Automakers Consider Extensions on Auto Rules Under USMCA

First Up 05/26/20

Beltway Talk Podcast: Q&A With Subaru's DC Chief

Joanna Foust is North American Subaru’s Vice President – Government Relations and a veteran of D.C.’s automotive universe. In this episode of Beltway Talk, Joanna explains why she considers herself both a lobbyist and an educator, what Subaru is doing to move its mission forward in D.C., and how she sees the remainder of 2020 unfolding for the automaker and it’s retailers. Click here to listen in to the latest Beltway Talk podcast episode – and don’t forget to subscribe. 

Automakers Consider Extensions on Auto Rules Under USMCA

With just five weeks before the United States- Mexico-Canada Agreement introduces tougher automotive rules of origin, automakers are weighing whether to ask for more time to comply, reports Automotive News. The Office of the U.S. Trade Representative has requested petitions from automakers that are seeking an alternative staging period for the rules of origin, which require more vehicle content to be made in the region and a significant portion of that content to be made with high-wage labor. If eligible, automakers will have an additional two years to meet regional value and labor value content thresholds, extending the phase-in from the standard three years to five. But the time-consuming process must be completed while purchasing departments are scrambling to ensure assembly plants can get parts after extended shutdowns to slow the spread of COVID-19. The uniform regulations — the instruction manual providing details on how to comply with the new rules — aren't out yet. Those regulations are expected to be released June 1 — a month before the United States- Mexico-Canada Agreement enters into force, several trade attorneys and experts told Automotive News. Read more here.

Carmakers Push Forward on EVs as Self-Driving Hits Pandemic Speed Bumps

The coronavirus pandemic is proving to be yet another obstacle for the self-driving and ride-sharing movement, delaying the widely touted arrival of next-generation automotive technology, reports The Detroit News. Ford Motor Co. is postponing for a year the commercial deployment of its autonomous vehicles. Waymo LLC, the self-driving unit of Google parent Alphabet Inc., had to temporarily suspend its on-road testing and its ride-hailing offerings in Arizona. Uber Advanced Technologies Group recently announced layoffs of 3,500, citing the pandemic. And General Motors Co. is shutting down Maven, the car-sharing service that debuted in 2016 as the wave of the future. With demand for car-sharing and ride-sharing diminishing sharply in the age of social-distancing and other forms of vigilant hygiene, companies are shifting their focus to using driverless vehicles to deliver goods before they ferry people — a reversal of a robo-taxi future envisioned just a few years ago, courtesy of the virus that causes COVID-19. Read more here. 

Toyota, Nissan, and Honda Gear Up for Mexico Reboot After COVID-19 Lockdowns

Japanese automakers Toyota, Nissan and Honda said they are gradually restarting in Mexico as the nation’s automotive industry reboots in line with a broader economic reopening, despite still-high numbers of new coronavirus cases, reports Reuters. Mexican officials in mid-May said the automotive industry could exit the coronavirus lockdown before June 1 if approved safety measures were in place. The three Japanese firms have yet to announce official re-launch dates. Toyota Motor Corp and Nissan Motor Co Ltd told Reuters on Monday that they were preparing to gradually resume operations, and Honda Motor Co Ltd last Friday said it had begun a gradual return to operations. Read more here. 

Mercedes' U.S. HQ Staff Will Stay Home All Year

Mercedes-Benz USA has ordered its 875 headquarters employees to work remotely for the remainder of the year. The directive could extend into 2021. "Working remotely was the exception — for the foreseeable future, it will become the norm," Mercedes-Benz USA CEO Nicholas Speeks told Automotive News last week. Several corporations, including Google, Microsoft, and Amazon, have extended the remote-work plans they imposed this year as employees remain skittish about possibly contracting the coronavirus. Mercedes' metro-Atlanta headquarters emptied in mid-March as schools closed and Georgia went into lockdown, but business has continued from living room couches, kitchen tables and patio chairs. Speeks said it is actually going smoothly. "We are able to function effectively and it gives people an opportunity" for better work-life balance, the CEO said. He described the work-from-home policy as a "trial" without a firm expiration. Read more here. 

Webinar: Sanitization and Decontamination Processes to Reduce Virus Risk

Join AIADA's next AutoTalk webinar to learn about vehicle santization and decontamination. Dr. Rik Patel is a physician who has spent 11 years in sports medicine and orthopedic care. He is co-founder and chief operating officer of RideKleen, a mobile vehicle care and fleet services.

Hear his take on vehicle sanitization and decontamination, safely restarting various modes of transportation and shared mobility and sustainable vehicle hygiene. Dr. Patel will discuss:

  • The importance of vehicle sanitization & disinfection for your workers and customers

  • FACTS and MYTHS regarding disinfection

  • How do evaluate disinfection products in markets and what to look for? Are they safe?

  • Why process matters in vehicle disinfection and things to consider

When: May 27, 2020 at 2 p.m. EDT 

Click here to register. 

Around the Web

NY Auto Show is Now Fully Canceled [The Verge]

Macron Set to Unveil Aid for Embattled French Auto Industry [Bloomberg]

Lock Your Cars! Vehicle Theft Spikes in COVID-19 Pandemic [Fox Business]

James Bond's Car Comes to Life [NY Times]

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