Canada says it could rejoin the NAFTA discussion, just as the United States and Mexico approach an agreement on automobiles. The two nations engaged in bilateral negotiations a little less than a month ago, seemingly making positive headway on a trade deal.

With President-elect Andrés Manuel López Obrador assuming office in December, it’s in the United States’ best interest to close a deal as soon as possible. It’s assumed the man, frequently referred to as “AMLO,” will make sweeping changes to the Mexican government. However, he also promises to join forces with several smaller parties from both the right and left to create a coalition aimed at rooting out corruption. The resulting level of uncertainty has many fearing difficult Mexican policy changes and trade negotiations in the future, effectively forcing a restart of NAFTA talks.

According to David MacNaughton, Canada’s ambassador to the U.S., the duo are close to finalizing a deal on automotive manufacturing. If so, the Northern nation is prepared to rejoin negotiations.  (Read More…)

Japan’s automotive industry finds itself in the midst of a minor scandal. Last year, the Japanese government ordered manufacturers to investigate their operations after it was revealed that Subaru and Nissan conducting improper testing for decades. Initially, the issue seemed to revolve around a widespread laziness that allowed uncertified employees to conduct final inspection procedures. However, Subaru later admitted to employees falsifying emissions data.

While the problem does not appear to be an outright corporate conspiracy, some inspectors still decided to implement a policy they knew was against the rules to avoid questions from top brass. Likewise, senior employees advised inspectors to change test results for each vehicle that failed to meet internal quality control standards.

On Thursday, the Japanese government announced the inspection issue haS also touched Mazda Motor Corp, Suzuki Motor Corp and Yamaha Motor Co (which builds motorcycles and automotive engines). All three companies are now faulted for improper testing procedures and compliance failures.  (Read More…)

President Donald Trump was obsessed with U.S. employment long before being sworn in as Commander-in-chief. In fact, the jobs rhetoric played a major role in swaying traditionally democratic voters in states like Michigan. The promise of manufacturing positions, the kind of work American used to be known for, was too tempting for some living in the Rust Belt to ignore.

“We’re going to work on the CAFE standards so you can make cars in America again,” he told Detroit’s auto workers in March 2017, referencing the Corporate Average Fuel Economy. “We’re going to help the companies, and they’re going to help you.”

Those fuel economy rollbacks are now fast approaching, after the National Highway Traffic Safety Administration and Environmental Protection Agency released their official proposal last week. But will it truly help bolster employment rates in the United States? The answer depends largely upon who you ask. (Read More…)

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), Britain’s main industry group, claims automakers were becoming increasingly concerned with the nation’s departure from the European Union. Prime Minister Theresa May wants a solution that would allow Britain to maintain strong trade ties with the EU while allowing her country to maintain autonomy, but hasn’t found much success.

U.S. President Donald Trump claims a deal with the United Kingdom is absolutely possible, saying the relationship between the two countries is “the highest level of special” late last month. But he also noted that the EU would complicated matters if Britain adhered to its trade laws after Brexit, which is just eight months away.

The European Union doesn’t seem to want to let Britain go, and is nudging the country to stick to its rules by not venturing out to make its own trade arrangements. Critics say this effectively makes the island nation a “vassal state” to the EU, completely defeating the point of Brexit. However, many are fearful that leaving the union and ignoring its mandates could have negative repercussions in the long term — especially in regard to finance and trade.  (Read More…)

After months of discussion, circulating drafts, and arguing with the State of California, the Environmental Protection Agency and National Highway Traffic Safety Administration formally unveiled their plan to rewrite the existing corporate average fuel economy (CAFE) rules and replace them with something far less stringent.

The proposal would freeze the presiding standards in 2020 under the “Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks” plan, which is a mouthful.

It also moves to revoke California’s authority to set its own mandates, as predicted. The Golden State made it clear that it wants to maintain the Obama-era limits. However, the proposal includes a section emphasizing the importance of a single national standard, saying it would seek to withdraw the waiver granted to California in 2013.

“Attempting to solve climate change, even in part, through the Section 209 waiver provision is fundamentally different from that section’s original purpose of addressing smog-related air quality problems,” reads the proposal. “When California was merely trying to solve its air quality issues, there was a relatively-straightforward technology solution to the problems, implementation of which did not affect how consumers lived and drove.” (Read More…)

Take the following information with a golf ball-sized grain of salt. Faraday Future, the automotive startup that’s been teetering on the verge of collapse for years, says deliveries of the FF 91 will begin in December. Despite being ghost-funded by a Chinese billionaire who’s been blacklisted due to unpaid debts, losing a factory deal with the State of Nevada, witnessing a mass exodus of its staff, and accumulating heaps of debt, Faraday claims it’s ready to move forward with assembly.

You’ll have to excuse the skepticism. But the brand has burned us in the past — delivering an ambitious but incomplete prototype, loads of hype, and little else.

Saying that production is an assurance with no request for additional investment is like getting an email from a Nigerian prince who just wants you to know that he’s good on the money front and wishes you well.  (Read More…)

BMW says it will hike the price of two utility vehicles in China to cope with the additional cost of tariffs on U.S. car imports in the world’s biggest vehicle market. The models are the X5 and X6, both manufactured in South Carolina.

This news comes after China increased import duties on all automobiles from the United States to 40 percent earlier this month. China had previously said it would reduce its already high vehicle tariffs across the board as a sign of good faith — which it did, while simultaneously slapping new punitive tariffs on the U.S. Meanwhile, President Donald Trump has postponed prospective automotive tariffs while negotiations take place with Europe.

If you needed proof that a trade war is on and were wondering how automakers would handle it, look no further. BMW says it will have to raise the models’ Chinese MSRP by 4 percent to 7 percent. It’s a relatively modest increase considering how utterly massive the new import fees are, which indicates a willingness from the automaker to absorb some of the associated costs just to remain in the market. It’s something BMW is not alone in doing, and there could be a valuable lesson to be learned from that.  (Read More…)

In an earlier analysis of Ford’s lackluster share price, we noted that Europe and China posed a significant problem for the automaker’s bottom line. Europe, which was previously pretty good to the brand, has gradually lost its share of the market since 1994. While Ford still moves a lot of metal in the region, something’s definitely wrong.

On Wednesday, Ford announced that its European operations had endured a $73 million second-quarter loss. It’s anticipating a full-year loss in the region after earning $234 million last year. “We’re extremely dissatisfied with our performance in Europe,” said CEO Jim Hackett.

Something has to be done to avoid further setbacks. According to Jim Farley, Ford’s head of global markets, the clear remedy is concentrating on vans and crossovers because that’s where the money is. It’s a similar strategy to what’s being done in the United States, where Ford eventually aims to cull the lineup to a point where the Mustang is the only vehicle that qualifies as a traditional car. But is it the correct one, considering how we’ve arrived at this point?  (Read More…)

Daimler AG unveiled a new corporate structure on Thursday that splits its core businesses into a three legally independent entities, with one of the arms focusing entirely on mobility and financial services.

It’s a sign of the times as automakers press ever deeper into an uncertain tomorrow, all thanks to mobility and data services. “The new structure positions Daimler to tackle the rapid pace of change in the mobility sector and the corresponding strategic challenges,” explained Supervisory Board chairman Manfred Bischoff. “Legally independent divisions will sharpen our focus on the future success of the business.”

This is no small feat, as altering the structure involves reassigning more than 700 Daimler subsidiaries in over 60 countries. After which, Mercedes-Benz AG, Daimler Truck AG and Daimler Mobility AG will operate as one under the Daimler AG umbrella.  (Read More…)

President Donald Trump agreed on Wednesday to refrain from imposing car tariffs while the United States launches negotiations to cut other trade barriers with the European Union. After a meeting at the White House, Trump and European Commission President Jean-Claude Juncker agreed to begin talks that would also seek to resolve U.S. tariffs on steel and aluminum, as well as retaliatory duties from Europe.

It’s the first lull we’ve seen in the trade war in a while. Meanwhile, Chinese trade relations remain as bitter as ever.  (Read More…)

Remember the multi-million dollar corruption scandal involving UAW officials? Apparently, it was even more corrupt than previously reported. While the UAW-Chrysler National Training Center is suing both Fiat Chrysler and the union members involved, recent developments point to the money scheme being greenlit by former UAW President Dennis Williams.

As part of a plea agreement filed this week, ex-labor official Nancy Adams Johnson told investigators that Williams specifically directed union members to use funds from Detroit’s automakers, funneled through training centers, to pay for union travel, meals, entertainment, and more. If true, the accusation not only implicates the UAW of corruption at the highest level but also the potential involvement of staff from both Ford and General Motors — something the FBI is already looking into.

I believe the official industry term for something like this is a “shit show.”  (Read More…)

Remember how everyone talked about autonomous vehicles like they would deliver humanity into a cleaner, safer future where all the disgusting trappings of our past would be a distant memory? It’s not playing out quite like that. In fact, as the reality of self-driving cars inches ever closer, we’re seeing weird corporate partnerships and companies looking to make a buck anywhere they can as the consumer serves double duty as master and commodity.

If you need a present-day example, look no further. Waymo, the autonomous arm of Google parent Alphabet Inc., is launching a pilot program this summer that intends to shuttle passengers to Walmart and other partner locales. Members of the firm’s “early rider program” will be able to catch a ride to the retail outlet after using its online component to place an order (which qualifies them for discounts in the future).

While the goods are being prepared at the store, Waymo will dispatch a self-driving Chrysler Pacifica to the customer in order to bring them to it — sort of like a reverse delivery service. However, Walmart is far from the only corporate partner Waymo has right now.  (Read More…)

Andrew Wheeler, the acting head of the Environmental Protection Agency, said the United States needs a single standard for fuel efficiency for cars and trucks on Tuesday. It’s a sentiment shared by Mary Nichols, head of California Air Resources Board, but it’s likely to put the two at odds. Wheeler said the pair shared that singular goal based off a meeting held last week, but California isn’t seeking the same benchmarks as the current administration.

The state objects to the EPA’s plan to weaken Obama-era efficiency targets, and is currently in the midst of a political and legal battle with the agency. However, Wheeler confirmed that, under his watch, the group would continue seeking a “50-state solution.”  (Read More…)

Ford Motor Company announced Tuesday that it has formed formed a subsidiary — Ford Autonomous Vehicles LLC — devoted entirely to autonomous vehicle development. That’s probably the catchiest name we’ve heard since Bank of America Corp or Waste Management Inc. However, you don’t need a clever moniker when you’re dumping $4 billion into a project, which Ford intends to do through 2023.

With all the current drama and distrust surrounding self-driving cars, we thought there was a chance automakers would cool off on pushing for it so aggressively. But while some OEMs curbed their futuristic rhetoric ever so slightly, practically everyone else kept the pedal to the metal — an analogy that will lose all meaning once computers drive us everywhere.

Let’s see what The Future™ looks like in and around Dearborn.
(Read More…)

We’ve mentioned Chinese startups working on electric vehicles in the past. You’ve got the American-based (but Chinese-owned) Faraday Future that couldn’t pay its bills, its big brother LeSEE (which is facing similar troubles), the performance-focused NIO, the luxury-minded Byton, the German-named Weltmeister, and a handful of others making ink every so often.

While EV startups from other countries (Tesla, Rimac, etc.) garner their own headlines, it’s more common to see a Chinese startup angling for media exposure as of late.

Of course, established automakers are busy setting up their own electric divisions to fulfill the nearly absent Western consumer demand for EVs. They’re gambling on a future where electrification replaces internal combustion, but nobody is betting more on “green” than China. As of today, it’s estimated that the country has 487 electric car companies, and the nation feels this still isn’t enough. Holy shit.  (Read More…)