Japanese auto supplier Musashi to close two plants in Germany, reports Wiwo
The firm will close the plants in the central German towns of Hannoversch Muenden and Leinefelde, while the plant in Luechow will operate with significantly fewer staff, the outlet reported.
Several hundred employees will be affected by the measure, it added.
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Reuters
41 minutes ago
- Reuters
General Motors, Hyundai to develop vehicles together amid China EV competition
Aug 6 (Reuters) - General Motors (GM.N), opens new tab and Hyundai Motor ( opens new tab on Wednesday outlined plans to develop five vehicles together as they seek to lower costs amid growing competition from nimble Chinese rivals, although some analysts questioned whether the plan would work. Four of the vehicles — a compact SUV/car/pickup, and a mid-size pickup — are targeted for launch in Central and South America in 2028 and support both internal combustion and hybrid powertrains. GM and Hyundai did not say where the models would be produced, but said they expected to be rolling out at least 800,000 vehicles a year at full production. The partnership will help GM and Hyundai battle growing competition from Chinese EV manufacturers in Latin America. But some questioned whether it would create meaningful synergies. "Even if they sell those new models in South America, it's hard to beat Chinese competitors which already are leading in the electric-vehicle market with low prices," said An Hyung-jin, chief investment officer at Seoul-based hedge fund Billionfold Asset Management. "Hyundai might be able to learn from GM about how to build pickup trucks, but it would take some time to generate earnings," he added. The two global automakers will also co-develop and produce an electric commercial van in the United States as early as 2028. "The partnership itself is a win-win strategy, since GM can learn the hybrid technology from Hyundai while Hyundai can use the relationship with GM as leverage for trade negotiations with the United States," said Teddi Kim, head of auto research firm Mirae-Mobility Research & Services. The United States and South Korea last week reached a trade agreement for a 15% tariff on U.S. imports from South Korea, including vehicles. Shares in Hyundai Motor rose 0.7%, against the wider market's 0.5% gain. The deal is among several announced between a South Korean company and a U.S. firm in recent weeks, following Samsung Electronics' ( opens new tab chip deal with Tesla (TSLA.O), opens new tab and Apple (AAPL.O), opens new tab, and LG Energy Solution's ( opens new tab battery deal with Tesla. Reuters in March reported that Hyundai and GM were nearing a deal to share two commercial electric vans and pickup trucks. This is the first major partnership for vehicle development for Hyundai Motor. GM has been unwinding several projects with Japan's Honda over the past decade. In 2023, the two companies scrapped a $5 billion plan to jointly develop affordable electric vehicles. Chinese carmakers have released several high-tech, low-cost models, putting pressure on legacy rivals such as GM to slash expenses and streamline manufacturing processes. To compete with these rivals, many have explored partnerships as a way to share development costs, especially for battery-powered models. Cutting costs is even more pressing as tariffs have added billions of dollars in expenses for automakers around the globe.
Reuters
3 hours ago
- Reuters
Trump wants more American pick-ups in Tokyo and London. That may be a hard sell
TOKYO/STOCKHOLM, August 7 (Reuters) - Donald Trump is right that Japan and Europe buy few American-made cars - but it has little to do with trade barriers. From Tokyo to London, many consumers see Detroit's offerings as simply too big and too gas-guzzling. That view has made Chevrolets and Cadillacs a hard sell, and a rare sight, in cities full of slimmer cars from the Toyota Corolla to Honda Civic, Volkswagen Golf and Renault Clio. Trump often complains about what he sees as a refusal to accept U.S. cars while the Japanese, opens new tab and Europeans sell millions of automobiles a year into the United States. In recent trade deals, opens new tab, both markets agreed to drop or ease safety tests on American vehicle imports. Europe will lower levies on U.S. cars. But it may take more than a change of rules and lower tariffs to convince Japanese and European consumers, who contend with narrow roads and painfully tight parking, to buy big American-made Ford F-150 trucks and Cadillac Escalade SUVs. "American cars are designed for wide roads and freeway driving, so handling them on narrow Japanese streets can be tricky. It takes a bit of technique," said Yumihito Yasue, president of Johnan Jeep Petit in Tokyo, which imports and services vintage cars from the United States. His customers tend to be enthusiasts in their 50s and 60s who grew up seeing American cars on TV and in movies. On a recent weekday, he was servicing two Chevrolets, a lustrous brown 1971 Nova and a low-slung 1986 El Camino, both with their steering wheels on the left. In Japan, steering is on the right. Yasue inherited his love of American cars from his father, who started the business four decades ago and would travel to California to scout for cars. Yasue took over after his father died nine years ago, and sells about 20 vehicles a year. "What makes American cars special is the design. Compared to Japanese or German cars, the body shape is more beautiful. Especially the lines, like the rear lines and the fenders," he said. Some 3.7 million new cars were sold in Japan last year, with a third of those mini or "kei" cars - tiny, fuel efficient vehicles not produced by American automakers. Overall, foreign cars accounted for 6% of new car sales, data from the Japanese Automobile Manufacturers Association showed. Of those, around 570 Chevys, 450 Cadillacs and 120 Dodges were sold, data from the Japan Automobile Importers Association showed. Ford (F.N), opens new tab pulled out of Japan almost a decade ago. Tesla (TSLA.O), opens new tab makes cars sleeker than some of Detroit's and is becoming more popular. The data does not give a breakdown for the EV maker. In Europe, smaller locally-made U.S. cars have done well: models like the best-selling Ford Puma and the older Fiesta. But over the past two decades, Ford and General Motors (GM.N), opens new tab have pivoted towards larger pickups and SUVs, vehicles less suited to Europe's narrow streets and compact-car culture. Ford, a big player in Europe from the early 1900s, has seen sales in the region fall sharply, from 1.26 million vehicles in 2005 to just 426,000 in 2024, according to data from the European Automobile Manufacturers' Association (ACEA). Its market share dropped from 8.3% to 3.3%. "We don't buy Ford F-150s, that's not what our roads are scaled for, it's not what our customers want," Andy Palmer, former CEO of Aston Martin, told Reuters. GM exited Europe in 2017, selling Opel after pulling back Chevrolet, but returned with its Cadillac Lyriq last year. It sold a mere 1,514 of the U.S.-made SUV, according to auto data firm Jato. A GM spokesperson said Cadillac was growing its all-electric lineup in Europe, and the vehicles had been well-received in the markets where they were launched. A Ford spokesperson said the firm exported "passion products" to Europe like the Bronco and Mustang, alongside locally-made models tailored for the market. Clive Sutton, a British car dealer in London who sells luxury American models, said his buyers were drawn to the rarity of vehicles like the giant Cadillac Escalade. But he admitted it was a challenge. "There are people that want that car because of its exclusivity and its perceived status," Sutton said. "But it's not the most easy car to find a parking space for, certainly in central London." Trump has also put pressure on South Korea to open its market to American cars and said duty-free access was part of the trade deal the two countries agreed last week. There, imported vehicles account for less than one-fifth of the car market and U.S. models for only 16% of the imported car segment, which is dominated by German rivals, according to data from the Korea Automobile Importers & Distributors Association. German manufacturers have also carved out a strong presence in Japan's luxury market. Mercedes-Benz ( opens new tab sold more than 53,000 vehicles last year, making it the most popular foreign brand, followed by BMW ( opens new tab at more than 35,000. Japanese automakers say Europeans have been successful because they committed the time and resources to the market. Detroit carmakers, meanwhile, are often associated with left-hand drive cars, which are more challenging to drive on the left-hand side of the road. But some U.S. manufacturers are changing. GM has offered the Corvette only in right-hand drive since the eighth generation version went on sale in 2021. That may be one reason why some 80% of buyers are new customers, a GM spokesperson said. The Corvette is the only model Chevy offers in Japan, and it has sold fewer than 1,000 of them a year for the last decade. GM this year announced plans for a line-up of right-hand-drive Cadillac EVs and deliveries of the Lyriq started in July. Jeep, which sells right-hand drive models, has been the most popular American brand for more than a decade, the importer data showed. It sold just shy of 10,000 vehicles last year in Japan. Yukimi Nitta used to drive a "kei" car but she was drawn to the Jeep Wrangler's appearance, which she described as "friendly" and "outdoorsy". The 42-year-old hair salon owner is now on her second Jeep - a limited-edition beige model - and hopes to switch again to another limited-edition colour. Parking is tight but manageable, she said, and two of her friends have since bought Wranglers. "People often say, 'Wow, a foreign car!' But once you drive it, it feels totally normal. I wish more people would try it," she said. While the Wrangler does burn through fuel quickly, the resale value is good, making it possible to switch out colours, something owners do, Nitta said. A spokesperson for Jeep owner Stellantis ( opens new tab said it actively promoted owner events. In July, it announced a collaboration with the "Jurassic World" movie series featuring a limited-edition pink Wrangler, the spokesperson said. Big American cars and trucks might find it hard to follow in Jeep's tracks. Daniel Cadwell, an American living in Tokyo, exports used Japanese camper vans and wagons to the United States. He said he was struck by the size of American cars whenever he went home. "They are just excessively big," said Cadwell, who runs Javan Imports in Portland with his U.S.-based business partner. "I think it is highly challenging for a car of that sort to be seen as attractive in Japan."
Auto Blog
3 hours ago
- Auto Blog
Honda Shifts Gears on EVs Following Massive Quarterly Loss
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. The Silverado EV more than doubled its EPA range with zero hardware changes. Demons beware, this 2022 Chevrolet Camaro ZL1 Hennessey Exorcist Convertible has come to slay you. For sale now on Exotic Car Trader, this very example could be yours. View post: Walmart Is Selling a 'Must-Have' $50 Jump Starter for 46% Off, and Shoppers Say It's 'by Far the Best' The 'Power of Dreams' brand is taking a massive loss Japanese automotive giant Honda is rethinking its strategy regarding electric vehicles as it absorbed red-ink losses stemming from their development and the impact of U.S. tariffs. In the first quarter of its 2025-2026 fiscal year (April 1 to June 30, 2025), Honda took a one-time charge of ¥113.4 billion (~$780 million) related to its EV-related troubles. In total, the impact of the EV charge and its exposure to tariffs took a toll on Honda's operating profit during the quarter, as earnings fell to ¥244.1 billion (~$1.69 billion) from ¥484.7 billion (~$3.35 billion) just one year ago. During a press conference on August 6, Tokyo time, Honda Managing Executive Officer Eiji Fujimura attributed the nearly $780 million charge regarding EVs to its mistakes, adding that they aren't 'optimistic' about the future of electric vehicles. Honda is struggling to sell EVs profitably Although Honda still plans to launch its 0 Series line of EVs in the U.S. in 2026, the company has delayed product development and investment in a Canadian EV production hub. However, it struggles to come to terms with the loss of the U.S. federal tax credit incentive and the cooling growth in EV demand. Currently, Honda sells two EVs in the States, the GM Ultium-based Honda Prologue and Acura ZDX crossovers, which have had healthy sales numbers. Through June, American Honda moved 16,317 Prologues, while Acura sold 10,335 ZDX; numbers that were only possible with heavy incentives. According to industry marketing promotion data from Motor Intelligence cited by Automotive News, Honda spent an average of more than $12,000 on each Prologue and $21,000 on each ZDX it moved during the April-June quarter. In addition, Honda's attempts to break into the mecha-competitive Chinese EV market with its line of locally developed EVs have not been a fruitful experiment for the automaker. In remarks, Fujimura noted that Honda's Chinese-market EVs were too expensive amidst a sea of local brands competing in local price wars, and that their cars lacked important connected car technology features that Chinese consumers found on less costly models. 'We are struggling with EVs there,' he said. 'We are underachieving against the initial plan.' Source: Getty Images Trump Admin.—Japan trade deal saved $1.38B from Honda's tariff outlook In addition to its EV woes, U.S. tariffs are making a significant dent in the Power of Dreams brand's pocketbook, as Honda took a ¥124.6 billion (~$861.6 million) operating profit loss from U.S. tariffs during the last fiscal quarter. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. However, Honda officials believe that the recent trade deal between the Japanese government and the Trump Administration in the U.S., which reduced tariffs on automobiles and auto parts from 25% to 15%, will have a slight positive impact on its financial performance in the foreseeable future. Previously, the automaker projected that tariffs would hurdle a full fiscal year blow of ¥650.0 billion ($4.49 billion) at a minimum; however, its latest outlook shows that the new policy would save ¥200 billion ($1.38 billion), down to ¥450.0 billion ($3.11 billion). However, to further mitigate the impact of U.S. tariffs, Honda says it will increase prices and adjust its supply chain to produce more domestic vehicles for the U.S. market. Fujimura hinted that the automaker may expand its two-shift operation at U.S. plants to three to keep up with demand, requiring more coordination with suppliers. 'We might change it to a three-shift operation in the States, so that we can increase production volume without spending too much on capital investment,' Fujimura said. Final Thoughts Despite this, one thing to note is that Honda remains exposed to potential trade issues with Mexico and Canada, as a formal agreement with the respective countries has not been finalized. For the full fiscal year to March 31, 2026, Honda estimates it will incur ¥190 billion ($1.31 billion) in tariff costs on complete vehicles imported to the U.S., with the most significant chunk coming from the USMCA nations. Honda sources a third of its vehicles from tariff-targeted Mexico and Canada, including popular models such as the compact HR-V crossover, the Acura ZDX, and Honda Prologue EVs from GM's Ramos Arizpe plant, as well as select units of the Civic and CR-V from Alliston, Ontario. About the Author James Ochoa View Profile
