Trade News

BEIJING -- General Motors said on Thursday it will invest $300 million in Chinese autonomous driving startup Momenta to develop self-driving technologies for future models in China, its first such tie-up in the world's biggest car market.

Momenta is among the few companies that hold a permit for gathering high-definition maps in China, a key tool in autonomous driving technologies. It is working with automakers to develop mass production vehicles with self-driving functions to gather real-time data.

The company is also backed by SAIC Motor, GM's main Chinese partner, as well as Toyota Motor and Daimler.

"Customers in China are embracing electrification and advanced self-driving technology faster than anywhere else in the world, and the agreement between GM and Momenta will accelerate our deployment of next-generation solutions tailor-made for our consumers in China," said Julian Blissett, GM's China chief. 

The U.S. automaker said in June i…

WASHINGTON -- Tesla Inc. is pressing President Joe Biden's administration and a U.S. appeals court to move quickly to hike civil penalties for automakers failing to meet fuel economy requirements.

Tesla, which produces only electric vehicles, sells credits to other automakers to help them meet government vehicle emissions requirements, and says those credits are less valuable due to changes in rules made by former President Donald Trump's administration.

Tesla met virtually on Aug. 30 with officials from the National Highway Traffic Safety Administration, according to a document filed by the agency last week.

On Aug. 18, the NHTSA issued a notice saying it could impose higher penalties for prior model years for automakers failing to meet fuel efficiency requirements but will first consider public comments.

Automakers have warned that hiking penalties could cost them at least $1 billion annually, both for failing to meet the rules and higher price…

BERLIN -- Volkswagen will reduce production next week at its main plant in Wolfsburg, Germany, as the global shortage of microchips and electronic components continues to hit the automaker.

One assembly line, which builds the VW Golf, will operate only during the early shift from Monday through Thursday, while the situation for Friday was still being clarified, a VW spokesperson told Automotive News Europe.

Other assembly lines that build the Touran, Tiguan and Seat Tarraco models will suspend output or work on short time.

VW has been forced to stop or reduce output at Wolfsburg several times this year because of the shortage of semiconductor components that are used in numerous electronic systems in modern cars.

VW, Daimler and BMW executives warned at the Munich auto show earlier this month that the shortage could take until 2023 to be resolved.

IHS Markit has slashed its production forecast for this year by 6.2 percent due to the …

BEIJING -- Volkswagen Group is building a new electric vehicle battery system factory in China's Hefei city.

The plant will start production in 2023, VW said in a statement on Thursday.

VW said it would invest more than 140 million euros ($164 million) in the battery plant by 2025.

The factory's initial capacity will be 150,000 to 180,000 battery systems a year for local EV production.

VW is also building a factory for EVs in Hefei under a majority-owned venture with JAC. It also holds a stake in the EV battery maker Gotion, which is also based in Hefei.

VW rolled out five ID electric models in China this year. It sold around 7,000 such vehicles in the country last month and aims to deliver 80,000 to 100,000 units in total this year.

VW is in talks to tighten its grip on the Hefei venture, Reuters reported last week, sparking tensions with its other Chinese partners who fear they could be sidelined.

VW is currently building th…

PARIS – The French supplier Faurecia has lowered its main 2021 financial targets, citing new forecasts for the global automotive market published last week by the information provider IHS Markit.

Faurecia noted that IHS Markit now estimated worldwide car production at 72 million vehicles this year compared with an earlier forecast of 76.8 million, a sharp reduction primarily attributable to a higher than expected impact from semiconductor shortages.

"Faurecia's financial guidance for 2021 was explicitly based on the assumption of 76.6 million vehicles produced in the full year," the company said in a statement on Thursday.

Based on this new assumption, Faurecia now sees full year sales of 15.5 billion euros ($18.2 billion) versus a previous target of 16.5 billion. The group, which won a bidding war to take control of the German lighting group Hella last month, says its 2021 operating margin will range from 6 percent to 6.2 percent, versus a previou…

Joel Levin and Kat Urquhart from Plug In America explain the underappreciated role dealerships play in increasing electric vehicle sales and how their PlugStar program trains sales staff. They also preview the upcoming National Drive Electric Week.

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WASHINGTON — In testimony before a Senate panel Wednesday, a Toyota plant executive is expected to stress the auto industry's need for more skilled workers and greater private sector participation in work force development programs in the U.S.

Leah Curry, president of Toyota Motor Manufacturing Indiana, will emphasize to members of the Subcommittee on Employment and Workforce Safety the importance of considering work force development policies in conjunction with education policies, according to her written testimony.

"If education policies are not flexible enough to allow students to explore various pathways, students may ultimately bypass even the best work force development opportunities," the testimony states.

Curry — who was honored in 2020 as one of Automotive News' 100 Leading Women in the North American Auto Industry — also will urge members to reauthorize the Workforce Innovation and Opportunity Act, a 2014 law that helps job seekers access em…

Incoming AutoNation Inc. CEO Mike Manley will earn an annual base salary of $1.3 million and receive a $1.5-million cash sign-on bonus when he comes onboard Nov. 1, according to a regulatory filing late Tuesday.

AutoNation on Tuesday announced it had hired Manley, former CEO of Fiat Chrysler Automobiles and head of Americas for Stellantis, the company formed when FCA and PSA merged in January. Manley will replace outgoing and longtime AutoNation CEO Mike Jackson, who will retire from the post and from AutoNation's board also on Nov. 1.

AutoNation's board of directors hired Manley on Sept. 9, according to the filing. Manley on the same day entered into a three-year employment agreement with the auto retail giant that will automatically renew on his third anniversary date and annually after.

Manley collected total compensation of $14.45 million in 2019 as CEO of Fiat Chrysler Automobiles -- his last full year in that position.

As part of his contra…

DETROIT -- Most of the show at the new Motor Bella event in suburban Detroit took place off the stage for its debut Tuesday.

The event at M1 Concourse drew hundreds of industry representatives and media members in Pontiac, Mich., as it marked the return of a major auto show to metro Detroit and offered a glimpse into the possible future of the North American International Auto Show.

Heavy rain hit the Detroit area on Tuesday afternoon and the Wednesday schedule has been canceled, organizers said.

“After a very successful and highly anticipated first day, we had a significant amount of rain hit the facility, resulting in flooding and water damage to exhibit areas,” Rod Alberts, executive director of the Detroit Auto Dealers Association, said in a statement late Tuesday. “With the significant amount of rain forecasted to continue well into tomorrow (Wednesday), we unfortunately are forced to cancel all activities scheduled for tomorrow and focus on ensuri…

General Motors President Mark Reuss said on Tuesday the global supply of semiconductor chips will begin to stabilize but at lower levels than the auto industry wants as it tries to rebuild vehicle inventories.

"We're going to see a stablization to some extent before we see getting the volume we really need," Reuss said at a conference hosted by the Detroit Regional Chamber on Mackinac Island in northern Michigan.

The global chip shortage has caused GM and automakers globally to idle production at plants, with some executives warning the issue could linger into 2023. 

GM Chief Financial Officer Paul Jacobson said last week GM expects a "more stable year" in 2022 for chip suppliers, but warned third-quarter wholesale deliveries could be down by 200,000 vehicles due to the shortage.

Looking ahead, Reuss said a crucial issue for the auto industry would be recycling materials used in electric vehicle (EV) batteries, such as rare earth minerals.<…