pact

General Motors’ $223M Contract, Ford-Disney Pact & More

Last week, automakers unveiled second-quarter 2020 sales reports. Sagging showroom traffic amid the coronavirus rampage resulted in a sharp drop in sales during second-quarter 2020. Lush incentives and easy financing terms failed to beat the coronavirus blues. Fleet sales to rental car companies, corporations and government agencies have been hit hard, and recovery is expected to be slow as corporate customers are resorting to cost cuts. 

Detroit Big 3 carmakers including General Motors, Ford and Fiat Chrysler reported a year-over-year sales decline of 34%, 33.3% and 39%, respectively, on a volume basis. Japan-based auto bigwigs Toyota, Honda and Nissan recorded a year-over-year plunge of 34.6%, 15.5% and 49.5%, respectively. Vehicle sales of German auto giants including Volkswagen and BMW AG fell 29% and 40%, respectively, during second-quarter 2020.

China based-EV maker was a major outlier. NIO delivered 10,331 vehicles in the second quarter that exceeded the firm’s guidance and increased

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How new North American trade pact will impact autos, digital trade, drugs

(Reuters) – The U.S.-Mexico-Canada trade agreement (USMCA) will launch on Wednesday, replacing the 26-year-old North American Free Trade Agreement (NAFTA), as the global economy and international trade reel from the fallout of the coronavirus pandemic.

The flow of goods among the three USMCA members – which totaled $1.2 trillion last year – in April dropped to the lowest level in more than a decade. Meanwhile, the jailing of a Mexican labor lawyer and independent union leader has reignited concern about the challenges of meeting the USMCA’s labor rights provisions.

Some industries, including automakers, had been arguing for a delayed implementation of the new trade pact because of the difficulties they are facing from the coronavirus pandemic.

Here are some of the key changes the new regional pact will usher in:

AUTOS

One of the biggest changes requires increased North American content in cars built in the region, to 75% from

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