U.S. Releases Confidential Trump Report on Foreign Auto Threat
The U.S. Commerce Department on Tuesday released a confidential Trump administration report that was the basis for the former president's threats in 2019 to impose tariffs on imported automobiles on grounds of national security, according to Reuters. Then-U.S. President Donald Trump in May 2019 declared that some unidentified imported autos posed national security risks. He refused to release the report to Congress or the public, which prompted a lawsuit seeking its disclosure. Republican Senator Pat Toomey, who drafted legislation to require the report's release, said in a statement that "a quick glance confirms what we expected: The justification for these tariffs was so entirely unfounded that even the authors were too embarrassed to let it see the light of day." Trump threatened but never imposed tariffs of up to 25% on imported cars or auto parts. Automakers said tariffs would result in the loss of hundreds of thousands of auto jobs, raise vehicle prices, and threaten industry spending on self-driving cars. Read more here (Source: Reuters).
BMW Grabs Luxury Lead
Halfway into 2021, the horse race for the luxury crown has a new leader, reports Automotive News. BMW galloped to the front in the second quarter, powered by strong demand for crossovers, and taking a first-half lead. At the mid-year mark, BMW outsold German rival Mercedes-Benz by 7,348 units. That's quite a reversal of fortunes from a year ago when Mercedes had a 16,795 unit lead over BMW. Mercedes also led after the first quarter, with Lexus No. 2 and BMW No. 3. The luxury vehicle segment has roared back to life from the COVID lockdown doldrums a year ago. Total U.S. luxury sales rose 63 percent to 624,414 cars and light trucks in the second quarter, outpacing the broader industry's 49 percent increase, even amid tightening inventories. First-half luxury sales rose 42 percent. BMW captured the U.S. luxury crown in 2019 and 2020 after Mercedes had a three-year run atop the rankings. Read more here (Source: Automotive News).
Toyota's Chip Supply Helps It Beat General Motors for the First Time
Toyota Motor Corp.’s decision to build a stockpile of chips for its cars paid off by lifting it above perennial top dog General Motors Co in the U.S. for the first time. But, reports The Wall Street Journal, the Japanese car maker, whose American dealers have supply problems of their own, isn’t thumping its chest about its triumph over Detroit. Between April and June, Toyota sold 688,813 vehicles in the U.S., giving it a razor-thin 577-unit margin of victory over GM, according to figures from the two companies. “Toyota thinks this was an unusual case due to production constraints and other factors,” spokeswoman Shino Yamada said. She called it a “short-term event for this quarter.” Toyota bet earlier than most car makers on a recovering U.S. car market. As a result, the company cut production and parts orders less sharply than competitors, making it better prepared for the current surge. But even Toyota wasn’t fully prepared for the frenzy of car buying. Read more here (Source: The Wall Street Journal).
Chip Crisis Deepens with Daimler, Jaguar Warnings on Sales
Daimler AG and Jaguar Land Rover became the latest carmakers to warn sales will be further crimped by the global semiconductor shortage, with the latter flagging deliveries in the second quarter will be 50% worse than initially thought, reports Bloomberg. Shares in the British luxury carmaker’s Indian parent Tata Motors Ltd. slid 8.4% Tuesday in Mumbai, their biggest drop in almost three months, while Daimler, owner of Mercedes-Benz, fell 4% in Frankfurt, the biggest loss since October. Jaguar Land Rover’s euro bond due January 2026 fell the most since Dec. 11, according to Bloomberg-compiled prices. “The chip shortage is presently very dynamic and difficult to forecast,” JLR said. “We expect some level of shortages will continue through to the end of the year and beyond.” Read more here (Source: Bloomberg).
Ex-UAW Official Pearson Sentenced to 1 Year in Prison
Former UAW Regional Director Vance Pearson was sentenced Tuesday to a year in federal prison for conspiring to embezzle union funds and further racketeering activity with other high-ranking union officials. According to Automotive News, the court recognized that Pearson played "a minor role but at the same time, it was active," said U.S. District Judge Paul Borman. The court did not order Pearson to pay a fine. Pearson's original sentencing guideline was 24-30 months. But acting U.S. Attorney Saima Mohsin last month requested a reduced 14-month sentence because of Pearson's cooperation and assistance in the investigation and prosecutions of ex-UAW presidents Gary Jones and Dennis Williams. Jones was sentenced to 28 months in June, and Williams was sentenced to 21 months in May. Read more here (Source: Automotive News).
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The Museum of Modern Art Still Doesn't Really Get Cars [Jalopnik]
COVID-Dormant Carswith Dead Batteries Spark Lead Price Hike [Road Show]
Unveiling Its Last Petrol Car, Lotus Sets Off in Pursuit of Porsche [Reuters]
