Tag: EU

By on July 8, 2019

Wary that China might have the battery market totally cornered by the time electric vehicles become mainstream, the European Union is trying to jumpstart the industry at home. This year, the EU has started working with manufacturers and financial institutions to develop a reliable supply chain of the lithium-ion packs that have been difficult to come by.

European Commission Vice President Maros Sefcovic is targeting 100 billion euros ($113 billion) for the program, which Bloomberg said would help the EU “act like China.”  (Read More…)

By on June 28, 2019

A recent study from consulting firm AlixPartners has suggested that automakers could be in for a financial ass kicking of epic proportions. As it turns out, reaching emission quotas is a difficult business and the European Union wants 95 grams of carbon dioxide per kilometer by 2021. The study suggests few automakers are on track to reach that goal and, as a result, will be forced to pay out sizable fines. We’re talking billions.

Can you guess which manufacturers are supposed to get hit the hardest?

Here’s a hint: we’ve discussed one of them having similar issues in the United States earlier this year and both of their names are in the title of this article.  (Read More…)

By on May 30, 2019

It’s been nearly a year since President Donald Trump and European Commission President Jean-Claude Juncker kissed and negotiated a temporary truce aimed at buying the United States and the EU time to renegotiate their positions without fear of new tariffs.

Unfortunately, it seems everyone had better things to do following the smooch. (Read More…)

By on May 17, 2019

U.S. President Donald Trump pushed the threat of tariffs on imported vehicles to the background on Friday, announcing a 180-day pause as the country negotiates trade agreements with Japan and the European Union.

The delay comes a day ahead of a Saturday deadline imposed by the Commerce Department. In February, the department delivered the findings of an investigation on whether auto imports represent a national security threat to the United States. The report, not seen by the public, issued recommendations to the White House. (Read More…)

By on May 9, 2019

Image: Nissan

Pick your jaw up off the floor. As automakers struggle to offer electric vehicles deemed “affordable” by the motoring public, those buyers aren’t exactly swamping dealers with requests for EVs.

Even in the Europe Union, members of which punish drivers of fossil fuel-powered vehicles with high taxes, EVs amounted to just 2 percent of new vehicles registered last year. And yet the EU plans to drastically cut down on greenhouse gas emissions in the coming years.

New data from the European Automobile Manufacturers’ Association (ACEA) shows that the EU’s green dreams will be hard to realize without some sort of massive incentive for the purchase of electric vehicles, as right now those vehicles are only marginally popular in extremely wealthy countries. The EV “people’s car” is still a dream. (Read More…)

By on April 29, 2019

1975 Mercedes-Benz 240D in California wrecking yard, LH front view - ©2017 Murilee Martin - The Truth About Cars

Europe, the continent where tech-savvy bad guys in action movies come from, finds itself in a rapid and transformational shift. As European lawmakers and city governments turn their back on diesel, so too are automakers and customers.

Compared to past years, the take rate for diesel automobiles now resembles the trajectory of American-market passenger cars. Last month, the continent posted the worst sales showing for diesel vehicles this century. In what DPRK News Service calls “Belgian’s colonies,” the take rate for diesel — which once surpassed 55 percent — is accelerating its descent to zero.

It seems you can tax the evil away. (Read More…)

By on April 18, 2019

The Rare Rides series has broached the subject of De Tomaso a few times before. The luxurious Longchamp coupe was accompanied by the Qvale-branded Mangusta, and the tangentially related Chrysler TC.

But today’s De Tomaso takes the cake for rarity over any of those previous Rare Rides. It’s a Guarà Barchetta, from 1995.

(Read More…)

By on April 5, 2019

It might have taken two years of investigative raids and Daimler acting as a whistleblower, but Germany’s Big Three automakers finally stand accused by the European Union of collusion. On Friday, the European Commission claimed that Volkswagen Group, BMW and Daimler broke antitrust rules by acting together to delay the introduction of two emission cleaning systems between 2006 and 2014.

The Commission’s preliminary view is that BMW, Daimler and VW participated in a collusive scheme, breaching the EU’s competition rules by limiting the development and proliferation of new emission cleaning technology for diesel and gasoline-fueled passenger cars sold in the “European Economic Area.” This collusion occurred in the framework of the car manufacturers’ so-called “circle of five” technical meetings — which includes VW Group’s Porsche and Audi.  (Read More…)

By on March 26, 2019

Image: Daimler AG

A month after a European Parliament committee approved a host of measures designed to reduce roadway fatalities, the European Commission has signed off on the plan. New vehicles sold in Europe starting in 2022 stand to be more connected and nanny-like than ever, with speed limiters being just one of the mandatory safety features.

Other features include connection points for alcohol ignition interlock devices, driver monitoring cameras, and a range of lesser tech that drivers might actually approve of. (Read More…)

By on February 25, 2019

The European Commission is said to be investigating several automotive companies over possible antitrust violations relating to the sale of auto parts. According to Germany’s Der Spiegel, Renault, Nissan, PSA, Jaguar Land Rover and Fiat Chrysler Automobiles have all been placed under government scrutiny for possible price fixing. The report claims the manufacturers may have colluded to elevate the value of certain auto parts by as much as 25 percent.

Assuming the report is accurate, that would make this the EU’s second major automotive cartel investigation in the last two years. (Read More…)

By on February 19, 2019

The showdown between the European Union and United States over auto tariffs reminds this viewer of Charles Bronson and Henry Fonda in Once Upon a Time in the West, and with good reason. Both players appear ready to reach for their Colt Single Action Army in a bid to do maximum damage to the other.

After the U.S. Commerce Department delivered a confidential report to the White House on Sunday, the EU is warning its trading partner that any tariffs imposed on European-built vehicles will be met with similar levies on American goods. (Read More…)

By on February 13, 2019

ford logo

Ford Motor Company has reportedly informed British Prime Minister Theresa May of its tentative plan to move out of the United Kingdom. The automaker explained the situation to May during a private call with business leaders tasked with assessing how Brexit might impact the economy. Ford said it was already preparing to move its facilities — which include two engine plants, a transmission factory, and an R&D center — abroad.

With the European Union and British government still unable to establish trade terms, automakers are having a panic attack. Ford later told Reuters that a no-deal Brexit would be catastrophic for its European-based businesses, citing earlier claims that it would cost the manufacturer up to $1 billion. (Read More…)

By on January 16, 2019

british-leyland-mini

With Britain’s parliament rejecting Prime Minister Theresa May’s latest Brexit deal, European automakers stand to face some strong headwinds in the near future. As of now, no clear path lies ahead. Many believe the European Union will continue playing hardball, punishing Britain for leaving. But, even if it doesn’t, loads of regulatory and trade issues must be resolved in short order to avoid problems.

There’s also no shortage of hyperbole surrounding the issue. Just this morning I heard cable news call it “the largest crisis in Britain’s history,” as if World War II never happened. A channel away, another outlet proclaimed how splendid it would be for trade between the United Kingdom and United States.

Regardless of which side of the fence you fall, there’s more at stake here than Theresa May’s job. Automakers, who like consistency above all else, worry a no deal plan for “British independence” could be tantamount to flipping the industry table. They don’t like being caught up in the uncertainty surrounding Brexit, and there appears to be an endless list of issues to contend with.  (Read More…)

By on November 16, 2018

It’s been a trade-heavy week. Earlier, the White House decided to postpone any major tariff decisions following a discussion with the Commerce Department over a draft report on the impact of auto imports, giving trade representatives from the United States and European Union room to talk.

Unfortunately, things don’t appear to have gone swimmingly. European Trade Commissioner Cecilia Malmström left her Wednesday meeting with U.S. Trade Representative Robert Lighthizer promising that the EU would have retaliatory tariffs at the ready if America pulls the trigger on auto import duties. However, she also said some progress was made during her talk with Lighthizer, but had nothing conclusive to announce

Negotiating with the EU has grown difficult and, frankly, the automotive aspects have become less important of late. The European Union is now discussing the possibility of creating its own army, leaving president Trump to tweet angrily about historical precedents.  (Read More…)

By on November 13, 2018

infiniti nissan factory japan

The U.S. Commerce Department has submitted draft recommendations to the White House on its investigation into whether it’s prudent to impose tariffs of up to 25 percent on imported automobiles and parts, based on the premise that they’re a threat to national security. The possibility has the industry in a tizzy, with both foreign and domestic brands lobbying against it.

Truth be told, we half assumed the entire concept was a ruse to bring other nations to the bargaining table with something to lose — a scenario where the United States could be viewed as a favorable alternative to tariff-crazy China. However, China has begun opening its market to foreign automakers while also placing a massive 40 percent duty on American autos, leaving the U.S. at a disadvantage. Now it looks as if the Trump administration may go through with everything.  (Read More…)

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