Jul 12th, 2008 by RJ Menezes
In a move that has surprised many folks in the auto industry, Ford Motor Co. has made the announcement that they are suing the United States government. The company is alleging the IRS owes the automaker $445.3 million(!) in interest on tax overpayments.
The lawsuit, filed in U.S. District Court in Detroit on Thursday, follows a long-running dispute between Ford and the IRS over how interest should be calculated for excess tax payments. The IRS has no comments on the matter and has yet to make a public response.
Ford, which posted losses totaling $2.7 billion last year, and recently abandoned its long-standing goal of returning to profitability in 2009, said the interest owed stems from tax overpayments in 1994, 1992, and the period 1983-1989.
In the meanwhile, Ford has been cutting factory and white-collar jobs and shifting production toward smaller vehicles in response to the U.S. market downturn. This new lawsuit is just another sign of how bad things are, especially since I doubt that it would exist if the state of things was better.
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