Latest news with #NoraEckert
Yahoo
4 days 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
7 days ago
- Automotive
- Yahoo
Exclusive-Amazon's in-car software deal with Stellantis fizzles
By Nora Eckert and Greg Bensinger DETROIT (Reuters) -Amazon's deal with Stellantis to create in-car software that the companies hoped would transform the driving experience while bolstering their vehicle-tech credentials is "winding down," the companies confirmed after a Reuters inquiry. The Stellantis SmartCockpit project, which would rely on Amazon's in-car technology, is the latest example of traditional automakers struggling to work with Silicon Valley to introduce more sophisticated vehicle software. 'Stellantis remains a valuable partner for Amazon , and the companies continue to work together on a range of initiatives," the companies said in a statement, adding that the decision to end their joint work on SmartCockpit was mutual. The project between the Seattle tech giant and the maker of Jeeps, Peugeots and Alfa Romeos was hailed by the CEOs of both companies when it was announced in 2022. The two planned to develop features that would make the cars feel like an extension of home by detecting the driver and personalizing settings such as the thermostat, navigation and even home automation, like turning on lights. Stellantis had hoped Amazon's software expertise would help the global automaker in the race against companies like Tesla and China's BYD. And for Amazon it was meant to serve as a prototype for a wider rollout to more automakers. In a January 2022 press release, Stellantis's then-CEO Carlos Tavares said he hoped the partnership would help make the vehicles "the most wanted, most captivating place to be, even when not driving." Tavares left the automaker abruptly last year, and the company is expected to name his replacement soon. Stellantis has since tried to revive its slumping stock, which fell about 40% in 2024, amid disappointing sales, especially in North America. Automotive software has emerged as one of the most important, and difficult, areas for legacy automakers to nail. Much of what modern cars do today is dictated by code, including the feel of the brakes, infotainment system, and advanced driving-assistance features such as automated steering – for which automakers can charge subscription fees, unlocking significant revenue streams. Ford recently axed its next-generation electrical architecture due to ballooning costs around the technology. Reuters couldn't determine any singular reason the partnership on SmartCockpit ended. The companies said the shift "will allow each team to focus on solutions that provide value to our shared customers and better align with our evolving strategies." Relative newcomers, like Elon Musk's Tesla, built electrical and software systems that can quickly deliver new features or fixes to customers at a lower cost to the company. Traditional carmakers, including Volkswagen and General Motors, have struggled to master these systems on their own, and have been poaching talent from Silicon Valley or forming partnerships in an effort to reverse that trend. Unlike Tesla which has very little complexity across its smaller lineup of vehicles, Stellantis manages dozens of models across 14 brands and a maze of global suppliers, increasing the challenges around implementing new software. SmartCockpit was initially planned to arrive in vehicles in late 2024 to early 2025. It was a part of what Stellantis called its ABC platform, which included its electrical architecture, called STLA Brain, and Autodrive driver-assistance system. Under the agreement, Stellantis would pay Amazon for access to the software in each car, as well as other maintenance fees. As envisioned, Amazon would pay Stellantis incentive fees for things like drivers signing up for its music subscription service through the vehicles, two sources said. The automaker also partnered with Amazon to use the tech company's cloud business, called Amazon Web Services, to store and update data across its complex lineup. Stellantis will continue to rely on AWS, the companies said, and Alexa will also still be available in some Stellantis vehicles. Stellantis could potentially continue work on the SmartCockpit with another operating system as its base, such as Google's Android platform, people familiar with the matter said. Amazon hoped that the team's work, internally called Digital Cabin or 'Project Quatro,' would rival Google's Automotive Services, the standard Android-based operating system used by many automakers, one of the sources said. Most of Amazon's Digital Cabin staff has been reassigned or left the company, one of the people said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Automotive
- Yahoo
Exclusive-Subaru of America increases vehicle prices, citing market conditions
By Nora Eckert, David Shepardson DETROIT (Reuters) -Subaru of America is hiking prices on several models, the company said on Monday, the latest automaker to pass along cost increases to consumers as their expenses rise from the Trump administration's tariffs. Subaru said in a statement that the increases were made in response to "current market conditions," without citing tariffs or specific price actions. "The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products," the company said in a statement. Car company executives have recently shared with investors how much the levies will cost them this year, with some in Detroit saying they were expected to add up to $5 billion. While there has been some relief on duties imposed on foreign auto parts, U.S. President Donald Trump has maintained a 25% tariff on the 8 million vehicles the U.S. imports annually. Ford Motor earlier this month raised prices on three models produced in Mexico by as much as $2,000, becoming one of the first major automakers to respond to Trump's tariffs. The Subaru price increases will add between $750 and $2,055 to vehicles depending on the model and trim, according to a notice posted on a dealer website. The price increases are expected to hit vehicles on dealer lots starting in June, according to the notice. Subaru imports 45% of its U.S.-sold vehicles, according to 2024 data from research firm S&P Global Mobility. Its affordable Forester model is one of a handful of lower-cost vehicles set to be most affected by tariffs, according to Cox Automotive executive analyst Erin Keating. The SUV is getting a price hike of between $1,075 and $1,600 depending on the trim, the dealer notice said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Automotive
- Yahoo
Exclusive: Ford hikes prices on Mexico-produced models, citing tariffs
By Nora Eckert DETROIT (Reuters) -Ford Motor is hiking prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices following U.S. President Donald Trump's tariffs. Prices on the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will increase by as much as $2,000 on some models, according to a notice sent to dealers reviewed by Reuters. NYSE - Delayed Quote • USD (F) View Quote Details 10.44 - +(2.65%) At close: May 6 at 4:02:05 PM EDT Advanced Chart Ford's decision to hike prices comes just days after it said the effects of U.S. President Donald Trump's trade war would add about $2.5 billion in overall costs for 2025, and as it suspended its annual earnings guidance. Rival GM also said tariffs would cost it billions of dollars following the hefty levies imposed by Trump on foreign imports of automobiles. A Ford spokesperson said the price hikes will affect vehicles built after May 2, which would arrive at dealer lots in late June. The spokesperson said the price hikes reflect "usual" mid-year pricing actions, "combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers." Trump's tariffs have unleashed weeks of uncertainty across the auto sector, as major carmakers in the United States and Europe have pulled forecasts, shifted production and caused companies to idle plants. Following weeks of pushback from the auto industry, Trump softened his tariffs on foreign auto parts imports to give carmakers credits for what is produced in the United States and to avoid double-tariffs on raw materials used in auto production. However, the White House has not rescinded a 25% tariff on the 8 million vehicles the United States imports annually. Analysts have said U.S. auto sales could drop by more than 1 million vehicles a year if tariffs were to remain in place. (Reporting by Nora Eckert; Editing by Andrew Heavens)
Yahoo
05-05-2025
- Automotive
- Yahoo
Ford pulls guidance, warns it will take $1.5 billion hit from Trump's tariffs
By Nora Eckert and Nathan Gomes DETROIT (Reuters) -Ford Motor suspended its annual guidance on Monday because of uncertainty around U.S. President Donald Trump's tariffs, saying the levies would cost the company about $1.5 billion in adjusted earnings before interest and taxes. In February, the Dearborn, Michigan automaker projected earnings before interest and taxes of $7.0 billion to $8.5 billion for 2025. That forecast did not take tariffs into account. Ford Chief Financial Officer Sherry House said the company was on track to meet that guidance, excluding the fallout from tariffs. 'We are focused on managing what we control," House said. While rivals such as General Motors recently provided updated guidance, Ford executives said they suspended the company's outlook until they have more clarity about the effect of retaliatory tariffs, as well as how consumers may react to price increases. Ford's earnings per share fell to 14 cents in the first quarter, far surpassing LSEG analysts' estimate of 2 cents per share but down from 49 cents a year earlier. Cost and quality improvements helped Ford beat expectations, executives said. Earlier this year, the automaker had warned that first-quarter results would be affected by production disruptions related to product launches at several plants. Net income fell sharply to $471 million from $1.3 billion a year earlier. Ford's revenue fell 5% to $40.7 billion in the quarter but beat expectations of about $36 billion. Earnings got a boost as consumers rushed to snatch up vehicles, concerned tariffs would lead to price hikes. Ford was one of a few automakers that ran incentives to grab market share during this buying frenzy. Ford said tariffs would add $2.5 billion in costs overall for the year, mainly related to expenses from importing vehicles from Mexico and China. The automaker suspended automotive exports to China, but still imports vehicles like its Lincoln Nautilus from the country. Ford said it has been able to reduce about $1 billion of that cost through various actions, including transporting vehicles from Mexico to Canada using bond carriers, so they are not subject to U.S. tariffs, House said. Trump's 25% tariffs on automotive imports were expected to add more than $100 billion in costs for automakers in the U.S. this year, according to some estimates. The president approved a reprieve last month around levies placed on automotive parts, providing auto companies with credits for up to 15% of the value of vehicles assembled domestically, as well as relief from other duties. This month, GM cut its profit forecast and said tariffs were expected to cost it up to $5 billion. "Investors have preferred Ford over GM given Ford has a much higher mix of U.S. sales that are assembled in the U.S.," Barclays analysts said in a note, citing Ford's 79% of U.S. sales assembled in the country versus GM's 53%. Jeep-maker Stellantis also suspended its guidance due to tariff uncertainty. On top of headwinds from Trump's trade policy, Ford faces significant losses on its electric vehicles. The automaker this year projected losses of up to $5.5 billion on its EV and software operations. It has already sustained more than $10 billion in losses since 2023. Reuters exclusively reported that Ford ended an expensive effort to build a next-generation electrical architecture for its vehicles called FNV4, after delays and mounting expenses stymied its development. Ford Pro, the company's profitable commercial vehicle segment, posted first-quarter revenue of $15.2 billion, down 16% from a year ago. Ford's gasoline-engine division posted quarterly revenue of $21 billion. Its Model e division, which includes software and EV efforts, recorded revenue of $1.2 billion for the three months. Sign in to access your portfolio
