Trade News

WASHINGTON — Toyota Motor North America has agreed to recognize California's authority to set vehicle emission standards under the Clean Air Act, the Japanese automaker said Tuesday.

In a letter sent to California Gov. Gavin Newsom and the state's Air Resources Board Chair Liane Randolph, Toyota said it is "committed to emission reductions and vehicle introductions consistent with CARB's programs," including pending regulations that would accelerate a transition to zero-emission vehicles and strengthen standards for new light-duty cars and trucks sold in the state.

"Our success in helping to electrify transportation depends in large part on success here, and in working with you to ensure we can deliver affordable and compelling solutions for all Californians," Toyota wrote in the letter.

California plans to phase out the sale of new gasoline-powered cars and light trucks and achieve 100 percent ZEV sales by 2035.

The recognition allows Toyota to b…

Mercedes and Nissan's years-old vehicle and engine-sharing collaboration will move another step toward unraveling in March when production ends at a Tennessee engine plant built specifically to share.

Nissan will "suspend operations at the powertrain facility in Decherd pending future product announcements," Nissan North America spokesman Brian Brockman said of the East Tennessee plant that opened in 2014.

Its 400 employees will be reassigned.

Earlier this month, Mercedes told dealers it will ditch the Tennessee-made four-cylinder engine that powers the brand's GLE midsize crossover as well as its Sprinter and Metris commercial vans.

Known as the Infiniti Powertrain Plant and constructed for $319 million next to Nissan's Decherd engine and components plant, the facility produced a Mercedes-developed turbocharged 2-liter four-cylinder engine — designed by Mercedes, manufactured by Nissan, and installed in models carrying both Infiniti and Mercedes…

A unit of powertain supplier Dana Inc. plans to open a $54.2 million electric vehicle battery cooling plant in suburban Detroit that would create 200 new jobs.

Dana Thermal Products LLC plans to lease space in a 350,000-square-foot building in Auburn Hills, Mich., where it will manufacture battery cooling plates designed to extract heat from lithium-ion battery cells, according to a briefing memo from the Michigan Economic Development Corp.

The company anticipates production beginning in 2023 with all 200 of the jobs to be created by the end of 2024 at the site.

The project is being supported by a $2.5 million business development grant from the state following approval Tuesday by the Michigan Strategic Fund.

The incentive is a "critical factor" in swaying the supplier to choose Michigan over alternative sites in the southeast U.S. and Canada, according to state officials.

"In addition to an experienced and strong local labor pool in the a…

WASHINGTON — Hyundai Motor America and Kia America are recalling more than 280,000 large crossovers because of an issue with the tow hitch harness that may lead to a fire while parked or driving.

The recall covers about 245,030 Hyundai Palisades in the U.S. and 39,280 Kia Tellurides in the U.S. and Canada, both from the 2020-22 model years.

A “stop sale” was issued Tuesday in accordance with federal regulations for affected unsold vehicles at dealers and vehicle processing centers, NHTSA said.

The two automakers are advising customers to park their vehicles outside and away from structures until repairs are complete.

In both cases, "debris and moisture accumulation on the tow hitch harness module printed circuit board (PCB) may cause an electrical short, which can result in a fire," according to safety recall reports filed with NHTSA this month.

Both vehicles emerged over the last few years as key part…

Even in a class of one, the new Ford Bronco Raptor is beating out the notion of competition, early reviews say.

Ford Motor Co.'s newest model under the Bronco nameplate is meant to cater to one demographic: the most extreme off-road racing enthusiasts.

The Raptor is not hiding its intentions. It's 9.8 inches wider than the base Bronco model, and it comes with a tougher steel frame, shock towers and axles. Its 37-inch tires are the largest on any current production SUV, according to Ford.

Under the hood, a twin-turbo EcoBoost V-6 engine and 10-speed automatic transmission combine to produce up to 418 hp — enough power to climb mountain rocks and speed through desert sand.

A notable feature included to help with high-speed desert runs is Baja mode, which aims to optimize throttle control and torque delivery.

The Raptor is cheaper than its closest competitors — Ford's F-150 Raptor and the Jeep Wrangler Rubicon …

NEW YORK - The U.S. Department of Labor on Monday accused a Korean-owned auto parts maker and supplier to Hyundai Motor Co of violating federal child labor laws at an Alabama factory, federal court filings reviewed by Reuters show.

The Department of Labor (DOL) said SL Alabama LLC, a subsidiary of South Korea's SL Corp, employed underage workers at its Alexander City, Alabama factory, according to filings on Monday with the U.S. District Court for the Middle District of Alabama.

Since last November, SL Alabama "repeatedly violated" labor regulations by "employing oppressive child labor" and "minors under the age of 16," the DOL said in a six-page complaint.

In a statement to Reuters, SL Alabama admitted children had worked at the plant, which makes headlights, rear lights and other components for companies including Hyundai and its Kia affiliate. SL said the minors had been hired by an outside labor recruitment firm, which it didn…

Tesla Inc. CEO Elon Musk subpoenaed former Twitter Inc. CEO Jack Dorsey as he fights a lawsuit by the social media company seeking to make him complete the $44 billion buyout he proposed.

Dorsey, a co-founder of Twitter, has been a backer of the Musk bid, tweeting in April that Musk was the “singular solution I trust” to take over the company. He stepped down as Twitter CEO last year.

The notice of subpoena, filed Monday, came amid a flurry of filings that also included notice of subpoenas served by Musk on Friday on Kayvon Beykpour, former head of consumer product at Twitter, and Bruce Falck, formerly in charge of revenue product.

Dozens of people, banks and funds have been subpoenaed in the legal fight playing out in Delaware over the deal. The push to gather information and interview important figures in the deal comes ahead of an expedited schedule for the trial, slated to begin Oct. 17 and last five days.

Musk says Twitter wasn’t honest with…

Ford says it will eliminate 3,000 jobs this week. Tesla raises the price of “Full Self-Driving” to $15,000. Porsche sets a high target for electric Macan sales. Plus, a conversation with former Tonight Show host Jay Leno from the Woodward Dream Cruise near Detroit.

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DETROIT — Ford Motor Co. plans to eliminate 3,000 jobs globally this week, according to a letter sent to employees Monday and obtained by Automotive News.

The automaker is cutting 2,000 salaried positions and 1,000 agency jobs, CEO Jim Farley and Executive Chair Bill Ford said. Affected employees in the U.S., Canada and India will be informed this week, the letter said. A Ford spokesman confirmed the letter as authentic.

"Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century," Farley and Ford wrote. "It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors."

The cuts are expected across a variety of roles, including purchasing, and are expected to come in both its Ford Blue and Model e divisions. Cuts are also being made at Ford C…

Majority has landed a spot on General Motors' creative roster as "agency of record for branded diversity marketing initiatives," to help increase electric vehicle adoption among diverse audiences.

The 18-month-old, Atlanta-based agency joins the automaker's other multicultural agencies, including Carol H. Williams Advertising, Spike DDB and Casanova. In a press release, GM referred to Majority as its "fourth diverse agency of record."

GM could not be reached for comment on how specifically duties would be divided among the four agencies.

The purpose of the agencies is to “help increase EV adoption, amplify cultural moments and social injustice and elevate the GM brand,” according to a statement by the company. The automaker's other agencies include Interpublic Group of Cos.' McCann/Commonwealth, Jack Morton and Dentsu's Carat.

“Majority shares our belief that this is a cultural inflection point, not j…

The clock is ticking on internal combustion, and that’s creating external consternation as the auto industry’s supply chain retools for electric vehicles. Automotive News asked three veteran observers—Craig Renneker, vice president of innovation at American Axle & Manufacturing Inc.; Hugh Foran, executive director of the Advanced Development Center at Teijin Automotive Technologies; and Kacie Freeberg, senior director of the industrial value stream team at ORBIS Corp.—to discuss those challenges and also present opportunities to recharge operations for the electrified era.

Q: As the auto industry transitions from the internal-combustion engine—and along with it, the parts that go into that powertrain—what are the new opportunities for suppliers from electric vehicles?

Craig Renneker: EVs represent completely new opportunities for growth from both a technology and revenue standpoint. This is an exciting time for suppliers willing to consider new capabilities and …