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China fines Toyota $12.5 million over Lexus price-fixing

BEIJING — China's market regulator on Friday has fined Japanese carmaker Toyota Motor 87.6 million yuan ($12.5 million) for price-fixing on its premium Lexus cars in eastern Jiangsu province, according to a document on its website. The decision comes as China steps up regulation over auto sales in the world's biggest vehicle market, where more than 28 million cars were sold last year. The anti-monopoly bureau of State Administration for Market Regulation said that between 2015 and 2018, the Japanese carmaker set a minimum sales and resale price for its cars in coastal Jiangsu province, which deprived dealers of pricing autonomy and harmed customers' rights. Lexus also fixed sales strategies in the region over the period, including offering customers discounts while asking them to purchase accessories at fixed prices, a sales tactic usual among individual auto dealers in China but frowned upon for carmakers. A spokesman at Toyota, Lexus' parent firm, told Reuters the firm acknowledged the penalty and respects the decision. He did not comment further. China's auto sales are declining, but Lexus' sales keep growing. It sold 180,200 vehicles in the first 11 months this year, a 21% jump from a year earlier. In June, China's market regulator imposed an 162.8 million yuan fine on Ford Motor Co's joint venture with Changan Automobile Group for violating anti-monopoly law. ($1 = 6.9927 Chinese yuan renminbi) Reporting by Yilei Sun and Norihiko Shirouzu. Related Video:

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.

IIHS: Drivers safer than passengers in frontal crash test

The Insurance Institute for Highway Safety introduced a small overlap frontal crash test in 2012 that replicates what happens when the front corner of a car impacts another object. In the test, vehicles travel at a speed of 40 mph toward a five-foot-tall barrier with 25 percent of the total width of the car striking the barrier on the driver side. One would assume that vehicles with good small overlap front ratings would protect the driver and the passenger equally. But a recent study from the IIHS proves that passengers aren't as protected as drivers. The IIHS conducted the test on seven small SUVs with good driver-side small overlap ratings and only one of the vehicles, the 2016 Hyundai Tucson, performed well enough to be given a good rating. The other SUVs performance ranged from poor to acceptable. After reviewing the results of the test, the IIHS is deliberating whether it should institute a passenger-side rating as part of its Top Safety Pick criteria. "This is an important aspect of occupant protection that needs more attention," states Becky Mueller, lead author of the study and an IIHS senior research engineer. "More than 1,600 right-front passengers died in frontal crashes in 2014." Since the small overlap front test was introduced, 13 automakers have made structural changes to 97 vehicles with roughly three-quarters earning a good rating after the adjustments. The IIHS' test for frontal ratings is completed with a dummy in the driver's seat and with a barrier overlapping the driver's side. Which makes sense, as passengers aren't always riding in a vehicle. "It's not surprising that automakers would focus their initial efforts to improve small overlap protection on the side of the vehicle that we conduct the tests on," states David Zuby, IIHS executive vice president and chief research officer. "In fact, we encouraged them to do that in the short term if it mean they could quickly make driver-side improvements to more vehicles. As time goes by, though, we would hope they ensure similar levels of protection on both sides." As the IIHS' test revealed, there's a massive difference in safety between the two front seats. Increase passenger safety, according to Mueller, would require automakers to strengthen the occupant compartment by using a different type of material or by making it thicker.