Toyota Doubles Down on Texas with Near $400M Investment
Fox Business reports that Toyota announced on Tuesday that it planned to invest hundreds of thousands of dollars in a truck assembly plant in San Antonio, Texas, part of its ongoing plan to pump money into its U.S. operations. “Our $391 million investment here in San Antonio is just the next step in a long line – and we do make about 70 percent of what we sell here,” Christopher Reynolds, head of Toyota’s North America Manufacturing said during an exclusive interview on FOX Business’ Cavuto: Coast to Coast on Tuesday. Reynolds noted that the company has invested more than $27 billion in the U.S. since the late-1960s. It has plans to invest $13 billion in the country in the five years through 2021. Toyota Tacomas and Tundras are assembled at the plant, which opened in 2003. It employs more than 3,200 workers. Read more here.
Trump Administration to Revoke California's Power to Set Stricter Auto Emissions Standards
The Trump administration plans this week to revoke California’s long-standing right to set stricter air pollution standards for cars and light trucks, the latest step in a broad campaign to undermine Obama-era policies aimed at cutting greenhouse gas emissions to combat climate change, two senior administration officials said. According to The Washington Post, the move threatens to set in motion a massive legal battle between California and the federal government, plunge automakers into a prolonged period of uncertainty and create turmoil in the nation’s auto market. The Environmental Protection Agency declined to comment on the matter. But in a speech Tuesday to the National Automobile Dealers Association, EPA Administrator Andrew Wheeler made his intentions clear. “We embrace federalism and the role of the states, but federalism does not mean that one state can dictate standards for the nation,” he said. Read more here.
GM Strike Triggers Economic Impact Warnings
As the UAW's national strike against General Motors stretched into its second day and negotiators returned to the bargaining table, economists and Wall Street analysts on Tuesday warned that a lengthy work stoppage could hurt GM and the Michigan economy. According to Automotive News, negotiations ended Tuesday night without a tentative deal but talks are expected resume Wednesday, according to a person familiar with the matter. The UAW said Tuesday that some progress had been made during talks. During breaks on Monday, union leaders including Vice President Terry Dittes and Region 1A Director Chuck Browning appeared on picket lines and on TV. Dittes told Bloomberg the sides remained far apart on a number of issues. GM on Sunday said its latest offer to the UAW included more than $7 billion in investment, creation or retention of 5,400 jobs, and solutions for two of its four "unallocated plants." Read more here.
Strike Cuts Off Flow of Replacement Parts to Dealers
The United Auto Workers strike against General Motors Co. has curtailed delivery of service parts used to repair cars and trucks at GM dealerships across the country, the company acknowledged. According to The Detroit Bureau, GM’s network of parts distribution centers and warehouses wasn’t really touched by the UAW’s last national strike in 2007, which lasted only two days, or during a long string of local strikes against GM plants in the 1990s or a selective strike during contract talks in 1984. This time around, however, the 49,000 UAW members employed by GM have set pickets outside all of GM’s installations in the United States, including the distribution centers and warehouses that are at the heart of the company’s service parts operations. GM spokesman Jim Cain said the company has other alternatives to delivering parts to dealerships. AC Delco, for example, has large accounts for parts with companies such as Pep Boys. In addition, large dealers and dealer groups have their own parts warehouses that still hold quantities of parts used for repairs. Read more here.
Nissan Seeks Sale of Trading Unit in $1 Billion Deal
Nissan is seeking to sell a wholly owned subsidiary that distributes vehicle parts and materials in a deal that may be valued at about $1 billion, as the struggling Japanese automaker seeks to slim down, people familiar with the matter said. According to Automotive News, the company has invited private equity and trading firms to bid for 100 percent of Nissan Trading, according to the people, who asked not to be identified because the information is not public. The buyer may be selected by as early as October, according to the people. The target valuation includes assumed debt, they said. A sale of the unit, which generated revenue of 676.1 billion yen ($6 billion) in the fiscal year ended March, would help Nissan free up cash to help turn around its broader business that has been hurt by slumping U.S. sales, aging vehicle models and an out-of-sync product cycle. Read more here.
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Why Jay Leno Invests in Cars, Not Stocks [WSJ]
The 2020 McLaren GT is the Supercar of Grand-Touring Cars [Car and Driver]
2021 Mercedes-AMG GT Black Series Spy Shots [MotorAuthority]
