The Truth About Cars » chicken tax http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Thu, 17 Apr 2014 15:28:27 +0000 en-US hourly 1 http://wordpress.org/?v=3.8.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » chicken tax http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Junkyard Find: 1982 Subaru BRAT http://www.thetruthaboutcars.com/2014/02/junkyard-find-1982-subaru-brat/ http://www.thetruthaboutcars.com/2014/02/junkyard-find-1982-subaru-brat/#comments Wed, 05 Feb 2014 14:00:33 +0000 http://www.thetruthaboutcars.com/?p=733825 15 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee MartinWith so many old Subarus in Denver wrecking yards, I do run across the occasional BRAT. We’ve seen this ’79 and this very rare Sawzall Edition ’86 so far in this series, and today we’ll be looking at a well-used ’82 that still has the very rare lawsuit-inducing jumpseats in the back.
14 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee MartinYes, those Chicken Tax-skirting jumpseats that made the BRAT, legally speaking, a car instead of a truck were loose in the bed of this Subaru when I found it a couple weeks back.
13 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee MartinI thought about buying the seats for my Dodge A100 van, but they’re missing the headrests and one of the grab handles, plus the floor-mounting brackets were beat to hell.
12 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee MartinThese cars rusted very quickly, though Colorado’s arid climate spared this one from full-on Michigan-grade cancer.
10 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee MartinNice BRATs are worth quite a bit these days. Thrashed ones are worth scrap value.
05 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee MartinStrangely, I saw three vehicles with variations on this sticker during this trip to the junkyard. There’s meaning there somewhere.

01 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 02 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 03 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 05 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 06 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 07 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 08 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 09 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 10 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 12 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 13 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 14 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 15 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 16 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 17 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 18 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 19 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 20 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 21 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 23 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 24 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin 25 - 1982 Subaru BRAT Down On the Junkyard - Picture courtesy of Murilee Martin ]]>
http://www.thetruthaboutcars.com/2014/02/junkyard-find-1982-subaru-brat/feed/ 39
My Fellow Americans, Our Long National Game Of Chicken May Be Coming To An End http://www.thetruthaboutcars.com/2013/08/my-fellow-americans-our-long-national-game-of-chicken-may-be-coming-to-an-end/ http://www.thetruthaboutcars.com/2013/08/my-fellow-americans-our-long-national-game-of-chicken-may-be-coming-to-an-end/#comments Wed, 07 Aug 2013 18:55:48 +0000 http://www.thetruthaboutcars.com/?p=498552 Rooster_Cat

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.

The Detroit News reports that the so-called “chicken tax”, which has been in effect since 1963, is very much on the table as the United States attempts to negotiate a “Trans-Pacific Partnership” with Japan and ten other Asian countries. Apparently we’re looking for some Japanese barriers to trade to be dropped in return. It should be noted at this time that, under previous administration, the official position of TheTruthAboutCars regarding barriers to American products in Japan could best be summed up as “Japan is a completely open market just begging for loads of imports from other countries and it’s all America’s fault that people don’t buy your crap.” Our current editorial position on this is, ah, somewhat more flexible.

Who would the winners and losers be from the removal of the tariff? Well, Mahindra and a few other manufacturers might take another stab at this market. European vans like the Jumpy and Kangoo and whatnot, particularly those assembled in Turkey and other low-cost nations, might get a look in as well. So prices would likely drop a bit and customer choice would increase. That’s a good thing.

Domestic truck manufacturers, including Honda/Toyota/Nissan, would see lower transaction prices but it’s unlikely that any of them would return truck production to Japan. For those of you who haven’t tuned in lately, a whole bunch of the ol’ quantitative easing and various financial disastrous stuff have combined to take their toll on the almighty dollar and make our country, ’tis of thee, a bit of a low-cost production area. Honda’s so firmly based in the United States that it’s hard to imagine the company ever moving any production of anything back to Japan. This is unlikely to cost American jobs to any significant degree, particularly now that Ford’s tooled up Kansas City to build the full-size Transit.

We’ll keep you posted on developments as they occur. In the meantime, if you’ve always dreamed of a Skoda Praktik or something like that… hold tight, but don’t start counting your chickens.

]]>
http://www.thetruthaboutcars.com/2013/08/my-fellow-americans-our-long-national-game-of-chicken-may-be-coming-to-an-end/feed/ 272
We’re Not Getting The Holden Ute, But Not For Reasons You’d Expect http://www.thetruthaboutcars.com/2013/06/were-not-getting-the-holden-ute-but-not-for-reasons-youd-expect/ http://www.thetruthaboutcars.com/2013/06/were-not-getting-the-holden-ute-but-not-for-reasons-youd-expect/#comments Mon, 03 Jun 2013 15:59:37 +0000 http://www.thetruthaboutcars.com/?p=490631 ge5547549213459505029

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?

The latest round of bollocks concerns the Holden Ute, another car that tickles the fancy of enthusiasts on all sides of the globe, but would be a commercial nightmare if they ever tried to export it to America. One Australian publication is now claiming that a guerilla marketing campaign showing Mark Reuss lapping the Nurburgring in a brand new Ute is part of a ploy to export the Ute to America. Of course, other car blogs have been lathering themselves up into a frenzy over the prospect of a very expensive quasi-pickup that they will not purchase once it gets here.

Holden claims that there will be some kind of major announcement regarding the Ute next month. I’m going to be the first to say it will not be related to any Ute exports. There are two simple reasons here: the US-Australian dollar exchange rate is abominable as far as exports are concerned, and there is likely little to no demand for a very pricey product that is neither fish nor fowl. Who is going to pay $50k for Corvette powered pseudo-pickup wearing a Chevrolet badge. Did we discuss the UAW’s reaction to an Australian built pickup, or the whole “cannibalizing GM’s new ‘lifestyle pickup’ thing “either? Both of those matter, but would require their own articles to really get into.

One thing that is not a factor is the chicken tax. Not long ago, Holden used the chicken tax as an excuse for why it’s been unable to export Utes to America. TTAC commenters soon produced plenty of evidence showing that Australian cars and ”light commercial vehicles” (i.e. pickups and Utes) can be brought to America duty free. So that excuse is out. I feel for Holden though. The Australian domestic car industry is going down the tubes, their signature product is about to become just another boring front-drive appliance and all they want to do is send some good product to world markets.

The problem is nobody wants it. No matter how loud the internet cries out for it.

]]>
http://www.thetruthaboutcars.com/2013/06/were-not-getting-the-holden-ute-but-not-for-reasons-youd-expect/feed/ 125
Why Detroit Is Chicken About Free Trade Agreements. And Why Korea Hates Them Too Now http://www.thetruthaboutcars.com/2013/03/why-detroit-is-chicken-about-free-trade-agreements-and-why-korea-hates-them-too-now/ http://www.thetruthaboutcars.com/2013/03/why-detroit-is-chicken-about-free-trade-agreements-and-why-korea-hates-them-too-now/#comments Mon, 18 Mar 2013 18:19:00 +0000 http://www.thetruthaboutcars.com/?p=481627

 

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.

Imports to Korea Jan/Feb 2013
Jan/Feb %Share
Volkswagen  GRP 6,846 29.9%
BMW GRP 6,476 28.3%
Mercedes-Benz 3,343 14.6%
Totota  GRP 1,666 7.3%
Ford 1,030 4.5%
Honda 866 3.8%
Fiat-Chrysler 743 3.2%
JLR  GRP 621 2.7%
Nissan  GRP 585 2.6%
PSA  GRP 444 1.9%
Volvo 200 0.9%
Cadillac 64 0.3%
Mitsubishi 17 0.1%
Subaru 0 0.0%
Grand-Total 22,901 100.0%

It just so happens that the four are the most successful importers to Korea, accounting for 80 percent of car imports. After free trade agreements with the EU and the U.S. were enacted, exports took surprising turns. Car imports to Korea were up 23 percent in January and February, amounting to 12.9 percent of total sales, compared with only 4.9 per cent in 2009. Korea’s total exports to the EU increased by only 1 percent in the first year after the trade pact came into force, while trade from Europe to Korea rose 37 percent.

American carmakers are not under suspicion of collusion, no wonder; they did not have a big impact on Korea. Biggest American importer to the nation is Ford, up 72 percent.

Ford is against free trade agreements, especially with Japan, and calls the negotiations a “masquerade,” Reuters says. Stephen Biegun, Ford vice president of international governmental affairs, still blames the nasty Japanese for a closed market they say is wide open. There is zero import tax on cars to Japan, and even if the alleged non-tariff barriers are gone, it won’t make Biegun happy. He said change must reach into “the very bowels of the Japanese economy.” And because the Japanese will object to foreigners reaching into their bowels, Biegun will continue to complain.

Refreshing honesty comes from a surprising camp. Four dozen democratic lawmakers wrote a letter to President Barak Obama, warning against a free trade agreement with Japan. The alleged closed market found only passing mention. The lawmakers don’t worry about exports to Japan. They are worried about imports from Japan. Says the letter:

“In an industry with razor-thin profit margins, the elimination of the 2.5 percent car tariff (as well as the 25 percent truck tariff) would be a major benefit to Japan without any gain for a vital American industry, leading to more Japanese imports, less American production and fewer American jobs.”

What Detroit is REALLY worried about is a fall of the Chicken Tax. Detroit has a near monopoly on trucks, which drive its profits.

There is one part about free trade agreements automakers the world over love: A harmonization of standards. Biegun said that the cost of designing and producing according to separate EU and U.S. safety standards was between $3 billion and $6 billion, different environmental rules added a cost of $1.5-2 billion.

 

]]>
http://www.thetruthaboutcars.com/2013/03/why-detroit-is-chicken-about-free-trade-agreements-and-why-korea-hates-them-too-now/feed/ 61