As the United States considers imposing new tariffs of up to 25 percent on imported automobiles and parts, the industry has rallied together to stand against the proposal. Manufacturers already made individual cases for themselves and are now dropping very bleak-sounding industry projections on the U.S. Commerce Department in the hopes of changing the administration’s mind.

However, President Donald Trump continues to promote the imposition of tariffs to force a sort of economic justice. For years, China’s protectionist policies regarding automobiles forced American manufacturers to build inside its borders and partner with Chinese firms for years. That’s something Trump claims could be a national security risk. China also recently upped its tax on American-made autos to 40 percent, shortly after promising to lower them. Meanwhile, Europe still holds a consistently higher tariffs on imported cars than the U.S., except for light trucks.

Commerce Secretary Wilbur Ross seems aware that China may have gamed the system in its favor, but appears less convinced that it’s a matter of national security. On Thursday, during a hearing on the probe into the industry, he said it was “too early” to say what the United States would do. Meanwhile, auto groups continue to make their terrifying case. (There’s also quite a bit of rolling PR in downtown D.C. today, as you’ll see below.) (Read More…)

Following Andrew Wheeler’s appointment as acting head of the Environmental Protection Agency, he extended an invitation to the California Air Resources Board to discuss emission regulations — a matter which former EPA administrator Scott Pruitt seemed less inclined to discuss with the state.

Mary Nichols, chairman of the board, said Wheeler reached out to state officials and the pair agreed to hold a meeting in Washington. It’s a slight easing of tensions in the cold war between D.C. and Sacramento. (Read More…)

The phrase “Nisan just built its one-millionth Juke” would probably be the first question on a Voight-Kampff test for automotive lovers residing in North America. The information is totally incompatible with everything you thought you understood about the world around you, and processing it begins scrambling your brain as you frantically hunt for an escape from it. An open window? The sweet release of death?

Relax. While the news is scary and difficult to comprehend, don’t forget that there is an entire world out there with a populace that’s not subject to the same predilections as ours. The Juke may have been too funky to become a massive hit in the United States and Canada, but it had a few good years and Nissan planted seeds all across the globe.

Japanese sales of the model almost matched the U.S., despite having a comparatively minuscule population. Volume also exceeded expectations in Europe, and China has a weird luxury version of the Juke called the Infiniti ESQ. But it wasn’t a good fit for North America and sales suffered as a result, forcing Nissan to call in the Kicks as the Juke’s successor after annual deliveries started plunging a few years ago.  (Read More…)

General Motors has officially confirmed the discontinuation of the Chevrolet City Express work van, which the automaker has sourced from Nissan since 2014. Its sister vehicle, the Nissan NV200, is one of the many vehicles you see serving as a replacement for the Ford Crown Victoria in New York City’s taxi fleet.

However, the City Express is a vehicle you’ve probably never noticed, as they don’t sell particularly well. General Motors moved 8,348 in the United States for 2017, which — believe it or not — was one of its better years. Meanwhile, Ford had a pretty mediocre year with its Transit Connect, managing only 34,473 deliveries. It looks like General Motors is willing to concede the segment to its Blue Oval rival as the NV200 soldiers on sans the Chevy badge.  (Read More…)

Subaru is a once-tiny manufacturer that grew in leaps and bounds thanks to high demand from the United States. The automaker is the eighth best-selling brand in the region, despite being a scrappy upstart, and has managed multiply its volume many since the 1990s. But, like any business loaded into a cannon with the word “success” emblazoned on the side, it can’t continue streaming through the clouds indefinitely without encountering some turbulence.

Subaru may be in for troubled times. (Read More…)

The past week has seen a flurry of trade trade announcements — none of them particularly promising for the United States. After a brief moment where President Donald Trump’s tariff threats seemed to have a positive impact on the European Union, Germany threw new support behind China as the People’s Republic issued a stunningly large 40-percent retaliatory tax on vehicles imported from America.

While Europe and the U.S. still might work out a zero tariff deal on automobiles, the recent activity has led Trump to respond with another warning. He now claims if the region cannot engage in fair trading practices with the United States, he’ll further restrict imported cars. (Read More…)

China and Germany signed a collection of commercial accords valued at $23.5 billion this week. Meanwhile, the nations’ leaders publicly affirmed their commitment to a multilateral global trade order, while the United States adopts a more protectionist policy.

“We both want to sustain the system of World Trade Organization rules,” German Chancellor Angela Merkel said during a press conference. Chinese Premier Li Keqiang, also present, agreed and stated protectionism must be prevented for the good of the global economy.

Chinese President Xi Jinping has already pleaded for governments to maintain an open trading policy. “We reject selfish, shortsighted, closed, narrow policies, [we] uphold World Trade Organisation rules, support a multi-lateral trade system, and building an open world economy,” Xi said in an incredibly hypocritical speech from last month.  (Read More…)

After Volkswagen’s diesel emissions scandal came under public scrutiny, numerous industry analysts prophesied it would not be an isolated incident. Cheating had been done in the past, and would likely continue into the future. In fact, numerous experts claimed every major automotive manufacturer probably engaged in illicit behavior to some degree. With so many laws and employees who may be interested in shirking them, it’s bound to happen time and time again.

On Monday, Nissan Motor Co. admitted it improperly measured exhaust emissions and fuel economy for 19 vehicle models sold in Japan. Late last year, Nissan and Subaru both confessed that they had allowed uncertified technicians to conduct finial vehicle inspections. Initially, the issue seemed like a harmless oversight, but in some cases the failing went unnoticed for decades, resulting in falsified data as a way to cut corners. Both Mitsubishi Motors and Suzuki admitted in 2016 that they exaggerated the fuel economy of their vehicles by cheating on tests.  (Read More…)

Environmental Protection Agency Administrator Scott Pruitt, who spearheaded the Trump administration’s initiative to roll back Obama-era fuel economy standards for light vehicles, has resigned. Even after assuming the position, Pruitt remained a tough sell as head of the EPA. His stance on climate change was uncharacteristic of any modern-day environmentalist and he seemed utterly bent on corporate deregulation to bolster profits and stimulate the economy.

Then came a flurry of scandals stemming from frivolous spending habits, improper use of authority, and possible business ties that would inhibit his ability to act in an unbiased manner. Numerous federal investigations were launched into these matters.

While a number of the impropriety claims came from political opponents actively hunting for gaps in his armor, let’s face it, Pruitt hasn’t been making things particularly difficult for them.  (Read More…)

The fresh threat of new automotive and parts tariffs from the United States has everyone up in arms. We recently published an exhaustive list of comments manufacturers and local governments made to the U.S. Commerce Department. They, along with suppliers, universally despise the idea and are doing everything in their power to convince the Trump administration to reconsider. Many are even discussing the grim prospect of layoffs and suspending investments.

However, the president remained firm on doing whatever it takes to bolster domestic production and U.S. automotive exports while the world tried to make sense of his strategy. Was this a madman playing hardball and gambling with the industry’s future, or the work of a master dealmaker forcing others to come to the table? Perhaps a little of both?

Earlier this week, the U.S. ambassador to Germany told German car executives that President Donald Trump would suspend threats to impose tariffs on cars imported from the European Union if the European Union lifts duties on U.S. cars. But the wildest part of all of this is that both the automakers and the German government seem to be in support of it.  (Read More…)

It’s no secret that the automotive industry has come out universally against the Trump administration’s proposal to increase import tariffs. Numerous manufacturers weighed in independently on the issue as trade groups rise in opposition to the U.S. Commerce Department’s national security investigation.

The industry’s claim that imported vehicles don’t pose a risk to the wellbeing of the United States seems to have fallen on deaf ears. Threats that the prospective import duties on parts could result in fewer, more-expensive automobiles being produced domestically have been heard — and rebuked — by President Trump.

“What’s really going to happen is there’s going to be no tax,” he told Fox News in a weekend broadcast. “You know why? They’re going to build their cars in America. They’re going to make them here.”

However, automakers, parts suppliers, and even local governments have submitted comments to the Commerce Department ahead of the hearings scheduled for July 19th — and they’re all incredibly negative.  (Read More…)

Renault-Nissan-Mitsubishi Alliance Chairman Carlos Ghosn is busy trying to convince shareholders of Nissan and Mitsubishi stock that Renault isn’t aiming to take over its Japanese partners. It’s proving to be no easy task.

While Ghosn has been clear of late that a merger isn’t in the works, he’s simultaneously adamant that the relationship between the companies must become “irreversible” before he retires from the industry in 2022. (Read More…)

As the industry stresses about the new vehicle market taking it easy for the foreseeable future, there’s one aspect of it that’s of particular concern: car sales. After dominating the field for so long, passenger car sales fell below half of the market just a few years ago. That gap continued to widen through 2018.

Automakers responded by shifting output towards utility vehicles and crossovers. Ford ultimately decided to abandon the majority of its passenger cars in the United States as other manufacturers scramble to adjust their lineup to account for consumer tastes. However, these changes are also helping to push shoppers further away from cars. Bank of America Merrill Lynch estimates that 71 percent of vehicle introductions for the 2019 through 2022 model years will be light trucks.

Some automakers still believe cars hold an importance that’s not to be ignored. True, some models still sell incredibly well. But the general assumption is that they’ll continue losing relevance in the coming years. It’s likely to take another energy crisis or major shift in consumer preference to turn back the tide of crossover vehicles.  (Read More…)

It’s an exciting time to be a manufacturer of bulletproof cars. Violent crime in Latin America is booming right now. For example, growing levels of drug-related violence made 2017 Mexico’s most murderous year on record, based on government statistics.

The problem has resulted in a 10-percent increase in demand for the nation’s car-armoring services this year, according to the Mexican Automotive Armor Association. Still, Mexico’s 3,284 bullet-resistant cars are nothing compared to the 15,145 vehicles armored in Brazil last year. That country holds an even higher murder rate per 100,000 inhabitants.

The armoring industry expects to see a 25 percent jump this year, as both governments predict further increases in crime. As a consequence, some automakers have decided to simply start offering from-the-factory protection to eliminate the customer’s need to seek bulletproofing elsewhere.  (Read More…)

While it hasn’t been without reprieve, much of our automotive history has been occupied with manufacturers perpetually hunting for more power. The pursuit is a no-brainer. A motor releasing more energy than its rivals means a faster car and more bragging rights. Nowhere is this better epitomized than the muscle car era, where domestic automobiles morphed into ludicrously overpowered machines that we still look back upon with fondness.

The power wars continue into the present day. Dodge’s Challenger SRT Hellcat and Demon dragster are a prime examples, but Ford now hopes to rival the Hellcat with its Mustang Shelby GT500. Chevrolet made a valiant attempt with its Camaro ZL1. The quest for power spills over to everything from utility vehicles to hypercars, but there are other ways to go about building a swifter vehicle. You could always place it on an aggressive diet. (Read More…)