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GM recalls 3.4 million vehicles; Uber defiant gig rules do not apply to drivers

TOP NEWS

* General Motors Co. is recalling over 3.4 million big pickup trucks and SUVs in the U.S. to fix a brake problem, The Associated Press reported. The company also recalled 310,000 vehicles in Canada in June to fix the same problem. The pump in the power-assist brakes of the recalled vehicles can put out less vacuum power than needed, leading to an increased stopping distance and risk of a crash.

* California's AB 5 bill, which aims to reclassify "gig workers" as employees to give them better protection and benefits, will not change how Uber Technologies Inc. sees its drivers, and it will not automatically reclassify its drivers as employees, even after the bill goes into effect January 2020, the company's chief legal officer, Tony West, said. The ride-hailing service said that though its drivers do not pass the "ABC test" set by AB 5 to reclassify a worker, it will provide additional benefits including sick leave and minimum wages nonetheless.

CARMAKERS

* Volkswagen AG denied reports in German media that it fitted emissions-cheating software into new diesel models, The Irish Times reported. German public broadcaster SWR reported that software installed in VW's new EA288 motor, which passed Europe's Euro 6 emissions norms, has the ability to detect vehicle testing and can spray less emissions-cutting fluid than necessary when not being tested. Volkswagen's "dieselgate" cheating scandal, uncovered in 2015 after it admitted to installing cheating software in 11 million cars, has cost it over €30 billion so far.

* Nissan Motor Co. Ltd.'s board has not received the full 170-page report detailing findings against its former chairman Carlos Ghosn, drawing complaints from some directors, The Wall Street Journal reported, citing sources. The carmaker's board members only received a five-page summary since there was no time to make copies after the deal was approved Sept. 11, the sources said.

* Nissan could name its China operations head Makoto Uchida or Jun Seki, who heads its turnaround team, the new CEO, Reuters reported, citing people familiar with the matter. The Japanese carmaker is also considering COO and current interim CEO Yasuhiro Yamauchi for the post, the people reportedly said. Alliance partner Renault SA, which owns about 43% of Nissan, prefers Uchida as he would be "much easier to control," sources told Reuters.

* The United Auto Workers, or UAW, will vote on General Motors' proposed labor agreement over the weekend and decide whether or not to go on a strike as it hopes to reach a "model deal" to use in wage negotiations with Ford Motor Co. and Fiat Chrysler Automobiles NV. An executive from the Center for Automotive Research said General Motors faces about a 50/50 chance for a strike, which would mark its first in 12 years, Bloomberg News reported.

ELECTRIC AND AUTONOMOUS VEHICLES

* Volkswagen AG introduced the ID. Charger, a wall-box charger that will be launched November-end alongside its all-electric ID.3 vehicle. The charger's base variant will retail for €399 and features 11 kW of charging power, about five times faster than usual domestic sockets, VW said.

* Tesla Inc. said a new version of its Model S, which features a plaid powertrain and chassis prototype, completed a lap around the Laguna Seca racetrack in 1:36.55 seconds, breaking the lap record for four-door sedans.

POLICY, REGULATIONS AND SAFETY

* Japan's Fair Trade Commission raided Bayerische Motoren Werke AG's local arm after it allegedly imposed "unreasonable" sales quotas on its distributors, who were also forced to buy out unsold vehicles to meet the quota, The Japan Times reported, citing sources. BMW Japan Corp. could be violating anti-monopoly law through the practices, the sources said.

* German Chancellor Angela Merkel said she could put a price on CO2 emissions to help the country's transition into electric vehicles, Bloomberg News reported. Pricing emissions would help "direct the behavior of people" toward buying cleaner cars and emitting less CO2.

* The California State Assembly approved a bill that would increase the reimbursement rates auto dealers receive for warranty and recall-related services, Automotive News reported that Gov. Gavin Newsom has until Oct. 13 to sign the bill into law.

AUTO PARTS AND EQUIPMENT

* German maker of tire and auto equipment Continental AG unveiled CoSmA, a digital solution that allows customers to open their vehicles via smartphone. The digital door opener also allows users to share their car keys with others and will be equipped in Honda Motor Co. Ltd.'s newest electric vehicle, the Honda e, in 2020.

* Continental and French tire producer Michelin are planning to establish a joint venture called Rubberway, a mobile app in support of its policy of sustainable raw material sourcing. Michelin said it also listed French agritech firm SMAG as a partner and that it will provide more details later on.

AUTOMOTIVE RETAIL

* India's finance minister, Nirmala Sitharaman, attributed the automotive market's deterioration to the increased use of ride-hailing services and used cars as sales in August plunged 41% year over year to 115,957, Bloomberg News reported.

MOTORCYCLES

* Motorcycle-maker Harley-Davidson Inc. laid off 40 workers from its merchandise division in Milwaukee as part of a restructuring, Reuters reported, citing an official with the matter. Harley confirmed the layoffs and said manufacturing-related jobs will be unaffected.

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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 dropped 0.26% to 27,087.63, and the Nikkei 225 rose 0.75% to 21,759.61.

In Europe, around midday, the FTSE 100 was up 0.02% to 7,339.28, and the Euronext 100 climbed 0.13% to 1,087.33.

On the macro front

The consumer price index, the jobless claims report, EIA natural gas report, the treasury budget report, the Fed balance sheet and the money supply 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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