Latest news with #GeneralMotorsGM.N
Yomiuri Shimbun
31-05-2025
- Automotive
- Yomiuri Shimbun
Car Makers Warn China's Rare-Earth Curbs Could Halt Production
Reuters Miners are seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China July 16, 2011. Picture taken July 16, 2011. WASHINGTON, May 30 (Reuters) – Global 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 GM.N, Toyota 7203.T, 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. In a social-media post Friday, President Donald Trump accused China of violating terms of a deal reached this month to temporarily dial back tariffs and other trade restrictions. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a post on his Truth Social platform. China's embassy in Washington responded by saying it was the U.S. that was abusing export controls in the semiconductor sector. A U.S. official with knowledge of the talks told Reuters that only tariffs and Chinese non-tariff countermeasures were covered in Geneva talks, and that U.S. export controls were not part of the deal. The official also expressed frustration that Beijing appeared to be moving slowly on promises to issue rare-earth export licenses, which could kick start export control retaliation by Washington if automakers vulnerable to shortages of the minerals are forced to halt production. 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.'
USA Today
28-03-2025
- Automotive
- USA Today
US stock futures edge lower on tariff woes; inflation data on tap
US stock futures edge lower on tariff woes; inflation data on tap March 28 (Reuters) - U.S. stock index futures were under pressure on Friday as investors grappled with the prospect of more tariffs from President Donald Trump and kept a close eye on a pivotal inflation report due later in the day. Trump's decision to forge ahead with a 25% tariff on auto imports - set to take effect next week - sent shockwaves through global markets, inciting backlash from lawmakers and industry leaders worldwide. Auto stocks bore the brunt of the selloff in the previous session. In premarket activity, General Motors GM.N slid 0.5% following a 7% decline, while Ford F.N slipped 0.1% after a 3.9% drop. Attention is now firmly on a fresh round of tariffs the U.S. plans to unveil on April 2. Trump hinted that these measures might not be the straightforward tit-for-tat levies he has previously vowed to impose. More: Tariffs slam US airlines as travel demand falters At 8:30 a.m. ET, investors will scrutinize the U.S. Personal Consumption Expenditure data, the Federal Reserve's favored indicator for inflation. February's numbers are anticipated to reveal a rebound in consumer spending and a rise in annual core PCE prices to 2.7%. At 05:45 a.m ET, S&P 500 E-minis EScv1 were down 11 points, or 0.19%, Nasdaq 100 E-minis NQcv1 were down 64.75 points, or 0.32%, and Dow E-minis 1YMcv1 were down 64 points, or 0.15%. Gold prices scaled yet another peak due to ongoing uncertainty on the tariff front. More: Trump announces 25% auto tariffs. What it means for your next car purchase The escalation of the global trade war, initiated by Trump upon his return to the White House, has rattled markets. Investors have dialed back their exposure to U.S. equities, driving both the S&P 500 .SPX and the Nasdaq .IXIC down by 10% from their recent record highs, thus entering technical correction territory earlier in the month. Both indexes have managed to claw back over 3% from their March lows as investors seek to establish a market floor. Still, the indexes were poised to wrap up the first quarter of 2025 in negative territory. The S&P 500 is facing its first quarterly setback in six quarters, while the tech-laden Nasdaq braces for its most significant quarterly dip in nearly two years. Investors will also parse through speeches by Federal Reserve policymakers Michael Barr and Raphael Bostic later in the day. (Reporting by Pranav Kashyap in Bangalore; Editing by Maju Samuel)
USA Today
05-02-2025
- Automotive
- USA Today
GM takes full control of Cruise in autonomous personal vehicle shift
GM takes full control of Cruise in autonomous personal vehicle shift Show Caption Hide Caption GM gives up on loss-making Cruise robotaxi business General Motors is giving up on its Cruise robotaxi business. The auto giant said Tuesday that it would end development at the loss-making unit, which had once been a top priority. GM said too much time and resources would be required to make Cruise a success. General Motors GM.N said on Tuesday it had completed the full acquisition of its Cruise business to focus on developing the autonomous technology for personal vehicles not robotaxis. The Detroit automaker said it plans to integrate the Cruise technology into its Super Cruise system, which allows drivers to operate the vehicle hands-off on 750,000 miles of roads in North America and is available on more than 20 GM vehicle models. GM said in December it would halt funding of the Cruise robotaxi business. This followed a year of trying to overcome challenges that arose after one of its robotaxis struck and seriously injured a pedestrian who had been hit by another vehicle. GM had invested more than $10 billion in Cruise since 2016. More General Motors news: GM proves that big moves are restructuring on the fly as uncertainty looms in 2025 The merger will result in the reduction of 50% of Cruise's staff, said a Cruise spokesperson, who declined to specify the total number of employees affected. A source familiar with the matter said nearly 1,000 employees were laid off as a result of the acquisition. "We are focused on combining efforts with General Motors to accelerate autonomy at scale on personal autonomous vehicles," the spokesperson said in a statement. The GM and Cruise teams will work on expanding Super Cruise to streets in urban environments, the company said. Dave Richardson, senior vice president of software and services engineering, said that the move will "accelerate our work on both assisted-driving and autonomous driving." During its fourth-quarter earnings call last month, GM executives pitched Super Cruise as one of its growth areas this year. CEO Mary Barra told investors the automaker is forecasting Super Cruise will bring in about $2 billion in total annual revenue within five years. Reporting by Kalea Hall in Detroit, David Shepardson in Washington D.C.; Editing by Alexander Smith and Nick Zieminski
