Last week, we discussed how the motorcycle industry’s total failure to entice new riders for over a decade has come back to bite it in the ass. Two-wheeled ownership declined drastically in the United States after the Great Recession and never really bounced back. Blame a disinterested population of youngsters with less discretionary funds and few entry-level options to consider.

I speculated that automakers could be on a similar path, despite the passenger car segment being more of a necessity for average commuters and less apt to collapse outright. But that isn’t to presume they might not be subject to similar pitfalls, and we’ve a new one to consider. Harley-Davidson, which serves as the poster child for the motorcycle industry’s current crisis, recently announced it will end all U.S. production of motorcycles sold in Europe.

Those bikes will now be manufactured overseas. The company said in a regulatory filing with the U.S. Securities and Exchange Commission that retaliatory tariffs levied by the European Union on motorcycles exported from the U.S. jumped from 6 percent to 31 percent. Harley-Davidson’s already expensive products come at an additional premium in Europe, and the the company estimates the new fines will add another $2,200 per motorcycle, on average. (Read More…)

The Trump administration is planning to impose incredibly restrictive investment limits against China. While the barriers could be argued as fair, considering China has some pretty serious restrictions of its own, the timing isn’t great. Treasury Secretary Steven Mnuchin pursued a less confrontational approach toward China after the nation showed some lenience in earlier promises to open its automotive and tech sectors through reduced tariffs, eventually eliminating state-mandated joint partnerships.

This move will no doubt make his job a lot more complicated.

It seems that the limits would restrict certain Chinese companies from investing in U.S. technology firms and block additional tech-related exports to Beijing. Among the industries most affect are robotics, aerospace, and automobiles — which have been labelled by the administration as a threat to economic and national security.  (Read More…)

While you still hear people throw around the slogan “American Made” quite a bit when it comes to automobiles, the phrase has grown increasingly meaningless. Even if something is built within the states, parts for it will stream in from across the globe. Other times something may not even be built within the country. For example, the iconically American Dodge Challenger is assembled in  Brampton, Ontario and has its 5.7-liter Hemi engines shipped in from Mexico. That’s not a slight to the vehicle, but you just know people have slapped a “Buy American” bumper sticker onto more than a couple of them.

However there are models that still have the majority of their bolts tightened within the United States and that means something to some shoppers. If you’re one of those, here are most American cars you can buy in 2018.  (Read More…)

The ground beneath the factory Volvo Cars opened Wednesday in South Carolina grew shakier after company executives warned that the U.S.-China trade dispute could undo plans to create up to 4,000 auto jobs in the state.

As you probably know, Volvo is currently owned by Chinese automaker Geely — which has a lot to lose if trade relations break down. Geely intends to export Volvo’s American-built cars to markets outside the United States. The situation’s a problematic one, as Volvo also imports the bulk of its U.S. market vehicles and any economic hurdles would surely gum up the works. (Read More…)

If you think car enthusiasts are a dying breed, you should take a look at motorcyclists. The two-wheeled industry is in serious trouble. A total failure in marketing occurred over the past decade. New riders aren’t coming in fast enough to replace the glut of Baby Boomers rapidly aging out of the market, and there’s a looming paranoia that self-driving vehicles could push bikes off the road entirely.

In 2017, U.S. motorcycle sales were down 11 percent, and no company was hit harder than Harley-Davidson. The brand has the oldest consumer base and has repeatedly failed at recruiting younger riders. While it builds a fine product, it’s not one that appeals to millennials. This generational cohort proved hesitant to engage in motorcycling as a pastime — a situation not helped by having less disposable income than Generation X or the Boomers did at the same stage in their lives. Young women are also poised to start out-earning young men, and few brands have successfully tapped into the female demographic.  (Read More…)

Alphanumeric naming strategies don’t seem to work particularly well on American cars. There are exceptions, Chrysler’s 300 and the Ford F-Series come to mind, but usually you get a name and then a string of numbers and letters tacked on to denote badassery or size when applicable. While this is just a personal theory, it really seemed like America’s luxury brands were just trying to copy the Germans when they collectively made the swap and everyone noticed.

While alphanumeric monikers help automakers avoid certain issues in countries where a word may hold a different meaning, they aren’t particularly imaginative. It also distances new models from established names that help to move units on brand recognition alone. That isn’t to suggest those names are inherently better, but going against tradition can definitely work against you.

Lincoln knows that better than most, and has decided to give the MKC a real name for its 2020 redesign.  (Read More…)

A strong earthquake shook western Japan on Monday morning. The 6.1-magnitude quake destroyed property, left tens of thousands without power, stranded commuters, and disrupted Osaka’s industrial sector. Honda, Mitsubishi Motors, and Toyota’s Daihatsu unit all have production facilities in the area and were forced to shut down temporarily.

While Daihatsu remained confident its facilities could be reopened later in the day, Honda’s Suzuka factory in the Mie prefecture is one of the oldest plants on its roster. Despite being modernized over the years, it might not have been able to withstand the vibrations as well as newer facilities. The company said it would remain shuttered as employees perform safety and spot checks.  (Read More…)

Despite the growing animosity, both California and the Trump administration are still willing to discuss the country’s changing emission regulations. The state is currently heading a lawsuit against the Environmental Protection Agency, claiming it “acted arbitrarily and capriciously” in overturning the previous administration’s decision to maintain Corporate Average Fuel Economy standards.

While the proposals issued by the current administration will eventually see those targets rolled back, a final decision has not been made. The White House claims it wants to maintain an open dialogue with the Golden State, hoping to reach an agreeable solution, but the California Air Resources Board has argued it doesn’t seem to be acting on those assertions. Meanwhile, EPA head Scott Pruitt maintains that the state will not dictate federal fueling rules as automakers beg the government to do everything in its power to ensure a singular national mandate.

It’s an ugly situation, which makes news of a new round of meetings all the more surprising.  (Read More…)

It appears as if Carlos Ghosn will step down as chief executive of Renault prior to the end of his term. While he’ll likely continue serving as chairman of Renault and CEO and chairman of the Renault-Nissan-Mitsubishi Alliance, he’s planning to lighten his load with the French automaker.

Despite having renewed his contract with Renault, which runs until 2022, the 64-year-old executive previously said he’s wearing too many hats. Ghosn stated at the time that he hoped to scale back his workload before retiring. Apparently, the next step in that process involves ditching his day-to-day duties as a chief executive.  (Read More…)

There’s been plenty of discussion about how autonomous vehicles will effectively annihilate the trucking and taxi industries. We’ve certainly discussed it — in addition to concerns that self-driving vehicles may not reduce pollution and traffic congestion as promised.

Fear not, claims a recent report sponsored by Securing America’s Future Energy. The problem of self-driving cars displacing huge numbers workers is apparently overblown when compared to the economic impact as a whole. According to the study — “America’s Workforce and the Self-Driving Future” — the loss in employment opportunities should be offset by the potential advantages in safety, cheaper transportation, mobility, air quality, and individual productivity.

The report says that by 2050, AVs will contribute between $3 and $6 trillion in cumulative consumer and societal benefits to the U.S. economy. While it’s not clear how much of that will go into the pockets of people who’ve lost their jobs, it sure sounds great in theory.

But is this really the future of autonomous transportation? And who are these wizards of analysis who tell us the future looks so damn bright?  (Read More…)

After showcasing its first concept vehicle at CES 2018, electric car startup Byton has come back with another for CES Asia. On Monday, the company also announced it had recently raised more than half a billion dollars in capital.

Byton looks to be on the right path, but the trail it’s marching down has already been taken by other EV startups and resulted in failure. For example, Faraday Future drove itself into a brick wall after failing to deliver on its promises for two years straight. It suffered development delays on its prototype, engaged in some sketchy deals, and practically collapsed when its main Chinese backer ran out of money. That isn’t to presume Byton is the same kind of company, but it’s offering the same type of car under vaguely similar circumstances.

Loaded with tech, Byton’s autonomous, all-electric K-Byte sedan and its SUV sibling (the M-Byte) are right in line with every manufacturers’ future vehicle concepts. They’re perpetually connected to the web, capable of self-driving, and chock full of touchscreens. But they aren’t real cars yet, even though the startup suggests they’ll be available for just $45,000 — and relatively soon. The SUV will apparently go into production in 2019, with the sedan following by 2021. (Read More…)

The UAW-Chrysler National Training Center, which remains in the midst of a multimillion-dollar federal corruption scandal, is suing Fiat Chrysler Automobiles officials and a union leader’s widow for over $4.4 million in damages. If you’ll recall three FCA employees filed a federal lawsuit against the automaker and the UAW seeking hundreds of millions of dollars in damages over allegations that union officials colluded with company executives to influence collective bargaining earlier this year.

Now it’s time for the National Training Center to get a piece of the action. The lawsuit, filed Friday in Oakland County Circuit Court, targets former FCA labor negotiator Alphons Iacobelli; Monica Morgan-Holiefield, the widow of former UAW Vice President General Holiefield; and ex-FCA financial analyst Jerome Durden. Money was believed to be funneled through the training facility by a policy created by company officials to bribe UAW leaders into giving the automaker favorable treatment during collective bargaining.  (Read More…)

While the Japanese government has walked on eggshells when discussing trade issues that are transforming the globe into an angry beehive, the nation’s automakers have been more forthright. However, they’re both getting increasingly vocal as the situation escalates.

As the United States and Japan head into trade discussions scheduled for July, it’s beginning to look like everyone will come out swinging — especially when it comes to the automotive industry. Last month, the White House launched a national security investigation into car and truck imports that could lead to new tariffs on some of Japan’s biggest U.S.-bound exports.

Japanese Finance Minister Taro Aso was uncharacteristically negative toward the current U.S. trade policy during a Group of Seven finance leaders’ gathering held last week. “It’s deeply deplorable,” Aso said. “Inward-looking policies involving one-sided, protectionist measures benefit no country.” (Read More…)

Governance is one hell of a slippery fish. While you want your elected officials to assist in helping the nation evolve with an ever-changing society, you don’t want a deluge of contradictory and ill-planned laws mucking things up. That’s why the best progress is carefully measured and negotiated. But something has to happen eventually or you begin wondering what we (and the various lobbies) are paying these dingbats the big bucks for.

For example, the North American Free Trade Agreement looks like it’s about to be abandoned until sometime after 2019. After negotiations missed numerous self-imposed deadlines, U.S. House Speaker Paul Ryan said Congress needed a notice of intent to sign by roughly May 17th if anything was to be finalized for 2018. That date came and went. Now, everyone appears to have thrown their hands up, with practically every country on the planet currently considering retaliatory tariffs against the United States.  (Read More…)

As nations continue plotting how to best stab each other in the back in the wake the United States’ decision to impose steeper tariffs on aluminum and steel, manufacturers have to find a way to roll with the punches. Domestic BMW dealers have begun crapping their designer britches over fears that 3 Series models will suddenly host MSRPs in excess of $60,000 if the Trump administration follows through with a threat to impose high import duties on cars.

While we don’t know if the 25 percent import tariff on cars will come to pass, we do know the very real steel tariffs will shrink the profit margin of many vehicles. However, BMW is one of the first automakers we’ve heard discussing the purchase of more U.S. steel to mitigate costs. (Read More…)