Latest news with #autoIndustry
Reuters
2 days ago
- Automotive
- Reuters
Chinese state media calls for crackdown on 'zero-mileage used cars'
BEIJING, June 10 (Reuters) - The Chinese practice of selling brand new cars as heavily discounted second-hand vehicles to get rid of inventory should be ended, the official newspaper of the country's governing Communist Party said in an article published on Thursday. The People's Daily, which often signals the positions of China's top Party leaders on a variety of issues, called for a crackdown on the practice, also known as zero-mileage used cars, just weeks after Great Wall Motor's ( opens new tab Chairman Wei Jianjun publicly condemned it and China's commerce ministry met with Chinese automakers to discuss it. While China's Commerce Ministry did not make public its position, the People's Daily struck a harsh tone, calling out the inflation of sales data motivating Chinese carmakers and urging "tough regulatory action" to restore market order. "This disguised form of price cutting disrupts normal market order and is a striking example of the auto industry's 'involution'," the People's Daily said, using a term popular in China that describes a race to the bottom driven by excessive competition. "Once market competition rules are properly enforced, 'zero-mileage used cars' won't be able to run far — or for long." China is experiencing growing deflationary pressures as U.S. tariffs add to the gloomy mood in the world's No.2 economy. Companies in sectors from fast food to high fashion have been cutting prices amid concerns about oversupply and sluggish household demand. Price wars have gripped the Chinese auto industry in recent years, partly driven by slumping domestic consumption and overcapacity that has left many struggling to meet sales targets. While the sale of zero-mileage used cars is seen by many Chinese automakers as an effective way of clearing out an ever-growing inventory of unsold cars, with domestic and overseas consumers lured by deep discounts on what are still brand new cars, the state-run newspaper listed a litany of negative effects caused by the practice. "For manufacturers, this sales tactic may help reduce inventory in the short term but compresses profit margins, increases losses, and hinders investment in product quality and innovation — ultimately harming sustainable development," the article said. "For consumers, what seems like a good deal in terms of price comes with hidden risks: the loss of first-owner benefits, potential battery degradation, and steeper depreciation when reselling," it continued, adding the practice undermines fair competition, distorts market data, and disrupts both new and used car markets. The People's Daily singled out manufacturers of electric vehicles as needing to move beyond "data worship" and competing on volume, in order to focus on product quality and technological innovation. It did not name any specific automakers. The newspaper also listed measures Chinese regulatory authorities should adopt in order to prevent the sale of zero-mileage used cars, including strengthening oversight of second-hand vehicle registration, establishing a vehicle lifecycle tracking system, and strictly controlling the practice of immediate resale after registration.
CNN
6 days ago
- Automotive
- CNN
German leader on ‘terrible' impact of Trump's tariffs
German leader on 'terrible' impact of Trump's tariffs In an interview with CNN's Jake Tapper, German Chancellor Friedrich Merz talks about the impact President Trump's tariffs are having on the auto industry. 01:13 - Source: CNN Vertical Top News 11 videos German leader on 'terrible' impact of Trump's tariffs In an interview with CNN's Jake Tapper, German Chancellor Friedrich Merz talks about the impact President Trump's tariffs are having on the auto industry. 01:13 - Source: CNN DNC Trolls Trump with Taco Truck The Democratic National Committee parked a taco truck outside the RNC headquarters in Washington DC Tuesday, as a way to troll the president over an acronym created by a Financial Times commentator about the president's frequent walk backs and pauses to his tariff's. 00:52 - Source: CNN Greta Thunberg sails to Gaza Greta Thunberg has set sail with eleven other activists to Gaza. The activist group they're part of, The Freedom Flotilla Coalition, is attempting to bring aid and raise international awareness over the ongoing humanitarian crisis in the territory. 01:00 - Source: CNN Cassie Ventura's friend testifies Diddy held her over a balcony Bryana Bongolan, a friend of Cassie Ventura who goes by Bana, testified today about an incident with Sean 'Diddy' Combs in 2016 when she said that she was 'held over a 17-story balcony' by the music mogul. CNN's Elizabeth Wagmeister reports. 01:48 - Source: CNN Record rain floods Mexico City, traps people Mexico City was hit with record rainfall that didn't relent for more than five hours Monday night, marking the heaviest rain since 2017, according to water management officials. CNN's Valeria León walks a flooded avenue of the nation's capital after emergency crews worked through the night to rescue several trapped drivers. 00:43 - Source: CNN ICE chief defends agents wearing masks during immigration raids Acting ICE Director Todd Lyons is defending federal immigration agents for wearing masks during raids across the US, citing safety concerns. The tactic has sparked backlash and raised questions about transparency and accountability. 00:58 - Source: CNN Analysis: Why Ukraine's drone attack on Russia just changed the world CNN's Jim Sciutto explains why Ukraine's large-scale drone attack on Russian air bases thousands of miles behind the front lines struck fear into the heart of every global superpower 01:05 - Source: CNN Social media video appears to show escaped inmate A video posted online appears to show Antoine Massey, one of two men who remains on the run after escaping a New Orleans jail, declaring his innocence. Deputy US Marshal Brian Fair told CNN that the US Marshals Service received the video Monday and that the agency is looking into it. 01:08 - Source: CNN Three attacks in two months: American Jews on edge CNN's Bianna Golodryga breaks down the three high-profile recent attacks on Jewish elected officials, diplomats and community events that are putting American Jews and government officials on edge. 01:58 - Source: CNN Police shut down All-American Rejects backyard gig in college town The All-American Rejects played a backyard gig in Columbia, Missouri, as part of their House Party Tour protesting against expensive arena shows. Police eventually shut it down, but not before letting the band play one final song. 01:05 - Source: CNN
Globe and Mail
15-05-2025
- Business
- Globe and Mail
Ontario projects $14.6-billion deficit in budget as it wrestles with U.S. tariffs
The Ontario government is forecasting a deficit almost ten times larger than it predicted last fall for the coming fiscal year − at $14.6-billion − as the province wrestles with the impact of U.S. tariffs. In its budget introduced on Thursday, the province blew away its previous estimate of a $1.5-billion deficit for 2025-26 from last November, which was based on economic projections predating U.S. President Donald Trump's trade war. It's the latest fiscal plan issued by a Canadian province to show the damage the tariffs are expected to do to government balance sheets, with Alberta, B.C. and Quebec also among those posting ballooning deficits in recent months. Now, with U.S. tariffs imposed on Ontario's large auto, steel and aluminum industries, the province's economic picture is darkening. The government still expects some annual growth, based on a conservative reading of private sector-forecasts, but predicts real gross domestic product will expand by just 0.8 per cent, half its projection from last fall. As a result, corporate tax revenues are expected to slip. And the tariff-driven slowdown throws a wrench into Ontario's plan to balance its books. It had predicted a $900-million surplus for 2026-27 in its fall economic statement. But it now expects a deficit of $7.8-billion next year, and isn't pledging a surplus until 2027-28. Speaking to reporters, Finance Minister Peter Bethlenfalvy said the budget is a plan to protect workers, businesses and communities in the face of U.S. tariffs and economic uncertainty − while arguing that it remains fiscally responsible. 'The U.S. tariffs, and the economic uncertainty surrounding them, highlight the underlying issues we face as an economy and a nation. Now is the time for growth and improvement,' he said. '… That's what a responsible Conservative government looks like.' As usual, the province's budget documents also include a range of economic-outlook scenarios, ranging from zero real growth in 2025 to as much as 1.6 per cent, while adding that 'significant risks remain regarding the scale, scope and timing of U.S. trade policies.' The large deficit figure for this year is padded by a $3-billion contingency fund, which grows even larger in future years. The projections also include a $2-billion reserve fund each year meant to cushion the government's bottom line. In all, the province plans to spend a record $235.7-billion in 2025-26. The budget is being delivered nearly two months later than usual after Progressive Conservative Premier Doug Ford called a snap February election, running against the threat of Mr. Trump with the slogan 'Protect Ontario.' Other provinces issued budgets earlier this year, when the impact of Mr. Trump's tariff threats was even harder to gauge. B.C. projected a record deficit of $10.9-billion, while warning that it could get even worse. Alberta said in February that it expected a $5.2-billion deficit, instead of an earlier predicted $5.8-billion surplus, but still pledged a tax cut. Quebec projected a record $13.6-billion deficit. Ontario's fiscal plan incudes a range of measures meant to shore up the province as it faces job losses and economic damage from the U.S. tariffs. Many of the measures were either already announced or enacted, or pledged in the recent election campaign. The budget enacts a campaign promise to create an 'emergency backstop' fund of up to $5-billion called the Protecting Ontario Account, which the government says would work with Ottawa to provide 'immediate liquidity relief' for companies that are hit hard by tariffs and exhaust other sources of help. The program adds to previously enacted moves to provide $11-billion in relief to Ontario businesses, mostly in the form of six-month tax deferrals, as well as an expansion of an existing tax credit for manufacturers. The budget also charges ahead with Ontario's $200-billion plans to build infrastructure such as public transit, new highways and hospitals and schools. And it pledges another $5-billion to the existing $3-billion allocated to the Building Ontario Fund, the province's new infrastructure bank, which has so far not financed many major projects. It pledges to triple to $3-billion an existing loan-guarantee fund meant to allow Indigenous groups to participate in energy, mining and other resource projects, with the program managed by the Building Ontario Fund. With an eye on the mineral resources in Northern Ontario's Ring of Fire region, the government is creating a $500-million fund to subsidize new processing plants for critical minerals. Mr. Ford said this week that he did not agree with governments that 'go in there and start slashing and burning.' But his budget does show cuts or frozen funding across wide swaths of his province's spending over the next three years, including in education, social services and justice. The budget projects the province's net debt rising to just over $460-billion from $428-billion last year. The key net-debt-to-GDP ratio is also projected to climb back up slightly but still remain below Ontario's 40-per-cent target. Interest costs, at $16.2-billion, are also up, but measured as a percentage of operating costs, they remain at near their lowest levels since the 1980s. The budget pledges up to $280-million for new private-sector health clinics, which will perform more diagnostic tests and, the government has previously announced, orthopedic surgeries − something opposition leaders and health care activists have opposed. It cuts taxes and costs for microbreweries, cidermakers and those who sell premixed 'ready-to-drink' alcoholic beverages. And it promises $57-million for two new police helicopters to assist with border patrols. The budget also mentions the Premier's Highway 401 tunnel idea − which expects have warned could cost more than $120-billion and would fail to improve traffic − pointing to a feasibility study that is assessing the concept. It also promises legislation to make red-light and speed cameras 'more transparent.' And it highlights Mr. Ford's move to rip out bike lanes in Toronto. It adds lanes on Queen's Park Crescent and Avenue Road to the ones he has already targeted on University Avenue, Yonge and Bloor Streets, which remain temporarily spared thanks to a recent court ruling. But it also says the government would consider reinstating vehicle lanes but keeping bike lanes in place 'where possible,' as Toronto Mayor Olivia Chow has advocated. NDP Leader Marit Stiles called Mr. Bethlenfalvy's budget 'a missed opportunity' to strengthen the province. 'The government could have built a tariff-proof future, with good schools, affordable homes, world-class public health care and reliable public services,' she told reporters. 'Instead, the Ford government chose more cuts, less relief and no real support for families who need help right now.' Ontario Liberal Leader Bonnie Crombie called the budget a 'painful reminder' that the government is not helping residents, particularly young people who need affordable housing. 'Time and time again, Doug Ford has failed Ontarians,' she said. 'I'm frustrated watching yet again this Premier care more about alcohol, which is mentioned more than 100 times in the budget, than health care.'
CTV News
12-05-2025
- Automotive
- CTV News
East London auto shop fire causes $250K in damages, prompts safety warning
Fire billowed from an east London auto shop on Monday afternoon. (Source: London Fire Department)
