Auto File: Kenya’s Uber drivers take the wheel
By Victoria Waldersee
Automotive Correspondent
Victoria.Waldersee@thomsonreuters.com
August is usually a quiet month for the car industry. When the dust has settled from half-year results conferences, carmakers wind down their plants, executives take their favourite new model out for a summer spin and workers take a well-earned break.
This year, though, it’s politicians and policymakers who are keeping autos in the headlines - from South Korean ministers grappling with how to tackle EV fires to European and Chinese policymakers debating how much you’re allowed to subsidise EV production before it counts as violating global trade rules.
Meanwhile, this morning at a campaign event in Pennsylvania, Donald Trump said if elected, he might end the $7,500 EV tax credit, impose new tariffs on cars from Mexico and rescind rules prodding carmakers to meet lower emissions standards with their vehicles.
More on the politics of cars in today’s Auto File ...
Hard-pressed Kenyan drivers defy Uber's algorithm
EU releases ‘draft definitive findings’ on China EV probe
U.S. autos union comes out strong for Kamala
Kenya's ride-hailing rate rebellion
As the well-documented price war in China's EV market rages on, another price war of a different kind has been brewing in Kenya between ride-hailing companies and their drivers.
It's a fascinating story by our colleague Edwin Okoth in Nairobi. Kenyans are struggling financially as tax hikes, soaring prices, and high interest rates place pressure on their incomes, leading to deadly protests in the country.
For cab drivers, the economic shocks mean that the prices generated by apps like Uber and Bolt are too low to survive on.
Despite protest from the companies, drivers are banding together to collectively agree on higher prices, printing their own fare guide to post up inside cars at around 1.5 times the price shown in the app.
Markets like Kenya, Tanzania, and Nigeria are among the most important for ride-hailing firms like Uber, with their growing economies and relatively low car ownership rates.
But Edwin's story highlights how much these firms still have to learn to be able to operate in economies like Kenya's, where an unstable reality clashes with its world of automated pricing.
Read the full story here.
A treat for Tesla
The European Commission released a new draft of its proposed tariffs on China-made EVs with just a few tweaks, including lowering the highest tariff level to 36.3% from 37.6%.
The biggest news was for Tesla: the U.S. carmaker, which imports cars to Europe from its Shanghai plant, will only need to pay 9% tariffs on its vehicles, down from a previous estimate of 20.8%.
Tesla had requested a recalculation of its rate when the first list was released, and it worked: it is now the lowest tariff of any carmaker.
Volkswagen VOWG_p.DE and BMWBMWG.DE will also get a better deal for their China-made EVs, the Cupra Tavascan (made by Volkswagen's SEAT subsidiary) and the electric Mini. Previously, both cars were going to be slapped with the highest tariff of 37.6%, but the carmakers asked the EU to reconsider, arguing that they hadn’t been able to provide all the details required in the investigation because the models weren’t yet being exported. The tariff on both models has now been reduced to 21.3%, in line with other companies classed as cooperating with the investigation.
None of this is final: the investigation will carry on for two more months and the final duties need to be voted on by the EU’s 27 member states. What this does show is that although there is evidently a bit of wiggle room, it doesn’t seem as though negotiations between the EU and China are going well enough to get rid of the tariffs all together.
U.S. autos union: Harris for the people
United Auto Workers President Shawn Fein made his allegiance to the Democrats clear as day at the opening of the Democratic National Convention last night, appearing in a "Trump is a scab" t-shirt to pitch Kamala Harris as the candidate of the working class.
A “scab” is a worker who refuses to join a union or an individual who crosses a picket line during a strike. Both Biden and Harris have shown up at picket lines to support striking auto workers in the past, while Trump is facing a complaint from the UAW accusing the candidate of attempting to intimidate workers in his conversation with Elon Musk last week.
The UAW is launching a country-wide effort to mobilise its one million active and retired members to campaign and vote for Harris, going door-to-door and engaging with others online.
The union’s influence and membership are concentrated in Michigan, with a whopping 9.2% of Biden's vote in the state coming from UAW members in 2020. It's also strong in Wisconsin, Ohio, and Pennsylvania, all key swing states that could sway the outcome of the election.
Trump has managed to draw some UAW members to his side who say his record on trade and tax benefits the auto industry more than the Democrats' proposals. But overall, unions have come out strong for Biden and now Harris, with seven speaking at the opening of the DNC last night.
Essential Reading
- Harris gives first economy-focused speech at DNC
-PWC loses a major client in China after regulatory probe
-Gaza ceasefire talks: the main sticking points
Fast Laps
South Korea’s ministersmet to talk about how to tackle EV fires which are worrying customers and contributing to low demand for electric cars. As a start, the country is encouraging automakers to disclose the manufacturer of the batteries they use. But analysts say this doesn't go far enough - there isn't much data available for consumers to assess which manufacturer has lower fire risk, so knowing their name won't be much help.
Stellantis shareholders in the United States sued the carmaker for defrauding them by concealing rising inventories and other weaknesses before posting disappointing earnings that caused its stock price to fall. Shareholders said Stellantis artificially inflated the stock price with positive assessments of its financial wellbeing. Such lawsuits are common in the United States after unexpected price declines.
China's Ganfeng Lithium Group has signed an agreement with a Turkish battery producer to set up a $500 million JV for lithium battery production. It plans to build a plant with caapacity for 5 gigawatt hours per year, according to a stock exchange filing.
GM is laying off more than 1,000 salaried employees at its software and service unions units in an unusual move, with most car companies levelling up their headcount in tech. GM said the cuts were not because of cost savings but followed a review of operations after the departure of Mike Abbott, executive vice president of software and services in March who left due to health reasons.
The leader of Chechnya published a video of himself driving a Tesla Cybertruck with what looked like a machinegun mounted on top, saying he would send it to the Ukraine conflict zone. "We... await your future products that will help us finish the special military operation," Kadyrov wrote in a message directed at Elon Musk on the Telegram messaging app, using the official term by which Russia describes its war in Ukraine.
Editing by Tomasz Janowski
متعلقہ اثاثے
تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
