TOP NEWS
* Continental AG said it is considering a full spinout and subsequent listing of its powertrain division as an alternative to its current plan of a partial listing in 2020. The German automotive parts producer said a spinoff will give the company some breathing room given the rapid shift toward powertrain electrification and the unforeseeable conditions surrounding a potential partial IPO next year.
* Arnaud Deboeuf, the seniormost executive in Renault SA's struggling alliance with Nissan Motor Co. Ltd., is leaving the French carmaker to join its rival Peugeot SA following a falling out with CEO Thierry Bolloré, the Financial Times (London) reported, citing an email by Deboeuf to employees. "Thierry Bolloré told me that no one wanted to work with me any more and that was why I had to leave Renault and that I could not go to work at Nissan either," Deboeuf reportedly wrote in the email.
CARMAKERS
* General Motors Co. laid off about 350 of its workers in Thailand, Reuters reported, citing a representative from the Labor Relations Group for Eastern Thailand. The carmaker reportedly did not confirm the number of jobs cut but said that the move was "necessary to right-size" its operations.
* Hyundai Motor Co.'s unionized workers voted to accept a wage deal offering the lowest bonus in nearly 20 years amid economic and political uncertainties and an automotive industry struggling with production cuts and job losses, Reuters reported, citing labor officials. Around 56% of the carmaker's unionized staff approved the deal, allowing Hyundai to avoid a walkout by workers for the first time in eight years, the report said.
* Chinese carmaker Chongqing Changan Automobile Co. Ltd. swung to a net loss of 2.24 billion yuan in the first half from a profit of 1.61 billion yuan a year ago. The carmaker booked a loss per share of 47 fen, missing S&P Global Market Intelligence mean consensus profit per share estimate of 56 fen. Revenue dropped 16.18% year over year to 29.88 billion yuan.
* U.S. President Donald Trump called General Motors "one of the smallest auto manufacturers" in Detroit in response to data showing that General Motors had fewer employees represented by the United Auto Workers than rivals Ford Motor Co. and Fiat Chrysler Automobiles NV, The Detroit News reported.
* Renault-owned Russian carmaker OAO Avtovaz named Mikhail Ryabov its executive vice president for vehicle production and supply chain management. Ryabov replaces Ales Bratoz, who will join Renault.
ELECTRIC AND AUTONOMOUS VEHICLES
* Many Tesla Inc. owners in the U.S. were locked out of their cars after the smartphone-connected apps that can remotely open vehicle doors crashed. The electric-carmaker said it is working to "restore functionality ASAP," though the offline key card and fob are still working, a report by The Next Web said.
* Chinese real estate giant Evergrande said its new energy vehicle arm acquired intellectual property from German auto suppliers Benteler Engineering Services GmbH and FEV Group that will shorten research and development time to three years instead of five, Gasgoo reported. Evergrande New Energy Automotive Group will use the chassis architecture intellectual property to build purely electric vehicles, the report added.
* Volkswagen said it took a minority stake in Luxembourg-based technology firm SeeReal Technologies SA to collaborate on "future-oriented" display technologies for cars. The German carmaker said it is investing in SeeReal, which specializes in the development of augmented reality and holographic technologies, to incorporate these solutions into its future vehicles.
MOBILITY SERVICES
* Indian carmaker Mahindra & Mahindra Ltd. agreed to acquire up to 55% of local ride-hailing company Meru Travel Solutions Pvt. Ltd. for a cash consideration of up to about 2.02 billion Indian rupees, according to a stock exchange filing. The companies entered into a share subscription and shareholder agreement that would see Mahindra subscribing to Meru shares in tranches.
POLICY, REGULATIONS AND SAFETY
* Volkswagen AG agreed to pay $96.5 million to settle claims that some of its cars sold in the U.S. overstated their fuel economy ratings. According to the U.S. Environmental Protection Agency, which was investigating the company in partnership with the California Air Resources Board, the auto software used in 98,000 cars — which included Audi, Bentley, Porsche and Volkswagen vehicles — overstated real-world performance. Meanwhile, the EPA said Volkswagen could retain access to U.S. public sector contracts in exchange for allowing the regulator to install another monitor for up to three years at its German headquarters, Reuters reported.
* Chinese carmaker Geely Automobile Holdings Ltd. sued electric-vehicle maker WM Motor Technology Co. Ltd. for allegedly stealing trade secrets and seeking 2.1 billion yuan in compensation, KrAsia reported, citing the Shanghai Higher People's Court. The hearing is set to begin Sept. 17.
* Ford Motor is recalling 665,154 Ford and Lincoln vehicles in North America under four separate safety recalls. The first recall affects 558,335 vehicles, including the latest F-150, Explorer and Lincoln Aviator vehicles, that potentially lack seat restraints in case of a crash. The second recall affects 98,780 vehicles, including Ford Fusion and Lincoln MKZ, that are prone to losing their power-steering assist due to corrosion.
* Volkswagen and its Chinese joint venture with China's Faw Car Co. Ltd. is recalling 130,462 Audi Q3 vehicles in China due to an incorrect software configuration that could be a potential safety risk, Xinhua News Agency reported, citing a statement to the country's State Administration for Market Regulation.
* Tata Motors Ltd.-owned Jaguar Land Rover will recall 14,277 vehicles in the U.S. over faulty backup camera systems that could cause a crash.
* French auto parts maker Faurecia SE named Mathias Miedreich its executive vice president for clean mobility. Miedreich succeeds Christophe Schmitt, who will become Faurecia's executive vice president for operations.
* Australian auto-parts retailer RPM Automotive Group Ltd. agreed to acquire Hallam, Victoria-based tire retailer Competition Tyres & More for A$240,000. RPM Automotive said it will fund the transaction with A$200,000 in cash and A$40,000 in equity at 25 Australian cents per share.
* Volkswagen said it will expand its after-sales businesses, which include maintenance, fleet management, digital services and spare parts, to cater to the growing number of electric and connected vehicles.
* France saw new car sales drop 14% year over year in August to 129,259 vehicles, Automotive News reported, citing data from industry body CCFA.
* Hyundai Motor Co. sold 363,045 vehicles worldwide in August, down 6.2% year over year. The South Korean carmaker said domestic sales dropped 9.7% to 52,897 automobiles while international sales fell 5.5% to 310,148 vehicles. Hyundai's sister brand Kia Motors Corp. sold 228,871 automobiles worldwide in August, up 2.1% year over year. Kia's domestic sales fell 1.9% year over year to 43,362 vehicles while international sales grew 3% to 185,509 vehicles.
* Sales data from Indian carmakers shows that the country's passenger vehicle sales fell 34% year over year in August, the 10th month of consecutive decline, Reuters reported.
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The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng fell 0.39% to 25,527.85, and the Nikkei 225 rose 0.02% to 20,625.16.
In Europe, around midday, the FTSE 100 dropped 0.30% to 7,259.44, and the Euronext 100 was down 0.47% to 1,061.71.
On the macro front
The Purchasing Managers' manufacturing index, the Institute For Supply Management's manufacturing index and the construction spending report are due out today.
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