USMCA Panel Rules Against U.S. in Auto Dispute with Mexico, Canada
A trade panel ruled in favor of Mexico and Canada in a dispute with the U.S. over rules to calculate regional content required for tariff-free imports of vehicles under the U.S., Mexico, Canada Agreement, officials said Wednesday. The Wall Street Journal reports, Mexico and Canada had challenged the U.S. method for calculating the regional content required under the USMCA trade pact for cars to have tariff-free access to the U.S. and requested the panel early last year after failing to reach agreement during consultations. The Trump administration’s demand for increased North American content in automobiles proved to be one of the most contentious issues during the renegotiation of the North American Free Trade Agreement, which was then renamed and went into effect in 2020. The minimum regional content requirement was raised to 75 percent under USMCA from about 62 percent under Nafta. Canadian Trade Minister Mary Ng said the ruling reaffirms “our understanding of the negotiated outcome on the rules of origin for automotive products.” Canada joined Mexico’s initial complaint, warning the U.S. interpretation could inhibit the ability of domestic manufacturers from qualifying for duty-free trade in North America. Click here for the full story.
2023 NACTOY Winners: Ford F-150 Lightning, Kia EV6, Acura Integra
The electric Ford F-150 Lightning was named 2023 North American Truck of the Year while the Kia EV6 was named Utility Vehicle of the Year and the Acura Integra took Car of the Year honors. The Integra's victory was Acura's first NACTOY award since 2001, while Kia netted its first NACTOY win since 2020 and second overall as a brand, reports Automotive News. This year marked the first time all three utility category finalists were EVs. “It’s a huge honor for Kia,” said Steven Center, COO of Kia America. “In the 30 years we’ve been in business in the U.S., this is more or less a high point, given the technology this car has and the market reaction to this car.” The Integra, back in showrooms last year after sales of the prior generation ended in 2006, was the sole gas-powered vehicle to win. “It’s a reinforcement that we have a fantastic product,” said Emile Korkor, assistant vice president of Acura national sales. “It’s core to our DNA, having an entry vehicle like this, bringing back that Integra nameplate.” Click here for the full story.
U.S.-Made EVs Rule the Market — and the Trend Is Accelerating
Electric vehicles built in U.S. factories are dominating the domestic EV market, according to new-vehicle registration data from Experian, and the trend is likely to accelerate, given new tax incentives for EV and battery production in North America. U.S.-made EVs accounted for about 75 percent of new-vehicle registrations in the first 11 months of last year, Experian data shows, and U.S.-based automakers were responsible for nearly all the local production. The biggest exception was Nissan, with its Tennessee-built Leaf holding a 1.7 percent EV market share. Automotive News reports international automakers are now accelerating plans to assemble EVs in the U.S. and build their supply chains here. "The emerging EV market opened up a new opportunity to all manufacturers and brands around the world, but the IRA changed that focus," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. "The idea of $7,500 per vehicle lit a fire under companies like Hyundai and BMW to speed up their plans to make their EVs in local plants rather than shipping them into the country," Fiorani added. Click here for the full story.
Google, Porsche in Talks Over Google Apps Access
Porsche is considering fully integrating Google software into its car cockpit, a source close to the company said on Thursday, marking a shift in strategy for the newly listed carmaker. The deal, which is only being considered for the Porsche brand and not the Volkswagen Group more widely, would enable Porsche customers access to Google applications like Google Maps and Google Assistant without needing to connect the car to an Android phone, reports Reuters. Porsche Chief Financial Officer Lutz Meschke said on a conference call last October that the company was in close contact with Google and Apple as well as Baidu, Tencent, and Alibaba, in China following the end of its cooperation with Volkswagen's Cariad unit on software research and development. Porsche had previously been reluctant to use Google software because Google asked for too much data to be shared, according to Manager Magazine, which first reported the talks. Click here for the full story.
Toyota and Lexus Dealers Expect Sales Surge
Toyota and Lexus dealers are banking on pent-up demand and better new vehicle availability to support an improvement in new-vehicle sales in 2023, despite higher interest rates and other worries about the U.S. economy. “At least for us, the demand is still there,” Dealer Steve Gates, 2023 chairman of the Toyota National Dealer Council, tells Wards. In a separate briefing to announce 2022 results, Toyota Motor North America executives offer similar sentiments about the U.S. market in general, while avoiding a precise forecast for U.S. Toyota and Lexus sales in 2023. Jack Hollis Toyota’s executive vice president of sales, predicts U.S. light-vehicle sales of around 15 million in 2023. “The 2023 uptick is not as high as we would love it to be, but an uptick,” he says. U.S. light-vehicle sales for 2022 are around 13.7 million, down 8.2 percent vs. 2021, according to NADA. “Demand is still greater than our supply,” Hollis says. “What’s different now is more stability,” meaning a “slow but steady” increase in inventory. “That alone gets us close to the 15 million mark this year,” for the whole industry, he adds. Click here for the full story.
Around the Web
BMW Won't Kill the Sedan in the Age of EVs and SUVs [Carbuzz]
It Was a Great Year for Expensive Cars [Car and Driver]
Mercedes-AMG SL63 Motorsport Collectors Edition Has an F1 Theme and a Frostbitten Butt [Carscoops]
U.S. NTSB Chair Raises Safety Concerns About Heavy Electric Vehicles [Reuters]
