FCA Proposes a Merger with Renault

ShinerBock wrote:

wilber1 wrote:
Then why have the tax stall if it doesn’t make any difference?

To protect American jobs, and more specifically union jobs. That is the reason why the UAW negotiated the chicken tax with LBJ and why they continue to lobby for it. They may not get all of the factories unionized, but the chances are greater to get a factory unionized if you force truck makes to build in the US versus overseas.

The chicken tax was NOT created by the manufacturers to protect their market share and profits. It was created by the UAW to protect their market share and profits.

I know why it its there but if you are handed a 25% advantage over a competitor you wouldn't take some of that in profit? The UAW and the industry are the same thing. You can't say it protects the union and not the companies as well. The original target of the tax was the VW van.