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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.

Takata airbags linked to seventh death

A seventh fatality may be linked to Takata's faulty airbag inflators, based on a recently filed lawsuit in Louisiana. The case alleges that a 22-year-old woman there died in April following injuries from an accident while driving in a 2005 Honda Civic. She reportedly received the mailing about the airbag safety campaign two days after the crash, according to Bloomberg. The accident occurred on April 5 when the vehicle hit a utility pole. The driver's airbag deployed but allegedly sprayed metal shrapnel at the woman. "When she was in the hospital, they did exploratory surgery and found no other injuries," said Kenneth D. St. Pe, the lawyer for the driver's mother who filed the lawsuit, according to Bloomberg. "Her sole injury was that her throat was cut open." In a portion of a statement from Honda to Autoblog, the automaker says: "Honda is now in communication with representatives of the family in an effort to gather further information in order to better understand the situation." The Takata airbag inflator recall was expanded in May to cover 34 million vehicles in this country from 11 automakers. Up until now, the faulty parts have been potentially linked to six deaths, including five in the US and one in Malaysia, plus many injuries. Honda and Takata are facing at least two dozen lawsuits in Florida for claims related to the bad components. So far, the evidence suggests that exposure to moisture causes the propellant to ignite too quickly and cause these ruptures. However, many people aren't getting the problem fixed. Honda Statement: Honda was recently notified of the crash of a 2005 Honda Civic in Louisiana on April 5, 2015 that later resulted in the death of the driver. The crash may have resulted in the rupture of the Takata driver front airbag inflator. Honda is now in communication with representatives of the family in an effort to gather further information in order to better understand the situation. Related Video:

Former NHTSA chief may lead automaker-backed Takata investigation

An automaker-led effort may see the former head of the National Highway Traffic Safety Administration take on the probe into the Takata airbag inflator disaster. A coalition of at least ten automakers is in talks with former NHTSA administrator David Kelly, with unnamed sources familiar with the discussions telling The Wall Street Journal he is "among those we are considering to coordinate" the investigation.The Detroit News, meanwhile, is reporting he could be hired "in the coming days." Takata, the Japanese seatbelt and airbag manufacturer, has been the center of a defect scandal since last year. Takata is under fire for air bag inflators that can explode, shooting out metal and plastic pieces. At least five deaths and dozens of injuries have been linked to the problem worldwide. Earlier this year, Honda Motor Co., the automaker with the biggest exposure to the defective Takata air bags, was fined $70 million in the U.S. for not reporting to regulators some 1,729 complaints that its vehicles caused deaths and injuries, and for not reporting warranty claims. It was the largest civil penalty levied against an automaker. Should he take the role, Kelly would be at the fore of an investigation being assembled by an alliance of ten automakers, which includes the Detroit Three and Honda. Toyota first suggested a joint investigation back in December, The Journal reports. Kelly's goals, meanwhile, will be many. The Detroit News reports that questions abound regarding not only the recalled airbag inflators and the conditions that cause them to fail, but the whether the replacement units will have similar problems in the future. The automaker committee is far from the only one analyzing the airbag issue. Takata has assembled its own panel, led by former Secretary of Transportation Samuel Skinner, while NHTSA's deputy administrator, David Friedman, has brought in an outside engineering firm to investigate the inflators, The Detroit News reports. Separately, on Friday Takata Corp., the Japanese seatbelt and air-bag maker at the center of a defect scandal, is expecting more red ink for the fiscal year through March. It is projecting a 31 billion yen ($264 million) loss, worse than the previous forecast for a 25 billion yen ($214 million) loss, despite higher sales expected for the fiscal year. Ten automakers have recalled about 12 million vehicles in the U.S. and about 19 million globally for problems with the air bags.