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How tariffs in China could cause a meltdown in the American South

While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.

2015 will be the biggest year ever for cars at CES

Like the SEMA Show, major automakers are paying increasing attention to the CES, with 2015 expected to be one of the most auto focused yet. Ford, Volkswagen, Toyota, General Motors, Hyundai, Mazda, Audi, BMW and Fiat Chrysler Automobiles will all be in attendance when CES 2015 kicks off next week, taking up a record-breaking 165,000 square feet of space at the Las Vegas Convention Center. "We've come a long way from a single car on a carpet," Ford's Alan Hall told Bloomberg. Unlike SEMA, or a more traditional auto show, like the upcoming festivities in Detroit, CES doesn't necessarily focus on entire cars or the way they perform, but on the way our technology will interact with vehicles, and in how those vehicles will deliver information to drivers. "CES has become a major launch point for a lot of the big automakers," IHS tech analyst Mark Boyadjis told Bloomberg. "CES is a way for them to get on a global stage for technology." As for what kind of wares automakers will trot out in Las Vegas, we already know that BMW will show off an autonomous i3 electric car that can navigate its way through a multistory car park and can be hailed via a smartwatch app. According to Bloomberg, Hyundai will show off its own smartwatch app for the Genesis sedan, while Audi and Mercedes-Benz will show off autonomous vehicles next week. Automakers won't be the only companies looking to capitalize on CES. Tech firms, like chipmaker Nvidia, are becoming increasingly involved in the automotive game and will be in town showing their wares off to OEMs. "Two years ago, our booth would have been filled with PCs and people playing video games," Danny Shapiro, Nvidia's senior director for automotive business, told Bloomberg. "This year we made a strategic decision to shift the focus of the booth on automotive and de-prioritize some of the other things." Needless to say, you can expect to see a lot of news out of Las Vegas come next week. Stay tuned. News Source: BloombergImage Credit: Julie Jacobson / AP CES Audi BMW Chrysler Fiat Ford GM Hyundai Mazda Toyota Volkswagen Technology CES 2015

Ford hit by lawsuit over hybrid technology from, surprise, Paice

The name Paice will be familiar to anyone who's been deep in the weeds of hybrid history, but it will probably be new to anyone who simply drives one. The key part of the story is something called "HyperDrive," which is the name given to a gas-electric powertrain technology developed by Alex Severinsky and patented in 1994. HyperDrive is a way to get the energy from both the electric battery and the engine into the wheels, seamlessly. The patents are held by Paice, which is an unusual company (its HQ is a house in a retirement community, right by a golf course) that does nothing but litigate. You can read more on Paice here. The latest case targets Ford and the hybrid and plug-in versions of the C-Max and Fusion models as well as the Lincoln MKZ. Paice claims that it held "over 100 meetings and interactions with Ford" between 1999 and 2004, and gave the automaker, "detailed information about the hybrid technology that Paice had developed." The suit also alleges that: For more than five years, Paice answered inquiries from multiple departments within Ford, believing in good faith that a business relationship between Paice and Ford would be mutually beneficial and advance the acceptance of Paice's technology. ... After years of Ford learning the details of Paice's hybrid drivetrain technology, Ford elected not to enter into a business relationship with Paice. The suit is officially known as, "Paice LLC v. The Ford Motor Co., 14-492, U.S. District Court for the District of Maryland (Baltimore)" and you can read the PDF here. Ford told AutoblogGreen, "we do not comment on pending litigation." Toyota settled a similar patent-infringement case in 2010 and now pays Paice almost $100 for every hybrid it sells. Paice is still in court against Hyundai and Kia. In 2010, Ford also settled with Paice but they agreed to keep negotiating on other issues until at least January 1, 2014. With that date now in the past, it didn't take long for Paice to file papers to get the two sides back before a judge. That's where it appears to be most comfortable.