UAW Files Anti-Labor Charges in Germany Against Mercedes

The UAW filed charges today against Mercedes-Benz Group AG for violating a new German law on global supply chain practices. The law sets standards for global supply chains that German-based firms must follow. It  prohibits companies from disregarding workers’ rights to form trade unions. Workers at Mercedes-Benz’s assembly and battery plant in Vance, Alabama are organizing to join the UAW and have faced fierce backlash from company management in the UAW’s view. The UAW’s charges are significant as a test of the act, which took effect on 1 January 2023. It applies to German-headquartered firms with more than 1000 employees. The UAW is the first American union to file charges under the act, also known by its German acronym LkSG.

“Mercedes-Benz’s aggressive anti-union campaign against U.S. autoworkers in Alabama is a clear human rights violation under the German Act on Corporate Due Diligence Obligations in Supply Chains. If found guilty, Mercedes-Benz faces billions in penalties, including significant fines and bans on government contracts,” the UAW said. Every Mercedes-Benz plant in the world is unionized, except the company’s two plants in the United States.
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Baltimore Bridge – Japanese, Korean, German Makers at Risk

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The US Army Corps of Engineers is now removing wreckage, and looking at how to best remove a Singapore ship that hit Baltimore’s Francis Scott Key bridge last week to reopen the port to two-way traffic. Several major global automakers, their workers and customers are potentially affected. The Port of Baltimore is the busiest US port for automotive shipments, with more 847,000 cars and light trucks processed in 2023. (AutoInformed on March US Vehicle Sales Up. Record Q1 Consumer Spending!)

“Japan, Korea and Germany are the main origins for vehicles entering the US market, so brands with heavy production concentrations in those locations have the potential to be impacted more significantly, especially those in Europe,” said the GlobalData* consultancy. “It is no surprise that Hyundai and Toyota were the top importers, though General Motors (GM) was the third largest, with vehicles coming from Korea and China. VW Group is among the top 5 importers, while BMW, Mercedes-Benz, Volvo and Stellantis are also exposed to potential disruption.” Continue reading

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Volkswagen Recalls Audi E-Tron models for Battery Fires

Volkswagen Group is recalling various 2022-2024 Audi E-Tron GT and the RS versions because the high-voltage battery may undergo a short circuit without warning and cause a fire. This is the result of the same safety defect that caused the recall of Porsche Taycan hybrids, according to documents released today by the National Highway Traffic Safety Administration. (See AutoInformed on: Porsche Recalls Taycan Hybrids for Battery Fires and Audi E-Tron and Porsche Taycan EVs Recalled for Battery Fires).

The Audi E-Tron GT is a substantially similar vehicle and uses the same HV battery modules from LG energy Solution in Wrocław, Poland. As of 22 March 2024 Audi is not aware of any warranty claims, injuries, crashes or fires due to this safety defect. Continue reading

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Porsche Recalls Taycan Hybrids for Battery Fires

Porsche Cars North America is recalling various Taycan models from the 2020 through the 2023 model years because the high-voltage battery may undergo a short circuit without warning within the battery modules of its first four-door electrified SUV.*

According to the required safety defect filing released by the National Highway Traffic Safety Administration today, the hybrid battery modules were produced by LG energy Solution in Wrocław, Poland. Continue reading

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Heavy-Duty Emissions Standards – Missed Opportunity?

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The U.S. Environmental Protection Agency today announced final national greenhouse gas pollution standards for heavy-duty vehicles covering model years 2027 through 2032 – the ‘Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3.’ Heavy-duty vehicles account for 25% of all greenhouse gas emissions from the transportation sector, which is itself the single largest source of greenhouse gas emissions in the United States. It is not without its critics – not the usual anti-environment Republican party, but more rational, reasonable and thoughtful organizations that AutoInformed covers in its pursuit of intelligent life on earth. (AutoInformed.com on Greenhouse Gas Standards for Heavy-Duty Vehicles Set)

“While many states already have policies ensuring more rapid adoption of electric trucks than these standards envision, the rules will help ramp up adoption nationwide. Residents living near trucking corridors in states that have not acted will particularly benefit from reduced pollution thanks to these standards,” said the American Council for an Energy-Efficient Economy (ACEEE)* Continue reading

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Greenhouse Gas Standards for Heavy-Duty Vehicles Set

The U.S. Environmental Protection Agency today announced final national greenhouse gas pollution standards for heavy-duty vehicles covering model years 2027 through 2032 – the “Greenhouse Gas* Emissions Standards for Heavy-Duty Vehicles – Phase 3.” Heavy-duty vehicles account for 25% of all greenhouse gas emissions from the transportation sector, which is itself the single largest source of greenhouse gas emissions in the United States. Under these new standards, the heavy-duty industry is expected to realize annualized savings of $3.5 billion compared to annualized costs of about $1.1 billion from 2027 through 2055.**

“In finalizing these emissions standards for heavy-duty vehicles like trucks and buses, EPA is significantly cutting pollution from the hardest working vehicles on the road,” said EPA Administrator Michael S. Regan. “Building on our recently finalized rule for light- and medium-duty vehicles, EPA’s strong and durable vehicle standards respond to the urgency of the climate crisis by making deep cuts in emissions from the transportation sector.” Continue reading

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Bidenomics – Fiscal Policy Increased Car Sales During 2020

“In the months following the outbreak of COVID-19, Economic Impact Payments and the Paycheck Protection Program provided fiscal support to households and businesses,” said the Hutchins Center on Fiscal and Monetary Policy at Brookings this week, citing a new research paper on Economic Incentive Programs (EIPs) during the early years of the Biden Administration economic recovery.

Using data on motor vehicle sales and the Consumer Expenditure Survey, Jack Dunbar of the University of Pennsylvania and co-authors* find that these policies boosted new car sales by 12% in 2020, or 1.75 million cars. They also find that the increase in sales caused by the fiscal programs accounted for 70% of the declines in inventory through 2021. The stimulus-induced demand, which coincided with supply constraints that reduced inventories, accounted for 20% of the increase in vehicle prices compared to pre-pandemic pricing. Continue reading

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Auto Industry Continues to Rebound from Pandemic Lows

Cox Automotive* experts on a media call today said U.S. new-vehicle sales in Q1 will increase 5.6% year-over -year (YoY) and reach 3.8 million units. The YoY increase in Q1 sales implies that the new-vehicle market in the U.S. continues to recover slowly from the 10-year low – 13.8 million total sales – recorded in 2022. AutoInformed notes that the Biden Administration recovery continues despite the Federal Reserve’s efforts to harm the economy by keeping interest rates unduly high. Sales volume in March, when announced early in April, is expected to show gains over March 2023 and 2022 as the market continues to expand. The forecast of 1.45 million sales in March would be an increase of 4.5% YoY and close to the 10-year average for the month, historically one of the strongest sales months in a given year. (Read AutoInformed.com on March US Vehicle Sales Up. Record Q1 Consumer Spending!; Cox Automotive – US Vehicle Market Off To Slow Start, But…)

“We have a slowing economy with high interest rates,” said Jonathan Smoke,** Chief Economist at Cox Automotive. “We are seeing the slowing consumer spending. The conundrum is in the details as some metrics like inflation have moved down in the short term, indicating a resilient economy, possibly tipping into reheating. However, other data like retail sales and consumer spending suggest inflation has finally caused consumers to pause on spending. Continue reading

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Suniva, Heliene to Make First U.S. Domestic Content Solar Cells

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Suniva,* the largest and oldest U.S. manufacturer of high-efficiency mono-crystalline silicon solar cells and Heliene,** a supplier of North American-made solar PV modules, have announced a three-year strategic sourcing contract. Under its terms, Heliene will incorporate Suniva’s U.S.-made solar cells into its U.S.-made solar modules, with market availability beginning in mid-2024. Heliene’s modules will be the first crystalline solar modules with a U.S.-made solar cell. This contract is the result of solar project owners’ and developers’ desire for their projects to qualify for the 10% Domestic Content Bonus Investment Tax Credit, which can be obtained by using U.S. made cells based on The U.S. Department of Treasury’s guidance published in May 2023.

“With this strategic partnership Heliene and Suniva are well-positioned to rapidly scale domestic cell and module manufacturing to meet the surging demand for secure and reliable domestically made crystalline PV modules. Currently, all U.S.-made solar crystalline modules use only imported cells. This partnership will directly address that gap in the U.S. solar supply chain and help strengthen manufacturing capacity to meet increased demand for domestic products,” the companies said in a joint released timed to coincide with a visit by Secretary of the Treasury Janet L. Yellen at Suniva yesterday. Continue reading

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Honda Racing has a New UK Formula One Base

Honda Motor said today that a new subsidiary called Honda Racing Corporation UK Ltd. (HRC UK) has been established. This new company has been founded to primarily perform post-race maintenance and preparation tasks on the Honda built F1 power units (PUs), while also operating as a logistics operation for the European region.

“The establishment of HRC UK will further enhance the effectiveness of Honda’s PU operations, in support of the partnership with Aston Martin Aramco Formula One® Team,” Honda said. Continue reading

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Hyundai 2025 Santa Cruz Debuts in New York

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Hyundai today showed a revised 2025 Santa Cruz Sport Adventure Vehicle in a world debut at the New York International Auto Show. Santa Cruz has mildly redesigned exterior and interior surfaces, along with new infotainment and additional advanced driver assistance systems. [* see footnotes] The 2025 Santa Cruz arrives at Hyundai dealerships this summer. (read AutoInformed on: First Look – 2024 Honda Ridgeline Pickup)

“The development goal for freshening Santa Cruz was to give it an even bolder, stronger design. We also wanted Santa Cruz to be more capable, and the available XRT trim delivers with all-terrain tires, front tow hooks and improved off-road capability,” said José Muñoz, president and Global COO of Hyundai Motor Company. “Customers are going to appreciate all the new design details and enhancements inside and out. Santa Cruz is a true sport adventure vehicle.” Continue reading

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PEVE to Become Toyota Battery Company

Toyota Motor (NYSE:TM) in Japan confirmed today that Primearth EV Energy Co., Ltd. (PEVE) will become a wholly-owned subsidiary of Toyota Motor. The subsidiary will use the technology advanced through Toyota’s hybrid vehicle battery business to date. and presumably improve on it. The transaction is scheduled to be approved at PEVE’s Annual General Meeting of Shareholders in late June 2024. It’s the latest in a series of moves by Toyota to become a dominant EV company.

“The new company name embodies our determination to leverage the technology and skills honed since PEVE’s establishment in 1996 to contribute to the competitiveness of Japanese batteries and become a company that provides high-quality and highly safe on-board batteries. In addition to batteries for Hybrid Electric Vehicles (HEVs), we plan to produce batteries for Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). Through our efforts in the production of diverse and next-generation on-board batteries, we hope to create new value and be useful to society,” PEVE said. Continue reading

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Home EV Charging More Satisfying Than Public Charging

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Home charging offers a much more satisfying experience for electric vehicle owners when compared with public charging, according to the J.D. Power 2024 U.S. Electric Vehicle Experience (EVX) Home Charging StudySM, released today. Thus the EV experience is similar to bathroom satisfaction in AutoInformed’s view.

“Home charging is the most satisfying aspect of owning an EV [footnote 1], which is why all parties in the EV ecosystem need to take the necessary steps to ensure that residential charging is available for current and potential EV owners alike,” said Brent Gruber, executive director of the EV practice at J.D. Power. Incentives and programs are also available to offset the cost of charger installations, upgrades and management of ongoing charging costs, but too few EV shoppers are taking advantage of these offerings. The industry needs to do a much better job with consumer education and awareness, and dealers are certainly in the best position to fill that role at a local level.” Continue reading

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Workers File Union Busting Charges Against Mercedes-Benz

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Workers at Mercedes-Benz’s largest U.S. plant have filed multiple federal charges with the National Labor Relations Board over allegations that the German company is using aggressive and illegal union-busting. tactics Workers are requesting an injunction to put an end to the company’s retaliation against workers In February, Mercedes workers announced that a majority of their coworkers at the Mercedes plant in Vance had signed union authorization cards. Every Mercedes plant in the world is unionized—except the company’s two plants in the United States. The powerful German automotive trade union IG Metall has thus far not publicly commented.

“Since we started organizing, I put in my FMLA leave with management multiple times and every time they said they lost the paperwork,” said Lakeisha Carter, a Mercedes employee in the battery plant. “I’m an outspoken union supporter and Mercedes illegally disciplined me for medical absences that were clearly covered by my FMLA requests. It’s just plain retaliation from Mercedes, but I’m not going to be intimidated.” Continue reading

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EPA Issues PFAS Test Order with Immediate Effect

The U.S. Environmental Protection Agency today has issued its fourth Toxic Substances Control Act (TSCA) test order requiring testing on per- and poly-fluoroalkyl substances (PFAS) under EPA’s National PFAS Testing Strategy. The order requires the 3M Company* and Wacker Chemical Corporation to conduct and submit testing on the physical-chemical properties of NMeFOSE,** Chemical Abstract Service Reference Number: 24448-09-7, including testing on the health effects following its inhalation.

“Communities across the country need information about whether or not PFAS are in our air and water, and any health risks caused by these chemicals,” said Assistant Administrator for the Office of Chemical Safety and Pollution Prevention Michal Freedhoff. “This year, we’re continuing to use test orders to gather data about the health effects of PFAS so that we can take any necessary action to protect people and the environment.” Continue reading

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