Faraday Future has issued a strange response to the criticism surrounding its most recent high-profile “staffing adjustment.” Last week, news broke that the startup automaker’s chief financial officer, Stefan Krause, left the firm in October — forcing media outlets to play catch up. When the information made its way to The Truth About Cars, we dug back into Faraday’s current condition and reported that things were still a mess at its California headquarters.

Unwilling to let the automotive media monopolize the conversation, Faraday released a response letter. In it, the company accuses Krause of being fired for “dereliction of duty” and said it would be taking legal action against him. It’s the first time the startup had updated its media page in months and is a peculiar reaction to a staffing change that, at the time, seemed like the least of Faraday’s worries. (Read More…)

Despite President Trump giving Toyota significant praise for its continued investment in the United States last week, the success of the automaker’s production plans hinge on the continuation of NAFTA — something the Commander in Chief has been vehemently opposed to since his well-before his inauguration.

Toyota and Mazda’s $1.6 billion factory is anticipated to yield 150,000 Corollas annually and free-up assembly facilities in Mexico that would build the Tacoma pickup. However, if the North American Free Trade Agreement is dissolved, anything produced south-of-the-boarder could be subjected to the chicken tax. Were that to happen, Toyota would be placed into quite a predicament and faced with high import taxes on any trucks it had hoped to ship to the U.S. (Read More…)

It’s been a while since we’ve discussed the ongoing plight of Faraday Future. While most of this year — and all of the last — was riddled with missteps from the automotive startup, we’ve taken a break from reporting on it. That wasn’t because its situation had improved, however. Oh boy, is that ever not the case.

Earlier this month, details emerged that the business was preparing to file for bankruptcy, followed immediately by the firm denying the validity of those claims. Then, news broke that Faraday’s chief financial officer, Stefan Krause, had quietly resigned in October — despite having been hired specifically to solve the company’s financial troubles back in March.

This got us wondering as to exactly how much more can go wrong before Faraday Future finally throws in the towel. (Read More…)

Everyone in the automotive industry is talking about a grand shift toward mobility, resulting in a future where nobody owns cars and we all putt around in autonomous pods. Well, almost everyone. Carlos Ghosn, who currently chairs the alliance between Nissan, Renault, and Mitsubishi, thinks that’s a crock.

While there’s plenty of executives keeping quiet on the evolution of ownership, few have come forward suggest business as usual will be the new status quo. Meanwhile, swaths of industry experts are pushing the notion that rental services, ride-sharing, and firms like Uber or Lyft will eventually replace the need for dealerships and garages.

Not Carlos. (Read More…)

On Monday, President Donald Trump requested that Japanese automakers consider assembling their vehicles in the United States. “Try building your cars in the United States instead of shipping them over. That’s not too much to ask,” Trump told Japanese auto executives during this week’s visit. “Is it rude to ask?”

While the internet response was to immediately scoff at how little Trump knew about the industry (Japanese companies have been building automobiles in North America for decades), the reality was far more nuanced.

Taken in the broader context, Trump actually said, “Several Japanese automobile industry firms have been really doing a job. And we love it when you build cars — if you’re a Japanese firm, we love it — try building your cars in the United States instead of shipping them over. Is that possible to ask? That’s not rude. Is that rude? I don’t think so.” (Read More…)

As you know, Dyson, the vacuum/hairdryer manufacturer, is moving into electric vehicles. The company has made plans to introduce a radical example (with new solid-state batteries) to market by 2020 that will suck and blow you away. But you only found out last year, which was long after Tesla Motors caught wind of a fresh competitor on the horizon.

Apparently, an engineer spilled the beans to Tesla’s legal representation around the same time he was being interviewed for a position at the automaker. If you’re wondering if he got the job, he did.

This is the second time Dyson’s plans for EV secrecy went haywire. Its public announcement wasn’t supposed to be until September of this year. However, a slip-up by the British government saw its National Infrastructure Delivery Plan mention that the public would help fund the company in “developing a new battery electric vehicle” — giving away the secret in 2016.  (Read More…)

Apparently, Fiat Chrysler Automobiles CEO Sergio Marchionne had an extended chat with authorities at the U.S. Attorney’s Office in downtown Detroit one year before the $4.5 million corruption scandal involving the automaker’s training center was made public.

Marchionne and his lawyer participated in a private meeting in July 2016, discussing the alleged corruption between FCA executives and high-ranking members of the UAW with investigators. One year later, former Fiat Chrysler Vice President Alphons Iacobelli was indicted and accused of funneling kickbacks to UAW officials. (Read More…)

As reported last week, House and Senate Republicans have proposed sweeping tax reforms that would, by extension, kill the EV tax credit if the bill passes into law. Automakers have already expressed their distaste on the matter, and now they’re beginning to mobilize to keep it from becoming a reality. With electric vehicles just beginning to gain traction, and numerous manufacturers banking on the platform in the years to come, losing the credit would undoubtedly harm sales.

The Electric Drive Transportation Association, a group representing automakers, suppliers, technology firms, and energy concerns, says it will collaborate with its members and their shareholders to ensure the credit persists under the proposed GOP reform. Genevieve Cullen, the association’s president, claims the group will pull out all the stops to ensure the Senate sees things their way.  (Read More…)

Although semi-retired from the automotive industry, Bob Lutz still has his fingers in a lot of pies and continues to provide insight into the vehicular world as he sees it through veteran eyes. I never miss an opportunity to read what he’s got to say about the industry because he provides unusually frank insight paired with borderline ludicrous sensationalism that’s too juicy to ignore.

That doesn’t mean he’s wrong, especially since one of his more recent claims about the financial inviability of Tesla Motors has started to seem particularly astute. But a lot of his premonitions haven’t had the time necessary to come to pass, leaving us to speculate if he’s an automotive sage or just an old crank. He routinely weighs in on the industry to offer entertaining doomsday scenarios — and his newest one is the bleakest yet.  (Read More…)

A federal investigation that started with corruption charges against a former Fiat Chrysler labor executive and the wife of a deceased United Auto Workers vice president has expanded to include training centers created by both General Motors and Ford. Investigators issued subpoenas in recent weeks to amass information on the centers, which are jointly operated between the automakers and the UAW.

In the FCA case, company and union officials are alleged to have misappropriated an estimated $4.5 million earmarked for employee training. That money is believed to have gone into personal accounts and used to buy suspiciously extravagant items. The FBI appears to be concerned that similar activities could be happening at Ford and GM-backed training sites.  (Read More…)

It’s kind of difficult to imagine if you aren’t old enough to remember, but there was a period in the 1980s when the Porsche 911 was almost removed from the automotive landscape. In 1979, Porsche had made plans to replace the 911 with the new 928. The working logic was that the 911 was too quirky, impractical, and a bit of a handful. Porsche executives figured it just made good sense to swap it with something that had a broader appeal, especially as the company’s finances weren’t looking particularly robust at the time.

However, in 1981, Porsche AG found itself with a new chief executive — a German-born American named Peter Schutz. And he was having absolutely none of that nonsense.  (Read More…)

Hyundai has snagged itself another high-profile BMW veteran. Last time it was Albert Biermann, dynamics wizard and former head of BMW’s M line. This time it’s Fayez Abdul Rahman, BMW’s former head of M Equipment, M sport packages, and M performance vehicles.

Whereas Biermann is currently serving as Hyundai Group’s vice president in charge of performance and high-performance vehicle development for the group, Rahman will focus specifically on Genesis vehicles. He previously led concept and platform development for numerous model lines at BMW — including the X Series, 7 Series sedan, and various M brand vehicles.

At Hyundai, he’ll be responsible for doubling the size of Genesis’ fleet by 2020, via the gradual inclusion of crossovers.  (Read More…)

Japan appears to be having a problem with its quality control. Nissan Group is conducting updated inspection procedures after details emerged that it allowed uncertified employees to conduct final vehicle checks. However, the Japanese government continues to find issues with the automaker’s practices, forcing it to temporarily suspend new vehicle registrations.

Early reports from an external investigation commissioned by Nissan suggest the certification problem may have begun in 1979.

Subaru faces a similar plight. With Nissan’s inspection issue looming larger than anticipated, Subaru has admitted to following improper procedures for its domestic products. On Friday, the carmaker said final inspections at its main plant have occasionally been handled by employees not listed as certified technicians. The problem has persisted for more than 30 years, according to the manufacturer.  (Read More…)

Automotive News has published the results of a survey it commissioned this spring concerning sexism experienced by women working in the automotive industry.

It’s a coincidence, of course, but it’s interesting timing in the wake of the sexual harassment conversation taking place in the wake of the Harvey Weinstein allegations. One refrain I’ve seen banded about is something like “this doesn’t just happen with powerful people in Hollywood, but in every industry.”

This survey would appear to indicate that the automotive industry is not immune, and personal observational experience from my time in the industry — especially my time in the dealer world — backs that up. (Read More…)

Domestic automakers and suppliers have already expressed concerns that leaving the North American Free Trade Agreement could be detrimental to the industry. Numerous automotive trade groups have claimed that losing NAFTA would result in less efficient and more costly ways of doing business.

Hoping to steer Donald Trump away from the idea of abandoning the three-country accord, manufacturers, parts suppliers, and dealers have come together to form the “Driving American Jobs” coalition. The group’s primary goal is to prove that NAFTA has been beneficial to the participating countries, especially the United States. It also makes the claim that withdrawing from NAFTA would re-establish trade barriers, hurt the U.S. economy and cost jobs.

“We need you to tell your elected officials that you don’t change the game in the middle of a comeback. We’re winning with NAFTA,” urges the group’s website. (Read More…)