Trade deals with China and South Korea offer some relief to automakers amid ongoing challenges like tariffs and supply shortages. General Motors is cutting EV production and laying off thousands due to slowing demand, while Mercedes faces a tough quarter impacted by tariffs and competition in China. European car sales show growth in electrified vehicles despite declines in gas and diesel. BMW introduces advanced driver assistance with eye-tracking lane changes. Meanwhile, UAW workers at VW Tennessee authorize a strike amid stalled contract talks, and chip shortages threaten global production.
Topics:trade dealsgm layoffsev demandmercedes financialseuropean car salesbmw driver assistancevw strike authorizationchip shortagetariffs impactautomotive production
- U.S. Makes Deals with China and South Korea - GM Lays Off Thousands of EV Workers - New Models Help Drive EU Sales Up - Tariffs and China Drag Mercedes Down - U.S. Turnaround Fuels Stellantis Growth - BMW Lets You Change Lanes with Your Eyes - U.S. VW Workers Authorize Strike - Nexperia Chip Shortage Spreading Around the World
"Learn more at THECSP dot com. Speaker 1: BMW's new driver assistance system will let you change lanes with your eyes. That's one of the features the new IX three just received approval for in Germany. Its motorway"
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Speaker 1: This is outderlying daily, the show dedicated to enthusiasts of the global automotive industry. President Trump just made a couple
of trade deals that should give automakers some relief. China
has agreed to delay export controls on rare earth minerals introduced earlier this month for one year. However, the export
curbs which were implemented in April, which caused shortages and led several automakers to halt production, are still in place.
The US also reached a trade deal with South Korea to lower car terrace on Korean imports from twenty five to fifteen percent. And that's good news for Hyundai, which
said tariffs cost it one point three billion dollars in the third quarter. In response to slowing ev demand, General
Motors is laying off thousands of workers. The automaker will
cut production at its Factory zero plant in Detroit, which makes its full size electric pickup trucks. It's switching to
a one shift schedule in January, an output cut of about fifty percent and which will result in twelve hundred workers being laid off indefinitely. In addition to that, GM
is going to idle production at its battery plans in Ohio and Tennessee in January.
Speaker 2: For about six months. That will result.
Speaker 1: In fifteen hundred and fifty temporary layoffs. However, an additional
five hundred and fifty employees will be laid off indefinitely at the Ohio battery plan. Car sales were strong in
Europe in September, according to the ACEA, the European Automobile Manufacturers Association, Automakers sold more than one point two million vehicles last month, up nearly eleven percent compared to a year ago. Hybrids are the largest segment of the market,
with nearly four hundred and thirty five thousand units sold, up fifteen percent. More than two hundred and sixty thousand
fully electric vehicles were sold, a game of about twenty two percent, and plug in hybrid sales soared sixty two percent in September. While the electrified segment was strong, ice
vehicle sales struggled. Gas powered car sales were down nearly
eight percent to about three hundred and three thousand units, and diesel sales were down fifteen percent. This is the
third consecutive month sales have increased in Europe, which the ACEA says is somewhat driven by new model launches.
Speaker 2: Mercedes had a rough third quarter.
Speaker 1: The automakers sold four hundred and forty one thousand vehicles, down twelve percent from a year ago, and its revenue came in at thirty two billion euros, a drop of seven percent. Mercedes ebit plunged seventy percent to seven hundred
and fifty million euros, but when adjusted for one off effects like restructuring costs and voluntary layoffs.
Speaker 2: Its ebit was two point.
Speaker 1: One billion, a decline of seventeen percent from last year, and mercedes net profit of one point two billion euros was a thirty one percent drop.
Speaker 2: The company blamed.
Speaker 1: The rough quarter on tariffs and the price war in heavy competition in China. Stalantis also reported some more of
its third quarter results, and much of its growth is thanks to its turnaround efforts.
Speaker 2: In the US.
Speaker 1: Globally, it sold one point three million vehicles and increase of thirteen percent, and that pushed its net revenue to just over thirty seven billion euros, which was also up thirteen percent. But it's possible the future might not be
so rosy. The company estimates a billion euro hit from tariffs,
as well as one time charges related to changes around its warranty process and doing things like pulling back on evs.
New CEO Antonio Filosa has made smart moves like bringing back the HEMI, cutting lineup complexity, and working down inventory, But that seems more like some of the easy stuff to do. The hard part is coming up.
Speaker 3: At CSP, we work with OEM engineers across the country on their journeys to lighter, safer, and more eco friendly vehicles.
Learn more at THECSP dot com.
Speaker 1: BMW's new driver assistance system will let you change lanes with your eyes. That's one of the features the new
IX three just received approval for in Germany. Its motorway
Assistant will operate up to one hundred and thirty kilometers an hour more about eighty miles an hour, and drivers can approve lane changes by glancing at either side view mirror.
The system will stay active through freeway junctions and all the way to the end of your exit, and it can also suggest lane changes before you come up to those areas, which can be confirmed with a glance at the mirror as well. BMW says the type of approval
it received will also allow it to launch these features in many more European countries. The company's City Assistant, which
offers hands free driving and urban areas, will be available when the IX three goes on sale, but only in Germany at first. Beyond this version of its hands free
driving system, BMW says it's developing a more symbiotic relationship where the driver can turn the wheel or apply the brakes lightly, but the system.
Speaker 2: Still stays active.
Speaker 1: UAW workers at VW's plant in Tennessee voted in favor of a strike authorization. That doesn't mean there will be
a strike. It just gives the local union the authority
to strike if it wants to. But I think this
is at least some reflection of how the workers feel about the contract negotiations, which have dragged on for about a year and a half. The UAW says a super
majority of members voted in favor of the authorization. That
means at least two thirds of the thirty two hundred workers want their union to have the.
Speaker 2: Power to strike.
Speaker 1: VW doesn't want to see that happen and offered a fifteen hundred dollars bonus if the contract was approved by tomorrow, But the UAW doesn't think that VW's latest contract provides enough to workers, while VW said it's submitted its last, best and final offer, so that's why we've reached this point today. If there is a strike, workers will receive
five hundred dollars in weekly strike pay, and medical care will still be covered that next period.
Speaker 2: Chip shortage is.
Speaker 1: Starting to impact production around the globe. Honda says it
has cut and idled production at some plants in North America.
The ACEA, the group that represents European automakers, warned yesterday that automakers in the region will have to halt production in the coming days. Down in Brazil, government officials are
warning that automakers will have to start production in two to three.
Speaker 2: Weeks, and production in the US.
Speaker 1: Could be impacted in the next couple of weeks as well.
And don't forget to tune into Autoline after hours later today we'll have judges for wards talk about the ten best propulsion systems. Plus we'll talk about autonomous vehicle's possible
impact on powertrains. And Stalantis's old CEO keeps talking, but
should we listen? Join us when the action goes live
at three pm Eastern time today. Thanks for tuning into
today's Autoline Daily and I hope to see you later.
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