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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

A look inside Honda’s “Safety For Everyone” research and development operation

RAYMOND, Ohio—As part of its long-running “Safety for Everyone” campaign, Honda has established the audacious goal of what it calls a “zero-collision society.” But rather than making big claims about developing a fully-autonomous vehicle, which Honda hasnÂ’t done, the company is trying to chip away at the more than 37,000 vehicle-related fatalities that occurred in the U.S. in 2017 with a multi-pronged approach. Here in central Ohio, engineers are working with state-of-the-art facilities and equipment to boost active safety systems like its HondaSensing suite of safety technology with old fashioned passive systems like structural steel frames or new airbag designs that protect passengers in a crash. Honda provided members of the press with a rare tour inside its Honda R&D Americas headquarters this week. Honda officials say that increasingly, safety — and specifically, third-party ratings from the likes of the National Highway Safety Traffic Administration and the Insurance Institute for Highway Safety — figure into the top three factors consumers weigh when purchasing a vehicle. Honda and Acura have 10, 2019 models that have earned IIHSÂ’s Top Safety Pick or Top Safety Pick+ ratings, and all 15, 2019 model-year Honda and Acura vehicles that have undergone NHTSA crash testing have earned a 5-star overall rating. And Honda prides itself on its growing list of safety firsts, including the first upward-deploying front passenger airbag, in 1990 in the Acura Legend; first omni-directional crash-test facility, in 2000; and the first autonomous braking system, in the 2006 Acura RL. It hopes its new three-chamber airbag goes industry-wide and joins that list. “ItÂ’s part of our companyÂ’s culture,” said Art St. Cyr, business head unit and vice president of auto operations for American Honda Motor Co. “We have a philosophy at Honda that we want to be a company that society wants to exist. That means we have to protect our customers. ThatÂ’s part of the whole mantra of doing this.” Opened in 1984, the 1.6 million square-foot Honda R&D Americas facility, located in the countryside about 45 miles northwest of Columbus, employs around 1,600 people and is HondaÂ’s largest research-and-development facility outside of Japan. Its Advanced Safety Research facility opened in 2003.

J.D. Power study sees new car dependability problems increase for first time since 1998

For the first time since 1998, J.D. Power and Associates says its data shows that the average number of problems per 100 cars has increased. The finding is the result of the firm's much-touted annual Vehicle Dependability Study, which charts incidents of problems in new vehicle purchases over three years from 41,000 respondents.
Looking at first-owner cars from the 2011 model year, the study found an average of 133 problems per 100 cars (PP100, for short), up 6 percent from 126 PP100 in last year's study, which covered 2010 model-year vehicles. Disturbingly, the bulk of the increase is being attributed to engine and transmission problems, with a 6 PP100 boost.
Interestingly, JDP notes that "the decline in quality is particularly acute for vehicles with four-cylinder engines, where problem levels increase by nearly 10 PP100." Its findings also noticed that large diesel engines also tended to be more problematic than most five- and six-cylinder engines.