TOP NEWS
* Carmakers are cutting car prices in China following the country's move to reduce auto import duties to 15%, Reuters reported. Tesla Inc. reportedly will cut prices of its Model S and Model X cars in China by a little over 6%, effective immediately. Toyota Motor Corp. will also decrease prices of its Lexus luxury-branded models by May-end, The Mainichi reported, citing a Toyota representative. Other auto exporters to China like Bayerische Motoren Werke AG are also likely to follow suit, Reuters added.
* Fiat Chrysler Automobiles NV started a review of its media agency services in the U.S., managed by Interpublic Group of Cos. Inc.'s UM unit, AdAge reported. A company spokeswoman reportedly confirmed that it has requested quotes from UM "as part of a bid process in the ordinary course of business." According to FCA's annual report, it spent €7.4 billion in 2017 globally as selling, general and other costs, about 45% of which went into advertising, amounted to €3.32 billion.
CARMAKERS
* Ford Motor Co. invested up to €200 million at its Craiova plant in Romania to make a second model at the facility, with the model name and production date to be announced closer to launch. The investment into the plant, which makes Ford's EcoSport small SUV and the Detroit carmaker's 1.0 liter EcoBoost engine, will be supported by about 1,500 basic and skilled workers that Ford said it will hire to bring the total workforce strength at Craiova to about 5,900 employees.
* France's Renault SA and Japan's Nissan Motor Co. Ltd. are unlikely to announce a merger before 2020, Reuters reported, citing the Japanese automaker's CEO Charles Ghosn. Ghosn reportedly added that talks are ongoing to strengthen the alliance, which also includes Mitsubishi Motors Corp., before he steps down from his position.
* Volvo Cars' U.K. unit launched a limited-time test-driving feature for its Volvo V40 hatchback across London, Birmingham, Manchester and Edinburgh in collaboration with Amazon.com Inc.'s Prime Now delivery service. Users can enter their preferred postcode on the Amazon Prime Now Test Drive web page and request a 45-minute test-drive, to be available on select weekends in June and July, the Geely Automobile Holdings Ltd.-owned company said.
ELECTRIC AND AUTONOMOUS VEHICLES
* Honda Motor Co. Ltd. inked a deal with Chinese automotive battery maker Contemporary Amperex Technology Co. Ltd., or CATL, to make an affordable electric car geared toward the Chinese market by the first half of 2020, the Nikkei Asian Review reported. The EV, slated to be priced at a little above ¥2 million, reportedly will be based on the Japanese carmaker's Fit mini vehicle and be able to travel 300 kilometers on a single charge. Honda, which expects to sell over 100,000 of the cars annually, also will work with CATL on electric vehicle performance testing, production technology, and battery specifications, the Nikkei added.
* U.S. consumer-focused magazine Consumer Reports said it will retest Tesla's Model 3 after the company's CEO, Elon Musk, tweeted that the braking issue pointed out on the sedan can be fixed with a firmware update. The magazine will recommend the model if it finds "braking distances along the lines of what they [Tesla] are talking about," Jake Fisher, the magazine's director of automotive testing, said.
* Tesla roped in Snap Inc.'s Stuart Bowers, who served as the Snapchat owner's vice president of monetization engineering, as its vice president of engineering, financial news site Cheddar reported, citing people familiar with the matter. A Tesla spokesperson told Cheddar that Bowers will work on a number of projects like the Autopilot driver-assistance software.
* Two U.S. consumer advocacy groups, The Center for Auto Safety and Consumer Watchdog, wrote a letter to the Federal Trade Commission for a probe into Tesla Inc.'s "dangerously misleading and deceptive advertising and marketing practices" of its Autopilot driver-assistance feature. The letter alleged that the company has "repeatedly exaggerated the autonomous capabilities of its Autopilot technology, boosting sales at the expense of consumer safety."
REGULATIONS AND SAFETY
* The U.S. Treasury further extended the sanctions deadline to Oct. 23 from June 5 for investors to exit their operations and contracts with vehicle maker GAZ Group, owned by Russian billionaire Oleg Deripaska, Reuters reported. GAZ declined to comment to Reuters.
* Germany's second-largest city, Hamburg, will ban diesel models that do not meet the latest Euro-6 emissions standards from two major roads in the city beginning May 31, Reuters reported. The move comes after a German court ruled that cities are allowed to ban polluting vehicles with immediate effect.
AUTO PARTS AND EQUIPMENT
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* Japanese auto parts maker Toyoda Gosei Co. Ltd. will seek to develop new products in the field of autonomous driving and automobile electrification and expand its airbag and other products businesses as part of its 2025 business plan. The company forecast sales of over ¥1 trillion and an operating profit margin of 8% in 2025.
* French tire maker Michelin appointed Jean-Dominique Senard as CEO. Senard, who also is a general managing partner at the company, will remain in his new role until the conclusion of Michelin's annual shareholder meeting to approve the 2018 financial statements.
AUTOMOTIVE RETAIL
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The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Nikkei 225 dropped 1.18% to 22,689.74.
In Europe, around midday, the FTSE 100 slid 0.73% to 7,819.62, and the Euronext 100 shed 1.01% to 1,076.46.
On the macro front
Reports due out today are bank reserve settlement, MBA mortgage applications, PMI composite flash, new home sales and EIA petroleum status.
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