* The United Auto Workers turned down General Motors Co. compensation package proposal, with the UAW Vice President and director Terry Dittes saying negotiations with GM "have taken a turn for the worse" even as the strike enters its fourth week on Oct. 7. UAW rejected the offer after GM turned down UAW's counteroffer tabled Oct. 4 and retained the carmaker's original proposal with little changes. Asking GMNA Labor Relations Vice President Scott Sandefur to discuss reasons for rejecting the union's proposal, Dittes said, "The law and basic decency require no less."
* The U.S. National Highway Traffic Safety Administration is reviewing a defect petition stating that Tesla Inc. should have recalled about 2,000 vehicles over non-crash-related battery fires. The Sept. 19 petition requests that the agency look into certain Model S and X vehicles that allegedly received updates for battery management system software in response to a potential battery defect that could result in fires and allegedly reduced the driving range in the affected vehicles, according to a highway safety agency document.
CARMAKERS
* Chinese car giant Zhejiang Geely Holding Group Co. Ltd. and Swedish unit Volvo Cars said they will merge their combustion engine operations to lower costs and allow Volvo to focus on developing its all-electric range of premium cars. The combined company, which would operate as a stand-alone supplier, could build diesel- and gas-powered engines for all Geely brands, including Volvo Cars, Geely Automobile Holdings Ltd., Lynk & Co, Proton, Lotus and LEVC. It will absorb all 3,000 Volvo Cars employees and 5,000 Geely employees from their engine manufacturing departments.
* Nissan Motor Co. Ltd.'s board will meet Oct. 8 to discuss the future of Hari Nada, the whistleblower on Carlos Ghosn's alleged financial misconduct, for reportedly enabling Ghosn's wrongdoings and obstructing the subsequent investigation. Former Nissan audit chief Christina Murray, who left in September, mentioned Nada in a list of 80 Nissan employees she believed enabled Ghosn or obstructed investigation into the matter. But Nissan quashed her plan to bring disciplinary action against Nada after he said it was unnecessary, according to various media reports.
* Nissan's board on Oct. 8 will discuss the CEO candidates to replace Hiroto Saikawa. Masakazu Toyoda, who heads the nomination committee, and Hitoshi Kawaguchi, head of government relations, are divided in their preferences for the role, causing tensions in the boardroom, the Financial Times (London) reported, citing sources.
* UAW said 18 of its 20 subcommittees have concluded negotiations with Ford Motor Co. It reported that some of its bargaining subcommittees are nearing a deal with Fiat Chrysler Automobiles NV and that most of the outstanding issues will be resolved when the union comes to a deal with General Motors.
* The UAW placed Vance Pearson, a regional director charged with embezzlement and fraud, on leave, the Detroit Free Press reported.
ELECTRIC VEHICLES
* Tesla acquired Canadian battery-maker Hibar Systems between July and October for an undisclosed amount, Electric Autonomy reported, citing filings from the Canadian Federal lobby registration. Tesla's acquisition of Ontario-based Hibar lines up with reports that Tesla plans to produce its own battery cells.
* Finnish retailer Kesko said it teamed up with electric-vehicle charging company IONITY and began building a third high-power charging station in Kesko's K-Citymarket Tiiriö in Hämeenlinna. The station is set to open in November, Kesko said.
* Indian automaker Tata Motors Ltd. said it won an order for 300 electric buses from local bus operator Ahmedabad Janmarg Ltd. The carmaker said it will build its Tata Ultra Urban 9/9 Electric AC Bus as part of the government's e-mobility drive.
MOBILITY SERVICES
* Honda Motor Co. Ltd. acquired California startup Drivemode Inc., which develops smartphone apps for drivers. Financial terms of the deal were not disclosed, but Honda said the acquisition was initiated through the Japanese carmaker's research and development arm Honda R&D.
POLICY, REGULATIONS AND SAFETY
* Daimler AG may need to recall 260,000 Mercedes-Benz Sprinter vehicles after Germany's motor vehicle regulator alerted the carmaker of illegal engine management software potentially installed in the vehicles, Reuters reported, citing German newspaper Bild am Sonntag. The German luxury carmaker was ordered to recall 60,000 diesel cars in June after German regulator Kraftfahrt-Bundesamt, or KBA, allegedly discovered that the vehicles used software that manipulates emissions test results. This prompted Daimler to revise its profit outlook for 2019.
* Fiat Chrysler will recall 11,463 Jeep Wrangler vehicles of model years 2011-2018 to fix defective seat belt buckles, according to a U.S. road safety agency. The affected seat belts may separate from the seat frames, resulting in an inoperable seat belt, increasing the risk of injury in the event of a crash, according to the National Highway Traffic Safety Administration.
* A Denmark-led group of European Union countries called for a ban on diesel- and gas-fueled cars by 2050, with a sales ban on such vehicles to go into effect from 2030, Reuters reported, citing Denmark's proposal to EU environment ministers in Luxembourg.
* German lighting company OSRAM Licht AG said it will chart its own future independently after the failure of recent takeover attempts. Austrian sensor specialist ams AG had offered to acquire 100% of Osram shares for €41 apiece, up from an original bid of €38.50 apiece. That offer expired Oct. 1, with ams receiving only 51.6% acceptance, below the minimum threshold of 62.5%. Ams said it continues to see a combination of the companies as "strategically compelling" and that it will continue to explore strategic options to pursue the acquisition of Osram.
AUTOMOTIVE RETAIL
* China's Vehicle Inventory Alert index slumped 0.8 percentage point in September, Gasgoo reported, citing data from the China Automobile Dealers Association A lower reading indicates higher demand and lower inventory pressure, which the agency attributed to higher discounts offered by dealerships during the month.
* Toyota Motor Corp.'s Indian arm saw its vehicles' market share climb to 4.86% in the first half of fiscal 2019, overtaking local carmaker Tata Motors and becoming the fourth-largest carmaker in the country, The Economic Times (India) reported, citing industry data. Toyota Kirloskar Motors can attribute its growing share to the Glanza model, averaging 2,000 vehicles sold per month.
* Daimler AG's Mercedes-Benz brand sold 223,838 vehicles worldwide in September, up 10.4% year over year. During the month, the carmaker sold 99,092 vehicles in Europe, up 8.2% year over year; 88,676 vehicles in Asia-Pacific, up 17.6%; and 31,819 vehicles in North America, up 1.7%.
COMMERCIAL VEHICLES
* Daimler said it delivered 44 Setra buses in Lower Saxony, Baden-Württemberg and Bavaria in Germany. The carmaker said it will deliver 30 buses to the public transport system in the Diepholz district, nine to Kurz Omnibusverkehr in the Tübingen/Reutlingen district and six to the Schmetterling company in Bavaria.
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The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Nikkei 225 was down 0.16% to 21,375.25.
In Europe, around midday, the FTSE 100 was up 0.39% to 7,183.19, and the Euronext 100 rose 0.45% to 1,069.87.
On the macro front
The TD Ameritrade IMX report and the Consumer Credit report are due out today.
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