FYI: Get your daily rundown on the top automotive headlines from around the world with Morning Shift.
Today’s Top Stories: September 30, 2024
Good morning! It’s Monday, September 30, 2024. This is Morning Shift, your daily guide to the leading automotive headlines from across the globe, centralized in one place. Here are the noteworthy stories you should be aware of:
China’s Car Ban Could Spike Prices and Reduce Sales
In a push to mitigate national security threats, U.S. lawmakers are crafting legislation to restrict access to electric vehicles (EVs) from China. This proposed ban could significantly disrupt the American automotive industry, reducing car sales and inflating prices.
Experts predict that a stringent ban on Chinese-manufactured vehicles and parts could shrink domestic car sales by up to 25,000 units annually, according to Reuters. Proposed restrictions aim to curtail the import of connected vehicle parts, potentially banning $1.5 billion to $2.3 billion worth of Chinese and Russian vehicle inputs for cars sold in the U.S. Such measures are seen as essential to protect American data and prevent "remote control of connected vehicles."
The restrictions are set to begin with the 2027 model year, initially targeting Chinese-made software in cars, with a broader hardware crackdown following in 2030.
Volvo Pushes for Gasoline Car Ban Over Chinese EV Restrictions
Volvo has voiced its support for a gasoline car ban instead of the proposed restrictions on Chinese-made EVs. The Swedish automaker joins fifty other international brands urging the European Union to enforce a ban on new internal combustion engine (ICE) vehicles by 2035.
Volvo CEO Jim Rowan emphasized that electrification is the industry’s most significant step to cut carbon emissions and maintain Europe’s global competitiveness. This proposed legislation faces backlash but proponents argue it will help the EU compete with China in the EV market.
Aston Martin Lowers 2024 Sales Target by 1,000 Units
Aston Martin has reduced its sales targets for 2024 due to supply chain disruptions and diminished demand in China. Despite releasing several new models, the British luxury car manufacturer anticipates selling 1,000 fewer cars than previously expected.
The company foresees adjusted earnings before interest, taxes, and depreciation to fall slightly below last year’s figures and does not anticipate positive free cash flow in the latter half of the year. Supply chain delays and weak Chinese demand have significantly impacted their production timelines.
Toyota Recalls 42,000 Vehicles for Brake Defect
In recent recall news, Toyota has announced a recall of 42,000 vehicles due to a brake defect affecting some 2023-2024 Corolla Cross Hybrid models. A software glitch in the electronic control unit may extend stopping distances, increasing the collision risk.
Owners will be notified starting November 5, 2024, with affected vehicles receiving a free software update to rectify the issue. Concerned owners can check if their vehicle is included in the recall using the National Highway Traffic Safety Administration’s (NHTSA) recall search tool.
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Donald Smith, Editor of Automotive.fyi
