As reported by the official website of Ford and was quoted by Reuters, the cancellation of orders going to the Fiesta model of 1600 cc engine. This model is a car still charged by taxes.
More than 600 potential customers out of it a Ford Fiesta hatchback car was bought in Thailand. Car sales were inhibited following a new regulation regarding car tax in the land of white elephant.
While in Thailand, Fiesta enthusiasts with 1600 cc engine capacity reached nearly 70 percent of all sales Fiesta in Thailand.
the cancellation of orders for the Ford Fiesta due to a new regulation regarding car tax
The new tax rules that apply in mid-September it said, that the car is eligible for tax incentives is a 1500 cc engine car down. These incentives are given to the first car owners who buy cars with good fuel efficiency and produce less carbon dioxide emissions.
This means that Ford failed to lobby the local government to change the criteria of the affected car tax rules.
Ford CEO Alan Mulally even had time to fly from U.S. to Thailand to meet PM Yingluck Shinawatra to woo the government.
Ford claims, although the 1600 cc engine, the car is quite economical petrol and produce less emissions than its competitors which have engines below 1,500 cc.
"The cancellation of this order clearly demonstrates the unintended consequences of policy ownership of this first car," said President Ford for the ASEAN Peter Fleet.
