Team Trump Eases Demands on NAFTA's Regional Auto Content

The United States is softening the contentious automotive content requirement mandates pushed by the Trump administration as part of NAFTA renegotiation talks. While the demand is only one of many asks coming from the U.S., both Canada and Mexico said forcing 85 percent of a vehicle’s overall content to be sourced from the three countries (in order to side-step tariffs) was a nonstarter. Over the past year, the issue became a major sticking point in the trade talks — hindering progress and possibly dooming them to failure.

While Trump’s intent was to bolster domestic employment by incentivizing North American parts suppliers, automakers expressed concerns and noted it was often difficult to reach the current threshold of 62.5 percent.

The United States has now proposed applying the new content requirement only to major components (like a vehicle’s powertrain) while leaving fasteners (nuts, bolts, etc.) alone. As an automobile is made up of tens of thousands of individual parts, deciding what should and should not be counted will make a big difference. Still, some manufacturers are likely to have difficulty meeting the proposed content requirement on critical engine components.

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Rare Rides: A 1994 Citron XM From Right Next Door

It has six cylinders, it’s front-wheel drive, and it carries cloth seats and an automatic transmission.

No, we’re not talking about your grandmother’s 1995 Buick LeSabre — today we’re discussing the stylish and French five-door liftback known as the Citroën XM.

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Canada's Largest EV Market Quietly Rolls Back Massive Government Subsidy (Again)

Ontario, that strange land located between Detroit and Buffalo (and elsewhere, too) became the largest Canadian market for electric vehicles in 2017. There was good reason for it, too. Imagine walking into a dealer showroom, eyeballing a flashy luxury car, and suddenly your local political representative rushes in and hands you a check for $14,000, no strings attached.

Thanks, fellow taxpayers!

This subsidy is what buyers of Tesla Model S and X vehicles, retailing for over six figures (Canadian MSRP), enjoyed in Ontario until very recently. It’s important to note, though maybe not to certain folks, that the province holds the world’s largest sub-sovereign debt, most recently tagged at $311 billion, and pays over a billion dollars a month to service the interest on that debt.

Sorry, Ontario Tesla buyers. The party’s over. Again.

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Tax the Rich (Person's Car): Luxury Auto Dealers in One Canadian Province Aren't Happy About Their Customers Getting Soaked

After hitting it big with the Fab Four, George Harrison wrote the scathing song Taxman in protest of the British government’s “Super Tax” on high-income earners. At the time, the boys faced a 95 percent tax on their earnings (“There’s one for you, nineteen for me”), and Harrison reportedly did everything he could to offshore his wealth.

Britain’s dismal weather wasn’t the only reason rock musicians fled the country during this period.

In beautiful British Columbia, a mountain- and wine-filled area north of Seattle, the provincial government’s recent budget has some auto dealers steaming mad and worried their customers will hit the road in search of deal. The province’s New Democratic Party government, elected last year, plans to levy a 25 percent tax on the purchase of very high-end vehicles, with lesser models facing a 20-percent markup. However, many dealers wonder where the law of diminishing returns comes into play.

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Once Again, Canada Gets a Mercedes-Benz the Americans Can't Have

There’s more to living in Canada than just higher taxes, polar bear incursions, and brutally cold weather. For some reason, denizens of the Great White North are allowed to enjoy more choice at the bottom of the Mercedes-Benz model range.

For example, Americans can be forgiven if they weren’t aware of the B-Class Electric Drive, a low-volume EV hatchback that bit the dust late last year. MB sold just 744 of them in the U.S. in 2017. Meanwhile, Canadians can still walk into their local dealer and sign on for a 2018 B250, the conventional variant powered by the CLA-Class’ turbocharged 2.0-liter four-cylinder.

The EV model never made its way north of the border, while the conventional model never made its way south of the 49th Parallel.

On Friday, the automaker pulled the wraps almost all of the way off its new A-Class — a more refined front-drive entry-level model making its first foray into the North American market. Designed to lure buyers who wouldn’t otherwise have considered the brand, the A-Class will spawn a five-door and sedan variant in Europe, while American buyers can expect only the four-door. And Canada? Well, the country that really hates choice in wireless carriers and dairy products somehow gets the five-door, too.

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Rare Rides: The Hyundai Pony From 1986, Which Delighted All of Canada
Today’s Rare Ride is a small-medium sized five-door hatchback, and you’d be forgiven if you had no idea what it was upon first glance. It was only available to the fine people of Canada, and only for a short time.It’s the Hyundai Pony, and it’s a beauty.
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Canada Slow to Realize Something Might Be Wrong With 2008 Smart Cars

Maybe it’s the Hoth-like climate and the urge to do anything in one’s power to warm it up, but Canada has so far taken a laid-back approach to the fires plaguing older Smart Fortwo models. A big part of the problem is that no one’s telling the country’s transportation regulator about them.

The models bursting into flames in the Great White North are of the same vintage as those which sparked an investigation by the United States’ National Highway Traffic Safety Administration. However, Transport Canada has yet to open a defect investigation of its own.

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Union Boss Reassures Everyone That NAFTA Is Toast

With everyone weighing in on the ultimate fate of the North American Free Trade Agreement, it almost seems as if we’re cataloging their bets to see just how right or wrong they’ll be in the negotiatory aftermath. Considering there has been such a limited amount of progress on the trade talks, there honestly isn’t much else to do.

Suggesting that NAFTA is “is going to blow up in 2018,” Jerry Dias, president of the Canadian union Unifor, has planted his flag on the side of a total breakdown of the agreement. Unifor represents 23,500 Detroit Three auto workers living north of the border, plus some 16,000 working in the supply chain.

As a union leader, Dias is prone to hyperbolic statements. However, his insight into the situation runs a little deeper than most.

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Will They or Won't They? Questions Remain About Silverado/Sierra Production in Oshawa

General Motors is spending billions to upgrade certain factories, prepping them to build the next-generation Silverado and Sierra. As part of a four-year contract agreed to in September 2016, $310 million was invested in Oshawa’s so-called consolidated line so that it could handle truck production.

Now, Automotive News is reporting that while the Canadian plant may indeed be building trucks, it won’t be the snazzy new ones set to hit dealer lots for the 2019 model year. Instead, Oshawa will simply paint and perform final assembly of the outgoing 2018 trucks.

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Lack of Interest, Freebies, and Torched Public Dollars Force Montreal to Say 'Non' to Formula E

Formula E bid adieu to the 2016-17 season in Montreal on July 30th, but now Montreal is saying goodbye to Formula E.

The host city, which was on track to close out the FIA Formula E Championship next season, closed a big green door on the electric street racing series today. Newly minted mayor Valérie Plante made the decision after reports arose of the extreme cost to the city’s taxpayers, not to mention a distinct lack of interest from those footing the bill.

The series was expected to be held next year and in 2019. Championed by former mayor Denis Coderre, Formula E was seen as a way for the city — where one can easily hail a Tesla taxi cab — to champion green initiatives.

Hold on a minute. A boondoggle involving large quantities of public dollars and the city of Montreal? Surely not…

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Rare Rides: The Beige 1988 Lada Samara Is Neither Sporty Nor Luxurious

We’ve featured a communist-built car before on Rare Rides; it was an old Czech-made Skoda 120, located in Canada. A specialized importer group brought many cars just like the Skoda into Canada in the 1980s, supplying bare bones Soviet Bloc vehicles to frugal Canadians living in Quebec and some other places.

Today’s Rare Ride was never part of LadaCanada, and lived its life abroad until very recently. Made in Russia, sold in Belgium, and imported to America, it’s a Lada Samara.

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Truck Buyers Made a Choice in October (and Chose the Bigger One)

So diverse are the trim levels available in a modern pickup truck, it wouldn’t be shocking to see automakers begin offering a “Scotsman” edition, complete with three-on-the-tree shifter, for buyers accustomed to eating beans out of a can. On the other end of the ladder, surely “Limited,” “Platinum,” and “Tungsten” fall short in the luxury trappings offered within their leather-trimmed cabins. Buyers clearly need a wood-panelled humidor for their stogies.

Suffice it to say that automakers are making the purchase of a pickup truck more appealing than ever, and in October, buyers did their duty. October 2017 was a boffo month for light truck sales, with every full-size truck line recording rising year-over-year sales in the United States. Unfortunately, but not all that unfortunately (according to accountants, anyway), buyers offered a raised middle finger to mid-size pickups sold by those same automakers.

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Obligatory NAFTA Update: Mexico and Canada Reject U.S. Proposals as Talks Wrap Up

As the fifth round of NAFTA talks come to a close, Mexico and Canada continue to reject the United States’ demands regarding automobiles, diary, dispute panels, government procurement and the sunset clause. Among the more recent automotive proposals kicking up dirt is the U.S.’s wish to include steel in NAFTA’s tracing list and increase the mandatory local content of every car built in North America. The attempt has annoyed foreign officials and left the industry fretting about increased production costs and complexity.

The increasingly tense nature of the talks has left many wondering if President Trump will make good on his earlier threat to leave NAFTA. However, plenty of analysts are of the mind that a deal will eventually be reached between the three countries.

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Unifor Approves Contract at GM's Canadian Equinox Factory, Strike Ends Tonight

General Motors and Unifor representation at the CAMI plant in Ingersoll, Ontario, announced a tentative agreement on Friday. Today, that deal proved amicable to both parties, as union employees voted to approve a new four-year contract with the automaker — ending a month-long strike at a factory producing the incredibly popular Chevrolet Equinox crossover.

While the deal includes a salary increase of four percent over four years and $8,000 in lump sum payments over the lifespan of the proposal, it lacks Unifor’s primary demand of a written assurance that CAMI will remain the lead producer of the Equinox. GM proved unwilling to give way on that issue, which is likely due to the ongoing and uncertain nature of NAFTA renegotiations.

“Despite our every effort, General Motors steadfastly refused to accept our members’ reasonable demand to designate the CAMI plant as General Motors lead producer for the Chevy Equinox,” Unifor president Jerry Dias wrote to local union members prior to the factory vote.

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Ending NAFTA Could Cost U.S. 50,000 Auto Jobs: Study

Automotive trade groups have issued warnings about the scrapping of the North American Free Trade Agreement all year. In January, the Center for Automotive Research claimed killing NAFTA could result in the elimination of at least 31,000 auto jobs within the United States. This week, a new study sponsored by the Motor Equipment Manufacturers Association upped that estimation to around 50,000.

With early negotiations not going particularly well at the moment, the new tally serves as a potential warning. If NAFTA is abandoned, North American countries would all likely revert to rules dictated by the World Trade Organization, resulting in higher tariffs from all sides.

While 50,000 fewer jobs is the upper echelon of what could be expected, a few things have to go wrong for it to reach that point. First, Mexico and Canada would have to revert to pre-NAFTA tariff levels — which were comparably higher than the United States. If so, manufacturers would almost assuredly begin sourcing more parts from the same countries where the vehicles are assembled, and gradually move production to lower-cost regions like China.

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  • Rochester "better than Vinfast" is a pretty low bar.
  • TheMrFreeze That new Ferrari looks nice but other than that, nothing.And VW having to put an air-cooled Beetle in its display to try and make the ID.Buzz look cool makes this classic VW owner sad 😢
  • Wolfwagen Is it me or have auto shows just turned to meh? To me, there isn't much excitement anymore. it's like we have hit a second malaise era. Every new vehicle is some cookie-cutter CUV. No cutting-edge designs. No talk of any great powertrains, or technological achievements. It's sort of expected with the push to EVs but there is no news on that front either. No new battery tech, no new charging tech. Nothing.
  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.