TOP NEWS
* U.S. President Donald Trump's order to probe the potential national security impact of auto imports was met with widespread criticism in the U.S., including concerns from several senior Republican leaders. Sen. Bob Corker, R-Tenn., tweeted concern over "the president abusing the authorities granted to him in Section 232," while Sen. Pat Toomey, R-Pa., said such a move "weakens our credibility on actual trade disputes." Sen. Roy Blunt, R-Mo., said he "certainly" does not think the decision meets the national security waiver law, The Wall Street Journal reported. Meanwhile, Dennis Williams, president of United Auto Workers union, welcomed the move and said "American workers have been handed a short stick for a long time," the Detroit Free Press reported.
* The United Auto Workers union filed a complaint against Tesla Inc. CEO Elon Musk on May 23, accusing him of breaking national labor laws. The complaint, filed with the National Labor Relations Board, alleges that Musk threatened "to take away employee stock options in retaliation for Tesla employees engaging in protected union activity," and cites a tweet that Musk sent from his Twitter account.
CARMAKERS
* Ford Motor Co. and its luxury car brand Lincoln joined other automakers in cutting car prices in China following the country's move to reduce auto import duties to 15%, Asia Times reported. Ford China reportedly will slash the adjusted retail price of imported models by 15,000 Chinese yuan to 35,000 yuan. Its Lincoln brand brought the starting price of its cars down to 261,800 yuan, and its SUV price to 275,800 yuan, a discount of 5% to 7% across Lincoln's entire range in China, the report added.
* Toyota Motor Corp. and Suzuki Motor Corp. said they are in discussions to finalize a deal to build Suzuki cars at Toyota Kirloskar Motor Private Ltd.'s Indian plant. The partnership will also include, among other things, export of Suzuki models from India to Africa. Under the deal, Denso Corp. and Toyota will also provide Suzuki technological support to develop a compact and ultra-high-efficiency powertrain.
ELECTRIC AND AUTONOMOUS VEHICLES
* Nissan Motor Co. Ltd., Renault SA and Mitsubishi Motors Corp. will join hands to develop a shared platform for midsize electric vehicles by 2020 in a bid to cut costs, the Nikkei Asian Review reported. The three companies plan to use the jointly developed platform, which is expected to help them each cut development cost by 20% to 30%, for about 2 million electric vehicles, mainly SUVs, over five years, the Nikkei added.
* Uber Technologies Inc.'s self-driven vehicle involved in the deadly Arizona crash detected the victim about six seconds before hitting her but did not stop because its emergency braking system was disabled by Uber "to reduce the potential for erratic vehicle behavior" during the test, The Associated Press reported, citing the U.S. National Transportation Safety Board's preliminary probe into the accident.
* Ford Motor Co. moved its electric and autonomous vehicle business teams to Detroit's historic Corktown neighborhood ahead of the carmaker's expected June deal to purchase the long-idle Michigan Central Depot. The teams will work on the electrification of Ford's key models and development of the U.S. carmaker's first self-driving vehicle, which is expected to begin production in 2021.
* The French economic ministry released a "strategic contract" document as a roadmap for electric and autonomous vehicle development in the country from 2018 to 2022, Automotive News Europe reported. The document, signed by CEOs from Renault SA, Peugeot SA, Michelin, Valeo SA and Faurecia, forecasts spending €135 million in research and development of electric battery cells, another up to €200 million on autonomous vehicle tests on public transit vehicles, and to install at least one charging station for every 10 EVs. It expects to increase annual EV sales by five times in the next three years from 24,910 sold in France in 2017.
* German Chancellor Angela Merkel said the country will sign a memorandum of understanding with China to collaborate on emerging automotive technologies, including self-driving cars, the South China Morning Post reported. Merkel is on a two-day visit to China, the newspaper added.
* Chinese e-commerce giant JD.com Inc. partnered with electric autonomous vehicle startup NIO to launch an in-car delivery service that will enable certified personnel to drop off orders in the trunk of the consumers' cars even when they are not around. JD.com said it will be expanding the feature with other automakers in China in the coming months.
REGULATIONS AND SAFETY
* German magazine Der Spiegel reported, citing unnamed sources, that German Federal Motor Transport Authority, or KBA, is probing if Daimler AG used emission-masking devices in its diesel vehicles, including its C-Class and G-Class models, which could force the carmaker to recall over 600,000 cars, according to Reuters. Meanwhile, Daimler objected to a recall order issued by the KBA for Mercedes-Benz Vito van, carrying a 1.6-liter diesel Euro 6 engine. The watchdog said an engine control programming in the vans was in breach of regulations. Daimler said that the engine does not need the control features to pass the new European driving cycle test and added that it may seek judicial intervention if needed.
* Mexico has made a new offer on autos in a bid to revive NAFTA talks, Reuters reported, citing a person familiar with the talks. Details of the revised offer were unavailable, but a spokesman for Mexican President Enrique Pena Nieto clarified that Mexico would not buckle under pressure following Trump's tariff threat and "if an agreement is reached, it will be one that truly benefits Mexico." The statement comes after Canadian Prime Minister Justin Trudeau said Trump's order to probe national security implications of auto imports is the U.S.' way of gaining leverage in the NAFTA talks.
* A U.S. Environmental Protection Agency official said Volkswagen AG is not doing enough to improve corporate accountability as part of the German automaker's turnaround efforts after its diesel emissions scandal, Reuters reported, citing German newspaper Handelsblatt. Christopher Grundler, director of the EPA's Office of Transportation and Air Quality, told the German newspaper that he wanted to see the carmaker comply with the "spirit of laws" and not just the "text of the law." Volkswagen reportedly said some staff members are resisting the company's drive for openness, Reuters reported.
AUTO PARTS AND EQUIPMENT
* Swedish auto safety systems maker Autoliv Inc. said its board approved the completion of the spin-off of its electronics division Veoneer Inc. into an independently traded company. Autoliv said the spin-off will be completed June 29 and Veoneer will start trading July 2 on the New York Stock Exchange under the symbol VNE and on Nasdaq Stockholm under the symbol VNE SDB.
* Toyota Motor Corp. said its Philippine-based auto parts unit Toyota Autoparts Philippines Inc. will become a part of Japanese auto parts maker Aisin Seiki Co. Ltd. following Aisin raising its stake in the unit to 61% from 34%. Aisin will invest 1.2 billion Philippine peso into the unit, which will be renamed Toyota Aisin Philippines Inc., to install an automatic transmission component production line.
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In Asia, the Hang Seng declined 0.56% to 30,588.04, while the Nikkei 225 increased 0.6% to 22,450.79.
In Europe, around midday, the FTSE 100 was up 0.24% to 7,736.44, and the Euronext 100 was up 0.46% to 1,077.21.
On the macro front
The durable goods orders report, two-year FRN note settlement report and the Baker-Hughes Rig Count report are due out today.
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