Latest news with #DavidShepardson
Yahoo
19 hours ago
- Business
- Yahoo
Ford head says GOP tax bill provision could 'imperil' battery factory
By Nora Eckert and David Shepardson DETROIT/WASHINGTON (Reuters) -Ford Executive Chair Bill Ford on Thursday sounded the alarm over the potential for the U.S. government to eliminate production tax credits that support the manufacturing of electric vehicle batteries using Chinese technology. The disappearance of the credits would threaten Ford's projected $3 billion investment in a Marshall, Michigan, plant that is 60% complete and slated to employ 1,700 workers. "If it doesn't stay, it will imperil what we do in Marshall," Ford said at a policy conference of the factory 100 miles (161 km) west of Detroit. "We made a certain investment based upon a policy that was in place. It's not fair to change policies after all the expenditure has been made." Ford said the plant, which was announced in February 2023, is expected to begin producing batteries in 2026. The tax-reform bill passed by the U.S. House of Representatives this month could bar lucrative tax credits for batteries produced with components made by some Chinese companies or under a license agreement with Chinese firms. Ford's factory would make battery cells using tech from Chinese battery giant CATL. "I'm spending a lot of time talking about that with politicians. It's a federal issue, but it's also a state issue," Ford said on Thursday. Ford received a reduced incentive package from Michigan last year for the battery plant after it cut expected production there to match slowing demand for electric vehicles. Since the automaker announced the plant, it has drawn scrutiny from some lawmakers for its ties to the Chinese company. The company touted a letter from more than 100 Marshall-area business owners, school leaders, elected officials calling on Congress to retain the tax incentives, which noted the area has "lost thousands of jobs over the past several years." The House bill would also end a $7,500 tax credit for new EVs, impose a new $250 annual fee on EVs for road repair costs and repeal vehicle emissions rules designed to prod automakers into building more EVs. The U.S. Senate plans to take up the bill and make changes in the coming month.
Yahoo
a day ago
- Automotive
- Yahoo
Exclusive-China magnet pinch threatens car production, automakers warn
By David Shepardson WASHINGTON (Reuters) -U.S. auto executives are sounding the alarm on an impending shortage of rare-earth magnets from China – used in everything from windshield-wiper motors to anti-lock braking sensors – that could force the closure of car factories within weeks. In a previously unreported May 9 letter to Trump administration officials, the head of the trade group representing General Motors, Toyota, Volkswagen, Hyundai and other major automakers raised urgent concerns. "Without reliable access to these elements and magnets, automotive suppliers will be unable to produce critical automotive components, including automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras," the Alliance for Automotive Innovation wrote the Trump administration. The letter, which also was signed by MEMA, The Vehicle Suppliers Association, added that, without those essential automotive components, it would only be a matter of time before U.S. vehicle factories are disrupted. "In severe cases, this could include the need for reduced production volumes or even a shutdown of vehicle assembly lines," the groups said. Both Alliance CEO John Bozzella and MEMA CEO Bill Long told Reuters on Friday the situation was not resolved and remained a concern. They expressed gratitude for the Trump administration's high-level engagement to prevent disruption to U.S. auto production and the supply chain. Bozzella noted that the automotive issue was on the agenda during Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer's talks with their Chinese counterparts in Geneva earlier this month. Greer told CNBC on Friday that China had agreed to lift restrictions on the exports of rare-earth magnets to U.S. companies and was not moving fast enough to grant access for key U.S. industries. "We haven't seen the flow of some of those critical minerals as they were supposed to be doing." China - which controls over 90% of global processing capacity for the magnets used in everything from automobiles and fighter jets to home appliances - imposed restrictions in early April requiring exporters to obtain licenses from Beijing. Rare-earth magnet exports from China halved in April as companies grappled with an opaque application process for permits that sometimes require hundreds of pages of documents. While a handful of licenses have been granted, including to some Volkswagen suppliers, Indian automakers say they still have received none and will have to stop production in early June. German auto-parts maker Bosch said this week that its suppliers have been bogged down by China's more-rigorous procedures to receive export licenses. A Bosch spokesperson described the process as "complex and time-consuming, partly due to the need to collect and provide a lot of information."
Yahoo
2 days ago
- Automotive
- Yahoo
Ford recalls nearly 1.1 million vehicles over rearview camera software issue
By David Shepardson (Reuters) -Ford Motor is recalling nearly 1.1 million vehicles in the United States because rearview cameras may not display images due to a software issue, increasing the risk of a crash. The recall covers some 2021 through 2024 model year Bronco, F-150, Edge, and 2023-2024 Escape, Corsair, F-250, F-350, F-450, F-550 and F-600 vehicles, the automaker said Wednesday in a filing with the National Highway Traffic Safety Administration. The recall also impacts the 2022-2024 Expedition, 2022-2025 Transit, 2021-2023 Mach-E, Lincoln Nautilus, 2024 Ranger, Mustang and the 2022-2024 Navigator. NHTSA said the software issue may cause the rearview camera image to delay, freeze, or not display. Ford said it is aware of one allegation of a minor crash resulting in property damage tied to the issue. In January, NHTSA contacted Ford regarding allegations of more than three dozen rear-view camera complaints on 2021-2023 Ford F-150 vehicles. In April, a Ford engineering team was able to reproduce the failure mode within a vehicle and link the causal factors to specific software variants. Dealers are expected to update vehicle software through an over-the-air update. The software being recalled serves as an operating system for the car's dashboard, helping its infotainment system to control apps and display maps, among others. Letters notifying owners of the safety risk are expected to be mailed by June 16. A second letter will be sent once the remedy is available later this year. Ford in April issued two other recalls in the United States for rearview camera issues covering about 289,000 vehicles in total. For both recalls, the automaker will replace rearview cameras. In November, NHTSA said Ford had agreed to a $165 million civil penalty after an agency investigation found the automaker failed to recall vehicles with defective rearview cameras in a timely manner. NHTSA in August 2021 opened an investigation after Ford in 2020 recalled about 620,000 vehicles for a rear camera issue to determine whether the carmaker had made the recall in a timely fashion. Ford expanded that recall in 2022 and in March adding about 24,000 vehicles.
Yahoo
2 days ago
- Business
- Yahoo
JetBlue, United tie up to let passengers book on both websites
By David Shepardson (Reuters) -JetBlue Airways and United Airlines unveiled on Thursday plans for a consumer collaboration that allows travelers to book flights on both carriers' websites, while interchangeably earning and using points in their frequent flyer programs. Under the deal, dubbed "Blue Sky", which is subject to approval from U.S. regulators, JetBlue will provide United access to slots at New York's JFK airport for up to seven daily round-trip flights, beginning in 2027. The airlines will recognise flyers with preferred status on either carrier, granting access to perks such as seat upgrades or switches to another flight. JetBlue, the sixth largest U.S. carrier, and United will also exchange eight flight timings at Newark - giving JetBlue more flights at the New Jersey airport outside New York - and United will move some holiday and travel services to JetBlue's Paisly platform, the companies said. Some aspects of the deal could take effect as early as this fall, if U.S. regulators approve, they added. "This collaboration with United is a bold step forward ... that brings together two customer-focused airlines to deliver more choices for travelers and value across our networks," JetBlue CEO Joanna Geraghty said in a statement. Airline loyalty programs are an increasingly profitable business for major carriers. Reuters first reported the negotiations for a partnership in April. JetBlue has been seeking partnerships after a federal judge blocked its so-called Northeast Alliance with American Airlines in 2023. JetBlue has been struggling to return to sustained profitability after the COVID-19 pandemic. It has managed to post a profit in just two of the past nine quarters. United has made significant flight cuts at its Newark hub in the face of technology, air traffic staffing and runway construction issues. The largest global airline by fleet size, United halted its limited service from JFK in 2022 after failing to get FAA approval for more flights. In March, United CEO Scott Kirby said he wanted a greater presence in New York, but was discouraged by "all the headache" of buying an airline to ensure a presence at JFK. On Thursday Kirby said the deal gives frequent flyer members "new, unique ways to use their hard-earned miles and find options that fit their schedule." The airlines' collaboration, which is not a merger, includes an interline agreement, rather than a codeshare, meaning that each will continue to independently publish, market, manage and price flights.
Yahoo
3 days ago
- Business
- Yahoo
Newark air traffic operations improving with flight cuts, US says
By David Shepardson (Reuters) -Operations at Newark, one of the main airports serving New York City, have improved significantly after the federal government imposed flight cuts following a series of major disruptions, U.S. Transportation Secretary Sean Duffy said on Wednesday. New Jersey's Newark Liberty International Airport, located about 9 miles (14.5 km) from Manhattan, has experienced a chaotic series of equipment outages, runway construction and air traffic control staffing issues for weeks. Last week, the Federal Aviation Administration ordered a reduction in flights to a maximum of 28 arrivals per hour and 28 departures per hour until runway construction is largely complete by June 15. After that, the maximum arrival and departure rates will rise to 34 per hour until October 25. Under normal circumstances, Newark could handle 77 totalflights per hour. "If you book, I think you're going to fly in Newark -- you're not going to see what you saw a couple weeks ago," Duffy said. "Don't go to another airport. If you book at Newark, you're mostly likely going to fly at Newark. Because we've slowed down, the number of departures an hour is now a number that is manageable." Newark is a major hub for United Airlines, which operates nearly 70% of the airport's flights. United has sharplycut flights at the airport. The FAA last year relocated control of Newark's airspace toPhiladelphia to address staffing and congested New YorkCity-area traffic, which includes New York's LaGuardia and John F. Kennedy airports. The facility in Philadelphia that oversees Newark air space has faced numerous technology issues. Duffy said the FAA has issued a software update to address a communications glitch. He said Verizon has improved one of the FAA's telecommunications lines to make it more resilient and resistant to technology glitches and has also laid a new fiber line between New York and Philadelphia. Duffy said he hopes the new fiber line will be in use by early July. Newark in recent weeks had often suffered delays of five ormore hours and dozens of daily canceled or delayed flights. Duffy reiterated calls for Congress to provide tens of billions of dollars to build a new air traffic control system. "I am concerned we could have more Newarks," Duffy said. Nationwide, the FAA is about 3,500 air traffic controllers below targeted staffing levels. The area overseeing Newark has atargeted staffing level of 38 certified controllers, butcurrently has just 22 in place, six of whom are on stress or medical leave now, Duffy said. Another 16 controllers are training and will get certified for Newark airspace on a rolling basis.
