Buyer Claims Ford Owes Him a Cut of $1.3 Billion Tariff Refund

Customer Complains...

This year, the U.S. Government promised to refund automakers for the import tariffs they paid. Ford, in particular, accumulated a total return bill of $1.3 billion. That money could help put Ford in the green and in a better position for profitability before the end of the year.

However, one plaintiff has filed a case against Ford, arguing that consumers are also entitled to a share of the tariff refund because the cars they purchased from the Blue Oval had inflated sticker prices that accounted for the import duties.

Proposed Class Action

Detroit Newspicked up this story. The plaintiff is a California man who says that he paid extra for his new Ford Mach-E, which is made in Mexico. Because it is an import, taxes and duties had to be paid, and the Ford dealer that sold him the unit built the additional costs into its price.

When the plaintiff purchased the car, he shouldered the additional cost, but now that Ford is set to receive a tariff refund from the Federal Government, the plaintiff is seeking a cut of that refund. The proposed class action was filed in federal court in Michigan and alleges that Ford Motor Co. passed the tariff costs on to customers, resulting in inflated prices and destination fees for vehicles imported into the United States, such as the Ford Mustang Mach-E crossover.

Jason Bullock, the Californian based in San Diego, said he bought a brand-new Mustang Mach-E in February and paid a price that included the additional import tariffs. The issue is that Bullock will have to get his tariff refund from Ford themselves, which is to say, the importer of record that paid. The lawsuit claims that customers and clients who shouldered the additional tariffs need to receive that money back, requiring Ford to hold on to its refund and save it for the affected clients.

Ford's Been Quiet

It seems unfair for Ford to pocket the refund and leave its consumers with a worse deal. Essentially, Ford would have netted a double recovery by charging consumers extra to absorb the tariffs, rather than Ford Motor Co.

The American automaker hasn't announced a refund program of its own, and on our end, there is no news on what the Blue Oval intends to do with the $1.3 billion it's set to receive from the feds.

Ford's refund could still be in process, but the source reports it is intended to boost the Ford Blue and Ford Pro segments. A company spokesperson, Richard Binhammer, stated that "they are reviewing the complaint."

View the full article