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Trump threatens huge tax for Mexican-built Fords

Donald Trump announced his candidacy for president on Tuesday. So what would be one of the first things he would do if elected? Tax the heck out of Ford. According to The Detroit News, Trump advocated instituting a specific tax against Ford products built in Mexico during a speech in New York. Rather than incentivize US production, the outspoken billionaire's proposal would penalize Mexican-built Ford vehicles and parts by 35 percent upon purchase. That would ostensibly raise the base price of a Mexican-built Ford Fiesta from $13,965 to over $18,800, and a Lincoln MKZ from $35,190 to over $47k. He apparently made no mention of applying the same or a similar penalty to other vehicles or products imported across the border, or from other countries, raising serious questions about the legality and feasibility of instituting and enforcing the proposed measure. Trump's remarks arrived against the backdrop of a shift in automobile production from the United States into Mexico – and specifically Ford's recent announcement that it was investing $2.5 billion and creating 3,800 jobs for its Mexican operations. Of course the Blue Oval isn't the only automaker shifting production across the border and still invests heavily in its US operations. "We are proud that we have invested $6.2 billion in our U.S. plants since 2011 and hired nearly 25,000 U.S. employees," Ford spokesperson Christin Baker told The Detroit News. "Overall, 80 percent of our North American investment annually is in the U.S., and 97 percent of our North American engineering is conducted in the U.S." Though Trump has generally stood against over-taxation, he's been a staunch critic of free trade agreements like NAFTA that shift American jobs overseas. Fortunately for Ford, though, America's combover-in-chief stands about as much chance of being elected to the White House as Dearborn stands of reviving Mercury or Edsel. Related Video:

Car companies used to cook up sales with recipe books

The evolution of automotive marketing has undergone a number of strange phases. Few, though, match the strangeness of the 1930s to 1950s, when automotive marketers turned to cookbooks as a means of promoting their vehicles. Yes, cookbooks. We can't make this stuff up, folks.
This bizarre trend led to General Motors distributing cookbooks under the guise of its then-subsidiary Frigidaire. Ford, meanwhile, offered a compilation of recipes from Ford Credit Employees (shown above). The cookbook-craze wasn't limited to domestic manufacturers, though. As The Detroit News discovered, both Rolls-Royce and Volkswagen got in on the trend, although not until the 1970s.
The News has the full story on this strange bit of marketing. Head over and take a look.

China takes lead as GM's No. 1 market

It's happened. General Motors' biggest vehicle market - at least in terms of new model sales - is China. According to TheDetroitBureau.com, GM and its various Chinese joint venture operations enjoyed a 10.6-percent sales increase in the first half of 2013, selling almost 1.6 million units in the market. That puts GM China about 200,000 units ahead of its US sales totals over the same period - this, despite indicators that the communist nation's economy is losing momentum.
TDB notes that like GM, rival Ford has also enjoyed a robust 2013 in China thus far, with its sales up a whopping 47 percent to 407,721 units sold - 75,254 of them in June alone. Between the two US automakers, passenger car sales for the first half of 2013 are up around 14 percent, well ahead of the rest of the industry's 10-percent growth estimates for the market. Some of the sales growth may come as a result of an overall anti-Japan sentiment in China, though the American brands have long outsold their Japanese counterparts in the country.
By The General's own predictions, China will only continue to grow in sales importance. The company has designs on selling over five million cars a year in the market before the end of the decade, a total that figures to dramatically widen the gap versus its US totals - even if America's auto market makes a full recovery to the the salad days of over 17-million units a year.