US fines Ford $365 million for illegal vehicle imports from Turkey

In the United States (US), Ford has been fined $365 million for illegally importing motor vehicles from Turkey.

WHY WAS IT BEING TRIED?

According to BBC Turkish, the case against Ford was dropped after the company reached an out-of-court settlement with the Department of Justice. Ford was being tried on the grounds that it had installed temporary seats in the back of cargo vans imported from Turkey between 2009 and 2013 to bring them into the country as passenger vehicles, thereby paying a 2.5 percent customs duty instead of 25 percent.

Of the total fine, $184 million was for the collection of unpaid customs duties, while the remainder was imposed as a penalty for the irregularity.

The US Department of Justice had determined that 163,000 Transit Connect vehicles were brought into the country in this manner, and that the seats were removed as soon as they entered the country, converting them into van-type vehicles with only two seats in the front. The company, however, argued that the rear seats were genuine.

Ford had wanted to take the matter to the Supreme Court in 2020, but after the court refused to hear the case, the company announced in 2021 that they could face fines of up to $1.3 billion.

SHARES LOST VALUE

US customs officials had determined that the seats of the vehicles in question were removed after they were brought into the country and that they were sold as vans.

Following the announcement, Ford shares lost 0.5 percent of their value.

News Source: 12punto