Photo: RAntonio / Wikimedia Commons, CC BY-SA 4.0
In today's issue:
Ford cedes an idle Spanish assembly line to Geely just as Washington moves to wall off Chinese-linked automakers
Trump's 50% Canada tariffs put auto parts back in the crossfire, and Automotive News says the White House's own numbers undercut its victim story
Tesla posted record deliveries and revenue, but operating income collapsed 57% and the reported profit leaned on a SpaceX paper gain
FRIENDS, WITH BENEFITS
Ford will sell a 34% stake in its Almussafes plant in Valencia to Geely, forming a joint venture 66% owned by Ford, per Automotive News.
Geely takes over a currently idle assembly line at the same site that builds Ford's Kuga crossover, per Just Auto.
The Financial Times frames the deal as Ford leaning on a Chinese partner's EV know-how to revive its stalled European business.
The timing is awkward: the same week, the Senate Commerce Committee advanced a bill capping Chinese ownership of automakers at 15%, a threshold that would flag Geely-linked brands stateside, per CBT News.
Valencia jobs get a reprieve, but the plant's electrified future now runs through Hangzhou as much as Dearborn.
Ford holds the majority stake on paper, 66% to 34%, but the engineering traffic on a joint EV line rarely follows the ownership split. Europe gets Chinese-built know-how through the back door of an American plant, while Congress tries to shut the front one.
Also worth knowing
50% Tariffs Hit Canadian Autos: Trump imposed 50% tariffs on a range of Canadian goods including vehicles, effective Aug. 19, per Autoblog and Repairer Driven News. Automotive News calls the White House's "victim" framing self-inflicted, noting its own trade numbers tell a different story. #news
Tesla's Profit Was Mostly a SpaceX Gain: Tesla delivered a record 480,126 vehicles and record $28.2 billion in revenue, per Automotive News, but operating income fell 57% to $398 million as margin compressed to 1.4% from 4.1% and free cash flow turned negative $1.1 billion, per Electrek. GAAP net income held at $1.11 billion largely on a $1.005 billion unrealized gain on Tesla's SpaceX stake, which the company excludes from its non-GAAP EPS of $0.33, missing consensus of $0.54 by 39%, per TradingKey. Capex rose to $5.8 billion, more than double a year ago. #analyst
Penske's $3.8 Billion Exit Plan: Penske Corp. and Mitsui offered $3.8 billion to buy the roughly 28% of Penske Automotive Group they don't already own, taking the dealership giant private, per Automotive News. Penske Corp. already controls about 52% of the stock. #market
Used EVs Just Got More Expensive: Used EV prices are climbing as gas prices rise and demand shifts, reversing the segment's chronic depreciation problem, per Axios and InsideEVs. It's good news for owners trading in, bad news for anyone hunting a cheap used EV. #market
Reveals & culture
Toyota's Mid-Engine Mystery Coupe: A prototype wearing motley, GR Yaris-derived bodywork lapped Fuji Speedway with its engine relocated behind the driver, Renault Clio V6-style, per Car and Driver and The Drive. Paul Tan reports a 400 PS 2.0-liter turbo four with AWD. MR2 revival, Celica revival, or both remains unconfirmed. #enthusiast
An 800-HP Off-Road Supercar, Sort Of: Rezvani's new Dune hides a supercharged Lamborghini Huracan V10 making up to 800 hp under safari-spec bodywork, with just seven planned and a refundable deposit to reserve one, per Carscoops. It makes the factory Sterrato look like a rental-car special. #culture
Recalls & legal action
Dealership Groups Settle PPP Fraud Claims: Two dealership groups face federal accusations of fraudulently obtaining COVID-era Paycheck Protection Program loans; one has agreed to a $2.1 million settlement, per Automotive News. Thousands of dealership PPP loans remain under review, so this settlement is unlikely to be the last.
Quick links
GM's China Streak Hits Seven Quarters: GM extended its China profitability streak to seven straight quarters even as overall market demand weakens, per Automotive News Europe.
USMCA Talks Buy Time, Not Answers: U.S. Trade Representative Jamieson Greer says he hopes to hand Trump "options" on renewing USMCA with Canada and Mexico by year's end, per Automotive News Europe.
Acura's Flagship Gets Bigger: A new three-row SUV will slot above the MDX as Acura's flagship, per Car and Driver.
Genuine Parts Sales Climb, Guidance Falls: Genuine Parts Company posted Q2 sales of $6.53 billion, up 6% year over year, while lowering its full-year EPS guidance, per Just Auto.
WhatsApp Comes to Your Dashboard: WhatsApp now supports hands-free calls, messages and contacts through Apple CarPlay and Android Auto, per TechCrunch.
Yesterday's picks
GM Brings Back Gas Cadillacs After $10.9 Billion EV Reality Check: GM booked $10.9B in EV charges and reversed its all-electric Cadillac pledge, raising guidance on gas-engine profits instead.
Mercedes lobbies against bill that could ban it outright: A Senate committee-advanced bill capping Chinese ownership at 15% would flag Mercedes, whose Chinese stake sits near 20%, though the automaker would have until 2030 to comply and could seek a waiver.
NHTSA subpoenas Tesla's "Radar Saves Us" document in FSD probe: The regulator is investigating Tesla's specific decision to drop radar, as FSD crash reports hit a record monthly high.
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