Trump Mulls Hitting EU, Japan with Tariffs on Auto Imports
In Washington D.C. a deadline is not really a deadline, which makes sense since the Commerce Department recently declared a Mini Clubman poses a significant risk to national security. The Detroit Bureau reports that Wilbur Ross, the U.S. Secretary of Commerce, led an investigation that found that imported vehicles did represent a risk the security of the United States, thus President Donald Trump could levy a tariff on them. There was a deadline to do so and he missed it; however, U.S. officials are still pushing foreign automakers to change the way they do business with the U.S. Ross also told Reuters that Trump could still slap a levy on them anyway despite a U.S. trade court ruling that was issued last month confirming the president’s authority to impose sanctions has lapsed. That caused at least one member of Congress, U.S. Senator Pat Toomey (R-Pennsylvania) to cry foul, suggesting in a tweet that the Commerce Department would need to a launch a new investigation before it could impose the tariffs. Ross believes otherwise, suggesting it was theoretically possible that Washington could use tariffs authorized by the World Trade Organization under a separate case about aircraft subsidies to impose tariffs on European car imports. Read more here.
Nissan Orders Two-Day Furlough for U.S. Employees Amid Falling Sales
Automotive News reports that Nissan is doing worse than expected in the U.S. market, and its chairman is now taking steps to cut costs across the company, slashing employee travel expenses and putting the entire U.S. organization on two days of unpaid furlough next month. "While we've made some positive progress, Nissan's performance has fallen short of our expectations," Nissan North America Chairman Jose Valls said in a memo to employees this week and obtained by Automotive News. Valls said in the memo that Nissan will cut employee travel expenses by 50 percent "effective immediately." The company also will remain closed for two days after the New Year's holiday, with all U.S. employees foregoing pay for Jan. 2 and Jan. 3. Valls informed Nissan employees that the move will translate to a 9.2 percent pay cut in January for those paid monthly. Employees paid bi-weekly will not be paid for those two days. Read more here.
Mercedes Beats BMW in November, Tightening U.S. Luxury-Car Race
Mercedes-Benz outsold BMW AG for a second consecutive month in November, making the U.S. sales race between the two German luxury rivals the closest it’s been since March, reports Bloomberg. Daimler AG’s Mercedes-Benz brand sold 33,721 cars and SUVs in November, surpassing BMW by 2,508 vehicles. A refreshed GLC midsize SUV was the top seller, while demand for its larger sibling, the GLE SUV, rose a whopping 52%. Total U.S. deliveries for the hyphenated nameplate climbed 8.7% last month. BMW posted a 10.2% gain to 31,213 vehicles, its fourth consecutive monthly increase. Its 3-Series sedan led the way, with sales almost doubling to 6,283. The X3 and X5 crossover SUVs also posted big volume gains, as did the larger three-row X7 SUV. For the year, BMW’s lead over Mercedes narrowed to just 3,280 vehicles through the end of November. BMW's lead shrank to 3,280 through November from 5,788 in October. Read more here.
Toyota Leads $50 Million Funding Round for May Mobility May Mobility, a self-driving shuttle company based in Ann Arbor, Mich., has raised $50 million in its latest round of financing with a substantial chunk coming from one of the world's biggest automakers, reports Automotive News. Toyota Motor Corp. was the largest investor in the Series B round. Though the company's exact investment was not disclosed, its involvement marks another signal of its interest in business models that stretch beyond traditional vehicle sales. "May Mobility already has a track record of commercializing autonomous driving shuttles in the U.S., and we see this as an exciting opportunity to collaborate with a seasoned partner in this area," Keiji Yamamoto, Toyota operating officer and president of the company's in-house connected services, said in a statement. May Mobility has pilot projects deployed in Detroit, Grand Rapids, Mich., and Providence, R.I. A test program in Columbus, Ohio, concluded this fall. Overall, the company has raised $83.6 million since its founding in January 2017, according to Crunchbase records. Read more here.
New Problems With Takata Air Bags Prompt Recall of 1.4 Million Cars
Automakers will likely recall 1.4 million cars after new problems were discovered with air bags produced in the 1990s by Takata Corporation, opening another front in the already giant effort to make sure drivers are safe from some devices made by the company. According to The Wall Street Journal, the new recalls affect cars made by BMW AG, Toyota Motor Corp., Honda Motor Co., Mitsubishi Motors Corp., and Volkswagen AG’s Audi NSU -0.50% division with certain air bags produced by Takata between 1995 and 1999, according to documents posted online by federal regulators. While the inflater mechanism in the air bags is different than those that led to the earlier recalls, in both designs a buildup of moisture can cause the air bag’s inflater to explode and send shrapnel into the vehicle during a crash. The more recent issue was discovered after three incidents in which one driver was killed and two were injured, according to another document posted by federal regulators. Read more here.
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