Senate Confirms Tai as U.S. Trade Representative
The Senate on Wednesday voted unanimously to approve the nomination of Katherine Tai to be U.S. Trade Representative, thrusting the former House trade lawyer into numerous commercial disputes initiated by the Trump administration, reports Politico. In her new role, Tai has pledged to pursue a “worker-centered” trade agenda that will build on environmental and labor protections she helped Democrats win in the updated NAFTA trade deal last year. But action on that front is not imminent, as President Joe Biden has promised a pause in new trade negotiations and Tai pledged to review Trump’s tariffs before making changes, instead focusing on enforcing the new NAFTA deal and other pacts first. Read more here (Source: Politico).
"AIADA congratulates Katherine Tai on her confirmation as our United States Trade Representative,” said AIADA President and CEO Cody Lusk in a statement. “The unanimous Senate vote in her favor reflects the wealth of knowledge and experience she brings to the vital post of America’s trade czar. As small business owners responsible for 564,000 American jobs, a payroll of $34 billion, and 56 percent of retail vehicle sales in the U.S., AIADA’s 9,500 dealer members know well the value of global trade to our economy and look forward to working with Ambassador Tai as she seeks to strengthen and grow America’s trade ties around the world."
Toyota, Honda Cut North American Production Amid Supply Chain Woes
Toyota Motor Corp and Honda Motor Co Ltd announced on Wednesday new North American production cuts, citing supply chain issues that have wreaked havoc with the auto industry, according to Reuters. Toyota said it would cut production this week at four plants in Kentucky, West Virginia and Mexico, citing “a shortage of petrochemicals” and “recent severe weather conditions” affecting production. A Toyota spokeswoman said the production cuts “will impact production of the Camry, Camry Hybrid, Avalon, Avalon Hybrid, RAV4 Hybrid, Lexus ES 350, Lexus ES 300h and Tacoma,” but declined to say how long or how much production would be cut. Honda said late on Tuesday that supply chain issues would force a halt to production at a majority of its U.S. and Canadian auto plants for a week starting next Monday - and would result in some production cuts at all U.S. and Canadian plants next week. On Wednesday, Honda in Mexico said it would suspend production at its plants in that country beginning on Thursday due to supply chain problems. Read more here (Source: Reuters).
CFPB Shifts Gears on 'Abusive' Enforcement Direction
After less than a year in effect, the Consumer Financial Protection Bureau last week reversed its Trump-era policy on abusive practices, reports Automotive News. The decision to redefine its approach to "abusiveness" in supervision and enforcement provided much-needed clarity on how the bureau intended to leverage its power, finance experts said. The bureau said it revoked the rule "to better protect consumers and the marketplace from abusive acts or practices, and to enforce the law as Congress wrote it." The CFPB has had broad jurisdiction since its inception to pursue and penalize businesses in the consumer financial product industry for practices it considered abusive, unfair or deceptive under the Dodd-Frank Act. But what constitutes an "abusive" business practice has been debated in industry circles for years. Read more here (Source: Automotive News).
Volvo March Output in U.S., China Hit by Chip Shortage
Automotive News reports that Volvo Cars, which is owned by China's Geely Holding, will temporarily stop or adjust production in China and the United States for parts of March due to a global shortage of semiconductor chips, it said Wednesday. "We expect the situation to become critical during the second quarter and have therefore decided to take measures to minimize the impact on production while working daily to improve the situation," Volvo Cars said in an e-mailed statement. "Volvo Cars will temporarily stop or adjust production in some of its car factories (in the United States and China) during the month of March," it said. The Swedish automaker said last month it had so far not lost volumes due to the chip shortage, but added there was a "big risk" it could happen during the first quarter. Read more here (Source: Automotive News).
Electric-Vehicle Enthusiasm Drives Investors to Traditional Carmakers
Investors are piling into a long-neglected sector: old-school car makers that are reinventing themselves as electric-vehicle producers, reports The Wall Street Journal. After years lamenting that their shares were undervalued, Ford Motor Co., General Motors Co., Volkswagen AG, and other blue-chip car manufacturers are seeing sharp share-price gains this year as they embrace the new technology. Ford is up 49% so far this year, while GM’s shares have surged 48%. VW’s stock is up 55%. By comparison, the S&P 500 index is up just 7.4% so far this year. The new infatuation with established auto makers, many of which have been in business for more than a century, follows an earlier rush into electric-vehicle stocks that has driven shares of Tesla Inc. and other electric vehicle and battery manufacturers into territory that some analysts say is reminiscent of the dot-com bubble of the 1990s. Read more here (Source: The Wall Street Journal).
Around the Web
Government Agencies Clash Over How Much to Regulate Self-Driving Cars [Car and Driver]
Could These Long-Gone Vehicles Make a Comeback? [USA Today]
Lucid's Upcoming Electric Car Will Be the First to Feature Dolby Atmos [The Verge]
Hyundai Adds Tucson to 2022 Performance Vehicle Lineup [The Detroit Bureau]
