By on October 8, 2019

The United States and Japan have signed a limited trade deal that’s been simmering for some months now. President Donald Trump has been eager to secure a place where American farmers can send their goods now that the trade war with China has diminished American dealings with that market. In return, Japan wanted assurances from the U.S. that it will not impose any new automotive tariffs, as cars remain one of its chief exports.

While the island nation didn’t get the guarantee in writing, Prime Minister Shinzo Abe claims he received a verbal promise. This is to be the first part of a broader trade deal between the two countries.  (Read More…)

By on July 17, 2019

The United States and Japan are working on a trade deal revolving around agriculture and automobiles. As much as you’re probably dying to hear about the farming aspects, we’re going to focus a bit more on the latter. Boiled down, the arrangement is reported to deliver preferential treatment for U.S. farmers hoping to expand into the Japanese market while lessing duties on Japanese auto parts.

President Donald Trump has noted in the past that he’s displeased with any country holding a trade surplus over America’s head and Japan has one. Last year, it amounted to $67.6 billion in goods — most of it relating directly to automobiles. This initially encouraged the president to threaten tariffs on Japanese imports. However, Japan’s close ties to the United States bought it some time and any legitimate danger has been postponed to encourage trade discussions.  (Read More…)

By on June 6, 2019

China has fined Ford Motor Company’s main joint venture in the country, Changan Ford Automobile Co., over antitrust violations. However, the more likely scenario is that the People’s Republic is trying to flex some muscle after the Trump administration declared a ban on doing business with Huawei, the world’s largest telecommunications provider, on national security grounds.

The oversimplified gist of the situation is that America doesn’t trust a telecom firm with direct ties to the Chinese Communist Party that could easily be tapped by the Chinese government for espionage. Several countries banned Huawei equipment earlier this year after the U.S. Justice Department unsealed a raft of indictments, included 23 counts pertaining to the alleged theft of intellectual property, obstruction of justice, and fraud relating to sanctions against Iran.  (Read More…)

By on April 4, 2019

On Thursday, President Donald Trump threatened to impose tariffs on cars entering the United States from Mexico if the nation doesn’t assist Washington in dealing with the migrant situation at its southern border. It’s a rather bold ultimatum, coming hot on the heels of claims that the White House was seriously considering closing the border entirely if Mexico could not curtail the flow of illegal immigrants and drugs heading north.

It’s an interesting situation, especially considering both outcomes would upend the automotive industry. But Trump argues that the growing reliance on Mexican manufacturing and proliferation of illegal immigrants has already hurt the United States badly. A contentious stance, for sure, but these are issues in need of thorough discussion. Gallup polls repeatedly peg immigration as one of the issues voters care most about — along with healthcare and the economy.

However, we only care about those things tangentially. It’s all about the cars for us.  (Read More…)

By on March 17, 2019

While the Trump administration is carefully considering whether or not imported vehicles qualify as a threat to national security, and prepares for trade negotiations with Japan, Toyota is being very careful about how it comes across in America. Last week, the automaker announced plans to add about 600 jobs across the Southern United States — raising its proposed American expansion by another $749 million. In total, the company is expected to expend $13 billion inside the U.S. by 2022.

“In a time when others are scaling back, we believe in the strength of America and we’re excited about the future of mobility in America,” Jim Lentz, CEO of Toyota Motor North America, said of the decision.

Throwing some casual shade at other automakers who are cutting down their domestic workforce is a sound PR strategy but, according to Toyota, its increased investment has nothing to do with global or industrial politics.  (Read More…)

By on February 20, 2019

Earlier this week, the European Union warned that if the United States imposes any new tariffs on European-built vehicles, it can expect similar levies on American products. However, armed with the Commerce Department’s confidential report on automotive imports, President Donald Trump doesn’t appear remotely interested in backing down.

While Trump previously agreed not to impose additional duties on European cars, the arrangement hinged upon the two coming together on trade. Unfortunately, while both sides seem eager to work out a deal, they can’t quite manage to keep the constant threats down to a dull roar.  (Read More…)

By on February 11, 2019

Subaru Legacy 2018 Logo Emblem Grille

Subaru’s sales in the United States effectively tripled in the past decade, making it the most important market for the brand by a wide margin. However, the automaker has had to expend quite a bit of energy in its home country of Japan to address recalls and regulatory scandals over the last few years.

While the duality hasn’t caused issues on a global scale, many observers wonder how long its good fortune will last. In America, Subaru is a feel-good brand that uses love as a core marketing concept to improve sales. In Japan, it has become synonymous with overworking employees lacking compensation, regulatory scandals, sudden work stoppages, and recalls. Many believe it’s only a matter of time before Subaru of America will have to contend with Japan’s issues, and evidence exists that problems are already beginning to surface in the West. (Read More…)

By on January 31, 2019

us-capitol, public domain

With the United States’ government shutdown now over, lawmakers have an opportunity to work together as promised. Interestingly, one of the first pieces of bipartisan legislation to emerge after the federal bureaucracy resumed operations involves a plan to severely limit presidential authority to impose tariffs for national security reasons.

The Bicameral Congressional Trade Authority Act, introduced by Senators Patrick Toomey (R-PA) and Mark Warner (D-VA), along with House Representatives Mike Gallagher (R-WI) and Ron Kind (D-WI), would require the president to get approval from Congress before taking any trade actions based on national security threats. If passed into law, the bill would let the Legislative Branch effectively block the tariffs being proposed by the Trump administration on automobiles and automotive parts.  (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…)

By on November 1, 2018

All-new 2018 Jeep® Wrangler Rubicon

More mainstream brands saw year-over-year rises in sales volume last month than those who endured a sojourn into the red. It will surprise exactly no one to learn those who did earn sales growth largely did so on the backs of trucks, SUVs, and crossovers.

Nowhere was this more apparent than at Genesis, a brand peddling some excellent cars but – for the moment – completely bereft of an offering in America’s hottest segment. Fiat Chrysler, on the other hand, had a particularly strong October thanks to its top-heaviness in each of those markets.

(Read More…)

By on November 1, 2018

Nissan Leaf 2018 factory

On Wednesday, we reported General Motors’ plan to buy out salaried employees as part of a long-term cost-cutting strategy, with further reductions in headcount looking likely. Despite its healthy profits, GM knows industry forecasters predict a period of economic hardship and continuously dwindling car sales. OEMs need as much money as they can cling to in order to weather the costs associated with advancing their collective shift into electrification and autonomous vehicles, while at the same time preparing for a global trade war.

A bad moon is rising and every manufacturer needs a way to cope.  (Read More…)

By on October 23, 2018

Ford badge emblem logo

Ford Motor Co. is blaming Donald Trump’s commodity tariffs for elevating U.S. steel prices higher than any other market on the planet. Regardless of your opinion on the president’s policies (the economy is reportedly booming), it’s a little hard to rebuff Ford’s criticisms on this one. The automaker’s now going straight to the source in an attempt to remedy the situation.

Trump hasn’t gone easy on Ford. He spent a large portion of his presidential campaign coming down on the automaker over its plan to move small-car production to Mexico. However, the company’s about-face proved a short-lived victory — it ultimately decided to stop selling cars altogether. This was followed by Ford’s cull of the upcoming Focus Active in North America after Trump’s 25 percent levy on Chinese-built vehicle made the introduction impossible (and unprofitable).  (Read More…)

By on September 6, 2018

Old Assembly Factory floor

For the past two years, we’ve reported that the post-recession upswing in new car buying in North America seems to have plateaued. Environmental factors have led to Millennials buying fewer cars than their parents’ generation, and wealthy folk have proven unable to pick up the slack — as no amount of money allows you to drive several cars at the same time.

Most major carmakers posted declining U.S. deliveries in July, and August’s data proved a mixed bag. However, America isn’t the only big market that’s taking a beating. The First World seems to have collectively surpassed peak growth and now has to ride out an extended period where volume dwindles until some other nation can afford to import container ships full of sparkly new automobiles. (Read More…)

By on August 27, 2018

Trump

President Donald Trump announced a trade “understanding” with Mexico on Monday — not to be confused with an official deal — that would lead to an overhaul of the North American Free Trade Agreement. Trump made the announcement from the Oval Office, with Mexican President Enrique Pena Nieto listening in by speakerphone.

While it’s still too early to show up in a Lockheed S-3 Viking and tell the world “mission accomplished,” the announcement is the most overt example of progress on NAFTA we’ve seen. Interesting, considering it seemed as if Trump was openly calling for its death during the meeting.

Earlier in the day, Mexican officials said trade talks with the U.S. had concluded, adding that an announcement could come later in the day. The White House confirmed the reports an hour later on its government website, with Donald Trump stating there was a “big deal looking good with Mexico” via twitter(Read More…)

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