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SAIC H1 EPS drops 28%; China exempts Tesla cars from purchase tax

TOP NEWS

* SAIC Motor Corporation Ltd. said its first half earnings were severely hit by a prolonged downturn in the domestic auto market and switch to new emissions standards. The Chinese carmaker posted EPS of 1.18 yuan, down 27.5% from a year ago and missing the S&P Global Market Intelligence GAAP EPS estimate of 1.52 yuan. Net revenue dropped 19.05% year over year to 376.29 billion yuan.

* Tesla Inc.'s stock was up nearly 5% in premarket trading Aug. 30 after China exempted its 16 electric vehicle models from purchase tax, Reuters reported, citing a statement from China's Ministry of Industry and Information Technology.

CARMAKERS

* Toyota Motor Corp. plans to stop production in its Burnaston, U.K., plant from Nov. 1-4 as it expects disrupted delivery schedules and routes after Brexit, The Guardian (London) reported. Though Toyota said it had no layoffs planned for the site, further delays and complications will result in start/stop manufacturing, the report said.

* Toyota agreed to build a vehicle assembly plant in Ivory Coast, Reuters reported, citing the West African country's prime minister, Amadou Gon Coulibaly, who did not provide additional details. The government will provide a process and timeline for the plant by year-end, the report said.

* Volkswagen AG is in discussions with Turkish government officials over vehicle taxes as it seeks to finalize a €1 billion assembly plant in the country, Reuters reported, citing sources familiar with the matter. The German automaker is about to close a deal to build a multibrand assembly plant in Turkey but the tax issue remains unresolved, Reuters said.

* Volkswagen will invest 2.4 billion Brazilian reais in its São Bernardo do Campo plant in São Paulo, Reuters reported, citing state governor Joao Doria. The move is expected to generate at least 1,000 jobs, according to the report.

* Japanese carmaker Toyota's headquarters caught fire in Toyota City, a spokesperson told Bloomberg News. Toyota, which said it will investigate the incident, was forced to evacuate employees, though no injuries have been reported.

* Volkswagen named Ye Qi, a Hong Kong-based professor who specializes in energy generation, to its independent sustainability advisory council.

ELECTRIC VEHICLES

* As expected, Tesla Inc. has raised the prices of some of its vehicles in China to cope with the weakening Chinese yuan, Reuters reported, citing the company's Chinese website. The report comes four days after people familiar with the matter told the news outlet that the Silicon Valley-based electric carmaker was planning to hike prices in China earlier than the planned increase in September. At the time, the sources reportedly said Tesla is also looking at raising the prices even further in December if China proceeds with a 25% increase in tariff on cars that are imported from the U.S. and a 5% levy on U.S.-imported auto parts.

* Volkswagen-owned AUDI AG is in advanced talks with BYD Co. Ltd. to add the Chinese electric-vehicle maker to its list of battery suppliers, Bloomberg News reported, citing sources. BYD reportedly is looking to form battery supply deals with other carmakers.

* Tesla increased the capacity for its electric-vehicle charging stations in Europe and introduced the On-Route Battery Warmup feature, which can prepare a vehicle's battery pack before charging to achieve optimal charge rates. The ramp-up will push the charging capacity to 150kW instead of the planned 145kW.

* Nissan Motor Co. Ltd. said it will ramp up its Blue Switch initiative, which uses Nissan's electric vehicles for disaster response, climate change counter-measures, eco-tourism and other energy management projects. The Japanese carmaker said it plans to launch Blue Switch in partnership with 30 local governments by year-end.

AUTONOMOUS AND CONNECTED VEHICLES

* Waymo LLC asked the National Highway Traffic Safety Administration to lift barriers that could hinder self-driving vehicle development, Reuters reported, citing a statement. Alphabet Inc.-owned Waymo, which operates a self-driving taxi service, said the NHTSA should "move promptly to remove barriers" and prioritize safety over new seating configurations for autonomous vehicles.

* China's Didi Chuxing Technology Co. Ltd. said it will begin using self-driving vehicles for its ride-hailing operations in a Shanghai district, Reuters reported, citing Chief Technology Officer Zhang Bo. The vehicles will still have a human backup driver and will be equipped with level 4 autonomous driving capabilities.

MOBILITY SERVICES

* Ride-share companies Uber Technologies Inc. and Lyft Inc., along with food delivery platform DoorDash, have pledged $90 million to hold a California ballot if deal talks to preserve their drivers' non-employee status fall apart, Bloomberg News reported. The three companies, which are all based in San Francisco, are fighting a bill sponsored by the California Labor Federation that would classify their drivers as employees. Uber and Lyft have reportedly argued that labeling gig-workers as employees goes against their business model and are offering $21-an-hour minimum pay, among other measures, to maintain the status quo.

* London Mayor Sadiq Khan, who also chairs Transport for London, said Uber "must play by the rules" if it wishes to receive a long-term operating license, Reuters reported. Uber's current 15-month license will expire in September, and though it has applied for a five-year permit, sources said it does not expect to secure it.

* Porsche expanded its vehicle subscription and car rental services, Porsche Passport and Porsche Drive, to Las Vegas, Phoenix, San Diego and Toronto from September. The Volkswagen-owned brand piloted the services in Atlanta and will turn over the pilot project to local dealers.

AUTO PARTS AND EQUIPMENT

* Volkswagen unveiled "twin dosing" technologies for its emissions-reducing systems. The technology equips vehicles with two AdBlue injections instead of one, which allows more emissions-cutting spray to be released in the exhaust gas, a method that, the company claims, reduces nitrogen oxide emissions by about 80%.

* U.K. engine production grew 0.6% year over year to 196,142 units, data from the Society of Motor Manufacturers and Traders showed.

AUTOMOTIVE RETAIL

* Consultancy companies J.D. Power and LMC Automotive said they expect U.S. vehicle sales to grow 5% year over year in August on higher sale prices and incentives for carmakers, Reuters reported. Sales for the month could come in at 1.62 million automobiles, with retail sales expected to jump 5.8% to 1.4 million vehicles.

COMMERCIAL VEHICLES

* Commercial vehicle production in the U.K. fell 31.2% year over year in July to 5,043 vehicles, down for the fourth consecutive month, according to data from the SMMT, which blamed model changeovers for the decline.

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The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng inched up 0.08% to 25,724.73, and the Nikkei 225 rose 1.19% to 20,704.37.

In Europe, around midday, the FTSE 100 was up 0.65% to 7,231.22, and the Euronext 100 was up 0.97% to 1,067.18.

On the macro front

The personal income and outlays report, the Chicago PMI, the consumer sentiment report, the farm prices report and the Baker-Hughes Rig Count report are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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