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At meeting with automakers, Trump launches new attack on NAFTA

WASHINGTON — Ten American and foreign automakers went to the White House on Friday to push for a weakening of U.S. fuel efficiency standards through 2025, while President Donald Trump used the occasion to launch a fresh attack on the North American Free Trade Agreement that has benefited the companies. A draft proposal circulated by the U.S. Transportation Department would freeze fuel efficiency requirements at 2020 levels through 2026, rather than allowing them to increase as previously planned. Trump's administration is expected to formally unveil the proposal later this month or in June. "We're working on CAFE standards, environmental controls," Trump told reporters at the top of the meeting, referring to the Corporate Average Fuel Economy standards for cars and light trucks in the United States. Trump said he wants automakers to build more vehicles in the United States and export more vehicles. But much of the hour-long meeting focused on NAFTA. Trump blasted the pact involving the United States, Canada and Mexico as "terrible" and noted that negotiations to make changes sought by his administration were ongoing. "NAFTA has been a horrible, horrible disaster for this country and we'll see if we can make it reasonable," Trump said. Automakers have called NAFTA a success, allowing them to integrate production throughout North America and make production competitive with Asia and Europe, and have noted the increase in auto production over the past two decades with the deal in place. They have warned that changing NAFTA too much could prompt some companies to move production out of the United States. The chief executives of General Motors Co, Ford Motor Co, Fiat Chrysler, along with senior U.S. executives from Toyota Motor Corp, Volkswagen AG, Hyundai Motor Co, Nissan Motor Co, Honda Motor Co , BMW AG and Daimler AG met with Trump, as did the chief executives of two auto trade groups. Major automakers reiterated this week they do not support freezing fuel efficiency requirements but said they want new flexibility and rule changes to address lower gasoline prices and the shift in U.S. consumer preferences to bigger, less fuel-efficient vehicles.

Honda profit declines on semiconductor crunch and raw material costs

TOKYO — HondaÂ’s fiscal first quarter profit fell 33% from last year as a global computer chip shortage, a pandemic-related lockdown in China and the rising costs of raw materials hurt the Japanese automaker. Tokyo-based Honda Motor Co. reported Wednesday that its profit totaled 149.2 billion yen ($1.1 billion) in the April-June quarter, down from 222.5 billion yen ($1.7 billion) a year earlier. Quarterly sales slipped 7% to 3.8 trillion yen ($28 billion). Honda kept its profit forecast for the full fiscal year through March 2023 unchanged at 710 billion yen ($5.3 billion). The semiconductor shortage has hurt all the worldÂ’s automakers, including Honda, despite strong demand, and the manufacturers have been scrambling to secure alternative suppliers. Honda, which makes the Accord sedan, Odyssey minivan and Civic compact, sold about 815,000 vehicles last quarter, down from 998,000 vehicles the same period a year earlier. Auto sales dropped in almost all regions around the world, including Japan, the U.S. and Europe. “I ask for the understanding from all those who are still waiting for their vehicles and vow that our whole company is doing its utmost to make the deliveries even a day sooner,” Chief Financial Officer Kohei Takeuchi said. Takeuchi said the semiconductor shortage curtailed motorcycle production as well as car production, adding to uncertainty about future prospects. Honda said the recent lockdown in Shanghai was among the causes of the shortage in computer chips supply but declined to give specifics. Although U.S. sales are potentially facing a dent from recession worries and other economic hardships, Takeuchi acknowledged he was more worried about the shortage problem and producing the cars customers were waiting for. Takeuchi noted that motorcycle sales for the quarter, which grew to 4.25 million motorcycles from 3.88 million a year earlier, were going strong, especially in India. The cheaper yen and cost cuts helped maintain profitability overall, he added. The yen has been at a two-decade low against the U.S. dollar. A cheap yen has historically worked as a boon for exporters like Honda by boosting the value of their overseas earnings when converted into yen. But it also increases costs for imported components and materials. JapanÂ’s top automaker Toyota Motor Corp. reported recently that its fiscal first quarter profit fell nearly 18%. Nissan Motor Co. saw its quarterly profit plunge to less than half of what it was a year earlier.

Honda and Isuzu announce hydrogen partnership for heavy-duty trucks

TOKYO — Japan's Honda and Isuzu on Wednesday said they would jointly research the use of hydrogen fuel cells to power heavy-duty trucks, looking to expand fuel cell use by applying the zero-emission technology to larger vehicles. As part of a two-year deal, Isuzu will test Honda's fuel cell powertrain, which was designed for passenger cars, in Isuzu's commercial trucks, the companies said, which could pave the way for using the technology in a wider range of vehicles. Automakers are looking to develop more electric vehicles (EVs) to comply with tightening global emissions regulations. Many see battery-powered EVs as a solution for passenger cars in urban settings, but a growing number see hydrogen fuel cells as an effective way to power trucks, buses and other big vehicles. "Although we have done extensive R&D into passenger FCVs (fuel cell vehicles), we have not been able to study how best to apply the technology to commercial vehicles," a Honda spokesman told reporters at a briefing. "This partnership will allow us to do that." Fuel cell vehicles generate their own electricity using hydrogen stored in onboard tanks. This enables them to travel longer distances and refuel more quickly than battery EVs, while using less costly energy storage systems. "We think that FCV technology is well suited for heavier trucks which travel longer distances, and this partnership will enable us to examine this further," an Isuzu spokeswoman said, adding that the truck maker was also developing various lower-carbon powertrains including battery-electric technology for shorter-distance vehicles. With its Clarity Fuel Cell sedan, Honda is one of a handful of automakers which have developed and marketed fuel cell-powered passenger cars. Light- and medium-sized truck specialist Isuzu has for years has focused on diesel engine technology and has yet to market fully electric vehicles. But a price tag starting around $70,000 for the Clarity and scant hydrogen fueling infrastructure globally, Honda has seen limited take-up of that model and other FCVs since they began marketing them around 2015. In 2018 Honda sold just 654 Clarity FCVs, which are available only in Japan and the United States through leasing programs, compared with Honda's total annual global sales of 5.23 million cars.