Two U.S. Auto Trade Groups Merge as Regulatory Issues Loom
January 9, 2020 | ReutersEstimated reading time: 2 minutes
Two major U.S. automotive trade groups said Wednesday they will merge as the industry faces dramatic challenges, including regulatory, trade and emissions issues.
The Alliance of Automobile Manufacturers, a group representing Detroit’s Big Three automakers, major German automakers and others including Toyota Motor Corp, is merging with Global Automakers, a group representing primarily Japanese and Korean automakers including Honda Motor Co, Nissan Motor Co and Hyundai Motor Co, as well as some automotive suppliers and Peugeot SA.
Reuters first reported in October the two groups had been in merger talks for months and were working to finalize a tie-up, citing senior automotive officials.The merger officially took effect last week.
The newly combined entity will be named the Alliance for Automotive Innovation all will represent automakers who produce nearly 99% of all light-duty vehicles sold in the United States. The largest U.S. seller not a member is Tesla Inc.
It will be run by Global Automakers chief executive John Bozzella.
“The industry is changing dramatically. We’re going through a significant transformation in not only how we move from Point A to Point B but the technologies that go into that movement,” Bozzella told Reuters, who is announcing the merger at the CES technology show. “This is the time to unify.”
Global Automakers’ prior trade policy effort known as “Here for America” will be spun off to handle trade issues that do not have wide agreement in the industry.
Washington is grappling with how to address partial and eventual fully self-driving vehicles and revise fuel efficiency standards. The Trump administration has also not ruled out imposing new tariffs on major auto producing countries.
The combined group agreed it would not advance legal actions siding with the Trump administration over California emissions.
In October, General Motors Co, Toyota, Fiat Chrysler Automobiles NV and Global Automakers moved to intervene on the side of the Trump administration in its efforts to bar California from setting tailpipe emissions standards, while others including Ford Motor Co, Volkswagen AG (VOWG_p.DE) and Honda opted not to join the litigation.
That legal challenge will remain independent of the new trade group. The Trump administration in the coming months plans to finalize a significant reduction in Obama-era fuel efficiency standards. That will draw numerous legal challenges and potentially leave automakers uncertain about future requirements.
The merged group had a round of voluntary buyouts in recent weeks.
GM chief executive Mary Barra said in a statement that “as the industry is undergoing rapid transformation it is critical that we come together with a stronger voice.”
Suggested Items
Two Industry Rising Stars Recognized at IPC APEX EXPO 2024
04/17/2024 | IPCTwo of the industry’s best and brightest were presented with an IPC Rising Star Award at IPC APEX EXPO 2024 in recognition of their leadership roles and support of IPC standards, education, advocacy, and solutions to industry challenges. Award recipients were Naim Kapadia and Michael Schleicher.
Two Long-time IPC Volunteers Receive Dieter Bergman IPC Fellowship Award
04/17/2024 | IPCThe Dieter Bergman IPC Fellowship award was presented to two IPC volunteers at IPC APEX EXPO 2024. The award recipients have fostered a collaborative spirit, made significant contributions to standards development, and have consistently demonstrated a commitment to global standardization efforts. Tiberiu Baranyi and Zhiman Chen were chosen as award recipients as they embody the work ethic and spirit of the late Dieter Bergman, an industry pioneer and icon. As part of the award, they bestowed Dieter Bergman Memorial Scholarships to the university or college of their choice.
The Connection Between Wire Harness and Box Build
04/17/2024 | Nolan Johnson, I-Connect007Christina Rutherford is a technical lead and expert in materials engineering at Honeywell, where her specialty is the design, specification, and manufacture of cables and wire harnesses. Rutherford also sits on the committee for IPC/WHMA-A-620. In this conversation, we explore the changing dynamics in wire harnesses and how they relate to box build. Christina’s standards work allows her to draw insightful parallels between wire harness and box build.
Three Industry Leaders Receive IPC President’s Award
04/17/2024 | IPCIn recognition of their leadership and significant contributions of time and talent to IPC and the electronics industry, three IPC volunteers were presented with the IPC President’s Award at IPC APEX EXPO in Anaheim, Calif., on April 9, 2024.
Phil Kinner Pushes His Limits in Engineering and Running
04/17/2024 | Linda Stepanich, IPCEngineers break things on purpose. They like the challenge of putting things back together and making them stronger and more resilient. The skills engineers use to build products can also be used to rebuild their lives after a personal loss, something Phil Kinner learned when he laced up his running shoes after many years of a sedentary lifestyle.