Good morning! It’s Monday, September 30, 2024, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Chinese Car Ban Could Cut Car Sales And Raise Prices
In some circles, Chinese electric cars are seen as the biggest threat to America as they’ll spy on us, steal our data and bring the American auto industry to ruin. Because of this, lawmakers across the country are working on legislation that would limit the availability of electric vehicles from China here in the Land Of The Free, but those very laws could actually do just as much damage to the American automotive world.
Experts now predict that a strict ban on import and sale of Chinese cars and components could dramatically hit car sales across the country and could raise prices for some models, reports Reuters. Proposed tightening of restrictions on the import of connected car components and full vehicles from China could reportedly cut car sales across the U.S. by up to 25,000 vehicles annually:
U.S. automakers and others selling in the United States “may be less competitive in the global market because of the relatively higher prices of their vehicles,” the department said. It estimated between 1,680 and 25,841 fewer vehicles would be sold annually because of the rule.
Acting to reduce national security vulnerabilities that could be exploited by China, the department estimated the rule could bar $1.5 billion to $2.3 billion in vehicle inputs from Chinese or Russian companies for vehicles sold in the United States.
It said previously that the proposal would amount to an effective ban on Chinese vehicles since all would have internet-connected vehicle software and hardware, but it has proposed a process for companies to seek exemptions.
Current proposals to restrict the availability of Chinese cars and parts are set to come into force for the 2027 model years. Initially, the ban would include a restriction on software from China, but this would be followed by a clampdown on Chinese hardware from 2030.
The rules are being drawn up by the Biden administration in an attempt to reduce “the chance of a catastrophic attack,” reports Reuters. Without Chinese software and hardware in our cars, the American people would reportedly be safe from data thefts and “remote manipulation of connected vehicles,” the site explains.
2nd Gear: Volvo Joins Call For Gas Car Ban
While lawmakers in America are out here calling for a ban on Chinese EVs, Volvo has joined the ranks of automakers pressuring governments to outlaw gas-powered cars instead. The Swedish carmaker joined a group of 50 brands that are pressuring the European Union to go ahead with its 2035 ban on new gas-powered cars amid mounting debate over the law’s future.
As it stands, Europe is set to outlaw the sale of new gas-powered cars from 2035, however the move is increasingly hitting resistance from some countries across the bloc. Now, Volvo and a group of 50 international companies have signaled their support for a ban on new ICE cars going forward, reports Bloomberg:
Fifty companies called on the European Union to keep the policy, according to a declaration shared with Bloomberg News. They argued that the sector needs certainty in order to invest and support to meet EU goals, but no backtracking.
“Electrification is the single biggest action our industry can take to cut its carbon footprint,” said Jim Rowan, Volvo’s chief executive officer. “The 2035 target is crucial to align all stakeholders on this journey and ensure European competitiveness.”
Rivian Automotive Inc. and Uber Technologies Inc., as well as IKEA of Sweden AB and energy company Iberdrola SA, were among the companies pressing Brussels to stay the course.
The EU’s proposed ban on gas-powered cars has faced backlash in recent months, especially after the move was blamed on Volkswagen’s reported plans to shut factories across the nation as part of its pivot to electrification. However, the ban’s proponents argue that it will help the bloc compete with China and its growing dominance of the EV space.
3rd Gear: Aston Martin Slashes 1,000 Cars From 2024 Targets
Aston Martin doesn’t need a sales ban to hit its fortunes, as the British automaker has just slashed its targets for the year as it struggles with demand and supply chain issues, reports Automotive News.
Despite rolling out a raft of new models in recent months, the British supercar maker is struggling with demand and has cut its output for the year by around 1,000 cars, reports the site. The cut in sales targets comes as Aston faces supply chain disruption and weak demand in China:
Aston Martin is lowering its guidance for the year, with the automaker blaming supply chain disruption and weak demand in China. The company predicts annual sales will now be about 1,000 vehicles lower than before, it said on Sept. 30.
Adjusted earnings before interest, tax and amortization will be slightly below last year’s level, and the automaker no longer expects positive free cash flow during the second part of the year.
Aston Martin is also struggling with components arriving late, meaning vehicles were taking longer to complete in recent months.
The British luxury marque isn’t the only company struggling to hit targets set at the start of this year. Toyota has slashed its sales goals for its electric cars already this year, and VW has also lowered its outlook for the year. BMW and Mercedes have also blamed lukewarm demand in China for a cut to their own targets for 2024.
Aston Martin has gone to great lengths to refresh its lineup in recent months and stand out against its rivals in the upper echelons of the automotive world. Its new flagship Vanquish is set to go on sale before the end of this year, and the updated Vantage has also got its sights set squarely on the sales success of cars like the Porsche 911.
4th Gear: Toyota Recalls 42,000 Cars Over Brake Faults
A new week means a new recall has been announced by one of the world’s leading automakers. This time, instead of coming from the likes of Tesla and Ford, which currently top the list of recalls for 2024, it’s Toyota that has been forced to issue a fix for its cars.
The Japanese automaker announced a recall of 42,000 cars over the possibility that the vehicles could be fitted with faulty brakes, reports Reuters. The recall impacts certain Corolla Cross Hybrid models assembled between 2023 and 2024:
Toyota Motor Corp is recalling over 42,000 U.S. vehicles over loss of power brake assist that can extend the distance required to stop, the National Highway Traffic Safety Administration said on Friday.
The recall affects certain 2023-2024 Corolla Cross Hybrid vehicles. The agency flagged a software error in the electronic control unit that manages the vehicle during skidding, which could result in loss of braking assistance when turning a corner.
A loss of power brake assist can extend the distance required for a vehicle to stop, which increases the risk of a crash.
To fix the issue with impacted Corolla Cross models, Toyota will reportedly update the skid control software. The remedy will be free of charge and owners will be notified if their car needs the fix from November 5, 2024.
If you are worried that your car might be affected by a recall, there are a few easy ways to check if it’s the case. First up, the NHTSA has a super handy app that you can use to see if your vehicle is impacted by a recall, or you can head to the regulator’s website and plug your VIN into its recall search tool.