Volkswagen’s head in the United States says that the company would give thought to bringing the Amarok pickup truck to the U.S. if the so-called Chicken Tax is repealed. In the 1960s, President’s DeGaulle and Johnson got into a spat and in response to a European tax on American chickens, the U.S. instituted a 25% tariff on a number of items including light trucks, probably targeted at the VW Bus.
Tag: chicken tax
I come to praise the chicken tax, not to bury it. In exchange for the short-term consequence of a few people paying too much for Toyota trucks with insta-rust beds, this country managed to acquire a pretty substantial infrastructure to build “foreign” automobiles while still providing jobs to Americans. It even helped the Japanese automakers, who managed to survive the 1985/1986 spike in the yen without abandoning the US market because they were largely in the process of moving production to the Southern states.
In recent years, however, the 25% tariff has come to be ever-so-slightly irrelevant, primarily affecting buyers of the Ford Transit Connect who can’t figure out why there are wrench marks on the floor of their brand-new cargo vans. And now it might be gone for good.
Every so often, the same tired rumor will pop up again, like a particularly resilient pimple that habitually reappears in the same conspicuous spot. Thanks to the incessant hunger for clicks among auto websites, these rumors refuse to die, no matter how asinine they are. How many times have you seen a “BREAKING” or “EXCLUSIVE” story on the next Toyota Supra or some absurd BS fabrication regarding a diesel Mazda MX-5?
It’s not just the UAW that is upset about free trade agreements. The Koreans are likewise. The offices of the Korea Automobile Importers and Distributors Association were raided by investigators of the country’s Fair Trade Commission, the Financial Times reports. The agency alleges that BMW, Mercedes-Benz, Volkswagen and Toyota Motor were involved in price collusion. (Read More…)