Following an earlier raid at BMW, Daimler AG and Volkswagen Group were also searched by antitrust officials from the European Union Commission and German government this week. Despite claiming whistleblower status, Daimler is still subject to investigation — though it’s less likely to incur the same financial penalties if the collusion charges go to court.

Over the summer, investigators from the EU stated there would be an investigation into several German carmakers after allegations surfaced that companies conspired to fix prices on various automotive technologies over several decades. But it wasn’t until Monday that officials searched Daimler’s corporate offices and collected documents from Volkswagen’s headquarters in Wolfsburg and at Audi’s home base in Ingolstadt. (Read More…)

Contrasting paint hasn’t been commonplace on automobiles in over half a century, but it appears to be regaining some of its lost momentum lately. Everything from the Bugatti Chiron to the Toyota Camry offers separate bodywork hues these days.

Of course, we don’t know if this is a trend poised to explode across the industry or something that will be relegated to a handful of models before fizzling out. However, with new crossovers like the Volkswagen T-Roc, Range Rover Velar, and Volvo XC40 available with contrasting rooflines, it seems ready to enjoy at least 15 minutes of fame.  (Read More…)

Tesla Motors and Consumer Reports have enjoyed a fairly contentious relationship with each other over the last few years. The nonprofit consumer advocacy organization had previously slighted the Model S for being unreliable and unsafe, but upgraded that analysis as Tesla continued improving the model. In this year’s consumer survey, the model received higher marks —receiving “above-average reliability for the first time ever.”

However, the Model X suffered a dismal showing and Tesla was outraged that CR gave the Model 3 a predictive average reliability score without even having driven it. The publication was quick to respond, however, and suggested the manufacturer may have misunderstood what was a fairly positive rating for an unproven platform.

While the exchanges seem somewhat trivial and maybe a little petty, this is the kind of automotive drama that’s simply too fun to ignore. For whatever reason, Tesla seems unwilling to remain silent whenever some bad publicity heads its way. While it’s far from the only automaker to do this, its relationship with Consumer Reports has been filled with very specific ups and downs. (Read More…)

Rearview mirrors haven’t enjoyed the same renaissance as other portions of the automobile. When the mirrors began appearing on cars roughly a century ago, wheels had wooden or wire spokes and were wrapped in organically sourced bias-ply rubber. Despite still being round, modern wheels are vastly different from their more-venerable counterparts but mirrors are not.

That might change in a few years. While some automakers have already affixed parking camera displays into the polished reflective centerpiece, like Ford, two manufactures have recently replaced traditional mirrors will full-time video feed. Nissan has one available for the Japanese market and General Motors introduced the Gentex “Full Display Mirror™” on the Cadillac CT6 and XT5 at 2016’s Consumer Electronics trade show.

While our gut-reaction is to contemplate how much more expensive a free-hanging LCD screen would be to replace than a simple mirror, this could be the general direction for a tech-focused industry. In fact, IHS Markit is already positive it’s only a matter of time.  (Read More…)

Back in July, German authorities became concerned that the country’s manufacturers had been operating one of the largest automotive cartels in history. With many auto executives still under the microscope for diesel emission manipulation, combined with inter-familial strife between the Piech and Porsche clans, Germany’s auto industry was starting to resemble a PG version of the film Goodfellas — with a dash of Dallas, for flavor.

Despite some rather serious accusations, nothing really came of the cartel investigation. We were beginning to wonder if it was much ado about nothing. But Germany’s antitrust officials hadn’t forgotten — they were simply biding their time during preliminary investigations into corporate collusion and price-fixing. Earlier this week, they made their big move and raided BMW’s headquarters.  (Read More…)

Consumer advice is one way informed shoppers like to make a decision, and few buying choices are bigger than your next car. Every year, Consumer Reports surveys its subscribers to see how they’re getting on with their personal vehicles. While the metrics may have changed over the years, its annual reliability report is one people and automakers pay particularly close attention to.

However, this year, some automakers were paying closer attention than others. Tesla, irritated that CR was so hard on the Model X — while predicting the Model 3 would possess “average reliability” — fired back at the publication with a press release calling shenanigans. “Time and time again, our own data shows that Consumer Reports‘ automotive reporting is consistently inaccurate and misleading to consumers,” the automaker wrote in a release.

While Consumer Reports exists as a nonprofit organization providing consumer advice, Tesla has accused it of making the electric automotive brand a target to bolster attention. Whether or not that’s true is debatable, but it did use predictive reasoning to assess the Model 3’s probable reliability — rather than data collected from testing and customer surveys.  (Read More…)

As the fifth round of NAFTA talks come to a close, Mexico and Canada continue to reject the United States’ demands regarding automobiles, diary, dispute panels, government procurement and the sunset clause. Among the more recent automotive proposals kicking up dirt is the U.S.’s wish to include steel in NAFTA’s tracing list and increase the mandatory local content of every car built in North America. The attempt has annoyed foreign officials and left the industry fretting about increased production costs and complexity.

The increasingly tense nature of the talks has left many wondering if President Trump will make good on his earlier threat to leave NAFTA. However, plenty of analysts are of the mind that a deal will eventually be reached between the three countries. (Read More…)

Promoting a future for wide electrification appears to be the Achilles’ heel for bearish investors. Despite some bad publicity last week, Tesla Motors’ already sky-high share price resumed its relentless upward trend after a brief September slump. However, Tesla isn’t the only domestic company benefiting from electrification. Both General Motors and Ford have also seen marked improvements on Wall Street following tech-forward corporate announcements.

For General Motors, that meant the promise of widespread electrification. CEO Mary Barra pressed the issue by reaffirming GM’s three-tiered policy of, “Zero Crashes. Zero Emissions. Zero Congestion.” On a LinkedIn posting, Barra elaborated on the company’s vision where technology minimizes accidents via driver’s aids and autonomous hardware, nullifies emissions through alternative powertrains, and reduces congestion using inter-vehicle connectivity.

In addition to GM’s proposal to launch 20 new electric or fuel cell vehicles by 2023, the company has seen its share price jump twice in the same week. But Ford saw similar, although more modest, improvements in value following it’s own announcement of a tech-driven future.  (Read More…)

Automobiles are more tech-laden than ever and, according to a recent study, those interactive bells and whistles contribute heavily to distracted driving.

With connected cars ready to shoot off assembly lines and into driveways at an accelerated pace, the danger of someone flicking through their dashboard menus when they should be looking at the road is only going to grow. Many states prohibit phone usage while driving, yet there is no law against setting your radio pre-tunes or customizing your digital dashboard while hurtling down the expressway — not that there necessarily should be.

However, the American Automobile Association’s Foundation for Traffic Safety commissioned researchers from the University of Utah to examine the physical and mental demand required to complete various tasks using the infotainment systems in 30 new 2017 vehicles. The conclusion was that the growing cavalcade of buttons, screens, and technology does an incredibly good job at keeping you from minding the road ahead.  (Read More…)

Officials from the United States and South Korea held a special session in Washington on Wednesday as part of U.S. Trade Representative Robert Lighthizer’s request to consider amending the two countries’ trade agreement. The joint talks serve to reassess the countries’ five-year pact, with the Trump administration aiming to diminish America’s growing trade deficit with South Korea.

One of the largest issues concerns the automotive industry. Korean rules stipulate a cap on the number of vehicles U.S. automakers can bring into the country each year that adhere to the country of origin’s safety standards. Presently, that quota sits at 25,000 vehicles per manufacturer. However, no U.S. company has ever made full use of the quota. General Motors, which is the most popular U.S. brand in South Korea, only sold 13,150 domestically built units in 2016.  (Read More…)

Yesterday, we mentioned how Tesla was behind schedule with its everyman Model 3 — delivering only 220 units to the half-million reservation holders since the start of production in late July. While we knew it would get off to a slow start, CEO Elon Musk previously assured the public that production would increase exponentially through the end of the year by way of a “production hell” trial by fire.

Musk claimed there should be “zero concern” about Tesla achieving a production rate of 10,000 cars a week before the end of next year. But many wondered if that was even possible. Despite Tesla making serious strides to increase production volume this year, we remained dubious that the proposed numbers were even feasible for a fledgeling automaker.

As it turns out, they weren’t — and the company knew it.  (Read More…)

After much speculation, Ford CEO Jim Hackett has finally outlined where his company’s dollars will be spent in the foreseeable future. Hackett spent his summer performing what Ford called a “four-month deep dive” into the company’s strategy and business operations to see what changes needed to be made. His conclusions? This may surprise a few readers, but Ford will continue building and selling automobiles.

Alright, that isn’t a bombshell, but the brand is trying to frame itself as the Ford you’ve always trusted while also letting everyone know it’s still a “mobility company” with its eyes fixed on tomorrow. Without the public relations veneer, that plan translates into a reduced number of production models and trims, more money for electrification R&D, less for internal combustion engines, and a significant reduction in material costs.

Hackett’s address also served to reassure the nervous shareholders who ousted his predecessor, Mark Fields. Ford’s stock declined more than 30 percent during Fields’ tenure and many complained that his vision of transitioning from a traditional automaker to a Silicon Valley look-alike was partly to blame. Hackett did everything in his power to ease those fears.

“We’re going to be in the vehicle business moving both people and goods. Some myth about not being in the car business is gone,” Hackett told Wall Street. (Read More…)

Fiat Chrysler is trying to work some financial magic to make itself look more appetizing to prospective investors. However, few buyers are likely to be interested in the whole of FCA. Its North American half has proven adept at assembling sport utility vehicles and Jeep would be a tasty morsel for any company hoping to expand its portfolio. But the Italian arm’s focus on smaller automobiles could get in the way of a potential deal — especially if the buyer already has their own.

CEO Sergio Marchionne wants the company to be purchased by an established automaker, but there are precious few that would want everything it has to offer. One possible solution is to separate subsidiaries from the core group. Marchionne says that might be the best solution for dealing with component supplier Magneti Marelli.

FCA has been of the mind that streamlining the business is the best way to attract investors without harming subsidiaries. After all, it worked well enough for Ferrari. The brand was spun off from FCA in late 2015, and its stock valuation embarked upon a rocket ride to the moon the following month.  (Read More…)

The United Auto Workers has accused Nissan Motor Company of tracking and rating employees based on their union sentiments at the same Mississippi assembly plant where workers recently voted down union representation.

In early August, factory employees voted against joining by an almost 2-to-1 margin. At the time, the UAW claimed intimidation tactics and censorship crippled its attempt to reach workers. Now it’s saying Nissan also surveilled its entire staff and employed a comprehensive ratings system that documented each individual’s behavior regarding potential unionization.

The formal complaint, filed with the National Labor Relations Board, alleges Nissan “has maintained and continues to maintain an employee surveillance, data collection and rating system that records employee union activity and rates workers according to their perceived support for or opposition to the UAW.” (Read More…)

President Donald Trump entered into office threatening to abandon the North American Free Trade Agreement if the United States was not given a better deal immediately. But, after negotiations began, it looked as if his ultimatum would be unnecessary.

Now, U.S. officials involved in NAFTA negotiations are being accused of making proposals on issues Mexico and Canada have said they would never agree to. Are these bold negotiation tactics being used to place the U.S. in a better position for future issues, or are trade arbitrators intentionally trying to sabotage talks so Trump can make good on his promise to leave the agreement?   (Read More…)