TOP NEWS
* Tesla Inc. agreed to buy batteries from South Korea's LG Chem Ltd. for its China-built Model 3 sedans, Bloomberg News reported, citing people familiar with the matter. Tesla, which currently sources all batteries from Japan's Panasonic Corp., could also use LG batteries for its Model Y. The deal reportedly is not exclusive and the carmaker, which is in talks to forge a battery deal with Contemporary Amperex Technology Co. Ltd., reportedly could procure batteries from other suppliers. LG Chem's shares jumped 3% following the report.
* Volkswagen AG denied a German media report that the company's CEO is interested in taking a stake in Tesla, calling it "pure speculation," CNBC reported, citing a company representative. The Manager Magazin report said CEO Herbert Diess believes Volkswagen can leverage Tesla's expertise in batteries and software through a stake.
CARMAKERS
* Ford Motor Co. named Steven Armstrong, currently chairman of its European subsidiary, as president of its Changan Ford Automobile Corp. Ltd. joint venture in China, effective Oct. 1. Changan Ford is a joint venture between the Dearborn, Mich.-based carmaker and China's Chongqing Changan Automobile Co. Ltd. Armstrong will succeed Nigel Harris, who will remain in an advisory role at Changan Ford and support the company's China-focused strategy until he retires at the end of 2019.
* Volkswagen's namesake brand said it plans to push operating-profit margins to 6% in 2022, up from 5.2% in the first half of 2019, Bloomberg News reported, citing COO Ralf Brandstaetter. The German carmaker maintained its target of selling 1 million electric vehicles by 2025, which would "move VW well past Tesla," Brandstaetter said.
* Renault SA said it joined the B4IG business coalition, a group of 34 companies that will invest $1 billion in over 50 initiatives for inclusive growth. The French carmaker said it contributed the "Mobilize" program to the B4IG to address mobility problems and the rising costs of purchasing and maintaining vehicles.
* Volkswagen's Škoda brand opened a new paint shop at its plant in Mladá Boleslav in the Czech Republic. The paint shop can handle 168,000 vehicles per year, bringing the plant's painting capacity to 812,000 vehicles per year.
ELECTRIC AND AUTONOMOUS VEHICLES
* Chinese electric-vehicle maker NIO Inc. plans to cut at least 1,200 staff from departments including human resource, law and finance in September, Gasgoo reported, citing an internal email by Chairman and CEO Li Bin. The move could bring its workforce down to about 7,500 and is part of Nio's attempts to cut costs.
* Walmart and Tesla are in discussions to address all issues surrounding Tesla solar installations at Walmart stores, two days after the U.S. retail giant sued Tesla over fires at several Walmart stores, allegedly sparked by solar panels installed by Tesla's solar unit. In a joint statement, the two companies said they "look forward to addressing all issues and re-energizing Tesla solar installations at Walmart stores, once all parties are certain that all concerns have been addressed."
* Volkswagen said it will invest €250 million to install 4,000 charging stations in its German sites by 2025 and that it already built the first 60 charge points for employees in Braunschweig site, which is now 100% CO2-free.
* Toyota Motor Corp. said 90% of its official 2,700 vehicle fleet for the Tokyo 2020 Olympic and Paralympic Games will be electrified. The Japanese carmaker said that the fleet would include 500 fuel cell EVs and about 850 fully electric vehicles.
* E-scooter company Niu Technologies said adjusted net income for the second quarter came in at 54.1 million yuan, up from a loss of 33.9 million yuan in the prior-year period and beating the S&P Global Market Intelligence mean consensus net income estimate of 29.80 million yuan. Revenues for the period surged 38.1% to 530.5 million yuan, with e-scooter sales climbing 13.8% year over year to 99,365 for the quarter.
* Ford unveiled its driver-assist technology Co-Pilot360, which can help drivers cover blind spots, engage emergency braking services and use pre-collision assistance systems.
POLICY, REGULATIONS AND SAFETY
* French insurance company AXA said its crash tests found that electrified versions of luxury cars and SUVs are 40% more likely to cause accidents as drivers are still getting used to their quicker acceleration, Reuters reported. Overall accident rates for electric vehicles are about the same as for regular cars, according to the report.
* Suzuki Motor Corp.-owned Maruti Suzuki India Ltd. said it will recall 40,618 WagonR vehicles over faulty metal clamps that could compromise fuel hoses.
* Volkswagen is considering investing in Chinese auto suppliers to acquire new technologies, Bloomberg News reported, citing sources. VW could take a stake in battery-maker Guoxuan High-tech Co.Ltd., which saw its shares jump 6% on the Shenzhen stock exchange following the report.
* LG Chem signed a supply deal with Tianqi Lithium for lithium hydroxide, a key component for its electric-vehicle batteries, from 2020 to 2022 with an option to extend the deal, Yonhap News Agency reported, citing sources. Tianqi is an affiliate of China's largest lithium producer and will supply an unspecified amount of the material to LG Chem, an official told Yonhap.
COMMERCIAL VEHICLES
* Daimler AG's truck arm delivered its first heavy-duty Freightliner eCascadia trucks in the U.S., two years ahead of the vehicle's planned 2021 market launch. The electric trucks have a range of 250 miles and are part of the initial order of 30 electric trucks.
MOTORCYCLES
* Wisconsin-based motorcycle maker Harley-Davidson Inc. said it plans to open 25 to 35 new dealerships abroad through 2022 as part of its goal to have international sales make up 50% of annual volume by 2027. In the first half of 2019, Harley-Davidson opened 12 dealerships overseas.
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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 rose 0.50% to 26,179.33, and the Nikkei 225 increased 0.40% to 20,710.91.
In Europe, around midday, the FTSE 100 was up 0.57% to 7,169.09, and the Euronext 100 was up 0.42% to 1,049.99.
On the macro front
The new home sales report and the Baker-Hughes Rig Count report are due out today.
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