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Nissan has expanded its probe into former chairman Carlos Ghosn with the investigation into various European subsidiaries that may bring more criminal charges. Automotive News has learned from sources that the focus of the investigation will be around the Renault-Nissan BV based in the Netherlands. This was set up by the two automakers back in 2002 to be a strategic management company that oversees the alliance. But one source says that Nissan is planning to look into "as many as a dozen other Nissan-affiliated subsidiaries set up in the Netherlands," for possible financial misconduct. Japanese prosecutors are looking into some of the companies with the help of Nissan. (Emphasis mine.) This move may signal that the scandal may have reached outward of Japan and bring investigations right to Renault's doorstep. Automotive News also notes this could "further complicate" the delicate relations between the two. That neatly transitions us to a report from Reuters where a source reveals that Renault has told Nissan not to contact its directors ahead of a December 13th meeting of their board. The source says "such contact was outside the agreed channels for communication of the sensitive findings." As we reported back on Friday, Nissan offered Renault "a presentation that summarized the evidence" to help assuage some suspicious held by the French automaker. Renault declined, asking Nissan for the "presence of lawyers and the full report on the allegations." This reportedly came earlier this week as officials from Nissan met with Renault's legal team in France. The meeting tomorrow will see the members of the board discuss the findings of Nissan's investigation and debate the future of Carlos Ghosn. Spokespeople for Nissan and Renault declined to comment. Source: Automotive News (Subscription Required), Reuters View full article -
Rumorpile: Nissan's Probe Into Ghosn Expands Into Other Subsidiaries
William Maley posted an article in Nissan
Nissan has expanded its probe into former chairman Carlos Ghosn with the investigation into various European subsidiaries that may bring more criminal charges. Automotive News has learned from sources that the focus of the investigation will be around the Renault-Nissan BV based in the Netherlands. This was set up by the two automakers back in 2002 to be a strategic management company that oversees the alliance. But one source says that Nissan is planning to look into "as many as a dozen other Nissan-affiliated subsidiaries set up in the Netherlands," for possible financial misconduct. Japanese prosecutors are looking into some of the companies with the help of Nissan. (Emphasis mine.) This move may signal that the scandal may have reached outward of Japan and bring investigations right to Renault's doorstep. Automotive News also notes this could "further complicate" the delicate relations between the two. That neatly transitions us to a report from Reuters where a source reveals that Renault has told Nissan not to contact its directors ahead of a December 13th meeting of their board. The source says "such contact was outside the agreed channels for communication of the sensitive findings." As we reported back on Friday, Nissan offered Renault "a presentation that summarized the evidence" to help assuage some suspicious held by the French automaker. Renault declined, asking Nissan for the "presence of lawyers and the full report on the allegations." This reportedly came earlier this week as officials from Nissan met with Renault's legal team in France. The meeting tomorrow will see the members of the board discuss the findings of Nissan's investigation and debate the future of Carlos Ghosn. Spokespeople for Nissan and Renault declined to comment. Source: Automotive News (Subscription Required), Reuters -
Audi finds itself in more legal trouble, but not fully related to the diesel emission scandal. The Wall Street Journal reports that German prosecutors have opened an investigation into three employees of Audi for possible falsifying of documents to get roadworthiness certifications for vehicles heading to South Korea. Karin Jung, a Munich prosecutor told the paper that the three people are suspected of falsifying serial numbers, and manipulating test and mileage readings. This investigation stems from raid done by Munich authorities of Audi's offices last year. One of the documents they found was an internal report about an investigation into a situation in South Korea. That situation saw an executive in Audi's Korean office be sentenced for 18 months in prison "falsifying documents to achieve certification of the vehicles for export to South Korea." After looking through the report and the investigation in South Korea, Munich prosecutors began a new investigation. Jung said there could be more suspects as the investigation continues on. The is the latest in Audi's misfortunes. Earlier this month, Rupert Stadler was terminated as CEO of Audi. He has been in Jail since June over possible evidence tampering. Sales of Audi vehicles in Europe has been falling as well, with a 56 percent drop in September. Overall sales for the year are down 7 percent. Source: Wall Street Journal (Subscription Required) View full article
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Audi finds itself in more legal trouble, but not fully related to the diesel emission scandal. The Wall Street Journal reports that German prosecutors have opened an investigation into three employees of Audi for possible falsifying of documents to get roadworthiness certifications for vehicles heading to South Korea. Karin Jung, a Munich prosecutor told the paper that the three people are suspected of falsifying serial numbers, and manipulating test and mileage readings. This investigation stems from raid done by Munich authorities of Audi's offices last year. One of the documents they found was an internal report about an investigation into a situation in South Korea. That situation saw an executive in Audi's Korean office be sentenced for 18 months in prison "falsifying documents to achieve certification of the vehicles for export to South Korea." After looking through the report and the investigation in South Korea, Munich prosecutors began a new investigation. Jung said there could be more suspects as the investigation continues on. The is the latest in Audi's misfortunes. Earlier this month, Rupert Stadler was terminated as CEO of Audi. He has been in Jail since June over possible evidence tampering. Sales of Audi vehicles in Europe has been falling as well, with a 56 percent drop in September. Overall sales for the year are down 7 percent. Source: Wall Street Journal (Subscription Required) -
Tesla Finds Itself Under Investigation By the Justice Department
William Maley posted an article in Tesla
We have to wonder if Tesla CEO Elon Musk regrets posting this tweet as the Justice Department has opened an investigation into the company. Bloomberg has learned from two sources that federal prosecutors opened a fraud investigation into the company after Musk's tweet sent shares soaring. This follows an inquiry by Securities and Exchange Commission into whether or not Tesla had issued "misleading pronouncements on manufacturing goals and sales targets." The investigation is in the early stages according to a source and its unclear how big of a scope the investigation could take. Prosecutors could look into other statements by Musk concerning Tesla's overall health and the circumstances surrounding Dave Morton, Tesla's former chief accounting officer. “Last month, following Elon’s announcement that he was considering taking the company private, Tesla received a voluntary request for documents from the DOJ and has been cooperative in responding to it. We have not received a subpoena, a request for testimony, or any other formal process. We respect the DOJ’s desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received,” Tesla said in a statement today. Source: Bloomberg- 33 comments
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We have to wonder if Tesla CEO Elon Musk regrets posting this tweet as the Justice Department has opened an investigation into the company. Bloomberg has learned from two sources that federal prosecutors opened a fraud investigation into the company after Musk's tweet sent shares soaring. This follows an inquiry by Securities and Exchange Commission into whether or not Tesla had issued "misleading pronouncements on manufacturing goals and sales targets." The investigation is in the early stages according to a source and its unclear how big of a scope the investigation could take. Prosecutors could look into other statements by Musk concerning Tesla's overall health and the circumstances surrounding Dave Morton, Tesla's former chief accounting officer. “Last month, following Elon’s announcement that he was considering taking the company private, Tesla received a voluntary request for documents from the DOJ and has been cooperative in responding to it. We have not received a subpoena, a request for testimony, or any other formal process. We respect the DOJ’s desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received,” Tesla said in a statement today. Source: Bloomberg View full article
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About a year ago, European antitrust regulators became very suspicious that BMW, Daimler, and Volkswagen were involved in a longstanding automotive cartel that colluded on restricting certain emissions control devices for the market. Raids were carried out at various facilities, but nothing came out. That changed yesterday as the European Commission has opened a formal investigation. "The Commission is investigating whether BMW, Daimler and VW agreed not to compete against each other on the development and roll-out of important systems to reduce harmful emissions from petrol and diesel passenger cars," said Commissioner Margrethe Vestager, head of competition policy for the European Commission in a statement. "These technologies aim at making passenger cars less damaging to the environment. If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers." The technologies in question include selective catalytic reduction systems that reduce the amount of nitrogen oxides from diesel cars, and "Otto" particulate filters that capture particulate emissions from gas vehicles. The commission also revealed the group discussed common requirements for car parts and testing procedures, though there isn't evidence to say if they were illegal or not. It is also mentioned that there was no evidence that the automakers coordinated in the use of defeat devices. Daimler and Volkswagen told Reuters they were cooperating with the commission. BMW said it would continue to support the authority of the commission. Source: Reuters, European Commission Antitrust: Commission opens formal investigation into possible collusion between BMW, Daimler and the VW group on clean emission technology Brussels, 18 September 2018 The European Commission has opened an in-depth investigation to assess whether BMW, Daimler and VW (Volkswagen, Audi, Porsche) colluded, in breach of EU antitrust rules, to avoid competition on the development and roll-out of technology to clean the emissions of petrol and diesel passenger cars. Commissioner Margrethe Vestager, in charge of competition policy, said: "The Commission is investigating whether BMW, Daimler and VW agreed not to compete against each other on the development and roll-out of important systems to reduce harmful emissions from petrol and diesel passenger cars. These technologies aim at making passenger cars less damaging to the environment. If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers." In October 2017, the Commission carried out inspections at the premises of BMW, Daimler, Volkswagen and Audi in Germany as part of its initial inquiries into possible collusion between car manufacturers on the technological development of passenger cars. The Commission's in-depth investigation focusses on information indicating that BMW, Daimler, Volkswagen, Audi and Porsche, also called the "circle of five", participated in meetings where they discussed inter alia the development and deployment of technologies to limit harmful car exhaust emissions. In particular, the Commission is assessing whether the companies colluded to limit the development and roll-out of certain emissions control systems for cars sold in the European Economic Area, namely: selective catalytic reduction ('SCR') systems to reduce harmful nitrogen oxides emissions from passenger cars with diesel engines; and 'Otto' particulate filters ('OPF') to reduce harmful particulate matter emissions from passenger cars with petrol engines. The in-depth investigation will aim to establish whether the conduct of BMW, Daimler and VW may have violated EU antitrust rules that prohibit cartels and restrictive business practices, including agreements to limit or control technical development (Article 101 of the Treaty on the Functioning of the European Union). At this stage, the Commission has no indications that the parties coordinated with each other in relation to the use of illegal defeat devices to cheat regulatory testing. The Commission will carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome. Other topics discussed by the companies The Commission's formal investigation concerns solely the emissions control systems identified above. These were only some of the issues discussed by the "circle of five". Numerous other technical topics were discussed, including common quality requirements for car parts, common quality testing procedures or exchanges concerning their own car models that were already on the market. The "circle of five" also had discussions on the maximum speed at which the roofs of convertible cars can open or close, and at which the cruise control will work. Cooperation also extended to the area of crash tests and crash test dummies where the car companies pooled technical expertise and development efforts to improve testing procedures for car safety. At this stage the Commission does not have sufficient indications that these discussions between the "circle of five" constituted anti-competitive conduct that would merit further investigation. EU antitrust rules leave room for technical cooperation aimed at improving product quality. The Commission's in-depth investigation in this case concerns specific cooperation that is suspected to have aimed at limiting the technical development or preventing the roll-out of technical devices. View full article
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About a year ago, European antitrust regulators became very suspicious that BMW, Daimler, and Volkswagen were involved in a longstanding automotive cartel that colluded on restricting certain emissions control devices for the market. Raids were carried out at various facilities, but nothing came out. That changed yesterday as the European Commission has opened a formal investigation. "The Commission is investigating whether BMW, Daimler and VW agreed not to compete against each other on the development and roll-out of important systems to reduce harmful emissions from petrol and diesel passenger cars," said Commissioner Margrethe Vestager, head of competition policy for the European Commission in a statement. "These technologies aim at making passenger cars less damaging to the environment. If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers." The technologies in question include selective catalytic reduction systems that reduce the amount of nitrogen oxides from diesel cars, and "Otto" particulate filters that capture particulate emissions from gas vehicles. The commission also revealed the group discussed common requirements for car parts and testing procedures, though there isn't evidence to say if they were illegal or not. It is also mentioned that there was no evidence that the automakers coordinated in the use of defeat devices. Daimler and Volkswagen told Reuters they were cooperating with the commission. BMW said it would continue to support the authority of the commission. Source: Reuters, European Commission Antitrust: Commission opens formal investigation into possible collusion between BMW, Daimler and the VW group on clean emission technology Brussels, 18 September 2018 The European Commission has opened an in-depth investigation to assess whether BMW, Daimler and VW (Volkswagen, Audi, Porsche) colluded, in breach of EU antitrust rules, to avoid competition on the development and roll-out of technology to clean the emissions of petrol and diesel passenger cars. Commissioner Margrethe Vestager, in charge of competition policy, said: "The Commission is investigating whether BMW, Daimler and VW agreed not to compete against each other on the development and roll-out of important systems to reduce harmful emissions from petrol and diesel passenger cars. These technologies aim at making passenger cars less damaging to the environment. If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers." In October 2017, the Commission carried out inspections at the premises of BMW, Daimler, Volkswagen and Audi in Germany as part of its initial inquiries into possible collusion between car manufacturers on the technological development of passenger cars. The Commission's in-depth investigation focusses on information indicating that BMW, Daimler, Volkswagen, Audi and Porsche, also called the "circle of five", participated in meetings where they discussed inter alia the development and deployment of technologies to limit harmful car exhaust emissions. In particular, the Commission is assessing whether the companies colluded to limit the development and roll-out of certain emissions control systems for cars sold in the European Economic Area, namely: selective catalytic reduction ('SCR') systems to reduce harmful nitrogen oxides emissions from passenger cars with diesel engines; and 'Otto' particulate filters ('OPF') to reduce harmful particulate matter emissions from passenger cars with petrol engines. The in-depth investigation will aim to establish whether the conduct of BMW, Daimler and VW may have violated EU antitrust rules that prohibit cartels and restrictive business practices, including agreements to limit or control technical development (Article 101 of the Treaty on the Functioning of the European Union). At this stage, the Commission has no indications that the parties coordinated with each other in relation to the use of illegal defeat devices to cheat regulatory testing. The Commission will carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome. Other topics discussed by the companies The Commission's formal investigation concerns solely the emissions control systems identified above. These were only some of the issues discussed by the "circle of five". Numerous other technical topics were discussed, including common quality requirements for car parts, common quality testing procedures or exchanges concerning their own car models that were already on the market. The "circle of five" also had discussions on the maximum speed at which the roofs of convertible cars can open or close, and at which the cruise control will work. Cooperation also extended to the area of crash tests and crash test dummies where the car companies pooled technical expertise and development efforts to improve testing procedures for car safety. At this stage the Commission does not have sufficient indications that these discussions between the "circle of five" constituted anti-competitive conduct that would merit further investigation. EU antitrust rules leave room for technical cooperation aimed at improving product quality. The Commission's in-depth investigation in this case concerns specific cooperation that is suspected to have aimed at limiting the technical development or preventing the roll-out of technical devices. -
The U.S. Commerce Department is asking automakers to spill their secrets; product planning, financing, supply chains, and other bits that aren't in public filings. Bloomberg reports that the department’s Bureau of Industry and Security sent out a 34-page questionnaire asking for sensitive details to several automakers. Failure to do so could result "in a maximum fine of $10,000, imprisonment of up to one year, or both" as mentioned on the first page of the survey. “The breadth and depth of this request is invasive, requiring massive amounts of proprietary and confidential business data from global operations -- all under the pretense of national security,” said Gloria Bergquist, spokeswoman for the Alliance of Automobile Manufacturers - a group that represents a number of companies including General Motors, Toyota, and Volkswagen. “Frankly, it’s stunning from an administration committed to getting government out of the way of business.” This is part of the Commerce Department’s investigation into whether or not the imports of cars and car parts hurt U.S. national security opened in late May. It may result in imported vehicles being hit with tariffs as high as 25 percent. What is being asked in this survey? Other questions deal with the business plan from now until 2020 and whether or not imports hurt sales. Susan Helper, a former chief economist of the Commerce Department during the Obama administration said Bureau of Industry and Security has conducted dozen of these surveys in the past, mostly dealing with sectors closely linked to the defense industry. “This is a consequence of the Trump administration’s expanded definition of national security I hadn’t thought about. I can see both sides on this -- it is burdensome for companies, but on the other hand it’s important for policy makers to understand global supply chains as they have an increasing impact on the U.S. economy,” Helper told Bloomberg. Dave Sullivan, an analyst at AutoPacific told Bloomberg that the level of information that the government is asking is "disturbing'. “The only time I’ve seen something like that is when a supplier is not doing very well financially and the automaker is trying to understand their financial state and their future. They’re fully undressing automakers and how they do their business to a disturbing level.” The Commerce Department will be holding a hearing on the investigation on July 19th in Washington D.C. Around 45 people, representing various automakers, labor unions, and more will be testifying. Source: Bloomberg, Link to Questionnaire View full article
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Federal Government To Automakers: Tell Us Your Secrets
William Maley posted an article in Automotive Industry
The U.S. Commerce Department is asking automakers to spill their secrets; product planning, financing, supply chains, and other bits that aren't in public filings. Bloomberg reports that the department’s Bureau of Industry and Security sent out a 34-page questionnaire asking for sensitive details to several automakers. Failure to do so could result "in a maximum fine of $10,000, imprisonment of up to one year, or both" as mentioned on the first page of the survey. “The breadth and depth of this request is invasive, requiring massive amounts of proprietary and confidential business data from global operations -- all under the pretense of national security,” said Gloria Bergquist, spokeswoman for the Alliance of Automobile Manufacturers - a group that represents a number of companies including General Motors, Toyota, and Volkswagen. “Frankly, it’s stunning from an administration committed to getting government out of the way of business.” This is part of the Commerce Department’s investigation into whether or not the imports of cars and car parts hurt U.S. national security opened in late May. It may result in imported vehicles being hit with tariffs as high as 25 percent. What is being asked in this survey? Other questions deal with the business plan from now until 2020 and whether or not imports hurt sales. Susan Helper, a former chief economist of the Commerce Department during the Obama administration said Bureau of Industry and Security has conducted dozen of these surveys in the past, mostly dealing with sectors closely linked to the defense industry. “This is a consequence of the Trump administration’s expanded definition of national security I hadn’t thought about. I can see both sides on this -- it is burdensome for companies, but on the other hand it’s important for policy makers to understand global supply chains as they have an increasing impact on the U.S. economy,” Helper told Bloomberg. Dave Sullivan, an analyst at AutoPacific told Bloomberg that the level of information that the government is asking is "disturbing'. “The only time I’ve seen something like that is when a supplier is not doing very well financially and the automaker is trying to understand their financial state and their future. They’re fully undressing automakers and how they do their business to a disturbing level.” The Commerce Department will be holding a hearing on the investigation on July 19th in Washington D.C. Around 45 people, representing various automakers, labor unions, and more will be testifying. Source: Bloomberg, Link to Questionnaire -
Automakers already have enough of a headache with the current administration in the white house, but news that broke today is only going to make it even worse. Wilbur Ross, the U.S. Secretary of Commerce has announced that President Donald ordered an investigation under Section 232 of the Trade Expansion Act of 1962 to determine "whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security." "There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry. The Department of Commerce will conduct a thorough, fair and transparent investigation into whether such imports are weakening our internal economy," said Ross in a statement. There's also this interesting bit in the statement, The Wall Street Journal reported yesterday that tariffs as high as 25 percent could be slapped on new cars. Currently, the tariff on imported vehicles is at 2.5 percent. Imported trucks are already hit with a 25 percent tariff via the chicken tax. There are a couple likely reasons for this investigation, Mid-term elections are coming up and this is seen as a way to court voters in the heartland with the promise of bringing back jobs to the U.S. Possibly being used as leverage in negotiations with Canada and Mexico over the North American Free Trade Agreement (NAFTA); the European Union, and China. This investigation could hurt Mexico the most as they are the largest source of U.S. auto imports - delivering just under $50 billion of imports last year. As for automakers, Bloomberg reports that Jaguar Land Rover, Mazda, and Mitsubishi would be the most affected as all of their vehicles are imported. The news sent the stock prices of foreign automakers downward. Shares in Mazda dropped 5.2 percent at the close of trade in Japan, while Daimler and BMW saw their stock price drop more than two percent. This announcement has gotten condemnation from various governments, trade groups, analysts, and automakers. Here are just a few. "China opposes the abuse of national security clauses, which will seriously damage multilateral trade systems and disrupt normal international trade order," said Gao Feng, spokesman at the Ministry of Commerce in China during a regular press briefing. "We will closely monitor the situation under the U.S. probe and fully evaluate the possible impact and resolutely defend our own legitimate interests." “We have to consider this as something of a provocation. I have the growing impression that the U.S. no longer believes in the competition of ideas, but only the law of power. It fills me with grave concern,” said Eric Schweitzer, president of the Association of German Chambers of Commerce and Industry. “The U.S. auto industry is thriving and growing. To our knowledge, no one is asking for this protection. This path leads inevitably to fewer choices and higher prices for cars and trucks in America,” said John Bozzella, CEO of the Association of Global Automakers, a trade group that represents Hyundai, Nissan, Toyota, and others. Source: Automotive News (Subscription Required), Bloomberg, Reuters, Wall Street Journal (Subscription Required), U.S. Department of Commerce U.S. Department of Commerce Initiates Section 232 Investigation into Auto Imports Today, following a conversation with President Donald J. Trump, U.S. Secretary of Commerce Wilbur Ross initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended. The investigation will determine whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security as defined in Section 232. Secretary Ross sent a letter to Secretary of Defense James Mattis informing him of the investigation. “There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” said Secretary Ross. “The Department of Commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security.” During the past 20 years, imports of passenger vehicles have grown from 32 percent of cars sold in the United States to 48 percent. From 1990 to 2017, employment in motor vehicle production declined by 22 percent, even though Americans are continuing to purchase automobiles at record levels. Now, American owned vehicle manufacturers in the United States account for only 20 percent of global research and development in the automobile sector, and American auto part manufacturers account for only 7 percent in that industry. Automobile manufacturing has long been a significant source of American technological innovation. This investigation will consider whether the decline of domestic automobile and automotive parts production threatens to weaken the internal economy of the United States, including by potentially reducing research, development, and jobs for skilled workers in connected vehicle systems, autonomous vehicles, fuel cells, electric motors and storage, advanced manufacturing processes, and other cutting-edge technologies. Following today’s announcement, the Department of Commerce will investigate these and other issues to determine whether imports of automobiles and automotive parts threaten to impair the national security. A notice will be published shortly in the Federal Register announcing a hearing date and inviting comment from industry and the public to assist in the investigation. -
Automakers already have enough of a headache with the current administration in the white house, but news that broke today is only going to make it even worse. Wilbur Ross, the U.S. Secretary of Commerce has announced that President Donald ordered an investigation under Section 232 of the Trade Expansion Act of 1962 to determine "whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security." "There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry. The Department of Commerce will conduct a thorough, fair and transparent investigation into whether such imports are weakening our internal economy," said Ross in a statement. There's also this interesting bit in the statement, The Wall Street Journal reported yesterday that tariffs as high as 25 percent could be slapped on new cars. Currently, the tariff on imported vehicles is at 2.5 percent. Imported trucks are already hit with a 25 percent tariff via the chicken tax. There are a couple likely reasons for this investigation, Mid-term elections are coming up and this is seen as a way to court voters in the heartland with the promise of bringing back jobs to the U.S. Possibly being used as leverage in negotiations with Canada and Mexico over the North American Free Trade Agreement (NAFTA); the European Union, and China. This investigation could hurt Mexico the most as they are the largest source of U.S. auto imports - delivering just under $50 billion of imports last year. As for automakers, Bloomberg reports that Jaguar Land Rover, Mazda, and Mitsubishi would be the most affected as all of their vehicles are imported. The news sent the stock prices of foreign automakers downward. Shares in Mazda dropped 5.2 percent at the close of trade in Japan, while Daimler and BMW saw their stock price drop more than two percent. This announcement has gotten condemnation from various governments, trade groups, analysts, and automakers. Here are just a few. "China opposes the abuse of national security clauses, which will seriously damage multilateral trade systems and disrupt normal international trade order," said Gao Feng, spokesman at the Ministry of Commerce in China during a regular press briefing. "We will closely monitor the situation under the U.S. probe and fully evaluate the possible impact and resolutely defend our own legitimate interests." “We have to consider this as something of a provocation. I have the growing impression that the U.S. no longer believes in the competition of ideas, but only the law of power. It fills me with grave concern,” said Eric Schweitzer, president of the Association of German Chambers of Commerce and Industry. “The U.S. auto industry is thriving and growing. To our knowledge, no one is asking for this protection. This path leads inevitably to fewer choices and higher prices for cars and trucks in America,” said John Bozzella, CEO of the Association of Global Automakers, a trade group that represents Hyundai, Nissan, Toyota, and others. Source: Automotive News (Subscription Required), Bloomberg, Reuters, Wall Street Journal (Subscription Required), U.S. Department of Commerce U.S. Department of Commerce Initiates Section 232 Investigation into Auto Imports Today, following a conversation with President Donald J. Trump, U.S. Secretary of Commerce Wilbur Ross initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended. The investigation will determine whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security as defined in Section 232. Secretary Ross sent a letter to Secretary of Defense James Mattis informing him of the investigation. “There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” said Secretary Ross. “The Department of Commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security.” During the past 20 years, imports of passenger vehicles have grown from 32 percent of cars sold in the United States to 48 percent. From 1990 to 2017, employment in motor vehicle production declined by 22 percent, even though Americans are continuing to purchase automobiles at record levels. Now, American owned vehicle manufacturers in the United States account for only 20 percent of global research and development in the automobile sector, and American auto part manufacturers account for only 7 percent in that industry. Automobile manufacturing has long been a significant source of American technological innovation. This investigation will consider whether the decline of domestic automobile and automotive parts production threatens to weaken the internal economy of the United States, including by potentially reducing research, development, and jobs for skilled workers in connected vehicle systems, autonomous vehicles, fuel cells, electric motors and storage, advanced manufacturing processes, and other cutting-edge technologies. Following today’s announcement, the Department of Commerce will investigate these and other issues to determine whether imports of automobiles and automotive parts threaten to impair the national security. A notice will be published shortly in the Federal Register announcing a hearing date and inviting comment from industry and the public to assist in the investigation. View full article
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Around 10 Porsche Premises Are Searched By German Investigators
William Maley posted an article in Porsche
Another day, another raid by German prosecutors into Volkswagen's diesel emission scandal. Yesterday, 160 investigators conducted searches in about 10 premises in Bavaria and Baden-Wuerttemberg owned by Porsche. Prosecutors said in a statement to Reuters the raids are part of an investigation into Porsche employees on charges of fraud and fraudulent advertising tied to the cheating software used on diesel engines. “The three suspects include a member of the management board and a member of Porsche AG’s higher management. The third suspect is no longer employed at Porsche AG,” said prosecutors. A Porsche spokesman confirmed the searches to Reuters, but declined to comment any further. On the same day, two Audi sites were also searched according to Stuttgart prosecutors and an Audi spokesman. The searches relate to another investigation dealing with the diesel emission scandal. Source: Reuters -
Another day, another raid by German prosecutors into Volkswagen's diesel emission scandal. Yesterday, 160 investigators conducted searches in about 10 premises in Bavaria and Baden-Wuerttemberg owned by Porsche. Prosecutors said in a statement to Reuters the raids are part of an investigation into Porsche employees on charges of fraud and fraudulent advertising tied to the cheating software used on diesel engines. “The three suspects include a member of the management board and a member of Porsche AG’s higher management. The third suspect is no longer employed at Porsche AG,” said prosecutors. A Porsche spokesman confirmed the searches to Reuters, but declined to comment any further. On the same day, two Audi sites were also searched according to Stuttgart prosecutors and an Audi spokesman. The searches relate to another investigation dealing with the diesel emission scandal. Source: Reuters View full article
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Volkswagen isn't the only automaker that has the attention of German prosecutors. Yesterday, prosecutors carried out raids at various Daimler (parent company of Mercedes-Benz) buildings. This is part of an investigation into fraud related to false advertising and the possible manipulation of emissions with diesel powered vehicles. The Stuttgart public prosecutor's office told Reuters the raids were carried out "against known and unknown employees at Daimler, who are suspected of fraud and misleading advertising connected to manipulated emissions treatment of diesel passenger cars." 23 prosecutors and around 230 staff, including police and state criminal authorities, searched 11 sites to look for evidence to help build a case. Diamler confirmed the raids to Reuters and said it was "cooperating with authorities." The company is also under investigation by the U.S. Justice Department for emission discrepancies with diesel vehicles. Source: Reuters View full article
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Volkswagen isn't the only automaker that has the attention of German prosecutors. Yesterday, prosecutors carried out raids at various Daimler (parent company of Mercedes-Benz) buildings. This is part of an investigation into fraud related to false advertising and the possible manipulation of emissions with diesel powered vehicles. The Stuttgart public prosecutor's office told Reuters the raids were carried out "against known and unknown employees at Daimler, who are suspected of fraud and misleading advertising connected to manipulated emissions treatment of diesel passenger cars." 23 prosecutors and around 230 staff, including police and state criminal authorities, searched 11 sites to look for evidence to help build a case. Diamler confirmed the raids to Reuters and said it was "cooperating with authorities." The company is also under investigation by the U.S. Justice Department for emission discrepancies with diesel vehicles. Source: Reuters -
Former Volkswagen CEO Martin Winterkorn is already being investigated by German prosecutors over market manipulation because of the diesel emission scandal. But now, he finds himself under a new investigation by prosecutors on the suspicion of fraud. Reuters reports that prosecutors in Braunschweig believe Winterkorn knew about the cheat used on the 2.0L TDI well before the timeframe he has admittedly publicly. This suspicion comes as the result of numerous interviews with witnesses and suspects, along with raids on 28 houses and offices this week. "Sufficient indications have resulted from the investigation, particularly the questioning of witnesses and suspects as well as the analysis of seized data, that the accused (Winterkorn) may have known about the manipulating software and its effects sooner than he has said publicly," prosecutors said in a statement. At a hearing last week in Berlin, Winterkorn declined to say when he first learned about the cheat, citing the investigation being done by prosecutors. "For now, Dr. Winterkorn is sticking with the statement he made before a German parliamentary committee of inquiry (into the scandal) on Jan. 19," said Felix Doerr, a lawyer representing Winterkorn in an email to Reuters. Prosecutors also revealed that the number of people possibly involved in the scandal has risen from 21 to 37, including Winterkorn. Source: Reuters -
Former Volkswagen CEO Martin Winterkorn is already being investigated by German prosecutors over market manipulation because of the diesel emission scandal. But now, he finds himself under a new investigation by prosecutors on the suspicion of fraud. Reuters reports that prosecutors in Braunschweig believe Winterkorn knew about the cheat used on the 2.0L TDI well before the timeframe he has admittedly publicly. This suspicion comes as the result of numerous interviews with witnesses and suspects, along with raids on 28 houses and offices this week. "Sufficient indications have resulted from the investigation, particularly the questioning of witnesses and suspects as well as the analysis of seized data, that the accused (Winterkorn) may have known about the manipulating software and its effects sooner than he has said publicly," prosecutors said in a statement. At a hearing last week in Berlin, Winterkorn declined to say when he first learned about the cheat, citing the investigation being done by prosecutors. "For now, Dr. Winterkorn is sticking with the statement he made before a German parliamentary committee of inquiry (into the scandal) on Jan. 19," said Felix Doerr, a lawyer representing Winterkorn in an email to Reuters. Prosecutors also revealed that the number of people possibly involved in the scandal has risen from 21 to 37, including Winterkorn. Source: Reuters View full article
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NHTSA Closes Investigation On Tesla Autopilot, Not Seeking Recall
William Maley posted an article in Tesla
Last May, Joshua Brown was killed in a crash when his Tesla Model S in Autopilot collided with a tractor-trailer. After an investigation that took over half of a year, the National Highway Traffic Safety Administration released their findings today. In a report, NHTSA said they didn't find any evidence of defects with the Autopilot system. The agency also stated that they would not ask Tesla to perform a recall on models equipped with Autopilot. In a statement, Tesla said "the safety of our customers comes first, and we appreciate the thoroughness of NHTSA’s report and its conclusion." NHTSA's report revealed that neither Autopilot nor Brown applied the brakes to prevent or lessen the impact of the crash. However, NHTSA cleared the Automatic Emergency Braking system as it's “designed to avoid or mitigate rear end collisions” but that “braking for crossing path collisions, such as that present in the Florida fatal crash, are outside the expected performance capabilities of the system.” Speaking of Brown, NHTSA's report said that he did not any action with steering or anything else to prevent this. The last recorded action in the vehicle was the cruise control being set to 74 mph. NHTSA notes that in their reconstruction of the crash, Brown had seven seconds to from seeing the tractor trailer to the moment of the impact, giving him possible chance to take some sort of action. This brings up a very serious concern of how much confidence owners give the Autopilot system. Despite Tesla having statements such as that Autopilot “is an assist feature that requires you to keep your hands on the steering wheel at all times," and that "you need to maintain control and responsibility for your vehicle” while using it," various videos showing Model Ss narrowly avoiding crashes have caused people to think that Autopilot was fully autonomous - which it isn't. “Although perhaps not as specific as it could be, Tesla has provided information about system limitations in the owner’s manuals, user interface and associated warnings/alerts, as well as a driver monitoring system that is intended to aid the driver in remaining engaged in the driving task at all times. Drivers should read all instructions and warnings provided in owner’s manuals for ADAS (advanced driver assistance systems) technologies and be aware of system limitations,” said NHTSA. Tesla, to its credit, has been updating Autopilot to make drivers pay attention when using it. These include increasing the warnings for a driver to intervene when needed, and turning off the system if a driver doesn't respond to repeated requests. Source: National Highway Traffic Safety Administration (Report in PDF), Tesla -
Last May, Joshua Brown was killed in a crash when his Tesla Model S in Autopilot collided with a tractor-trailer. After an investigation that took over half of a year, the National Highway Traffic Safety Administration released their findings today. In a report, NHTSA said they didn't find any evidence of defects with the Autopilot system. The agency also stated that they would not ask Tesla to perform a recall on models equipped with Autopilot. In a statement, Tesla said "the safety of our customers comes first, and we appreciate the thoroughness of NHTSA’s report and its conclusion." NHTSA's report revealed that neither Autopilot nor Brown applied the brakes to prevent or lessen the impact of the crash. However, NHTSA cleared the Automatic Emergency Braking system as it's “designed to avoid or mitigate rear end collisions” but that “braking for crossing path collisions, such as that present in the Florida fatal crash, are outside the expected performance capabilities of the system.” Speaking of Brown, NHTSA's report said that he did not any action with steering or anything else to prevent this. The last recorded action in the vehicle was the cruise control being set to 74 mph. NHTSA notes that in their reconstruction of the crash, Brown had seven seconds to from seeing the tractor trailer to the moment of the impact, giving him possible chance to take some sort of action. This brings up a very serious concern of how much confidence owners give the Autopilot system. Despite Tesla having statements such as that Autopilot “is an assist feature that requires you to keep your hands on the steering wheel at all times," and that "you need to maintain control and responsibility for your vehicle” while using it," various videos showing Model Ss narrowly avoiding crashes have caused people to think that Autopilot was fully autonomous - which it isn't. “Although perhaps not as specific as it could be, Tesla has provided information about system limitations in the owner’s manuals, user interface and associated warnings/alerts, as well as a driver monitoring system that is intended to aid the driver in remaining engaged in the driving task at all times. Drivers should read all instructions and warnings provided in owner’s manuals for ADAS (advanced driver assistance systems) technologies and be aware of system limitations,” said NHTSA. Tesla, to its credit, has been updating Autopilot to make drivers pay attention when using it. These include increasing the warnings for a driver to intervene when needed, and turning off the system if a driver doesn't respond to repeated requests. Source: National Highway Traffic Safety Administration (Report in PDF), Tesla View full article
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Fiat Chrysler Automobiles isn't out of the dog house when it comes to vehicles rolling away. A few months after issuing a recall on a number of models equipped with the stubby transmission lever for rolling away, NHTSA is investigating models equipped with the rotary knob gear selector for the same problem. The investigation is looking at the 2013–2016 Ram 1500 and the 2014–2016 Dodge Durango which have the rotary knob selector. NHTSA has gotten 43 complaints about these models moving away. Out of the 43 complaints, 25 have resulted in crashes and another 9 resulted in injuries. NHTSA also says that 34 complaints said the vehicle was moving while in park. FCA said it is cooperating with the investigation. In the meantime, FCA and NHTSA are urging owners to engage the parking brake Source: NHTSA, Reuters View full article
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NHTSA Investigates Dodge Durango and Ram 1500s Rolling Away
William Maley posted an article in Chrysler
Fiat Chrysler Automobiles isn't out of the dog house when it comes to vehicles rolling away. A few months after issuing a recall on a number of models equipped with the stubby transmission lever for rolling away, NHTSA is investigating models equipped with the rotary knob gear selector for the same problem. The investigation is looking at the 2013–2016 Ram 1500 and the 2014–2016 Dodge Durango which have the rotary knob selector. NHTSA has gotten 43 complaints about these models moving away. Out of the 43 complaints, 25 have resulted in crashes and another 9 resulted in injuries. NHTSA also says that 34 complaints said the vehicle was moving while in park. FCA said it is cooperating with the investigation. In the meantime, FCA and NHTSA are urging owners to engage the parking brake Source: NHTSA, Reuters -
As Fiat Chrysler Automobiles continues its cooperation with the federal investigation into its falsified sales, they have begun to issue restate monthly sales results. They reveal that the Chrysler 200, a midsize sedan the company was hoping to be a success was even less popular than we first though. Automotive News reports that in a three-month period from July to September 2015, FCA reported that it sold 21 percent more 200s (8,577) than the new numbers. To put this in perspective, the second-largest discrepancy in sales was the Dodge Charger with 2,258 over-reported sales. "There was a lot of pressure on the 200 to offset the loss of sales from discontinuing the Dodge Avenger," said Dave Sullivan, an analyst with AutoPacific. "FCA was under pressure to deliver a midsize car that could compete with the Accord and Camry after they emerged from bankruptcy. They were vilified for not offering competitive cars after we saw gas spike to $4. The 200 was meant to show how FCA was committed to offering passenger cars that could compete." There was also a $1 billion investment FCA made into the Sterling Heights Assembly Plant to build the 200. There was a lot of pressure for this sedan to succeed and could explain some of the reason as to the inflated sale numbers. Source: Automotive News (Subscription Required) Pic Credit: William Maley for Cheers & Gears -
As Fiat Chrysler Automobiles continues its cooperation with the federal investigation into its falsified sales, they have begun to issue restate monthly sales results. They reveal that the Chrysler 200, a midsize sedan the company was hoping to be a success was even less popular than we first though. Automotive News reports that in a three-month period from July to September 2015, FCA reported that it sold 21 percent more 200s (8,577) than the new numbers. To put this in perspective, the second-largest discrepancy in sales was the Dodge Charger with 2,258 over-reported sales. "There was a lot of pressure on the 200 to offset the loss of sales from discontinuing the Dodge Avenger," said Dave Sullivan, an analyst with AutoPacific. "FCA was under pressure to deliver a midsize car that could compete with the Accord and Camry after they emerged from bankruptcy. They were vilified for not offering competitive cars after we saw gas spike to $4. The 200 was meant to show how FCA was committed to offering passenger cars that could compete." There was also a $1 billion investment FCA made into the Sterling Heights Assembly Plant to build the 200. There was a lot of pressure for this sedan to succeed and could explain some of the reason as to the inflated sale numbers. Source: Automotive News (Subscription Required) Pic Credit: William Maley for Cheers & Gears View full article
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Volkswagen can take a sigh of relief as it appears the current CEO, Matthias Müller, didn't have any prior knowledge of the diesel emission cheating. German newspaper Bild am Sonntag (via Reuters) got their hands on a report done by Jones Day which said Müller didn't find out the scandal till the EPA made the announcement - September 18, 2015 if you're wondering. Only a week later, Müller would be named CEO of Volkswagen. Still, Müller's track record on dealing with the diesel emission mess is spotty. He has said the scandal was just a 'technical problem' and a misunderstanding about U.S. law - claims that were deemed false and got Müller in hot water. Source: Bild am Sonntag via Reuters
