It looks like the White House won’t be needing to take any action in response to the International Trade Commission’s decision on how to handle the feud between South Korea’s LG Chem and SK Innovation. The duo has reached a settlement that would allow the former battery manufacturer to complete assembly on its $2.6-billion plant located in Georgia.

LG alleged that SK had stolen intellectual property and the ITC was backing punitive measures that would have forbade the latter company from importing certain lithium-ion batteries into the United States under a 10-year exclusion order. While exemptions were made for the components necessary to manufacturer them in the country, the arrangement was tied to SK’s existing orders and limited to just 4 years. The settlement gives SK additional leeway and prevents Joe Biden from having to consider the possibility of blocking the ITC decision as a way of maintaining American jobs.  (Read More…)

Those of you tracking the semiconductor shortage can probably take it easy for a while, as practically every industry group on the planet has tentatively agreed we’ll be seeing a chip deficit for a few years. Meanwhile, market analysts are trying to predict the next material we won’t have enough of and rubber is looking like an ideal candidate.

Rubber supplies are drying up and price increases are reportedly beginning to climb at an untenable pace. Despite several years of relatively stable availability and low prices, supply chain disruptions created by lockdowns have left latex harvesters in a bad position. Low prices encouraged many to over harvest their existing crop, rather than invest in farmland. But with shortages looking probable as countries began responding to the pandemic, China went on a buying spree to maintain a robust national stockpile in 2020. The United States was late to the party and now finds itself in a position where scarcity is driving rubber prices through the roof just when it needs to buy more.

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While automotive enthusiasts have mixed opinions on the cultural clout of electric vehicles, there’s one aspect of electrification that’s undeniably cool — the resto-mod potential. Despite the historic appeal of driving around in vintage automobiles, they’re often painfully slow with ridiculously long braking distances and a lack of standard features many people living today would deem unacceptable. If you don’t believe me, select a random friend and ask them to parallel park a car without power steering or automatic transmission. Chuck in maintenance costs that are often well above average and it’s little wonder why so many Baby Boomers have been spending their retirement years outfitting the classic-era (or older) cars they grew up with with modern conveniences and components.

But we’ve also started seeing manufacturers (and even some intrepid entrepreneurs) taking the foundational concepts of resto-modding and adding electric propulsion. Some executions even seem to be pushing the boundaries of what we could effectively call automotive restoration, like Hyundai’s Pony Heritage EV.  (Read More…)

Last week, Lexus launched a viral marketing campaign — that also makes for an excellent public service announcement — about how stupid it is to check your phone while driving. But it has only just started getting the kind of attention it deserves, now that some of the contentious regulatory news has subsided.

The automaker modified a Lexus NX crossover with an electrochromic film that can totally obfuscate the glass for 4.6 seconds — which is the average length of time a person looks at their phone while driving, according to the National Highway Traffic Safety Administration (NHTSA). It then invited people to take the car for a “test drive” while it made a point about distracted driving. While an overt publicity stunt, it was rather effective and addresses one of our biggest concerns in terms of automotive safety. Lexus simply showcased a bunch of morons with phones in an interesting way, highlighted the danger, and then got off its podium. (Read More…)

The China Association of Automobile Manufacturers (CAAM) is reporting its home market grew 74.9 percent in March, resulting in nearly 2.53 million new-vehicle deliveries. While we’re often skeptical of the organization’s rosy predictions and tallies, it’s claiming the recent sales surge is the direct result of how bad things had been in the previous year. China instituted some of the most aggressive lockdown protocols of any nation in the initial stages of the pandemic and had already been struggling with a declining vehicle market in 2019.

CAAM is making no illusions about the gains being based on anything other than how horrible March of 2020 was and doesn’t want to overpromise moving ahead. It’s a warning that the semiconductor shortage will likely worsen as the year continues, dampening Q2 projections. But the organization has not yet revised its forecast for next year’s overall sales. Last December, CAMM predicted roughly 26.3 million vehicles would be delivered by the end of 2021 and appears to be running with that target.

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Ford will be ignoring the typical two-week summer shutdown this year as a way to make up for production downtime caused by the semiconductor shortage. That’s undoubtedly going to complicate some vacation plans. But Blue Oval has already given loads of workers time off and has more downtime planned through April and now that the necessary factory maintenance can be accomplished while assembly lines are idled during supply chain issues, leaving employees to schedule any time off through their local union.  (Read More…)

The Biden administration expanded on its $174 billion proposal to boost electric vehicle sales on Thursday, suggesting that the United States government make it rain money on those purchasing EVs.

Technically a part of the $2.3 trillion infrastructure plan, which has been expanded to include jobs and numerous environmental projects, the proposal makes a lot of special exemptions for alternative energy vehicles backed by large financial commitments. $100 billion will be set aside for new consumer rebates, potentially opening up the door for manufacturers that have already exhausted their quota of federal tax credits linked to zero-emission cars.  (Read More…)

Mercedes-Benz had an enviable first-quarter and managed to find itself back on top of U.S. luxury sales, icing out its chief rival BMW after two years of living in its shadow. Mercedes reportedly sold 78,256 vehicles within the first three months of 2021, thanks largely to its crossover vehicles.

It’s a year-over-year increase of 16 percent and helps to explain why the brand is relegating the CLS to a single trim while expanding its options for heavy hitters like the GLC Class. But Mercedes’ recent success may have more to do with the way the luxury segment is rebounding as a whole. As pedestrian models are finding themselves coming out of the pandemic with fewer customers, especially of the subprime variety, high-end luxury brands are enjoying clearer skies.

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If you were in the market for a midsized luxury sedan from Europe, you could certainly do worse than the Mercedes-Benz CLS-Class. While it sacrifices a bit of interior volume for the sake of style, it remains an opulent and sedate experience for the driver with just enough performance to keep the office commute from becoming dull. Of course, those seeking enhanced trills could pay AMG to transform the sedan into the 429 horsepower CLS53. But it has been retired for the 2022 model year, along with the base CLS450 with rear-wheel drive.

That just leaves the CLS450 4Matic, which Mercedes has given some new accouterments — perhaps to take the sting out of the company dumping the more interesting trims.  (Read More…)

With environmental regulations being a cornerstone of the Biden-Harris platform, the administration’s newly installed Environmental Protection Agency head has signaled that changes are coming over the summer. However, before that can take place, Administrator Michael Regan said wants to make some big changes within the agency that he believes will bring it back to the way it operated before being restructured by the Trump administration.

In the meantime, the EPA will be actively revising the previous president’s relaxed fuel economy standard designed to give the industry some flexibility in terms of keeping larger vehicles and traditional powertrains on sale — something we’ve covered repeatedly as it ended up being the proverbial football in the highly political American gas war. Considering Mr. Regan’s history of praising California’s climate response and energy protocols, his allegiances in the conflict should be obvious. However, he has also suggested that the EPA needs to make decisions on what’s feasible, indicating he may not push for extreme measures. Though he has not drawn any lines in the sand when it comes to potential bans of internal combustion vehicles or stringent penalties for power plants and oil refineries.  (Read More…)

American automotive brands have never really caught on with the typical Japanese consumer. While we’ve done numerous dives trying to understand why the gist is that our tastes don’t typically overlap and they generally prefer to buy domestic. Foreign marques are comparatively rare, frequently German, and are generally owned by those looking to flex their status with an imported luxury vehicle.

U.S. brands that were on the market began retreating as they began pulling smaller automobiles from their lineup. But Jeep has stuck it in there and things are reportedly beginning to pay off. The automaker’s distinctive styling seems to be resonating with people in Asia and it’s really the only historically American nameplate that’s managed to find an audience in the Land of the Rising Sun.

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The Alliance for Auto Innovation (AAI) is hard at work begging the federal government for help while the world continues coping with the semiconductor chip shortage, though it’s hardly the first time the industry has asked for or received administrative assistance. With pandemic lockdowns throwing global supply chains into a tailspin, U.S President Joe Biden said his administration would be seeking $37 billion and new legislation to address the chip shortage while federal agencies were directed to see what could be done in the interim.

But there’s little to be done with the brunt of the relevant manufacturing taking place in Asia, hence the AAI lobby requesting U.S. Commerce Department set aside some cash for domestic chip production in a new bill.  (Read More…)

The subprime auto market looks to be in poor health as the number of borrowers with outstanding loans that are more than 60 days overdue continues increasing. While the number has a tendency to rise and fall between seasons, the general trend toward indebtedness has been going up since 2015, with increasingly more customers boasting lackluster credit scores becoming incapable of footing their transportation bill.

Delinquencies skyrocketed in 2020, as government lockdowns pushed many out of work and now appear to be increasing due to a recovery plan that primarily seems to be serving cooperate interests and the wealthiest socioeconomic classes. Though it should be said that middle and lower-class families had been losing ground for decades, at least according to the latest Pew Research data. Pandemic-related complications only served to accelerate the existing financial disparities on all fronts. We are now on course for poorer people to have even less money moving forward, especially in the world’s most developed countries.

I wonder why so many people are defaulting on their car loans… (Read More…)

When the 2022 Subaru BRZ debuted last year, our general impression was that the second-generation coupe didn’t appear all that different from the original. While excellent news for those seeking a well-balanced, lightweight sports car that can be driven aggressively on public roads or serve as a solid foundation for any number of track-focused build projects, the manufacturer decided against throwing out curveballs. The car’s purpose remains unchanged, it’s just been remade into a better version of itself. But the BRZ’s fraternal twin, the Toyota GR 86, had a few more weeks in development with President Akio Toyoda rumored to have been pushing for modifications that would help differentiate the two models — much like the automaker did with the similarly related Toyota Supra and BMW Z4.

While limited to the same hardware as the Subaru, Toyota is claiming the new GR 86 makes a tad more horsepower and is hinting it could be the more serious sporting machine. Both of those claims remain unverified and, if the duo is anything like their first-generation, deciding which is the faster 2+2 car will have almost everything to do with which rubber is on the wheels and who’s been placed into the driver’s seat. But the pilot will have an alleged advantage of 4 horsepower in the 86, forcing the BRZ to bring in Subaru Tecnica International (STI) aboard to offer some enhancements of its own.

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American automakers can usually count on selling just below 3 million vehicle sales in China every year. While that figure includes the caveat that the Chinese Communist Party requires foreign manufacturers to partner up with established local companies, it remains substantially larger than the number of cars Chinese brands manage to move in the United States per annum — which is effectively zero.

From BYD to Zoyte, just about every large Chinese manufacturer has issued a deluge of promises about breaking into our market over the last decade — including most of the names we’ll be mentioning below. Consider this sort of the “Where Are They Now?” of evergreen automotive content about regional disparities. Because very little has moved in regard to China’s involvement with the North American auto market and the current geopolitical climate doesn’t make us think that’s likely to change anytime soon.

But it hasn’t been for a lack of trying.  (Read More…)