Toyota Recalls Corolla, Sequoia, Tundra Vehicles with Defective Takata Airbags

First Up 12/13/18

German Automakers BMW, Daimler Stand to Benefit the Most if China Cuts U.S. Auto Tariffs
CNBC reports that Chinese Vice Premier Liu He reportedly said Beijing would cut the tariff on autos imported from the U.S from 40 percent to 15 percent during a call on Monday with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. It is a step toward cooling the rising trade tensions between the two countries, but its actual effect on U.S. automakers may be limited, said Kristin Dzichek, an analyst with the Center for Automotive Research. It may actually matter more to foreign automakers with factories in the U.S. than for Ford and General Motors. By far the largest number of U.S.-made cars shipped to China bear German names. German automakers have been getting hit particularly hard from both sides of the international trade war. They are the largest exporters of China-bound sport utility vehicles from the U.S. and significant importers of luxury sedans into the U.S., said Jeff Schuster, the president of global forecasting for LMC Automotive. Read more here. 

U.S. DOT Grants Will Help BMW's S.C. Plant, Connected Vehicles
A $25 million federal Department of Transportation grant supporting the expansion of an inland port for containers will directly benefit logistics operations at BMW in South Carolina and other manufacturers in the region, reports Automotive News. The award was part of $1.5 billion in discretionary funding unveiled Tuesday for 91 road, rail, transit, and port projects across the country, including ones for new infrastructure useful for autonomous and electric vehicles. BMW was included on the application for the intermodal project in Greer, which is being spearheaded by the South Carolina Ports Authority to extend the facility's lead rail track and lengthen a rail siding to more than 15,000 feet to hold larger trains. The inland port, between Greenville and Spartanburg, has performed beyond expectations since it opened in 2013 as a cargo station for transferring import and export containers to and from the Port of Charleston by rail – essentially extending the port's reach 212 miles closer to cargo owners and saving them from using more expensive long-haul truck transport. BMW relies on the terminal, which is linked to the port by the Norfolk Southern rail line, to streamline component imports from Germany. Read more here. 

Interim Boss at Audi Named as Permanent Head of Brand
Volkswagen’s Audi division has named acting head Bram Schot as the luxury brand’s permanent boss, reports The Detroit News. Schot took over on an acting basis in June after Rupert Stadler was jailed while prosecutors investigate possible illegal manipulation of diesel engine emissions. Stadler has since left the company. Schot, 57, was acting CEO along with his duties as marketing head at Audi, which also oversees the Volkswagen Group’s Lamborghini car and Ducati motorcycle brands. Volkswagen Group CEO Herbert Diess, who also heads Audi’s board of directors, said in a statement Wednesday that with his new mandate Schot would “further accelerate the transformation of the enterprise.” Schot was also appointed to the Volkswagen Group’s management board, its top executive body. Read more here. 

'We Don't Want to Abandon Sedans,' Volkswagen Says with Passat Reveal
With hopes of appealing to drivers who today drive a Ford Fusion, Chevrolet Malibu, or similar car, Volkswagen on Tuesday previewed an all-new 2020 Passat midsize sedan with a restyled interior and new sculpted body, reports The Detroit Free Press. “We don't want to abandon sedans,” Mark Gillies, senior manager of product communications for Volkswagen, told the Free Press during the event at Port Detroit. “We think it’s an important segment and we’re sticking with it. We know there are customers who love sedans and don’t want an SUV, and we want to cater to them." The 2020 Passat will debut at the Detroit auto show in January 2019. The car has a body that might be compared to the Toyota Camry or Honda Accord. It has most driver-assist options, including lane assist, blind-spot assist and auto cruise. The infotainment system has been updated. The whole exterior is redone except the roof. Read more here.

Toyota Recalls Corolla, Sequoia, Tundra Vehicles with Defective Takata Airbags
Toyota is recalling about 65,000 vehicles in the U.S. in the latest round of recalls tied to the deadly Takata airbag defect. According to USA Today, the automaker is recalling certain versions of the 2003-05 Toyota Corolla, 2002-05 Toyota Sequoia, 2003-05 Toyota Tundra and 2002-05 Lexus SC. Technicians will replace the vehicles' Takata airbag inflators or entire airbag units with new ones made by another supplier. Takata airbags made with the chemical ammonium nitrate were prone to exploding upon deployment and hurling fiery shrapnel into passengers. At least 23 people worldwide have died in incidents blamed on the defective devices. Read more here. 

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