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General Motors expects new labor contracts with the United Auto Workers and Canadian union Unifor to increase its costs by $9.3 billion and add approximately $575 in costs per vehicle during the terms of the deals. GM disclosed the expected labor deal impact as part of a business update Wednesday in which it initiated a $10 billion accelerated stock buyback program, increased its dividend and reinstated its full-year 2023 guidance. GM said the $9.3 billion in labor cost increases are expected to occur as follows: $1.5 billion in 2024; $1.8 billion in 2025; $2.1 billion in 2026; $2.5 billion in 2027; and $1.1 billion from January-April 2028. GM's expected vehicle cost increase includes $500 per vehicle in 2024. Chrysler parent Stellantis , which was the second of the so-called Big 3 U.S. automakers to reach a deal with the UAW, has not disclosed expected costs of its labor pact with the union.
Persons: , Mary Barra, John Lawler Organizations: Motors, United Auto Workers, Canadian, UAW, GM, Detroit, Ford Motor, Ford, Chrysler, CNBC PRO Locations: , U.S
On average, new EVs had 79% more problems than gasoline-powered vehicles, Consumer Reports' 2023 Annual Auto Reliability survey showed. "For the legacy automakers, (EVs) are really new technologies, so they don't have a lot of experience with batteries, charging and motors." Jake Fisher, senior director of Auto Testing at Consumer Reports, said in an interview with Reuters. Consumer Reports survey covers 20 problem areas including engine, electric motors, transmission and in-car electronics. "Even with monumental shifts in the auto marketplace, what matters most to consumers remains the same: finding safe, reliable cars," said Marta Tellado, President and CEO of Consumer Reports.
Persons: Albert Gea, Jake Fisher, Fisher, Elon, Stellantis, Marta Tellado, Nathan Gomes, Shweta Agarwal Organizations: REUTERS, Electric, Consumer, Auto Testing, Reuters, U.S, General Motors, Buick, Benz, Chrysler, Lexus, Toyota, Thomson Locations: Barcelona, Spain, U.S, North America, Bengaluru
Changan and Huawei are already partners for the Avatr electric car brand, created in 2018 with electric car battery giant Contemporary Amperex Technology . Huawei is also working with Chery on the Luxeed electric car brand, which revealed details for its S7 sedan on Tuesday. BAIC, whose Arcfox electric brand already uses Huawei tech, and JAC did not immediately respond to a request for comment. Tencent , which operates China's social media app WeChat, has claimed it supplies BMW and some other automakers with car tech. Selling a suite of car tech products called "Huawei Inside," while the automaker designs the vehicle.
Persons: JAC, Richard Yu, BAIC, Tu Le, It's, Huawei's Yu Organizations: Getty, Nurphoto, Huawei, Changan Automobile, Technology, Chery, BAIC, BMW Locations: SHANGHAI, CHINA, Shanghai, China, BEIJING, Beijing, U.S
During the Amazon Web Services cloud conference on Tuesday, Amazon unveiled upgraded AI chips, a new chatbot and an expanded partnership with Nvidia. Expanded Nvidia partnership Amazon on Tuesday outlined the details of its deepening partnership with semiconductor firm Nvidia – the global leader in the development of AI chips. Amazon's announcements involved not only Nvidia' bread-and-butter AI chips known as graphics processing units, or GPUs, but also its fast-growing – yet still underappreciated – software-and-service offerings. In general, Amazon has touted its own AI chips as being a lower-cost option for customers. Nvidia's AI hardware is known to carry a hefty price tag .
Persons: Grace Hopper Superchip, , Jensen Huang, Jim Cramer's, Jim Cramer, Jim, Arjun Kharpal Organizations: Nvidia, Services, Amazon, Microsoft, Oracle, JMP Securities, CNBC, IAA, Qualcomm, Samsung Locations: Munich
Main auto partner Chongqing Changan Automobile (000625.SZ) and relevant parties will own up to 40% of the new firm, a Changan Auto statement showed on Sunday. Neither Changan Auto nor Huawei disclosed financial details. Changan Auto referred Reuters to its Sunday statement and declined to comment further. Huawei has partnerships with other auto companies, including Seres Group (601127.SS) and Jianghuai Automobile (600418.SS), as well as with Changan Auto involving EV brands Avatr and Deepal. The proposed deal will also smooth the way for the business' listing, as Huawei had planned, said two of the people.
Persons: Ren Zhengfei, Ren, Richard Yu, Julie Zhu, Zhuzhu Cui, David Kirton, Brenda Goh, Christopher Cushing Organizations: Huawei Technologies, Changan Auto, Bosch, Chongqing Changan Automobile, Huawei, Auto, China Ordnance Equipment Group, China South Industries, FAW Group, Dongfeng Motor, HK, Reuters, Seres, Jianghuai, Changan, EV, Thomson Locations: HONG KONG, SHANGHAI, Chongqing, China, Changan, Shanghai
The United Auto Workers union is launching an unprecedented campaign to organize 13 non-union automakers in the U.S. after securing record contracts with the Detroit automakers. As part of the campaign workers are signing electronic cards in support of union efforts to potentially organize U.S. plants from those automakers. It is not guaranteed that the union would push to organize every plant or automaker that participates in the campaign. UAW President Shawn Fain has said the union's next mission after ratifying record contracts with General Motors, Ford Motor and Stellantis was to expand its ranks. Still, the UAW has a poor track record with trying to organize non-Detroit automakers.
Persons: Shawn Fain, Fain, , Stellantis Organizations: United Auto Workers, Detroit automakers, BMW, Honda, Hyundai, Mazda, Benz, Nissan, Subaru, Toyota, Volkswagen, Volvo, UAW, General Motors, Ford Motor, Detroit, Ford, GM, Lexus, " Workers Locations: U.S, Fremont, California, Georgetown , Kentucky
Toyota, Toyota Industries and Aisin will sell Denso shares worth a total of about 700 billion yen ($4.7 billion) at current market prices, the two sources said. In a statement, Denso said it was considering a share sale, a buyback and other capital measures, but that nothing had yet been decided. At $4.7 billion, it would be the second-biggest such share offering in Japan this year, after the more than $9 billion sale of shares in Japan Post Bank (7182.T) in March, according to LSEG data. Denso shares, which were down almost 4% before the news, extended losses after the Reuters report and fell as much as 6.8% on the day, closing 4.9% lower. Toyota shares finished little changed, as did the benchmark Nikkei 225 (.N225).
Persons: Denso, Miho Uranaka, Daniel Leussink, Maki Shiraki, Nobuhiro Kubo, David Dolan, Jamie Freed, Miral Fahmy, Louise Heavens Organizations: Companies, Toyota, Toyota Industries, Aisin, Japan Post Bank, Tokyo Stock Exchange, Buyers, KDDI Corp, Reuters, Nikkei, Thomson Locations: TOKYO, Denso, Japan
Toyota Motor's portion will represent almost half of the roughly 10%, with the total sale seen at about 700 billion yen ($4.7 billion) at current market prices, the two sources said. A Toyota spokesperson said it was not in a position to comment on Denso, adding the contents of the Reuters report of the share sale were not something it had announced itself. Buyers of the shares are expected to largely be domestic investors, and the price has yet to be determined, the sources said. Denso shares, which were down almost 4% before the news, extended losses after the Reuters report and fell as much as 6.8% on the day, closing 4.9% lower. Toyota shares finished little changed, as did the benchmark Nikkei 225 (.N225).
Persons: Miho Uranaka, Daniel Leussink, Maki Shiraki, Nobuhiro Kubo, David Dolan, Jamie Freed Organizations: Companies, Toyota, KDDI Corp, Tokyo Stock Exchange, Reuters, Nikkei, Thomson Locations: TOKYO, Denso
FILE PHOTO:Coins and banknotes of Japanese yen are seen in this illustration picture taken June 16, 2022. REUTERS/Florence Lo/Illustration/ File Photo Acquire Licensing RightsTOKYO, Nov 28 (Reuters) - Japan's top business lobby Keidanren will discuss at next month's executive meeting the potential negative impact of the yen's weakness on the economy, the Yomiuri newspaper reported on Tuesday. Keidanren, which is comprised of major companies including big automakers and electronics firms, traditionally favoured a weak yen and have called on the government to stave off sharp yen rises that make Japan's exports less competitive overseas. Any discussion on the demerits of a weak yen by Keidanren would highlight a shift in how Japan's business sector views the currency's movement and its impact on the economy. The shift in Keidanren's stance could heighten calls by the business sector for the Bank of Japan to end ultra-low interest rates that have been blamed for accelerating the yen's decline, the newspaper said.
Persons: Florence Lo, Keidanren, Leika Kihara, Christopher Cushing Organizations: REUTERS, Rights, Yomiuri, Bank of Japan, Reuters, Thomson
It's clear how that will end.”Germany’s constitutional court has voided some 60 billion euros ($65 billion) in spending for this year and next. Without yet another emergency declaration next year, the government would have to scramble to cover shortfalls of roughly 30 billion to 40 billion euros — plus 20 billion to 30 billion euros for 2025 — compared with earlier plans, according to Holger Schmieding, chief economist at Berenberg bank. The fallout has left Germany projected to be the worst-performing major economy this year, shrinking by 0.5%, according to the International Monetary Fund. That has led to calls from some to loosen the debt limits because they restrict the government's response to new challenges. Yet even some opposition state governors have said the debt limits should be loosened.
Persons: Chancellor Olaf Scholz, “ We've, Robert Habeck, , , Holger Schmieding, Schmieding, Free Democrats doesn't, Kai Wegener Organizations: U.S, International Monetary Fund, Industry, Volkswagen, BMW, Mercedes, Benz, Seven, Social Democrats, Greens, Free Democrats, Christian Democrats, Berlin Locations: FRANKFURT, Germany, Ukraine, Russia, China, Berenberg, East Germany, Europe, Britain, U.S, Italy, Japan
Rivian has made its R1T electric pickup available to lease in 14 US states. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementWould-be EV drivers have turned to leasing as a cheaper way to try before they buy, especially considering the high price of many electric vehicles . The Cybertruck, however, will pose a fresh challenge to Rivian's R1T pickup. The futuristic Tesla pickup is set to launch on November 30 after years of hype, with over 2 million people preordering the electric pickup .
Persons: Rivian, Elon Musk's, , Tesla's, — Tesla's, RJ Scaringe, it's Organizations: Elon, Elon Musk's Cybertruck, Service, CNBC, Leasing, Ford, Tesla, Rivians, GQ Locations: Arizona , California , Colorado , Florida, Georgia , Massachusetts, Michigan , Missouri , New Jersey , New York , Nevada , Pennsylvania, Texas, Washington
Hybrid vehicle market share has picked up pace in 2023 despite all the investment pouring into EVs. From October 2022 to October of this year, total vehicle market share for hybrids grew from 6.5% to 11.4%, according to data from Edmunds. Over the same time period, EV market share growth was more sluggish, expanding from 6% to 7.5%. Toyota 's 2024 Prius, often called the "gold standard" in hybrid vehicles, was named MotorTrend's car of the year. The uptick in hybrid sales won't likely spell doom and gloom for the EV market over the long-term.
Persons: Stephanie Valdez Streaty, Valdez Streaty, Edmunds, Goldman Sachs, Tesla, Mark Delaney, David Christ, Honda, Michelle Krebs, Sienna, Krebbs, Ford, Dan Levy, Levy, EVs, headwinds, BEV, Tom Narayan Organizations: Cox Automotive, Ford, General Motors, Wall, Toyota, ICE, EV, Toyota Motor's, Wall Street, Los Angeles Auto, FactSet, Tesla, Barclays, GM, Biden, U.S, BMO Capital Locations: Edmunds, U.S
Global Automakers Turn to China for EV Lessons
  + stars: | 2023-11-27 | by ( Yoko Kubota | ) www.wsj.com   time to read: 1 min
Volkswagen’s pavilion at the Guangzhou Auto Show in China. The carmaker plans to offer 30 electric models in China by 2030. Photo: Qilai Shen/Bloomberg NewsHEFEI, China— Volkswagen engineers in one of China’s electric-vehicle hubs are looking to the country’s automotive industry for clues about how to speed up manufacturing and beat back local rivals in the world’s biggest auto market. The German automaker has long been the number one manufacturer in a market dominated by gasoline-powered vehicles, but it has been losing market share as China’s market turns electric. It is now trying to figure out how to compete with upstart Chinese makers that can roll out good, affordable and highly digital electric cars—and do so in a third less time.
Persons: Qilai Shen Organizations: Guangzhou Auto Show, Bloomberg News, Volkswagen Locations: China, Bloomberg News HEFEI
Now for Some Good News About Climate
  + stars: | 2023-11-27 | by ( Ed Ballard | ) www.wsj.com   time to read: 1 min
There is no shortage of bad green-energy news. Automakers are fretting about electric-vehicle growth, higher interest rates are smashing financial plans, permitting for big projects still takes forever and offshore wind is a mess. But for every setback, there is a Sun Streams. This cluster of solar farms will cover more than 13 square miles of desert west of Phoenix. By 2025, it will provide enough electricity for roughly 300,000 homes, bringing Arizona’s largest utility closer to its goal of a zero-carbon grid.
Locations: Phoenix
A Tesla sign is pictured outside the Tesla Gigafactory 2 in Buffalo, New York, U.S., February 13, 2022. A National Labor Relations Board (NLRB) regional official on Friday tossed out a complaint filed in February by Workers United, a union seeking to organize workers at Tesla's Buffalo, New York "gigafactory." Workers United claimed that within days of announcing a union campaign earlier this year, Tesla fired dozens of workers from its Autopilot department. Tesla and Workers United did not immediately respond to requests for comment. President Joe Biden said this month that he supported the union's efforts to organize workers at Tesla and Toyota.
Persons: Carlo Allegri, Tesla, Kayla Blado, Blado, Joe Biden, Elon Musk, tweeting, Daniel Wiessner, Aurora Ellis, Alexia Garamfalvi Organizations: REUTERS, Tesla Inc, National Labor Relations Board, Workers United, Workers, United Auto Workers, UAW, Detroit Three, Tesla, Toyota, NLRB, Thomson Locations: Buffalo , New York, U.S, New York, Tesla's Buffalo , New York, Buffalo, Florida, Fremont , California, Albany , New York
Masahiro Moro told Fortune that EVs other than Tesla are "not taking off" in the US. EVs face a reckoning amid slowing demand with auto companies cutting spending and reducing targets. AdvertisementMazda's CEO has said that Tesla is the only company seeing real success in a fragile EV landscape, with other electric cars "not taking off." Other EVs are not taking off, inventory is piling up," he said. It recently killed off its only EV sold in the US, the Mazda MX-30, after reportedly selling just 66 of them this year .
Persons: Masahiro Moro, Fortune, Elon Musk's, , Tesla, Elon, Ford, Moro Organizations: Service, US, Ford, General Motors, Mazda, EV, Atlas Public
BEIJING, Nov 26 (Reuters) - China's Huawei (HWT.UL) said on Sunday it will move core technologies and resources in its smart car unit, which has chalked up robust sales for a number of new vehicles, to a new joint company owned up to 40% by automaker Changan Auto. The new company will engage in research and development, production, sales and service of intelligent automotive systems and component solutions, Huawei said in a press release. "The new company will ... work with partners to promote innovation and leadership in smart car technology and promote the prosperity and development of the automotive industry," the release said. "The two parties will jointly support the target company to become an industry leader in automotive intelligent systems and component solutions based in China," the filing said. Huawei has repeatedly said it does not make cars on its own but only helps other automakers make better vehicles.
Persons: Yu Chengdong, Changan, Laurie Chen, Brenda Goh, Edmund Klamann Organizations: Huawei, Changan Auto, Chongqing Changan Automobile, Shenzhen Stock Exchange, Seres, Chery, Thomson Locations: BEIJING, Chongqing, China, Shenzhen, Beijing, Shanghai
The NewsThe union representing teachers, counselors and other school employees in Portland, Ore., reached a tentative deal with the city's public school district on Sunday, ending a strike that has kept nearly 45,000 students out of classes for more than three weeks in Oregon’s largest district. That is about in the middle of what the district had offered and what the union had asked for at the start of the strike. The strike has drawn attention to public school funding in Oregon. (Minneapolis students missed 14 school days during a strike last year.) The strike, which kept students out of school for nearly the entire month of November, could risk amplifying that message in Portland.
Persons: , Thomas Dee, , Dr, Dee Organizations: Hollywood, Portland Public Schools, Oregonian, Veterans, Minneapolis, Public Schools, Stanford University, Students Locations: Portland ,, Oregon’s, Oregon, Portland
Over the years these cars have gotten bigger and so has their cost to the climate, as carbon dioxide emissions “are almost directly proportional to fuel use” for gas-powered cars. Since then, he has owned several pure-electric cars, and currently owns both a Genesis GV60 electric SUV and a Tesla Model 3. Meanwhile, smaller vehicles, or sedans, have lost a lot of ground in the U.S. market over the past decade. But even the most efficient SUVs will be less efficient than sedans because SUVs weigh so much more. See more about AP’s climate initiative here.
Persons: it's, George Parrott, , Parrott, Eric Frehsée, Loren McDonald, ” McDonald, John Organizations: Global, Initiative, International Energy Agency, Transportation, Toyota, Tesla, EV, U.S, Tamaroff, Chevrolet Tahoe, Toyota Sequoia, Nissan, Honda, U.S . Department of Transportation, Environmental Protection Agency, National, Traffic Safety Administration, AP Locations: West Sacramento , California, Sacramento, U.S, Edmunds, Michigan, Press
It has been a bumpy few weeks for carmakers who sell electric vehicles, which are moving more slowly off the lot than they were earlier this year. The electric Volkswagen ID. But I think something else may explain why so many Americans, including those who consider themselves climate conscious, have been hesitant to buy an electric vehicle. Electric vehicles are like digital cameras in their early iterations. And while there are environmental concerns with them, they are dwarfed by the benefit they provide regarding climate change — the biggest environmental threat to human well-being in the 21st century.
Persons: carmakers, What’s Organizations: Volkswagen Locations: American
In an economy characterized by a volatile stock market and elevated inflation, a sure thing looks better than ever. For some Americans in the labor force right now, that looks like a pension. Striking members of the United Automobile Workers union made waves this year when the union’s leaders demanded the reopening of defined-benefit pension plans for workers hired after late 2007. leadership failed to persuade automakers to reopen the plans, the bold move didn’t go unnoticed by retirement benefit experts. did mention that in their negotiations, because that isn’t really something you would have seen 10 years ago,” said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, a nonprofit organization.
Persons: , Craig Copeland Organizations: United Automobile Workers, Research Institute
LONDON (AP) — Nissan will invest more than 1 billion pounds ($1.3 billion) to update its factory in northeast England to make electric versions of its two best-selling cars, a boost for the British government as it tries to revive the country's ailing economy. The company said it's directly investing up to 1.12 billion pounds to produce electric successors to the two models. “Nissan’s investment is a massive vote of confidence in the U.K.’s automotive industry,” which contributes 71 billion pounds a year to the economy, Prime Minister Rishi Sunak said. India’s Tata Sons, which owns Jaguar Land Rover, is building a 4 billion-pound EV battery factory in the U.K. that's expected to produce about 40 gigawatt hours of battery cells every year, enough to provide half the U.K.’s electric vehicle batteries. Stellantis, parent company of British automaker Vauxhall, is investing 100 million pounds to make electric vans and cars in northwestern England.
Persons: , it's, Rishi Sunak, Makoto Uchida, Sunak, India’s Tata Organizations: — Nissan, Nissan, BMW, India’s Tata Sons, Rover, EV, British, Vauxhall Locations: England, Sunderland, China, Europe, Oxford
Prior to the February 2022 invasion, Chinese cars accounted for less than 10% of the Russian market. Russia has jumped from 11th place to become China's largest export market for cars, reaching a value of $9.4 billion in January-October, Chinese customs data showed. Overall, monthly car sales in Russia are now more than double what they were a year ago, Autostat data showed, while separate data from federal statistics service Rosstat showed car production was nearly three times higher in September year-on-year, underlining the sector's partial recovery. 'UNSTABLE, SHAKY' MARKETSanctions against Russia contributed to lower car production and sales most notably in 2022, but also after Moscow annexed the Crimean peninsula from Ukraine in 2014. Meanwhile, the rouble's slide to 100 against the dollar this year has made imports more expensive, depressing purchases of Chinese cars.
Persons: PPK, Sergei Udalov, Udalov, Russia's, Natalia Zubarevich, Zubarevich, Gleb Stolyarov, Alexander Marrow, Zoey Zhang, Vineet Sachdev, Mike Collett, White, Mark Potter Organizations: Reuters, Reuters Graphics, Chery, Geely, HK, West shuns, Autostat, Russia, Western, Reuters Graphics Reuters, Moscow State University, Wages, Lada, Thomson Locations: MOSCOW, Russia, Moscow, Ukraine, Soviet, Beijing, China, West shuns Russia, Western
"It's common for there to be a recall when there haven't been any incidents yet," said Moody. For the Nov. 16 recall on damaged engines, drivers should expect to receive a notification on Jan. 2, 2024. Travel plans 'will depend on the nature of the recall'As to whether or not travel plans should be altered, the decision will depend on the nature of the recall, said McParland. "If the recall says possible transmission failure, that's a lot more risky for long-distance travel versus a glitchy navigation system," McParland said. "Usually rentals are not covered" as part of the recall repair, McParland said.
Persons: haven't, Brian Moody, Kelley, Moody, It's, McParland Organizations: Maskot, Getty, Honda's
Some automakers are slowing down EV production, saying electric vehicles are too expensive. Auto execs have pointed to high prices as a big reason why demand for electric cars has slumped this year. AdvertisementHere's three reasons why electric cars are getting more affordable. Cheaper battery packsBy far the most expensive part of any EV is the battery, and spiking battery prices have hit automakers hard. "You have to get to a certain scale to really start to make money on electric cars and for the costs to go down," Valdez Streaty said.
Persons: , Kelley, Tesla, Goldman Sachs, EVs, David Browne, Patrick T, Fallon, Browne, Matthias Preindl, Stephanie Valdez Streaty, it's, Valdez Streaty, Elon, you've Organizations: Service, Ford, General Motors, EV, Atlas Public, EVs, Bloomberg, Department of Energy, Smart, Toyota, Manufacturers, ICE, Columbia University, Smith, Cox, Chicago Tribune, Getty Locations: China, Germany, Los Angeles
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