Trade News

PARIS -- PSA Group has laid the groundwork for a possible revision of the terms of its combination with Fiat Chrysler Automobiles.

PSA and FCA agreed in December to each pay an ordinary dividend of 1.1 billion euros ($1.2 billion) to shareholders as part of their planned merger to create the world fourth-biggest auto manufacturer.

The deal was negotiated before the coronavirus pandemic halted car production and triggered a worldwide slump in demand, almost halving the companies’ share prices.

As PSA Chief Financial Officer Philippe de Rovira detailed the severity of the damage inflicted by the health crisis on PSA and the broader European car industry, he said there has been no final decision on the payout. The company has postponed its annual general meeting to June 25 from May 14, delaying any confirmation.

The planned move "remains an open question" and any change would have to be agreed by both PSA and FCA as specified in the merger deal, De R…

PARIS -- Toyota Motor Corp. has reopened its factory in Valenciennes, France, where it makes the Yaris small hatchback, five weeks after halting production because of the coronavirus outbreak.

Some operations continued during the shutdown, including work on future projects. Starting in 2021 the factory will build a small crossover that is likely to be based on the Yaris.

The current production, which started Tuesday on a limited basis, is focused on finishing production of the current-generation Yaris. A new version of the car is due later this year. Toyota is also re-starting powertrain plants in Poland to provide components to Valenciennes.

Toyota’s factory is the first to reopen in France. PSA Group and Renault have said that safety measures are being put in place at their factories, but neither has announced a date when operations will resume amid resistance from unions.

Toyota said last week that production in France would be limited to a si…

Uber Technologies Inc. won approval to serve as a business vendor to the U.S. government, allowing the company to vie for an estimated $810 million in spending over the next five years.

Politicians and campaigns have for years relied on Uber for rides to and catering for their events, but the decision Monday is the first clearance for federal agencies to sign contracts with the company. It’s a rare bright spot as Uber struggles to adjust to the effects of COVID-19.

Ride demand has tanked since last month and upended growth plans for the business. Uber previously anticipated it would deliver a quarterly profit by the end of the year. On Friday, the San Francisco-based company yanked its 2020 forecast and said it will write down the value of its minority investments by about $2 billion.

Uber has been looking to add new sources of revenue to make up for the sharp decline in ridership. The company said this month it’s accelerating the rollout of an option fo…

FRANKFURT -- Daimler and Volvo Trucks have agreed to join forces to develop, produce and sell fuel cell systems for heavy-duty vehicles, in a sign that the coronavirus crisis is accelerating consolidation.

Global car and truck makers are exploring ways to share costs on new technologies as customers shun showrooms in areas hit by the coronavirus pandemic lockdowns, denting profits.

"The common goal is for both companies to offer heavy-duty vehicles with fuel cells for demanding long-haul applications in series production in the second half of the decade," Daimler said in a statement on Tuesday.

The joint venture agreed by the two companies will operate as an independent and autonomous entity, with Daimler Truck and the Volvo Group continuing to be competitors in all other areas of business, the companies said.

"Joining forces will decrease development costs for both companies and accelerate the market introduction of fuel cell systems in prod…

Credit Acceptance Corp., the lender to car buyers with subprime credit scores, warned it’s seeing a sharp drop-off in payments as people shift their financial priorities to get through the coronavirus pandemic.

As unemployment soars, borrowers are putting off payments or “reallocating resources,” Credit Acceptance said in a regulatory filing Monday, explaining that it needs more time to publish a quarterly report. New lending is also slowing as dealerships across the U.S. are forced to shutter their showrooms, the company said.

“A continued disruption in our workforce, decrease in collections from our consumers or decline in consumer loan assignments could cause a material adverse effect on our financial position, liquidity and results of operations,” Credit Acceptance wrote.

The firm is among the first to report an uptick in delinquencies as some lenders offer forbearance, hoping that what consumers need is time to get through the pandemic so they can r…

TOKYO -- Nissan said on Tuesday it will shut its global headquarters in Japan for 16 days through early May to contain the spread of the coronavirus, even though the government has permitted keeping workplaces open to get the economy running.

Prime Minister Shinzo Abe has allowed manufacturing plants to keep operating under a state of emergency that was declared this month and broadened last week, but Nissan and its rivals had already suspended output at many of their factories due to plummeting global demand.

Nissan is the latest Japanese company to shutter its global headquarters to reduce the number of staff commuting, as the COVID-19 infections in the country increased to around 11,000 this week.

Canon and Toshiba also announced similar measures earlier this month.

Nissan said that 15,000 employees at its headquarters in Yokohama and main R&D center in nearby Atsugi, Kanagawa Prefecture, would be required to take leave for 16 days from nex…

DETROIT -- The UAW endorsed a plan to reopen the economy proposed by presumptive Democratic presidential nominee Joe Biden after the union was left off President Donald Trump’s task force on that topic.

The union, which represents hourly workers at General Motors, Ford Motor Co. and Fiat Chrysler Automobiles, has yet to officially endorse a candidate for president. But UAW President Rory Gamble, who’s pressuring automakers not to resume production until it’s safe to do so, called Biden’s plan a “nonpartisan, science-based approach.”

“The only litmus test in reopening the economy is whether you would send your son or daughter into the workplace,” Gamble said in a statement. “Former Vice President Biden’s plan relies on experts and science-based factors, acknowledges the need for adequate testing and oversight of safety in reopening workplaces, and is devoid of partisan acrimony.”

President Trump included leaders from the Teamsters union and the AFL-CIO, a…

DETROIT -- The Detroit 3 automakers and the UAW are in talks about safely restarting U.S. production halted by the coronavirus pandemic, but local union leaders said on Monday any workers who feel sick must be allowed to self quarantine without losing pay.

So far, neither the union nor the automakers have announced a deal. But the automakers all are aiming to restart at least some U.S. assembly plants in early May. Virtually all U.S. automotive production ground to a halt in March as the number of COVID-19 infections grew rapidly.

The safety practices and sick leave policies the automakers and the UAW negotiate would offer a template for auto suppliers and potentially other manufacturing industries.

UAW President Rory Gamble wrote on Friday the union has made it clear to the car companies that adequate testing for COVID-19 is key to restarting production and "we must create an environment where workers are comfortable to self-report symptoms and self-qu…

FRANKFURT -- Germany's auto industry and senior politicians are stepping up calls for another scrappage program -- known in the U.S. as cash for clunkers -- to revive demand after the coronavirus crisis as Volkswagen and Daimler gradually restart output in European factories this week.

Ensuring cars are sold to customers is critical for the production ramp-up, VW brand COO Ralf Brandstatter said Monday in an emailed statement.

“A sales support can be a sensible contribution to climate protection,” he added, suggesting that the program could be geared toward cars with lower emissions.

Germany’s export-driven car sector has been severely hit by shutdowns across the globe to prevent the coronavirus from spreading.

Across Europe, car sales in March dropped 52 percent, the most on record, as showrooms closed to help limit the coronavirus outbreak and production was halted globally.

A scrapping program to trade in older vehicles for new ones hel…