industry

No-deal Brexit and Covid threaten ‘double whammy’ for car industry

UK and European car makers have warned a no-deal Brexit could put a £100bn dent in the region’s car industry in the next five years, adding to heavy losses already caused by Covid-19.

A letter signed by 23 trade groups across Europe urges the government to make a deal rather than default to World Trade Organization (WTO) rules.

It says without one there will be a “catastrophic” rise in tariffs.

A government spokesperson said it is “working hard” to reach an agreement.

The industry has already taken a £90bn hit this year due to Covid-19, the SMMT added.

The UK left the European Union on 31 January but will enjoy tariff-free trade with the bloc until the end of the year as part of the transition period.

But fears are growing that both sides will be unable to strike a longer-term trade deal by then.

The European Automobile Manufacturers Association

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Automotive industry rebound falters in August as sales slip

The U.S. auto industry took yet another tumble in August. Those manufacturers who still announce their sales figures at the end of each month reported declines pretty much across the board. Per industry analysts, transaction prices slipped slightly in August compared to July as well, despite a nearly 4-percent increase over last year’s average. There were two fewer selling days in August this year, contributing to reported declines. 

Toyota on Tuesday reported a 23% drop in U.S. new vehicle sales in August versus the same month in 2019, as a two-month industry-wide shutdown of auto production in the spring to halt the spread of COVID-19, as well as an uncertain economic recovery, weighed on sales. This was Toyota’s fifth straight month of U.S. sales declines.

South Korean automaker Hyundai said its U.S. sales fell 8.4% in August, largely due to a decline in fleet sales to rental car companies, government

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How Tesla defined a new era for the global auto industry

Tesla’s rapid rise to become the world’s most valuable carmaker could mark the start of a new era for the global auto industry, defined by a Silicon Valley approach to software that is overtaking old-school manufacturing know-how.

Tesla’s ascent took many investors by surprise. But executives at Daimler AG, the parent company of Mercedes-Benz, had a close-up view starting in 2009 of how Tesla and its chief executive Elon Musk were taking a new approach to building vehicles that challenged the established system.

Daimler, which bears the name of the man who invented the modern car 134 years ago, bought a nearly 10% Tesla stake in May 2009 in a deal which provided a $50 million lifeline for the struggling start-up.  

That investment gave Mercedes engineers an inside view of how Musk was willing to launch technology that wasn’t perfect, and then repeatedly upgrade it, using smartphone-style over-the-air updates,

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Chemical Specialty Industry Outlook Bleak on Muted Demand

The Zacks Chemicals Specialty industry consists of manufacturers of specialty chemical products for a host of end-use markets such as textile, paper, automotive, electronics, personal care, energy, construction and agriculture. These chemicals (including catalysts, surfactants, speciality polymers, coating additives, pesticides and oilfield chemicals) are used based on their performance and have a specific purpose. They have applications in the manufacturing process of a vast range of products, including paints and coatings, cosmetics, petroleum products, inks and plastics.

Some of the prominent industry players are Celanese Corporation (CE), W. R. Grace & Co. (GRA) and Ingevity Corporation (NGVT).

Here are the industry’s three major themes:

  • Companies in the chemical specialty space are facing the heat from a significant downturn in demand across certain major industries including construction and automotive in the wake of the coronavirus pandemic. The contagion brought industrial activities to a grinding halt globally, sapping demand for specialty
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