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West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.

Dacia Duster to spawn inexpensive Nissan Terrano, will we get it?

When going to overseas auto shows, one can't help but spend an inordinate amount of time eyeballing forbidden automotive fruit. It's often of the seriously rare, criminally powerful and six- or seven-digit variety. But more often than one might think, the genuinely affordable overseas hero makes us swoon, too. So it is with the Dacia/Renault Duster, the cheap-as-chips, hard-wearing utility vehicle. We've often thought that its basic, rugged charms would play well in the US if saddled with a low enough price tag, but we've never seen much of a window for that to actually come true.
But now, Autocar India is reporting that Nissan will flex its alliance with Renault to spin off a Duster of its own, one that exhumes the Terrano nameplate, a moniker once used for overseas versions of the first- and second-generation Pathfinder. The new model will feature unique sheetmetal to give it a familial look, but the interior will be the same, and we expect the same goes for the powertrain, meaning there will be a range of gasoline and diesel four-cylinder engines with both manual and automatic gearboxes and front- or all-wheel drive.
So, does that mean we'll get a Nissan version of the Duster-based Terrano to call our own? Sadly, almost certainly not. Company spokesman Dan Bedore tells Autoblog flatly, "There are no plans to bring this model to the US." Bummer. Even if it isn't ultimately as capable as the larger, long-in-the-tooth Xterra (it's more on par with the now departed Canadian-market X-Trail), we think the Duster's archetypal SUV looks and low cost barrier would win it plenty of fans in our market. Our guess is that redesigning the model to meet US regulations (crash, emissions, lighting, etc.) would be prohibitively expensive, and the Dacia/Renault model is built in some pretty distant facilities - Brazil, India, Romania and Russia among them - making the business case harder still.