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Strong JLR sales in China boost Tata Motors' quarterly profit

BENGALURU, India — Tata Motors Ltd on Friday posted a 67.2% surge in quarterly profit. Sales at its luxury car unit, Jaguar Land Rover (JLR), improved in key market China as the country led a recovery in the global automobile industry from the pandemic. The Indian carmaker had logged losses for three straight quarters as the COVID-19 pandemic dented business in several of its key markets even as it was already dealing with uncertainties around Brexit, weak demand and rising costs. The Brexit trade deal agreed upon in December has avoided the risk of tariffs on automotive parts and finished vehicles, Tata Motors said, adding that JLR remains encouraged by the Brexit trade deal. JLR sales in China jumped 20.2% on-quarter and were 19.1% higher from the year-ago period. Retail sales at the unit, which accounts for most of the company's revenue, were up 13.1% from a quarter ago, but still 9% lower than pre-pandemic levels. The company said it had saved 400 million pounds ($548.96 million) during the December quarter at JLR under Project Charge, taking the total savings to 2.2 billion pounds so far. Tata Motors has set a full-year target of saving 2.5 billion pounds. Consolidated net profit came in at 29.06 billion rupees ($398.52 million) for the third quarter, compared with a profit of 17.38 billion rupees a year earlier. It had reported a loss of 3.14 billion rupees in the previous quarter. The festive season in mid-November, during which Indians typically make big-ticket purchases, also helped overall sales. "Due to a strong festive season and a clear preference for personal mobility, the PV business posted its highest sales in last 33 quarters," Tata Motors Chief Executive Officer and Managing Director Guenter Butschek said. Total revenue from operations rose 5.5% to 756.54 billion rupees.

Jaguar solution to keyless start could save lives

UPDATED: An earlier version of this story indicated the Jaguar keyless start function was meant as a safety feature, when in fact, it is meant as a convenience one and will not work as described if automatic stop/start is not engaged. Today, The New York Times published an article about more than two dozen deaths related to drivers accidentally leaving their cars running, closing their garages and later succumbing to carbon monoxide that flooded their homes. The reason has been identified as "keyless start" features, or proximity entry and push-button start, where owners don't need to physically handle a key or fob to gain entry into the vehicle or start it. It is the latest, and deadliest, issue raised with this system after those related to security and simple inconvenience (for instance, leaving the car at a valet or car wash with the fob in your pocket). From my personal perspective, The New York Times had a rather harsh "evil carmakers" tone throughout the article. This is not a matter of a known faulty component, as with the GM ignition switch recall. This has as much to do with user error where people leave their car without pressing the "off" button and without noticing the engine is still running. About half of the cars in question are produced by Toyota and Lexus, brands that have offered keyless start longer than most. They are also brands with high rates of elderly owners, who seemingly made up a majority of reported deaths and injuries. One fire department in Florida even started a campaign alerting those in the area of the dangers of leaving your car running when it noticed a correlation between an increase in cars equipped with keyless start and calls related to carbon monoxide poisoning. I see several contributing issues at play, most of which go well beyond this particular issue. First is insufficient training of owners by dealers and/or owners not paying close enough attention during this training. Cars are complicated, but you should at least know how basic functions work. Second, woefully inadequate driver training in this country. Third, and with apologies to the AARP, insufficient testing of elderly drivers and/or insufficiently low standards for elderly drivers. If you don't know you have to shut the car off or cannot hear that an engine is running, perhaps you shouldn't be driving. Fourth, re-examining keyless start systems.

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.