Japan Petitions U.S. For Special Consideration with EV Tax Credits
In a petition to the U.S. government about America's newly adopted electric vehicle tax credits, Tokyo traded on its longstanding loyalty, as America's top ally in Asia. The Japanese government, which sent the appeal Friday to the Department of Treasury and the Internal Revenue Service, said it had "serious concerns" about the EV tax credits because the incentive scheme puts Japanese carmakers and battery makers at a disadvantage. "They in fact preclude Japanese businesses from enjoying the benefit," the dispatch said. Automotive News reports Tokyo not-so-subtly urged Washington to give Japanese companies special consideration — not because of Japan's trade relations — but because of country's standing as a "like-minded" ally. In fact, Japan used a form of the word "ally" no fewer than 11 times in the three-page communique. Typical of the language: "Taking into consideration the objective to work with allies and like-minded partners to establish resilient supply chains, allies including Japan should be accorded treatment no less favorable than countries in the North America region." Click here for the full story.
Honda U.S. Dealers Could Service Sony-Honda EVs, CFO Says
Honda dealers in the U.S. will likely have a hand in servicing, but not selling, the new wave of electric vehicles coming from the company's new joint venture with Sony. That's the message from Honda executives at headquarters in Japan. Automotive News reports speaking at the company’s financial results announcement Wednesday, CFO Kohei Takeuchi said the sales model will be a completely new one, echoing early talk of an online approach. "It will be something unconventional, not Sony, not Honda, but something new," he said. Takeuchi said the sales and servicing plan is still under discussion. But he added Honda has a network of more than 1,000 U.S. dealers who are well situated to service the new cars. Honda and Sony outlined plans last month to deliver the joint venture's first EVs to U.S. customers in the spring of 2026. The new partnership, called Sony Honda Mobility Inc., will build the vehicles at Honda's planned EV manufacturing hub in Ohio. Click here for the full story.
BMW's Zipse: We Are Not Leaving Lower Segment for Electric Cars
BMW Chief Executive Oliver Zipse said the premium carmaker would not abandon its lower-priced segment in the transition to electrification. "We are not leaving the lower market segment. Even if you consider yourself a premium manufacturer, it is wrong to leave the lower market segment — that will be the core of your business in the future," Zipse said. His comments contrast with the strategy of rival Mercedes-Benz, which said in July it was dedicating 75 percent of its investments to top-end vehicles and its highest-selling segment of "core luxury" C-Class and E-Class models while cutting the number of entry-level models, reports Reuters. BMW's chief financial officer warned last week that although sales of fully electric vehicles were expected to double this year from 2021 levels, the company expected rising inflation and interest rates to weigh on incoming orders, particularly in Europe. Click here for the full story.
Japanese Companies Are Making Less but Profiting More Thanks to Weak Yen
Top Japanese companies are expecting healthy profits this year despite parts shortages leaving them unable to ship many products, ranging from cars to gaming devices. The yen’s fall to a three-decade low against the dollar this year has more than offset difficulties for exporters in meeting demand because of the boost it has given to the value of earnings from overseas, reports The Wall Street Journal. Honda Motor Co. and Nissan Motor Co. raised their profit forecasts for the fiscal year through March on Wednesday, thanks in large part to the impact of foreign exchange rates. The auto makers issued the brighter outlooks despite forecasting they will sell fewer vehicles due to continuing chip shortages. Honda executive Eiji Fujimura said the company’s sales revenue target for the current year would be a record high if achieved. But, because much of that is attributable to currency effects rather than sales volumes “we do not say proudly this is a record high,” Fujimura said. Click here for the full story.
Race Remains Tight for Control of Congress
With several key races still to be decided, Republicans remained favored to take control of the U.S. House, though the results fell short of the sweeping gains some in the GOP anticipated. The Wall Street Journal reports control of the Senate remained up for grabs, with contests in critical states such as Georgia too early to call. Democrats flipped governorships in two states, while two of the nation’s most prominent Republican governors, Florida’s Ron DeSantis, and Texas' Greg Abbott, cruised to re-election. Georgia Gov. Brian Kemp also held on to his seat, holding off a challenge from rival Stacey Abrams. Click here for live election results.
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Carvana’s Stock Has Sunk 98 Percent Since Its Peak [Jalopnik]
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