TOP NEWS
* President Donald Trump said it would be "very easy" to make the case for auto import duties under national security concerns, Reuters reported. The financial benefits would support the U.S. military, he reportedly said. His stance reportedly would make the North American Free Trade Agreement renegotiations between the U.S., Canada and Mexico impossible, even as Trump said at the G-7 summit that U.S. trade partners "have no choice" but to agree to Washington's terms. Meanwhile, German Chancellor Angela Merkel reportedly said Europe would implement countermeasures against U.S. tariffs on steel and aluminum, both key components for the automotive industry.
* Toyota Motor Corp. is looking to convert self-driving vehicles into unmanned convenience stores in partnership with Japan's Seven & i Holdings Co. Ltd.-owned Seven-Eleven Japan Co., The Japan Times reported, citing sources close to the matter. The automaker, which aims to serve areas in the country where physical stores are unfeasible, reportedly also is considering door-to-door delivery using driverless vehicles with logistics company Yamato Holdings Co. Ltd. and opening mobile cafes to sell Starbucks Corp. coffee.
CARMAKERS
* Porsche Automobil Holding SE unveiled the name of its first all-electric sports car, Taycan, which roughly translates to "lively young horse," as the company plans to ramp up investment in electromobility, doubling its anticipated expenditure to more than €6 billion by 2022. The German auto manufacturer expects to spend about €500 million of that sum on developing variants of Taycan, which is set to begin production in 2019. Separately, Porsche named Alexander Pollich, managing director of Porsche Cars Great Britain, as managing director of its German sales operations, effective July 15, succeeding Jens Puttfarcken, who will become managing director of Porsche China and Porsche Hong Kong beginning July 1. Marcus Eckermann, formerly Porsche's managing director for central and Eastern Europe, will replace Pollich.
* Kia Motors Corp. is recalling about 507,587 vehicles in the U.S. over an electronic glitch that may prevent airbags from deploying in the event of a crash, the company said in an emailed statement. The recall reportedly applies to 2010-2013 Kia Fortes, 2011-2013 Kia Optimas and 2011-2012 Kia Optima Hybrid and Sedona vehicles. Kia said it is working with its supplier on the issue.
ELECTRIC AND AUTONOMOUS VEHICLES
* A preliminary probe into the fatal Tesla Inc. Model X crash showed that its autopilot system cannot "dependably" maneuver common road situations unassisted, said David Friedman, director of cars and product policy and analysis at Consumers Union, the advocacy arm of Consumer Reports. Friedman, who cited a report by the U.S. National Transportation Safety Board, added that the electric carmaker's driver-assistance technology "makes it too easy" for drivers to be disengaged, adding that Tesla should fix autopilot "without delay."
* British telecom giant Vodafone Group PLC and German auto parts maker Continental Aktiengesellschaft announced a collaboration to reduce accidents on Germany's roads by utilizing Vodafone's 5G network, along with cellular vehicle-to-everything sensor and mobile edge computing technologies. The projects, to be developed at Vodafone's 5G Mobile Lab in Aldenhoven, include a "digital shield," which will alert drivers when the system detects pedestrians or cyclists, as well as traffic-jam warning technology to prevent rear-end collisions.
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* Shares of Chinese battery maker Contemporary Amperex Technology Co. Ltd. zoomed 44% to 36.20 yuan as it sold 10% of the company's offered capital as part of its debut on the Shenzhen stock exchange, the Financial Times (London) reported. The company had said in its $2 billion IPO filing that it is the world's largest electric vehicle battery maker by sales, the Financial Times added.
AUTOMOTIVE RETAIL
* BCA Marketplace PLC rejected a takeover offer of 200 pence per share in cash, which would value the U.K.-based used vehicle retailer at about £1.6 billion, from a new entity controlled by Apax Partners-advised funds. Under London stock market rules, the private equity firm is required to make an offer to BCA by July 8 or walk away from the deal.
The day ahead
Early morning futures indicators pointed to a mixed opening for the U.S. market.
In Asia, the Hang Seng was up 0.34% to 31,063.70. The Nikkei 225 rose 0.48% to 22,804.04.
In Europe, as of midday, the FTSE 100 was up 0.91% to 7,750.65, and the Euronext 100 rose 0.43% to 1,062.12.
On the macro front
No notable reports due out today.
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