A closely watched survey by Japan's central bank shows sentiment among large Japanese manufacturers improved for a second straight quarter, making an interest rate hike more likely. The Bank of Japan's survey for July to September, the “tankan,” found the mood of major manufacturers, measured by its “diffusion index,”rose 1 point to plus 14 from the findings in June. The survey is an indicator of companies foreseeing good conditions minus those feeling pessimistic. The relative optimism reflects the recent agreement on tariffs with the U.S. Despite the slight improvement, Japan's export-reliant economy is feeling some pain with higher tariffs on exports of cars and other products to the U.S.
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China will tighten exports of electric vehicles starting next year by requiring automakers to obtain export permits, the Commerce Ministry said Friday. The export licenses, required from Jan. 1, are intended to “promote the healthy development of the new energy vehicle trade,” the ministry said in a statement. The controls come as Beijing is trying to rein in the electric vehicle sector in the world’s largest auto market. China is also the largest car exporter, selling about 5.5 million vehicles abroad last year, of which nearly 40% were EVs.
European automakers are set to save around 500-600 million euros each month after the Trump administration implemented the U.S. end of its trade deal with the European Union. This change, effective from August 1, reduces the tariff on most EU goods from 27.5% to 15%. Trade Commissioner Maros Sefcovic announced the news on Thursday. The reduction eases a significant burden on EU automakers and is a key selling point for the deal. However, the 15% tariff remains higher than pre-Trump levels, drawing criticism from business associations and some European Parliament members.
Jaguar Land Rover has announced that its production lines will remain halted until at least Oct. 1 after a cyberattack. The company sent workers home from its factories in central and northwest England on Aug. 31. The shutdown has hit the U.K. auto industry. JLR is owned by India’s Tata Motors and is Britain's biggest carmaker. It employs more than 30,000 people and its supply chain supports many more jobs. The company says it is investigating the attack and working with law enforcement and the U.K. government to ensure a safe restart. Business Secretary Peter Kyle and Industry minister Chris McDonald are set to visit Jaguar Land Rover on Tuesday.
Asian shares are trading mixed after U.S. stocks edged down from record highs and as market focus turned to expectations for the Federal Reserve’s first interest rate cut of the year. Benchmarks rose in Wednesday morning trading in Tokyo and Hong Kong, while falling in Sydney and Seoul, and being little changed in Shanghai. In Japan, the Finance Ministry reported the nation's exports to the U.S. dropped 13.8% in August compared to the same month the previous year, marking the fifth straight month of declines, as auto exports declined amid President Donald Trump’s tariffs. Shares fell on Wall Street.
Ford Motor Co. said Tuesday it would cut up to 1,000 jobs at its electric auto plant in Cologne, Germany due to lower than expected demand for battery-powered cars. The job reduction would be carried out so far as possible with voluntary departures and buyouts, the company said. It follows a restructuring announced in November 2024 that would reduce Ford’s workforce by 4,000 positions in Europe and the UK, with 2,900 of those jobs lost in Germany.
Ford is moving its headquarters for the first time in seven decades. The carmaker is relocating to a newly constructed building 3 miles away in its longtime home of Dearborn, Michigan. The new 2.1-million-square-foot structure formally will be called Ford World Headquarters when it opens in November. Ford’s current headquarters is colloquially called "The Glass House.” It opened in 1956. The new HQ is 5 to 10 minutes away. It is designed to enhance collaboration and innovation by colocating corporate leadership with design and engineering teams. It places 14,000 employees within a 15-minute walk of the main building.
An official familiar with the matter says Canadian Prime Minister Mark Carney is delaying a requirement for automakers that sell in Canada to begin hitting minimum sales levels for electric vehicles next year. Former Canadian Prime Minister Justin Trudeau set the target, requiring that in 2026, 20% of passenger vehicles sold by zero-emission vehicles. Removing the requirement comes as automakers deal with the impact of U.S. President Donald Trump’s tariffs. Carney is set to announce later Friday measures for workers and businesses in those sectors most impacted by U.S. tariffs and trade disruptions
Japan’s Prime Minister Shigeru Ishiba has welcomed U.S. President Donald Trump's order to implement lower tariffs on automobiles and other Japanese imports. Japan has been pushing for an early implementation of the tariff reduction by Trump to 15% from the previously imposed 25% as agreed between the two sides on July 22. Putting the tariff issue on course is a major relief for Ishiba as he faces pressure to resign over July election losses.