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BMW China ups prices of US-made SUVs; Dana to buy Oerlikon's drive systems unit


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BMW China ups prices of US-made SUVs; Dana to buy Oerlikon's drive systems unit


* German carmaker Bayerische Motoren Werke AG will raise the prices of its X5 and X6 crossover SUV models in China to cope with the additional cost of tariffs imposed on American car imports, Reuters reported, citing a statement from the company. The price hike, which is expected to take effect July 30, will range between 4% and 7%, according to the report.

* Ohio-based auto-parts maker Dana Inc. agreed to buy gear-maker Oerlikon Group's drive systems unit for CHF 600 million to boost its product lineups for off-highway and electrified segments. The deal is expected to immediately add to Dana's earnings upon closing in late-2018 or the first quarter of 2019.


* Honda Motor Co. Ltd. reported worldwide production of 2,681,341 vehicles in the first half, up 3.7% year over year and an all-time high for any half-year period, with a record 449,396 vehicles produced in June, up 0.7%. The Japanese automaker attributed the rise to increasing production in Asia, especially China. The company's domestic sales rose 2.4% year over year to 385,725 vehicles in the first six months of the year, while exports from Japan jumped for the first time in two years by 68.7% year over year to 66,728 units in the same period.

* Toyota Motor Corp.'s worldwide production in June fell 4.5% year over year to 871,536 vehicles, with output slipping in both Japanese and overseas markets. While sales in Japan fell 12.9% year over year to 192,988 vehicles, the automaker's exports also decreased 2.2% year over year to 160,242 vehicles in the month.

* The Renault-Nissan-Mitsubishi Alliance reaffirmed its 2022 mid-term outlook as the group posted an all-time high in half-yearly sales of 5,538,530 vehicles, up 5.1% year over year, across its range of crossovers, sports utility vehicles, pick-ups and zero-emission electric and hybrid-electric models. Renault SA sold 2.1 million vehicles in the period ended June 30, Nissan Motor Co. Ltd. sold 2.8 million cars and Mitsubishi Motors Corp. sold 616,648 vehicles globally.

* Suzuki Motor Corp.'s June overseas production rose 7.4% year over year to 176,309 vehicles, an all-time high for the month, on increases in countries like India and Pakistan, while the Japanese carmaker's monthly exports grew 2.4% year over year on higher shipments to Latin America. Suzuki Motor's domestic production, which rose 8.7% year over year to 88,138 units in June, however, slipped 1.1% year over year to 497,975 vehicles from January to June.


* Guangzhou Automobile Group Co. Ltd.'s unit GAC New Energy Automobile Co. Ltd. launched a new artificial intelligence-based platform, in collaboration with Tencent Holdings Ltd., to be featured on its all-electric SUV Trumpchi GE3 530 due August-end, Gasgoo reported. The new AI system reportedly offers features such as smart voice control, real-time navigation and instant lookup of nearby charging stations.

* China's Geely Automobile Holdings Ltd. has developed a new global vehicle architecture for small compact vehicles, called the B-segment Modular Architecture, and will build a compact sedan called Bin Rui and an SUV crossover called SX11 based on the platform. Both vehicles are slated for launch in 2018. The new vehicle architecture is expected to shorten Geely's development cycle, give the Volvo Cars parent flexibility to develop vehicles of multiple sizes, increase the quality of its cars, and allow the addition of electric powertrains and autonomous driving capabilities in the future.


* The U.S. Court of Appeals for Ninth Circuit in San Francisco reopened a Jan. 23 class-action lawsuit against Hyundai Motor Co. and the South Korean automaker's affiliate Kia Motors Corp. for allegedly overstating vehicle fuel economy levels, Reuters reported. The review reportedly will now be heard by an 11-judge panel that said a three-judge panel ruling Jan. 23 to decertify the carmakers' 2013 settlement was no longer precedent. Hyundai said it "continues to support the nationwide class action settlement," and Kia separately said it "appreciated the opportunity" of the rehearing, Reuters reported.

* A Stuttgart administrative court ruled that Germany's Baden-Wuerttemberg state, which houses Daimler AG's and Porsche Automobil Holding SE's headquarters, must ban all Euro 5 vehicles starting September next year or face a €10,000 penalty, Bloomberg News reported, citing the tribunal's statement. The court reportedly asked the state government to amend its clean air policy by the end of August to include Euro 5-compliant vehicles, which the state had previously kept out of purview. A spokesman for the Baden-Wuerttemberg government told Bloomberg News that it will study the ruling to decide upon an appeal.

* Deputy Ministers from Canada, Japan, Mexico, South Korea and the EU are scheduled to meet July 31 in Geneva to discuss the future course of action if U.S. President Donald Trump decides to go ahead with import duties on auto parts and vehicles, Reuters reported, citing officials familiar with the matter.


* Goodyear Tire & Rubber Co. lowered its 2018 operating income outlook as it anticipates "intensifying" macro headwinds such as higher raw material costs, a stronger U.S. dollar and depressed market conditions in China. The U.S. tire maker now expects full-year operating income to be between $1.45 billion and $1.5 billion, lower than the prior guidance range of $1.80 billion and $1.90 billion. The company's second-quarter adjusted EPS of 62 cents missed the analysts' consensus estimate of 63 cents per share, as compiled by S&P Capital IQ, even as sales rose 4% year over year to $3.8 billion.


* Daimler's car-sharing service Car2Go expanded its footprint to Chicago and is expected to run 400 of its cars in the city, The Drive reported.

The day ahead

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

In Asia, the Hang Seng was down 0.25% to 28,733.13. The Nikkei 225 slid 0.74% to 22,544.84.

In Europe as of midday, the FTSE 100 slipped 0.07% to 7,696.08, and the Euronext 100 lost 0.30% to 1,077.55.

On the macro front

The pending home sales index is due out today.

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