A judge hearing a case brought by investors against Volkswagen has deemed its former corporate head, Martin Winterkorn, was too slow in addressing the emissions test cheating that steered the automotive giant into colossal U.S. fines. It’s an early blow against the German company in a suit seeking $10.6 billion in damages for stock losses suffered when the scandal finally became public.

“Anyone acting in good faith would have followed up on this information,” Judge Christian Jaede of the ex-CEO during the second day of hearings held at the Braunschweig higher regional court. “This appears not to have happened.” (Read More…)

With Ford abandoning the sedan business for what it hopes are greener pastures, General Motors is going to stick with it. While it’s doubtful the automaker expects to pick up every customer the Blue Oval leaves behind, the sedan market still has millions of potential customers in it.

However, with the industry shifting ever more toward crossover vehicles, wouldn’t it be wiser to attempt to get out ahead of the craze? That’s what Ford is doing.

Plus, it’s not like there are any examples of Ford bucking the industry trend to persist with a vintage body style that resulted in any amount of success. Well, not unless you’re willing to count something like the Panther platform. But who remembers that footnote in automotive history? It’s not as if it has a deep-seated enthusiast community or reliably served a very specific subset of the market for any length of time.  (Read More…)

Ford formed a team this week, called it the “Enterprise Product Line Management (EPLM) group,” and put it to work with the company’s marketing, engineering, mobility, and product development arms to overhaul the company’s product lineup. The goal is to study what customers want and use that information to build more profitable, competitive vehicles.

The team is split into ten smaller divisions that will focus their efforts on a specific model or product group — including everything from electric models to rugged off-roaders. However, EPLM won’t simply be responsible for their development — it’s also in charge of making sure customers are engaged with everything Ford offers, and that the products are brought to market swiftly, sell well, and remain profitable to manufacture. That’s a pretty full plate, if you ask us.  (Read More…)

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), Britain’s main industry group, claims automakers were becoming increasingly concerned with the nation’s departure from the European Union. Prime Minister Theresa May wants a solution that would allow Britain to maintain strong trade ties with the EU while allowing her country to maintain autonomy, but hasn’t found much success.

U.S. President Donald Trump claims a deal with the United Kingdom is absolutely possible, saying the relationship between the two countries is “the highest level of special” late last month. But he also noted that the EU would complicated matters if Britain adhered to its trade laws after Brexit, which is just eight months away.

The European Union doesn’t seem to want to let Britain go, and is nudging the country to stick to its rules by not venturing out to make its own trade arrangements. Critics say this effectively makes the island nation a “vassal state” to the EU, completely defeating the point of Brexit. However, many are fearful that leaving the union and ignoring its mandates could have negative repercussions in the long term — especially in regard to finance and trade.  (Read More…)

Remember the multi-million dollar corruption scandal involving UAW officials? Apparently, it was even more corrupt than previously reported. While the UAW-Chrysler National Training Center is suing both Fiat Chrysler and the union members involved, recent developments point to the money scheme being greenlit by former UAW President Dennis Williams.

As part of a plea agreement filed this week, ex-labor official Nancy Adams Johnson told investigators that Williams specifically directed union members to use funds from Detroit’s automakers, funneled through training centers, to pay for union travel, meals, entertainment, and more. If true, the accusation not only implicates the UAW of corruption at the highest level but also the potential involvement of staff from both Ford and General Motors — something the FBI is already looking into.

I believe the official industry term for something like this is a “shit show.”  (Read More…)

Ford Motor Company announced Tuesday that it has formed formed a subsidiary — Ford Autonomous Vehicles LLC — devoted entirely to autonomous vehicle development. That’s probably the catchiest name we’ve heard since Bank of America Corp or Waste Management Inc. However, you don’t need a clever moniker when you’re dumping $4 billion into a project, which Ford intends to do through 2023.

With all the current drama and distrust surrounding self-driving cars, we thought there was a chance automakers would cool off on pushing for it so aggressively. But while some OEMs curbed their futuristic rhetoric ever so slightly, practically everyone else kept the pedal to the metal — an analogy that will lose all meaning once computers drive us everywhere.

Let’s see what The Future™ looks like in and around Dearborn.
(Read More…)

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…)

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…)

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…)

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…)

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…)

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…)

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…)