Trade News

Hyundai Motor America's vice president for product planning, Michael O'Brien, is leaving the automaker following two stints there over nearly two decades, the company said Friday. O'Brien will depart on Feb. 3 to pursue other interests.

O'Brien was deeply involved in Hyundai's launch of a new crossover lineup over the last two years that allowed the brand post positive sales numbers a down market and position it for long-term growth after struggling for years with a car-heavy mix as U.S. consumers overwhelmingly turned toward crossovers and SUVs.

O'Brien first joined Hyundai in 1987 on the product planning team before leaving for Toyota in 1996, and then returning to the Korean automaker in 2010. He was named an Automotive News All-Star last year for being a driving force behind the brand's dramatic move to crossovers, such as the subcompact Kona and the plush three-row Palisade — completely new models that have been fast hits in their respective segments.

WASHINGTON -- A U.S. senator on Friday urged Tesla Inc. to rebrand its driver assistance system Autopilot, saying it has "an inherently misleading name" and is subject to potentially dangerous misuse.

But Tesla said in a letter said it had taken steps to ensure driver engagement with the system and enhance its safety features.

The electric automaker introduced new warnings for red lights and stop signs last year "to minimize the potential risk of red light- or stop sign-running as a result of temporary driver inattention," Tesla said in the letter.

U.S. Sen. Edward Markey, D-Mass., said he believed the potential dangers of Autopilot can be overcome. But he called for "rebranding and remarketing the system to reduce misuse, as well as building backup driver monitoring tools that will make sure no one falls asleep at the wheel."

Markey's comments came in a press release, with a copy of a Dec. 20 letter from Tesla addressing some of the Dem…

DETROIT -- Fiat Chrysler Automobiles is taking a second round of applications from Detroit residents for jobs at plants it is expanding in the city for $2.5 billion.

FCA must give Detroiters first priority to apply for most jobs at the plants as part of its community benefits agreement with the city.

Residents must attend work readiness events to qualify to apply for the positions. Mayor Mike Duggan's Detroit at Work employment and training program is running 400 more of those events through March.

FCA must fill 4,950 jobs for its converted Mack Avenue engine plants and a retooled Jefferson North Assembly Plant.

Detroit at Work's first round of more than 300 FCA-centered events ran from June to September. About 39,000 Detroiters initially showed interest by signing up through Detroit at Work's website, according to Nicole Sherard-Freeman, Detroit's executive director of work force development.

Of those, 12,500 completed Detroit at Work even…

AMSTERDAM --  Fiat Chrysler Automobiles' Jeep Grand Cherokee and Suzuki's Vitara diesel models both break emissions rules and must be fixed or face a ban on sales across Europe, the Dutch road authority ruled on Thursday.

The Grand Cherokee and Vitara had used "prohibited emissions strategies" that led them to emit higher levels of harmful nitrogen oxide on the road than under testing conditions, the RDW regulator said.

Jeep had developed a software fix and had been ordered to recall the model across Europe, the authority said.

Suzuki had yet to find a credible solution for the Vitara, the regulator said.

"Suzuki must come with adequate improvement measures or the RDW will begin the process of revoking its European type approval," the RDW said in a statement, adding it had also started the process of revoking approval for the Jeep Grand Cherokee as a "precautionary measure."

Regulators across the world have been testing diesel mod…

FRANKFURT -- Volkswagen Group CEO Herbert Diess said Luca de Meo, the former head of  VW's Seat brand, was probably in talks with Renault about moving to the French automaker.

"We are very, very sad that Luca is leaving us because he played a very important role in the group," Diess told CNBC on the sidelines of the World Economic Forum in Davos.

"He did a great job with us, but we accepted that he's going to leave and he's probably in talks with Renault, that's what he told us," Diess said.

De Meo has been in talks with Renault to become CEO but faces a potential hurdle over a stringent non-compete clause in his VW Group contract, sources told Reuters previously.

De Meo stepped down as head of Seat earlier this month but remained a VW Group employee. The Italian executive was in charge of Spain-based Seat for four years, overseeing a resurgence in the brand's sales and boosting its prominence within the VW Group.

Renault ousted Thierr…

Toyota Motor Corp. had its credit outlook lowered by Moody’s Investors Service, showing even the world’s most valuable carmaker isn’t safe from turmoil in the industry.

The outlook was changed to negative from stable, Moody’s said Thursday in a statement as it affirmed its Aa3 rating for the company -- the fourth-highest level. The Japanese giant has held that rating since 2011, according to data compiled by Bloomberg.

Global car demand is sputtering as consumers move toward ride-sharing services, reducing the need for individual ownership. An industry shift to electric and self-driving vehicles is also forcing manufacturers to increase investment, putting pressure on profit margins.

“The change in the outlook to negative reflects the material challenges related to megatrends in the global automotive sector,” Motoki Yanase, a Moody’s senior credit officer, said in the statement.

On Wednesday, Japan’s Rating and Investment Information Inc. upgraded…

PARIS -- Renault Chairman Jean-Dominique Senard has dismissed talk of changes in the shareholding structure of the alliance with Nissan, saying any modifications could come after the automakers have turned their struggling operations around.

"It's not a priority," he said Wednesday in an interview with Bloomberg from Davos, Switzerland, adding that strengthening industrial cooperation between the partners and coming up with a coordinated response to the shift to electric cars are more urgent.

The future of the partnership was thrown into turmoil over the past year after the arrest of Carlos Ghosn, who led both automakers and headed the alliance that also includes Mitsubishi Motors.

Following a change in top management last year at Nissan and the naming of a new CEO at Renault "in the coming days," Senard said prospects for the venture are improving, without the need for tinkering with the difficult cross-shareholding structure.

Ghosn held the part…

DETROIT -- Ford Motor Co. on Wednesday said it will take a fourth-quarter financial hit of about $2.2 billion for how it accounts for liabilities on employee pension plans and retirement benefits.

The automaker, in a filing with the Securities and Exchange Commission, said the hit includes a $2 billion loss associated with pension plans outside the country. It also includes a $600 million loss associated with post-retirement employee benefit plans globally, although that was partially offset by a $400 million gain associated with pension plans in the U.S.

Overall, Ford said the "remeasurement loss" on pension liabilities is expected to reduce its quarterly net income by about $1.7 billion, although Ford said it will not impact its total adjusted earnings before interest and taxes figure or adjusted earnings per share. Ford noted it accounts for pension remeasurement gains and losses when they occur, rather than amortizing those results over time.

The aut…

Prosecutors in Canada on Wednesday proposed a $196.5 million fine ($258.3 million CAN) fine against Volkswagen Group after the company pleaded guilty to dozens of counts of diesel emissions violations, a company spokesman confirmed.

Volkswagen was charged in December with importing nearly 128,000 vehicles into Canada that violated emissions standards. VW pleaded guilty after being charged with 60 counts of breaching the Canadian Environmental Protection Act and providing misleading information.

The company said last month it had reached "a proposed plea resolution" without disclosing details.

Volkswagen admitted to using illegal software to skirt U.S. pollution tests in 2015, triggering a global backlash against diesel vehicles that has so far cost it roughly 30 billion euros ($33.3 billion) in fines, penalties and buyback costs.

In May 2019, it set aside an additional 5.5 billion euros in contingent liabilities as it continues to face penalties a…

For the first time since 2014, General Motors is publicly disclosing the value of its business tax credits in Michigan a deal that will reduce the financial liability to the state's taxpayers by $325 million over 10 years.

Under the deal, the automaker will remain eligible for $2.27 billion in Michigan Economic Growth Authority tax credits through the end of 2029, according to the Michigan Economic Development Corp.

GM's agreement to voluntarily reduce the remaining value of its MEGA credits from $2.6 billion is part of a deal the Michigan Strategic Fund's board approved Wednesday that will require the company to maintain an in-state workforce of at least 34,750 and invest $3.5 billion in Michigan facilities by 2029. To receive the credits, GM's 34,750 qualified employees will have to be paid an average weekly wage of $1,300, double the previous minimum weekly wage to qualify for the credits.

"The approved MEGA amendment sets the stage for…