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Mazda Motor Corp (7261.T), which ships cars to the United States from Mexico and Japan, called the deal a “big step forward”. Nissan Motor Corp (7201.T), which makes the cars it sells in the United States locally as well as in Mexico, Japan and other countries, said it was “encouraged” by the agreement. Toyota Motor Corp (7203.T), Japan’s biggest automaker, said it was “pleased” that a basic deal was reached. Other automakers were not immediately available for comment.
While the deal has removed the risk that the disintegration of the pact would have posed to automakers, bigger risks loom large for Japanese firms as a chunk of the roughly 7 million cars they sold in the U.S, last year were shipped from Japan, and a trade etsy cufflinks deal between Washington and Tokyo has yet to be agreed, The United States and Japan last week agreed to begin fresh trade talks, with U.S, President Donald Trump seeking to address Japan’s $69 billion trade surplus, of which nearly two-thirds comes from auto exports..
Washington is also investigating the possibility of slapping 25 percent tariffs on auto imports on national security grounds, although it has agreed with Japan to put any new tariffs on hold during the talks. Analysts say the United States may take a tougher stance on auto imports from Japan than from its neighbors. “If Japan requests an exemption from the 25 percent tariffs under consideration, Washington could propose a more strict cap on imports than it agreed to with Mexico and Canada,” said Koji Endo, senior analyst at SBI Securities.
“That would be a risk.”, This could be a big blow to Japan, as the United States is a key source of revenue for Japanese automakers including Toyota, Nissan and Honda Motor Co (7267.T), The U.S, market accounts for a quarter or more of their annual global vehicle sales, and of their total U.S, sales, and depending on the automaker, as much as half of those was shipped from Japan last year, A side letter to the United States-Mexico-Canada Agreement (USMCA), as the new etsy cufflinks deal agreed on Sunday is called, states that Mexico and Canada would each get a tariff-free passenger vehicle quota of 2.6 million annual export units, well above their current export levels..
FRANKFURT (Reuters) - BMW (BMWG.DE) rivals and ride-hailing companies are considering joining its consortium for developing self-driving cars as auto industry profits come under increasing pressure, board member Klaus Froehlich said on Tuesday. Carmakers and ride-hailing companies have sought to build self-driving cars as a way to enter the business of smartphone-hailed robotaxis. However, they are entering a crowded field where the likes of Apple (AAPL.O) and Alphabet Inc (GOOGL.O) have been pouring billions of dollars into cars that can drive themselves.
“Unfortunately, everybody thought they would be the winner and would have an enormous ride-sharing business,” BMW board member Klaus Froehlich told Reuters on the sidelines of the Paris Motor Show, BMW, however, wanted to spread the cost of investment and started a etsy cufflinks consortium that now includes Mobileye, Magna (MG.TO), Fiat Chrysler (FCHA.MI) and auto suppliers Delphi Automotive (DLPH.N) and Continental AG (CONG.DE), The technology is proving complex and the returns on investment are taking longer to materialize, causing investors to scrutinize whether go-it-alone strategies make sense..
(Reuters) - Britain has begun exclusive talks with planemaker Boeing Co (BA.N) for a multi-billion pound contract to replace its fleet of ageing surveillance aircraft for the Royal Air Force, the Financial Times reported on Tuesday. The decision to move ahead with one potential supplier, expected to be confirmed ahead of a Nato conference this week, will likely spark a backlash from parts of the defence establishment as it has been done without a competitive process, according to the report. Boeing did not immediately respond to a Reuters request for comment.
NEW YORK (Reuters) - Walmart Inc (WMT.N) on Tuesday said it will acquire Eloquii, a fashion startup that sells plus-sized clothing, for an undisclosed amount as it continues to look for ways to appeal to younger shoppers and differentiate from rival Amazon.com Inc (AMZN.O), Eloquii, a four-year-old startup, sells apparel starting at size 14 etsy cufflinks through its own website and through five of its own stores, Walmart, the world’s largest brick-and-mortar retailer, said Eloquii has seen its revenue grow by three times since 2015, without giving more details..