TOP NEWS
* The European Commission filed a lawsuit in European Court of Justice against Germany, the U.K., France, Italy, Romania and Hungary alleging failure to meet standards on NO2, primarily released by diesel engines, in a move that could especially hit German automakers such as Volkswagen AG. The regulator also sent out warning letters to the countries, related to the diesel emissions scandal.
* Robert Lighthizer, the chief U.S. negotiator in the North American Free Trade Agreement talks, said the three countries are "nowhere close to a deal," The New York Times reported, even as Canadian Prime Minister Justin Trudeau told Reuters New York that the talks are "right down to the last conversations. Meanwhile, the U.S. House Speaker Paul Ryan told reporters that Congress could vote on a renegotiated version of the NAFTA in December if the U.S. International Trade Commission, or ITC, speeds up its required review of a revised pact.
CARMAKERS
* Japan's Nissan Motor Co. Ltd., in talks with Renault SA over the future course of their partnership, including a merger, is seeking a greater say in key areas, including product development and voting rights in the French carmaker, Bloomberg News reported, citing people with knowledge of the matter. Nissan could also seek an increase in its 15% stake in Renault, which owns about 43% of Nissan and can vote on corporate matters, according to the report. Both companies' representatives declined comments to Bloomberg News.
* Daimler AG-owned Mercedes-Benz will restart production at its Tuscaloosa, Ala., facility following a disruption caused by a fire at critical parts supplier Meridian Lightweight Technologies Inc.'s plant in Michigan, Reuters reported. The automaker reportedly will increase production levels gradually and expects to start receiving parts by the week commencing May 21.
* Honda Motor Co. Ltd. said it will sell its 65% stake in its subsidiary Honda Automobile (China) Co. Ltd to Guangqi Honda Automobile Co. Ltd., a joint venture between Guangzhou Automobile Group Co. Ltd. and Honda, for 602.1 million Chinese yuan. Honda Automobile (China) produces sedans for the Mexican market, according to Nikkei Asian Review. The share transfer is expected to be completed in August.
* Ferrari NV said its CFO Alessandro Gili will resign May 31 to pursue other opportunities and the sports car maker appointed Antonio Piccon as the successor, effective July 30. Most recently, Piccon was the CFO at Ariston Thermo Group, and he also worked at a number of senior positions in Fiat Chrysler Automobiles NV for 15 years.
* Nissan Motor CFO Joseph Peter resigned from the company, and the Japanese automaker appointed Hiroshi Karube, previously senior vice president, global controller, accounting, global asset management, as his successor.
ELECTRIC AND AUTONOMOUS VEHICLES
* Tesla Inc. might need as much as $10 billion in fresh capital by 2020 to keep afloat, CNBC reported, citing a note by Goldman Sachs analyst David Tamberrino. Tamberrino, who reportedly also forecast the U.S. electric car maker's stock to dip 31% to $195 over the next six months, wrote that Tesla could raise the required capital via new bond issuances, convertible notes and equity, among other channels. The company, which is yet to turn profitable, reportedly declined to comment.
* Toyota Motor Corp. will sell the GAC Toyota ix4 battery-powered compact SUV in China without the Japanese automaker's iconic logo by 2018-end, Reuters reported, citing two company executives familiar with the matter. The SUV reportedly will be made under the brand name of Toyota's local joint venture partner GAC Motor, a unit of Guangzhou Automobile Group Co. Ltd. One of the executives reportedly added that Toyota is deliberating a similar deal with its other Chinese partner China FAW Group Corp.
* Peugeot SA entered into a five-year research and development partnership with French engineering school Ecole Centrale de Nantes in the field of digital simulation techniques for the carmaker's future powertrain systems, including hybrids and possibly electric vehicles. The project, having an outlay of €4 million, seeks to improve model predictability during virtual simulations that could eventually lead to the production of a new engine without laboratory tests or costly prototypes.
REGULATIONS AND SAFETY
* Volkswagen AG's sports car unit Porsche will recall about 60,000 diesel-powered Macan and Cayenne SUVs as they were fitted with defeat devices to mask emission levels, Reuters reported, citing a spokesman from the German automotive regulator KBA. The sports carmaker was not immediately available for comment on the recall, first reported by German magazine Der Spiegel, Reuters added.
AUTO PARTS AND EQUIPMENT
* Ford Motor Co. teamed up with Alphabet Inc.'s Waze Mobile Ltd to enable the community-based traffic and navigation provider's software on Ford vehicles. Users across the world either can access the Ford app on their iPhones and plug the phones into a SYNC 3-compatible car or access the Waze app on the car's dashboard and control it through voice command. The feature will help drivers find more efficient routes, locate cheaper fuel prices and report an accident, among others.
* Lee Won-hee, the President and CEO of Hyundai Motor Co., urged shareholders to fully support its parent Hyundai Motor Group's proposed restructuring plan amid growing opposition from foreign investors, the Yonhap News Agency reported. Lee, who said the strategy is the "most transparent and optimal option," reportedly also echoes a previous call by the CEO of Hyundai Mobis Co. Ltd Lim Young-deuk. Foreign investors hold 47.73% of Hyundai Mobis.
* Automotive parts maker Magna International Inc. entered into a partnership with Japanese semiconductor maker Renesas Electronics Corp. to develop inexpensive 3D surround view car cameras for entry- and mid-range vehicles. An unnamed European automaker has agreed to integrate the camera into its future vehicle as several other automakers expressed interest in the technology, the release said.
* German auto parts maker Continental Aktiengesellschaft invested an undisclosed sum into augmented reality developer Digilens to boost its head-up display technology that would be equipped on vehicles in the future. The technology firm said it expects to roll out a prototype by 2019, with mass production of the devices projected to start in 2022.
AUTOMOTIVE RETAIL
* Peugeot SA could enter the U.S. automotive retail market by 2026 with a "leaner, more agile" approach that incorporates the use of software tools, mobile applications and a low-cost, high-margin retail network, Automotive News Europe reported, quoting the French carmaker's North America chief Larry Dominique. No decisions have been made yet, Dominique reportedly said, adding that product launch timelines and other details will be released toward the end of 2018.
In Asia, the Hang Seng increased 0.34% to 31,047.91, and the Nikkei 225 increased 0.40% to 22,930.36.
In Europe, around midday, the FTSE 100 was down 0.17% to 7,775.10, while the Euronext 100 was up 0.10% to 1,084.48.
On the macro front
The Baker-Hughes Rig Count report is due out today.
