Automotive Industry

On Tuesday, the Swedish company Volvo said joining a growing number of carmakers planning to phase out fossil-fuel engines by the end of this decade.

The transition to selling only electric cars will allow Volvo "to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change," he added. Europe has imposed aggressive targets to reduce greenhouse gas emissions from vehicles, and carmakers face huge potential fines if they do not comply.

The carmaker said 50% of its global sales should be fully-electric cars by 2025 and the other half hybrid models.

The car manufacturer Jaguar has announced its intention to become an all-electric car brand by 2025.

Under the motto "Reimagine", the company has announced a fundamental change in strategy. The future is to be contested with e-mobility and fuel cell drives. This will cost the company a lot, with annual costs of around 2.8 billion euros for the changeover.

Norway has become the first country in the world to sell more electric cars than those powered by petrol, diesel or hybrid engines. Battery Electric vehicles made up a record 54.3% of all new cars sold in 2020. Fully electric vehicles are exempt from tax in Norway.

The National Highway Traffic Safety Administration has asked Tesla to recall 158,000 Model S and Model X vehicles that could suffer from failing display consoles. The "media control units" allow owners to access their vehicle’s backup camera, climate controls, and Tesla’s Autopilot driver assistance system. Failure would increase the risk of a crash, the safety agency says.

The carmaker justifies the decision to no longer manufacture cars in Brazil as part of the plan to focus on profitable products and obtain a corporate EBIT margin of 8% to generate "sustainable cash flow". These efforts have improved results over the past four quarters. Still, the continued unfavourable economic environment and the additional pressure caused by the pandemic have made it clear that much more is needed to create a sustainable and profitable future," said Lyle Watters, president of Ford South America.

In September 9,560 new electric cars have been registered in Norway making it 61.5% of the total number of car registrations in that month.

Since the beginning of the year, 48,175 electric cars have been registered in the country. Volkswagen is leading in newly registered cars with 1,989 VW ID.3 in September followed by 1,116 registrations of the Tesla Model 3.

Japan's SkyDrive Inc., among the myriads of "flying car" projects around the world, has carried out a successful though modest test flight with one person aboard.

The largest labor union in Germany, the IG Metall who represents workers from industrial jobs such as car manufacturing and is the largest industrial union in Europe, has called for a four day work week.

The transformation to electric mobility, further automation, and digitization could lead to future cuts in the workforce of the German automotive companies, fueled by the Covid-19 recession. According to the union chairman Jörg Hoffmann, a four day work week could be the answer to structural changes in the automotive industry in order to prevent future job cuts.

Major German companies such as Daimer and Bosch have already made agreements to reduce working hours in order to retain specialists but cut costs at the same time.

Ford Motor Company announced its current CEO, Jim Hackett, will retire on October 1, ending a three-year run in which the automaker has tried to streamline its operations. Hackett will be succeeded by Jim Farley, currently COO of the company.

Ford’s executive chairman William Clay Ford Jr., said: "I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,".

The Government of Japan has formally requested the U.S. State Department to extradite Michael Taylor and his son, Peter Taylor, accused of helping Carlos Ghosn flee the country. Ghosn, the former CEO of Nissan Motor, fled Japan in December after claims of financial misconduct.

Michael Taylor, a former Green Beret, and Peter Taylor were arrested in Harvard, Massachusetts, on May 20 at the Japanese Governments request.

Reuters reports that German carmaker Volkswagen approached French car rental firm Europcar, that struggles to cope with the economic impact of the Covid-19 pandemic. The deal, if completed, would signal a reversal of strategy for Volkswagen, that sold Europcar in 2006 for €3.32 billion.

In May, Europcar's competitor Hertz filed for bankruptcy protection.

Volkswagen announced Ralf Brandstätter as the new CEO of the VW brand, to lead cost-cutting efforts at the company’s largest plants in Germany.

Brandstaetter, current COO of VW, replaces Herbert Diess who will retain his title of CEO of Volkswagen Group.

BBC reports that luxury carmaker Bentley is to cut 1,000 jobs in the UK. The company, owned by German car-maker Volkswagen, declined to comment but is expected to make a formal announcement on Friday.

On a Japanese extradition warrant, federal marshals arrested Michael and Peter Taylor in Harvard, Massachusetts this Wednesday.

Authorities claim Michael, a 59-year-old former U.S. Army Green Beret, and his son Peter were charged by Japanese authorities with planning and aiding in Carlos Ghosn's escape from Japan in December.

Turkish prosecutors have charged seven people, four pilots, an MNG Jet company official and two flight attendants for their alleged roles in former Nissan chairman Carlos Ghosn’s escape from Japan to Turkey and from there to Beirut, Lebanon.

Carlos Ghosn fled Japan in December after claims of financial misconduct, which he denies.