Trade News

Nikola Corp. said on Thursday the electric truck maker had reserved $125 million to fund a potential settlement with the U.S. Securities and Exchange Commission.

The SEC said in July it had charged the company's founder Trevor Milton for "repeatedly disseminating false and misleading information."

The commission alleged Milton used his social media platform to repeatedly mislead investors about the electric vehicle maker's technology and capabilities, reaping "tens of millions of dollars" as a result of his misconduct.

"With prospects of an SEC settlement, we're looking forward to resolving the outstanding issues relating to our founder and bringing that chapter to a close," Nikola CEO Mark Russell said in a statement on Thursday.

The SEC investigation began after a short-seller claimed that Nikola deceived investors about its business prospects. The fallout from comments Milton had made about the company’s technology and achievements had alread…

SEOUL -- The battery unit of South Korea's SK Innovation Co. plans to invest $2.53 billion to build a new electric vehicle battery factory in China, China's local government backed Yancheng News reported on Thursday.

SK Innovation's wholly-owned battery subsidiary SK On, which supplies EV batteries to Ford Motor Co., Volkswagen Group and Hyundai Motor Co., among others, has battery production sites in the United States, Hungary, China and South Korea.

The company said in September it planned to build a new battery factory in China with an initial investment of 1.2 trillion won ($1.01 billion). China is the world's biggest market for EVs and light vehicles.

"SK On has been building (battery) factories in the United States, China and Hungary as a growth strategy after securing battery orders in the global market," SK On said in a statement.

SK On said last week that it has an order backlog of about 1.6 terawatt hours (TWh) of batteries worth about…

DETROIT -- Ford Motor Co. said it plans to retire up to $5 billion in high-interest debt and tap into the fast-growing market for "green" bonds to help it finance new electric vehicles and expand credit to customers with lower scores.

Ultimately, the automaker aims to regain an investment grade rating for itself and Ford Credit, its captive financing arm, which in turn would lower the cost of future borrowing.

In a media briefing, Treasurer Dave Webb said the company is making a cash tender for "covid bonds" at 8 percent to 9.5 percent interest that it issued in April 2020, at the start of the global pandemic.

Ford expects initially to offer a $1 billion green bond at 3.5 percent to 4 percent interest, to replace some of the high-coupon bonds and to supplement the zero-interest convertible debt it issued earlier this year.

A "sustainable financing framework" announced Thursday will provide Ford with access to new sources of capital, including inv…

DuPont Inc. said it plans to acquire engineering materials maker Rogers Corp. for about $5.2 billion, hoping to tap into the rapid growth of electric vehicles and advanced auto electronics.

The deal, announced Tuesday, also would boost DuPont's position in advanced materials for other key growth markets such as clean energy and 5G mobile phone service.

DuPont further disclosed plans to sell most of its Mobility and Materials unit, which makes polymers and resins for vehicles. Taken together, the deals will deepen the chemical maker's reach in fast-growing, higher-margin industrial and electronics markets and make its earnings more stable, the Wilmington, Del.-based company said.

"We are sharpening our focus on high-growth, high-value opportunities in sectors with steady long-term secular growth trends," DuPont CEO Ed Breen said in the statement. The company plans to further invest "organically and through strategic acquisitions to maximize our capab…

FRANKFURT – Volkswagen Group CEO Herbert Diess urged German workers to prepare for a deeper overhaul to remain competitive when Tesla Inc. ramps up vehicle production at its first European factory outside Berlin next year.

Tesla is swiftly improving built quality and looks set to achieve a production time of just 10 hours per car at its Gruenheide plant, Diess said Thursday in a prepared speech at a staff meeting in Wolfsburg. VW's main electric-car factory in Zwickau needs more than 30 hours per vehicle, which should be reduced to 20 hours next year.

"Yes, I'm worried about Wolfsburg," Diess told workers at the first employee gathering at the world's largest car-manufacturing site since the COVID-19 pandemic. "I want that your children and grandchildren can still have a secure job here with us in Wolfsburg. That's my point today. That's why I'm here."

Diess canceled a trip to the U.S. this week where he was supposed to meet investors and visit technolog…

Lyft Inc. reported third-quarter revenue 73 percent higher than last year, boosted by demand for ride-hailing services amid improving Covid-19 conditions. The company also projected that it would turn a profit before tax, depreciation and other expenses for the full year.

The company's net loss narrowed to $71.5 million compared with a loss of $459.5 million during the same quarter last year.

The company reported adjusted earnings of $67.3 million, beating Wall Street estimates of $33 million, and marking Lyft’s second quarterly adjusted profit.

Lyft President John Zimmer said airport rides, which were up threefold compared to a year earlier, coupled with a rise in weekend and evening trips, was a positive sign that customers are reverting back to pre-pandemic habits.

“We feel great about rider demand,” Zimmer told Bloomberg. “And since the release of booster shots, and children’s vaccinations becoming available, I feel good about the road ahead.…

Nissan-owned Infiniti promoted a longtime communications executive into its top global marketing job, in a move that combines oversight of public relations, marketing and social media into a single role.

Taking the post is Wendy Orthman, the auto brand’s current global head of communications, who assumes the newly created title of general manager of global integrated brand, marketing and communications. The role “merges the responsibilities of chief marketing and chief communications officer, steering the company’s global brand, marketing, social media and communications strategy as Infiniti progresses into an exciting new era,” the automaker said in a statement.

The promotion comes after the recent exit of Infiniti General Manager Global Brand and Marketing Phil York, who “elected to depart the company to pursue opportunities in his native region of Europe last month,” according to an Infiniti representative.

Orthman moved to Japan to take the communic…

The first trial to determine whether Tesla Inc.’s Autopilot technology led to a fatal car crash may require jurors to weigh testimony from founder Elon Musk against criticism of the driver-assistance system by Mary “Missy” Cummings, a U.S. government safety adviser.

Lawyers for the family of Jeremy Banner, 50, who died in 2019 when his Tesla Model 3 collided with a semi-trailer truck on a Florida highway, included Musk on a list of potential witnesses for the trial, set to start in January, court filings show. They also said the family hired Cummings, a Duke University professor and senior adviser to the National Highway Traffic Safety Administration.

Musk has been an unapologetic advocate for the Autopilot technology. He and thousands of Tesla fans and customers took to Twitter last month to protest the appointment of Cummings to the NHTSA job, including a petition calling for a review because of alleged bias against the company. CNN reported she received de…

BMW Group reported a jump in third-quarter earnings after higher vehicle prices and prioritizing its biggest money-spinning models helped the company offset output reductions due to the microchip shortage.

Group earnings before tax surged 50 percent to 2.9 billion euros ($3.36 billion), BMW said Wednesday, compared with an average analysts' estimate of 2.5 billion euros.

The chip supply woes that have hampered the entire industry will remain an issue beyond this year, it said.

"Business during the current financial year to date has benefited substantially from the favorable stable market situation and continued brisk demand," CFO Nicolas Peter said in the statement.

BMW has navigated turmoil from the chip shortage better than others, and in late September went against the tide of warnings to raise profit expectations.

While automakers have been able to offset much of the crisis with higher prices and swinging output toward their most lucrat…

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Mercedes-Benz USA, the U.S. unit of German carmaker Daimler AG, told employees in an October e-mail seen by Reuters that proof of vaccination against COVID-19 would become a condition of employment beginning Jan. 4.

The automaker said it implemented the move in anticipation of a separate U.S. government vaccine mandate that would apply to businesses with at least 100 employees, affecting some 80 million workers nationwide.

Less than half of the company's workers at U.S. import processing centers are vaccinated and many refuse to get a shot, according to a source familiar with the matter.

REUTERS REPORT: From Boeing to Mercedes, a U.S. worker rebellion swells over vaccine mandates

Mercedes USA in a statement said it had given employees 90-day notice to fulfill the requirement, adding that two thirds of its U.S. employees -- not including factory workers in Alabama -- have provided proof of vaccination to date.

"We expect that the vast majori…

Tesla Inc. is poised to give back some of its more than $300 billion gain since Hertz Global Holdings Inc. announced a massive order for its EVs, after Elon Musk cast doubt on the deal and downplayed its potential.

The Model 3 maker hasn’t signed a contract yet with Hertz, the CEO wrote in a tweet responding to a fan club account that thanked the world’s richest person for Monday’s gain in Tesla shares. Musk also said that because Tesla has demand for more vehicles than it can produce, the deal with Hertz “has zero effect on our economics.”

Tesla shares slumped as much as 6.9 percent before the start of regular trading Tuesday. The stock has soared 56 percent during the past month.

Also Tuesday, the automaker said it is recalling nearly 12,000 vehicles for a software glitch -- news that could also impact the stock price.

Hertz’s initial announcement that it had ordered 100,000 Teslas costing roughly $4.2 billion sent the EV maker’s shares surgin…