Trump Administration Won't Turn Over Auto Import Probe, Defying Congress
The Trump administration is snubbing Congress by refusing to turn over a report detailing an investigation into national security risks potentially posed by imported vehicles and auto parts, citing pending international negotiations and executive branch deliberations, reports Reuters. Congress inserted a provision in a spending bill last month demanding the White House turn over the long-secret government report that U.S. President Donald Trump used to declare in May 2019 that some unnamed imported autos pose risks to national security. A person briefed on the matter said Trump had relied on a Justice Department opinion to order Commerce not to turn over the report under a Section 232 investigation. The Commerce Department said in a statement it was “not releasing the 232 autos report because releasing it now would interfere with the President’s ability to protect confidential executive branch communications and could interfere with ongoing negotiations.”
The Driving American Jobs Coalition, of which AIADA is a member, said in a statement, “The auto industry remains concerned that the Administration continues to label automotive imports a national security threat. Increasing taxes on auto and auto parts imports would significantly harm the economy and put American jobs at risk. We urge the Administration to remove the threat of tariffs and give economic certainty to the 10 million Americans whose livelihoods depend on the auto industry.” Read Reuters' coverage of the latest developments here.
Toyota and Honda Recall Millions of Vehicles
Two of Japan's biggest automakers, Toyota and Honda, are recalling millions of cars over unrelated safety issues, reports CNN. Toyota said Tuesday it would recall 3.4 million cars, 2.9 million of which are in the United States, because of potentially defective equipment meant to protect passengers during a crash. The affected models in North America, Central America and South America include some Corolla, Corolla Matrix, Avalon, and Avalon HV lines that were produced between 2010 and 2019. In a separate announcement Tuesday, Honda said that it would recall 2.7 million cars: 2.4 million in the United States, and 300,000 in Canada. The carmaker said some Acuras produced between 1996 and 2003 might have dysfunctional Takata airbag inflators that might have been produced without the "appropriate seals" needed to deploy properly. Read more here.
Cruise Plans Ride-Hailing Fleet with New Electric AV
Cruise, General Motors' self-driving vehicle unit, revealed its first vehicle that can drive without an operator as well as plans for a new service to compete in the ride-hailing space, reports Automotive News. The Cruise Origin, developed with Honda Motor Co., is designed with more space for passengers, and the driverless taxi will give ride-hailing giants Uber and Lyft another rival, Cruise CEO Dan Ammann said late Tuesday during the vehicle's introduction. GM is also an investor in Lyft. The third-generation Cruise vehicle will be used first to launch the ride-hailing service, but Ammann would not provide details on timing of the rollout. Since GM acquired Cruise, the company has worked on integrating self-driving technology into self-driving vehicles it plans to use for initial deployment. And since Honda became an investor in October 2018, Cruise has moved more quickly to develop a self-driving, EV platform, spokesman Ray Wert said. Read more here.
Trump Says He is Serious About Slapping Tariffs on European Cars if He Cannot Strike a Trade Deal
CNBC reports that President Donald Trump said Tuesday that he is not bluffing about the possibility of slapping tariffs on European cars. “They know that I’m going to put tariffs on them if they don’t make a deal that’s a fair deal,” the president told The Wall Street Journal about ongoing trade negotiations with the European Union. Trump’s threat to put tariffs on a key European export — and once again ratchet up trade tensions with the economic bloc — has sparked backlash from European officials and companies. The White House has repeatedly delayed a decision on whether to put tariffs on cars from Europe. Trump did not reveal to the newspaper a deadline for his tariff decision. The president made the comments Tuesday as government and business figures including German Chancellor Angela Merkel and European Commission President Ursula von der Leyen gathered at the World Economic Forum in Davos, Switzerland. Trump met with von der Leyen on Tuesday after speaking to the Journal. Read more here.
Tesla Sales Flattened Out Even Before Losing Federal Incentives
Tesla is far and away the leader in the U.S. battery-electric vehicle, or BEV, market, outselling all of its competitors combined. But, even as the California automaker ramps up production in China and gets ready to start building a new plant near Berlin, a look back at 2019 could be seen as an ominous warning, reports The Detroit Bureau. After years of aggressive sales growth that accelerated rapidly with the 2018 launch of the Model 3 sedan, Tesla sales all but flattened last year, demand for its older Models S and X tumbling rapidly. Tesla had to cope with the phase-out of its federal tax incentives during 2019, the credits offered buyers eliminated as of the beginning of this month. It’s unclear what impact that could have on demand. Meanwhile, the Model Y SUV that the company hopes will be even a big sales driver than the Model 3 sedan isn’t likely to reach showrooms until late 2020. Read more here. Gather with other leading dealers in February during the 2020 NADA Show to celebrate AIADA's 50th year during the 50th Annual Meeting and Luncheon. Events will include: the passing of the Chairman's Gavel from 2019 Chairman Howard Hakes of California to 2020 Chairman Jason Courter of Washington, a special ceremony honoring past chairs, and keynote remarks by Henio Arcangeli, Jr., Senior Vice President of the Automobile Division of American Honda Motor Co. Click here to register.
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