Toyota Motor Corp. says it had reached an agreement to consolidate all of its core electronics component operations within Denso. The move should allow Toyota to free up resources to compete more effectively in the new vehicle technology field.

Japan’s largest automaker noted it still has to discuss the logistics of transferring production of parts produced at its Hirose plant, near Toyota’s global headquarters, before the end of next year. But Denso, the company’s largest supplier, has already agreed to the core concept of the deal. By 2022, Denso will have taken over the mass production of all electronics components used in Toyota’s vehicles.  (Read More…)

There’s been quite a bit of the old “he said, she said” as the global trade war between developed nations coalesces. Germany has not covered U.S. President Donald Trump’s trade policy favorably, not that it has much reason to. His new tariffs on imported steel and aluminum has tested relationships with numerous countries and, while it isn’t the biggest exporter of metal to the United States, Germany has something to lose. Likewise, proposed duties on passenger vehicles have sincerely rubbed Deutschland the wrong way.

However, the issue was further complicated this week after a gossipy report surfaced claiming Trump told French President Emmanuel Macron in April that he would continue hampering the European auto manufacturers until there are no Mercedes-Benz vehicles driving in America.  (Read More…)

There was a mighty blowback against the Trump administration’s suggestion to elevate tariffs to as much as 25 percent on all foreign-built passenger vehicles.

Already reeling from fresh import fees on aluminum and steel, Europe expressed its collective distaste on new taxes while Japan vowed to plead a strong case for itself. Meanwhile, prominent politicians and two of the largest automotive trade groups in the country came forward to condemn the plan, stating it was “confident that vehicle imports do not pose a national security risk” to the United States.

While the administration has already launched its investigation to determine whether vehicle and auto part importers threaten the industry’s health and ability to develop advanced technologies, the government noted that a second opinion wouldn’t hurt. Announced on Tuesday in the Federal Register, the the Commerce Department will allot two days in July for public comments on the matter.  (Read More…)

President Trump announced a security investigation into auto imports last week, tasking Commerce Secretary Wilbur Ross with the job. His goal will be to determine what effects imported vehicles have on the national security of the United States under Section 232 of the Trade Expansion Act of 1962 — which sounds like a monumental and rather complex task.

Basically, Ross will examine whether or not the U.S. can get away with escalating automotive tariffs. That’s a touchy subject, considering how contentious global trade has become in recent months. Worse yet, the 80-year-old commerce secretary will have to continue promoting American businesses and industries outside its borders while deciding on an issue few trade partners will be happy with.

Automakers aren’t thrilled either. After Trump announced the investigation, the Association of Global Automakers and Alliance of Automobile Manufacturers both said they didn’t believe vehicle imports posed a national security risk. “To our knowledge, no one is asking for this protection. If these tariffs are imposed, consumers are going to take a big hit,” said John Bozella, President of Global Automakers, in a statement. “This course of action will undermine the health and competitiveness of the U.S. auto industry.” (Read More…)

President Donald Trump issued a tweet promising car manufacturers good tidings on Wednesday. “There will be big news coming soon for our great American Autoworkers,” he said. “After many decades of losing your jobs to other countries, you have waited long enough!”

Later that same day, the administration announced it had launched a national security investigation into car and truck imports under Section 232 of the Trade Expansion Act of 1962. The Commerce Department explained that the probe would investigate whether imported vehicles and parts threaten the domestic industry’s wellbeing, taking into account its ability to develop new technologies and the impact of tariffs.

“There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” Commerce Secretary Wilbur Ross said. (Read More…)

As Renault and Nissan discuss ways to strengthen their bond, Carlos Ghosn is asking everyone to slow their roll on the prospect of a merger. Despite continuously nudging the alliance in that direction, the CEO and chairman is often hesitant to discuss unification as anything more than a hypothetical. So this is par for the course.

“I don’t think you’re going to see it this year or next,” Ghosn said on Wednesday. “Lots of mergers collapse and destroy value — the strength of any company is the ability to motivate people, and how how are you going to do that if some of these people consider themselves second-class citizens.”

The second-class citizens he’s referencing are, presumably, Nissan employees seeking more influence within the Renault-Nissan-Mitsubishi Alliance. A large part of the group’s current strategy is to find ways to give the Japanese automaker more of a say in product development and operations. (Read More…)

China has announced plans to slash import fees on automobiles to 15 percent starting this July. While the tariff currently rides high at 25 percent, the country’s Ministry of Finance said reducing it was part of an intentional effort to open up China’s markets and spur development within the local automotive sector.

It may also have been part of a peace offering. President Donald Trump has been pretty clear on China’s trade policies with the United States, frequently referring to them as unfair. The U.S. imposes a svelte 2.5 percent fee on imported vehicles — unless we’re talking about trucks. “Does that sound like free or fair trade?” Trump tweeted last month. “No, it sounds like STUPID TRADE — going on for years!” (Read More…)

Ford’s announcement that it will eventually eliminate every sedan from its domestic lineup has forced the automotive media to consider which automaker will be next to cart theirs off to the guillotine. Due to the growing popularity of crossovers and their inherent profitability, it’s probably just a matter of time until another manufacturer tosses all of its sedans in a burlap sack and drowns them in the proverbial river.

General Motors seems ready to abandon the Chevrolet Impala and Sonic, and Cadillac’s ATS, CTS, and XTS will soon be replaced by two unnamed sedans. Buick’s Lacrosse also looks to be a likely candidate for execution, and rumors exist that Caddy’s CT6 may also be destined for death. However, while rumors swell that American automakers are just years away from from killing the four-door car, Subaru says sedans remain totally relevant.

As a smaller but rapidly growing manufacturer (domestic sales have tripled since 2010), it’s dangerous for the brand to become too reliant on a single segment. If the market suddenly shifts, Subaru knows it’s better not to get caught with its pants down. In fact, it’s almost as if the company’s national manager of product communications, Dominick Infante, is counting on that.  (Read More…)

As we hurl ourselves into the the glistening, unknown future, we are continuously confronted with new obstacles. While we’re good at coming up with solutions to new problems, there are plenty of important questions left hanging in the air as technology pushes us onward. Why do we keep working longer hours as more things become automated? How to we ensure that sentient machines do not decide to kill us? Why are there still so many people that use the speaker function on their phones in public places?

In the automotive realm, autonomous driving and battery technology are the golden geese of progress right now. While driving aids are becoming ever-more impressive, truly self-driving cars are a little further out than most manufacturers would like to admit. Meanwhile, electric automobiles are already here and tangible as hell. You could have one tomorrow if you wanted.

The issues associated with autonomous vehicles are beyond complex. In addition to deciding how to develop the technology effectively, a myriad of questions exist as to the legal ramifications of its implementation and how its very existence could change society. Electric cars are more straightforward, and the problems they face are predominantly logistics oriented. But they’re about to face a monumental hurdle in a few years.  (Read More…)

Fiat Chrysler CEO Sergio Marchionne plans to to retire soon, and he wants to revolutionize the company as one of his final acts. On June 1st, he intends to unveil a sweeping plan that abandons local production of the compact and super-mini cars the Fiat brand is known for so FCA can focus on larger, more upscale, models.

Fiat, the most Italian brand we can think of that isn’t Ferrari, is moving assembly out of Italy. After being emptied, those factories will be repopulated by Maserati and Jeep SUVs. If you think that’s rather bold of FCA, there’s more. There’s also a very good chance the Alfa Romeo Mito and Fiat Punto will be killed off entirely. Thanks to a decade of steadily declining sales, the Punto has transformed from an European staple to a financial liability. It’s hard to imagine the continent without it, but Axing the model admittedly makes good bit of sense.

However, if FCA keeps culling Fiat and Chrysler’s lineup out of existence, won’t it eventually have to change its name?

(Read More…)

Carlos Ghosn, chairman of the Renault-Nissan-Mitsubishi Alliance, has made it clear that his ideal solution for all three automakers is to stop pussyfooting around and enter into a full-on merger. Officially, there’s no deal in the works. “Any discussion about a share transaction involving Renault, Nissan or the French state is pure speculation,” explained alliance spokesman Jonathan Adashek earlier this month.

Unofficially, things are quite different. Renault and Nissan are both committed to maintaining a healthy and strong relationship, but the French government is hesitant to even suggest the possibility of abandoning its stake in Renault. For political reasons, it can’t seem as if the company is being relinquished to Japanese interests vis-à-vis a corporate takeover. Therefore, an accord has to be reached to provide Renault with some level of autonomy — or a lie has to be crafted to make it look that way.

While Ghosn previously denied any possibility of a merger, he began claiming it was a very real possibility this year. Having already developed a structure that would see management of Renault, Nissan, and eventually Mitsubishi Motors overseen by a Dutch foundation based in Amsterdam, the chairman suggested it (or something like it) could also serve as a mediator for their integration as a singular global automotive group. But the French Ministry for the Economy and Finance said that wouldn’t be a possibility. So what’s the solution?

Baby steps. (Read More…)

If you forgot today was the deadline for finalizing North American Free Trade negotiations, don’t worry, so did practically everyone else. In fact, the whole affair is starting to feel like that old car that’s been sitting in your friend’s yard for far too long. He keeps telling you he’s going to fix it up and make it better than new. “This is the summer,” he says. But you know he’s just going to keep mowing around it while it continues to rust and collect mice, so you’ve tried to push it out of your mind.

Like the restoration, the entire concept of a deadline for the trade deal is rather arbitrary at this point. NAFTA’s initial target date for an agreement between the three countries was March 31st, roughly one year after negotiations began. The May 17th deadline was claimed by U.S. Speaker of the House Paul Ryan, who said Congress had to be notified under the Trade Promotion Authority statute.

“We need to receive the notice of intent to sign soon in order to pass it this year,” explained Ryan’s office. “This is not a statutory deadline, but a timeline and calendar deadline.”

Basically, Congress wants to influence the president and NAFTA negotiators to conclude talks swiftly and reach an agreement before midterm elections. But Mexican officials warned everyone not to get their hopes up. “The possibility of having the entire negotiation done by Thursday isn’t easy, we don’t think it will happen by Thursday,” said Mexican Economy Minister Ildefonso Guajardo earlier this week.  (Read More…)

Since acquiring Opel and Vauxhall from General Motors, France’s PSA Group has dropped not-so-subtle hints that it wants back into the American market. Chief executive Carlos Tavares said the group is already engineering upcoming models to meet U.S. regulations. “That means that from three years down the road we’ll be able to push the button, if we decide to do so, in terms of product compliance vis-a-vis the U.S. regulations,” he explained during the Frankfurt Auto Show.

That means Citroën and Peugeot should have a few vehicles ready for export after 2020. However, selling them won’t be a piece of cake. PSA doesn’t have an established dealer network in the United States, nor does it have a corporate friend in the industry that might allow the company to borrow one.

Still, the European auto group doesn’t seem all that worried. Rather than worry about asking its automotive neighbors to loan it a cup of sweet dealership sugar, it noticed a lot of people prefer aspartame and acesulfame potassium. PSA plans to take a modern, tech-focused, affordable approach to the problem. (Read More…)

On Monday, Tesla CEO Elon Musk told employees the company intends to “flatten” its structure. That translates into fewer management executives as the automaker hires as many line workers as possible. Neither should come as a shock to those paying attention. Tesla Motors has bled high-ranking executives for a while now, and the autonomous assembly system that was supposed to revolutionize production hasn’t appeared yet.

Flattening the company’s management structure may be less about cutting costs and more about having no one to fill empty seats. That said, Musk’s announcement placed an emphasis on improving the company’s finances — echoing statements made during an earlier conference call that created some public relations hiccups. So the restructuring plan could be Tesla performing double duty.

“To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company,” Musk said in his memo to staff. (Read More…)

Ten automotive executives met with President Donald Trump this week, hoping to find ways to increase domestic production and mitigate the coming changes to corporate fuel economy regulations. The meeting, held in the White House’s Roosevelt Room, included General Motors’ Mary Barra, Ford’s Jim Hackett and Fiat Chrysler’s Sergio Marchionne. While a large portion of the event was spent discussing the administration’s attempt to roll back established fuel economy rules, Trump was focused on returning manufacturing jobs to the United States.

The president noted that FCA’s decision to spend $1 billion in order to expand truck assembly in Michigan made Marchionne more appealing than his contemporaries. “Right now, he is my favorite person in the room,” Trump said.  (Read More…)