Trade News

WASHINGTON/OTTAWA -- The Canadian government on Friday warned that U.S. proposals to create new EV tax credits for American-built vehicles could harm the North American auto industry and run foul of trade agreements, according to a letter seen by Reuters.

In the letter dated Oct. 22, Canadian Trade Minister Mary Ng told U.S. lawmakers and the Biden adminisration that the credits, if approved, "would have a major adverse impact on the future of EV and automotive production in Canada".

She said this would raise the risk of severe economic harm and tens of thousands of job losses in one of Canada’s largest manufacturing sectors, adding that U.S. companies and workers would not be immune from the fallout.

The letter also said that the "proposals are inconsistent with U.S. obligations under the United States Mexico-Canada Agreement (USMCA) and the World Trade Organization."

A U.S. House panel in September approved legislation to boost EV credits to u…

Lyft Inc. received reports of more than 4,000 instances of sexual assault on its ride-hailing platform between 2017 and 2019, it said, detailing the data in a safety report it had promised to publish about two years ago.

The company report, issued late on Thursday, showed sexual assault reports on its platform had increased from around 1,100 in 2017 to some 1,800 in 2019. But it said bookings increased at a higher rate during that time, resulting in a 19 percent drop in the overall incident rate.

Lyft said more than 99 percent of its journeys had occurred without any safety incident.

"While safety incidents on our platform are incredibly rare, we realize that even one is too many. Behind every report is a real person and real experience, and our goal is to make each Lyft ride as safe as we possibly can," Jennifer Brandenburger, head of policy development and research, said in a company blog post.

The company said it has invested in safety feature…

Lithia Motors Inc., which has been on a dealership buying spree and kickstarted the parade of megadeals in 2021, is not done shopping this year as it climbs towards its eventual goal of 500 U.S. stores.

After a busy third quarter in which Lithia's combined dealerships acquisitions — with purchases in Alabama, California, Texas, Georgia and international expansion via Canada's Pfaff Automotive Partners — are expected to generate annual revenue of $1.7 billion, the retailer has deals worth nearly the same amount expected to close in the fourth quarter.

"While several large deals were announced recently, the automotive retail industry remains highly fragmented and unconsolidated with the market share of the 10 largest groups at only about 10 percent," Lithia CEO Bryan DeBoer said during the company's third-quarter earnings call last week. "We have nearly $1.5 billion in annual revenue commitments as well as over $12 billion in the pipeline, which excludes our pee…

SsangYong Motor named a group led by South Korean electric bus and truck maker Edison Motors as its preferred new owner.

SsangYong was put under court receivership in April after it filed for court receivership in December. The company this week filed an application with the Seoul Bankruptcy Court indicating that it hopes to be purchased by a consortium led by China's Edison Motors.

Edison Motors aims to turn around SsangYong in three to five years by focusing on transforming it into an electric vehicle-focused carmaker, Edison Motors Chairman Kang Young-kwon said on Friday in an online press conference, according to the Korea Bizwire.

SsangYong will be able to produce up to 300,000 vehicles a year on the three assembly lines at its plant in Pyeongtaek, Kang said.

SsangYong has been majority-owned by India's Mahindra & Mahindri since 2011. Mahindra has been looking for a buyer for all or most of its 75 percent stake, which it bought when Ssang…

Stellantis and Samsung SDI said on Friday that they have entered an agreement for a joint venture to produce electric vehicle (EV) battery cells and modules in the United States.

The joint venture aims to start operations by the first half of 2025 with an initial annual battery production capacity of 23 gigawatt hours (GWh). Its annual battery production capacity could increase to 40 GWh in the future, Samsung SDI said.

No financial details of the deal were provided. The location of the factory is under review.

Stellantis said the Samsung SDI joint will be one of multiple battery plants it plans with established battery makers for electric vehicle production in North America.

The Stellantis-Samsung SDI tie-up comes less than a week after Stellantis signed a preliminary deal with battery maker LG Energy Solution to produce 40 GWh of batteries a year for North America.

"With the forthcoming battery plants coming online, we will be well positi…

DETROIT — Stellantis, as it prepares to introduce electrification across its lineup, and Samsung SDI on Friday said they have agreed to form a joint venture that aims to open a North American battery plant in 2025.

It's the second North American battery deal that Stellantis has announced this week, following news of a joint venture with LG Energy Solution to produce battery cells and modules starting in early 2024.

The automaker has not said where either battery plant will be located. The plants will feed Stellantis assembly plants in the U.S., Canada, and Mexico as the company works toward a goal of having electrified vehicles account for at least 40 percent of U.S. sales by 2030.

"With the forthcoming battery plants coming online, we will be well positioned to compete and ultimately win in the North American electric vehicle market," Stellantis CEO Carlos Tavares said in a statement. "Our strategy to work with highly recognized partners boosts the spee…

TOKYO – Greg Kelly, the former Nissan director possibly facing up to two years in a Japanese prison, may soon find a powerful ally in the appointment of a new U.S. ambassador to Tokyo.

Rahm Emanuel, nominated as the next top U.S. diplomat to the longtime Asian ally, says he has ordered a review of Kelly’s legal odyssey in Japan and is making the matter a “top priority.”

During his Senate confirmation hearing on Oct. 20, the onetime Congressman and former chief of staff to President Barack Obama said he has already started an inquiry into Kelly’s case, in which the former American executive is charged with alleged financial misconduct at Nissan Motor Co.

“I want a report on my desk,” Emanuel said. “That goes from here to up here as a top priority.”

Emanuel added he would treat Kelly like a Congressional constituent who was in trouble.

“The No. 1 responsibility of an embassy and an ambassador is to ensure the safety of a U.S. citizen on for…

DETROIT — Deliveries of the hybrid version of the 2022 Ford Maverick have been delayed until January by emissions certifications, but the pickup now is expected to get slightly better fuel economy than Ford Motor Co. originally projected.

The automaker previously said the Maverick's hybrid powertrain — the standard offering — would be available at launch, but only the gasoline-powered model went on sale in September. Officials now say they'll begin shipping the hybrid trucks in December, with deliveries beginning in January, "so required state and federal emissions certification can be completed."

Ford says the hybrid Maverick will have an EPA-estimated 42 mpg city fuel-economy rating, topping the 40 mpg city estimate it cited when unveiling the truck in June. Ford says the hybrid is estimated to be rated at 37 mpg combined and 33 mpg in highway driving.

"Our team set out to redefine what a truck could be with Maverick, and we've done that with an EPA-es…

Lynk & CO is aiming to lift sales to 1 million vehicles over the next two years by pushing into new markets in Asia and the Middle East, and targeting young, affluent drivers with a new crossover.

Created five years ago by Geely Auto and Volvo Cars -- two automakers under the umbrella of China's Zhejiang Geely Holding Group Co. -- Lynk has established a foothold in European markets such as Germany, Denmark and Belgium, where it also offers a car-sharing plan.

The brand is now looking to start exports to other Asian nations, as well as places like Kuwait and Israel, Lin Jie, a senior vice president at Geely Auto and general manager of Lynk Sales said in an interview.

For now, the push into Asia and the Middle East will follow the traditional route of outright purchases, as opposed to the subscription plan Lynk offers in Europe.

Under this plan, members get 776 miles of driving for 500 euros ($580) a month, while maintenance, insurance and taxes…

Tesla Inc. will start using cheaper lithium iron phosphate batteries globally, a move away from the chemistry used to power most electric vehicles as prices for key materials soar.

The switch to LFP batteries will apply to Tesla's standard-range vehicles, the company said in its third-quarter-earnings release, confirming a strategy flagged last year to use the budget components to deliver lower-cost models.

Most of the auto industry relies on nickel and cobalt in lithium ion batteries to boost EV performance. Yet supplies of both materials are constrained, and ethical issues have long dogged cobalt mines in the Democratic Republic of the Congo, the top supplier. Nickel, which helps provide power and range, is also prone to fire, a risk the industry is spending billions to control.

Higher prices of nickel are currently having an impact on battery cells, according to Tesla's Chief Financial Officer Zach Kirkhorn. "Some of those costs have been flowing thr…

Tesla Inc. posted a second consecutive record quarterly profit, earning $1.62 billion in the third quarter despite the ongoing global semiconductor shortage and other supply-chain challenges.

Revenue jumped 57 percent to $13.8 billion, and automotive gross margins rose to 30.5 percent.

Executives expect strong demand for Tesla’s electric vehicles to propel growth futher even as it works to ramp up production at new assembly plants in Texas and Germany.

Tesla was aided by $279 million in sales of regulatory credits to rivals, although that number fell for the second straight quarter.

The automaker generated record global deliveries of 241,391 in the latest quarter, 73 percent more than a year earlier. Tesla said its average selling price decreased by 6 percent year over year as the lower-priced Model 3 sedan and Model Y crossover accounted for nearly all volume.

“Overall I’m very proud of what the team has accomplishe…

DETROIT — NBA legend Isiah Thomas believes hemp can be a key piece in helping auto manufacturers and other industries reduce their carbon footprints.

Thomas, the former Detroit Pistons star, is the CEO and largest shareholder in One World Pharma. The company has built a hemp-growing operation in Colombia that's ready to supply various sectors when they're ready to make the transition to materials based on the plant.

The company works with indigenous farmers in the region. Thomas said automakers such as BMW have already used hemp-based components in their vehicles.

"The reason why we chose to grow in Colombia is because we can turn our soil over three times a year," Thomas told Automotive News. "When we talk about the industries, the demand that most industries will have, you have to have the supply to meet the demand. Again, from a growing standpoint and a seasonal standpoint, that was the best place that we found to grow and to cultivate."

Thomas…