on 10/03/2009 9:00:30 PM PDT by HiTech RedNeck (The Democrat party is a criminal enterprise.)
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To: HiTech RedNeck

Generally there is political intervention.


42 posted on 10/03/2009 9:22:39 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/__Since Jan 3, 2004__Profile updated Monday, January 12, 2009)
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To: SunkenCiv

The economic theory of turning America into nothing more than a global market zone would be much more appealing if we saw that actually working somewhere at sometime.

There are security reasons for wanting to keep domestic capability for certain things, though that’s not what is on Bummer’s mind.


43 posted on 10/03/2009 9:25:10 PM PDT by HiTech RedNeck (The Democrat party is a criminal enterprise.)
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To: 1rudeboy
Good thing Ford doesn't have to consult the emperor about this.

GM would never be permitted to do anything so efficient and nefariously capitalistic

44 posted on 10/03/2009 9:49:27 PM PDT by SuperLuminal (Where is another agitator for republicanism like Sam Adams when we need him?)
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To: HiTech RedNeck

America has always been part of the global marketplace, and it has always worked.


45 posted on 10/03/2009 10:00:04 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/__Since Jan 3, 2004__Profile updated Monday, January 12, 2009)
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To: SunkenCiv

That either doesn’t say much, or it’s clearly misleading.

Prior to the income tax, the federal government ran on... you guessed it... TARIFFS


46 posted on 10/03/2009 10:03:16 PM PDT by HiTech RedNeck (The Democrat party is a criminal enterprise.)
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To: HiTech RedNeck

What I said says everything, and isn’t misleading at all.


47 posted on 10/03/2009 10:14:39 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/__Since Jan 3, 2004__Profile updated Monday, January 12, 2009)
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To: SunkenCiv

No.


48 posted on 10/03/2009 10:19:32 PM PDT by HiTech RedNeck (The Democrat party is a criminal enterprise.)
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To: 1rudeboy

[[”We thought going through the recycling process was best,” he said. “The steel is valuable.”]]

Obamacare- Soilent Green is people (”We decided not to fix them up but rather that putting htem through a recycling process was best,” he said. “The food value is valuable”


49 posted on 10/03/2009 10:37:26 PM PDT by CottShop (Scientific belief does not constitute scientific evidence, nor does it convey scientific knowledge)
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To: 1rudeboy

Insanity, but not all that surprising.


50 posted on 10/04/2009 2:44:18 AM PDT by bustinchops (Teddy ("The Hiccup") Kennedy - the original water-boarder)
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