Ford sues the U.S. government for $445 million
07-13-08, 08:59 AM
#1
Guest
Posts: n/a
Ford sues the U.S. government for $445 million
Ford sues the U.S. government for $445 million
FoMoCo has sued the U.S. government. Yes you read that right. FoMoCo is suing the government alleging that the IRS owes them $445.3 million interest on tax overpayments. The lawsuit was filed on Thursday in the U.S. District Court in Detroit.
The suit comes after a long dispute between FoMoCo and the IRS over how much interest should be calculated for overpayments. According to Automotive News, an IRS representative declined to comment.
For June 2008, Ford reported a 28 percent decline from the same period an year ago. The automaker, like every other automaker, saw a major decline in SUVs and pickup sales.
Ford reported a loss of $2.7 billion last year. It said the interest owed from overpayments is from 1992, 1994 and the period from 1983 through 1989.
http://www.egmcartech.com/2008/07/11...or-445-million
FoMoCo has sued the U.S. government. Yes you read that right. FoMoCo is suing the government alleging that the IRS owes them $445.3 million interest on tax overpayments. The lawsuit was filed on Thursday in the U.S. District Court in Detroit.
The suit comes after a long dispute between FoMoCo and the IRS over how much interest should be calculated for overpayments. According to Automotive News, an IRS representative declined to comment.
For June 2008, Ford reported a 28 percent decline from the same period an year ago. The automaker, like every other automaker, saw a major decline in SUVs and pickup sales.
Ford reported a loss of $2.7 billion last year. It said the interest owed from overpayments is from 1992, 1994 and the period from 1983 through 1989.
http://www.egmcartech.com/2008/07/11...or-445-million
07-13-08, 07:02 PM
#4
Lexus Fanatic
iTrader: (20)
I disagree. While their truck sales are down they're still HUGE and their cars and CUV sales have been improving. The big problem is still too many employees and overcapacity. Ford also has a stake in Mazda, which although small, is doing VERY well.
07-13-08, 07:02 PM
#5
Lexus Fanatic
iTrader: (20)
07-13-08, 07:29 PM
#6
If ford continues to lose billions of dollars every year and their bread and butter The f-150 has slipped to #2 now behind the Camry times aren't looking good for Ford.
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07-13-08, 07:36 PM
#8
Lexus Fanatic
I also disagree. Ford has sold off some of its most unprofitable divisions and is in the process of selling off or negotiating on others. It is now concentrating more on cars and crossover vehicles instead of large gas-guzzling trucks and SUVs in the American market, after decades of doing just the opposite. True, large Expeditions and F-150s were profitable, but their sales are drying up with high gas prices, and Ford realizes this.
True, Ford still has a few problems. Despite generally improving reliability records, the fit/finish of many of their vehicles, paint jobs, interior trim materials, and, in some cases, brakes, are below average. Mercury has been criticized, with some justification, as an unnecessary Ford clone division. However, I like the slightly higher trim levels of Mercury products, compared to Fords, and hope they stay in production. Ford and Mercury dealerships, on the average, don't impress me with their general sales reps and service quality....they are a long way from Lexus/Infiniti. But none of these problems, as I see it, are insurmountable or the kind that are going to make the corporation fold by 2015.
I guess we've gotten a little off the topic of Ford's lawsuit and tax claims, but, obviously, if Ford wins this case, it will be in even better financial shape.....and, of course, less likely to fold.
Last edited by mmarshall; 07-13-08 at 07:44 PM.
!!!!! Then they should be penalyzed just like they would penalize us, if we were behind on paying what's owed.
07-13-08, 07:55 PM
#11
If Ford has been owed money for 25 years why are they just talking about it now. Do you think they are crying foul since the Government didn't bail them out like they did with the airlines.
07-13-08, 08:07 PM
#12
Lexus Fanatic
iTrader: (20)
Suing the govt is EXPENSIVE. I expect Ford's been after a settlement for years without major legal action, but they need the money more than ever, so they're going for it. I wish them well. The IRS is EVIL.
07-13-08, 08:21 PM
#13
Keeper of the light
iTrader: (17)
Ford is looking to cut their losses by 1/5th here and if they are owed it...... good on them.
They built this nation with their revenue.................feeding taxes to the government for 100 yrs isn't exactly asking for much to grab a small chunk back that they are owed.
Matter of fact if I generated 100 years of economic revenue creating a large portion of the US growth and they told me to go stuff it over a few years of overages I'd sellout to the Chinese just to **** them off rather than file bankruptcy.
07-14-08, 06:01 AM
#15
At least GM actually is working their way up. Ford will fall first, they sell junk and their service techs are horrible. The steering column on the MAzda 6 literally pops when turned and they cant "FEEL" it. My best bet is that it wasnt loobed-up well.