Ford could face $1B penalty after dispute over Transit Join vans


This can be a story a couple of backseat and plenty of cash.

So sit down and get snug as a result of the element reads like a movie script.

Ford Motor Co. may withstand $1.3 billion in import penalties on its Ford Transit Join vans, in accordance with a doc the automaker filed with the Securities and Alternate Fee on Thursday.

That is on high of a $196 million penalty Ford paid in 2020 to U.S. Customs and Border Safety associated to Transit Join, the corporate confirmed to the Free Press. The fee was handled as a particular merchandise in Ford monetary paperwork.  

The authorized battle is a part of a years-long tariff dispute in U.S. courts between Ford and federal customs officers that appears to be coming to an in depth with probably painful penalties for the Dearborn automaker.  

The tariffs contain Transit Join automobiles used as cargo vans by prospects. If the vans are bought as passenger vans, they’re topic to a 2.5% tax; cargo vans are topic to 25% obligation.

“The Transit Join program was designed and executed to adjust to long-standing tariff guidelines. Nonetheless, after the Supreme Court docket declined to rehear the case, Ford paid elevated duties on automobiles that had beforehand been imported to the U.S., plus curiosity,” Ford spokesman Ian Thibodeau informed the Free Press on Thursday. “We are going to rightly proceed to vigorously defend Ford’s actions right here and contest any (further) duties and penalty.”

Ford is accused of strategically attempting to skirt tariff legal guidelines.

The newest Ford submitting with the federal regulatory company known as a prepenalty discover that alerts traders to the monetary vulnerability. The vans in query had been inbuilt Turkey.





Supply hyperlink

Previous post 1999-2007 Ford Focus | Used Automobile Highlight
Next post This Ford Vendor Usually Shares 1500 Automobiles; Now They Have 30