Auto News – Cheap Auto Insur Online http://cheapautoinsuronline.com/ Sat, 02 Jul 2022 06:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://cheapautoinsuronline.com/wp-content/uploads/2021/06/icon-2.png Auto News – Cheap Auto Insur Online http://cheapautoinsuronline.com/ 32 32 Ferrari, McLaren and Aston Martin have more time to meet CO2 target https://cheapautoinsuronline.com/ferrari-mclaren-and-aston-martin-have-more-time-to-meet-co2-target/ Sat, 02 Jul 2022 06:00:00 +0000 https://cheapautoinsuronline.com/ferrari-mclaren-and-aston-martin-have-more-time-to-meet-co2-target/ Supercar manufacturers such as Ferrari have found it harder to reduce CO2 emissions by switching to electrified vehicles due to the disproportionate effect of battery weight and customer reluctance to give up the characteristic noise of V engines -8 or V-12. McLaren and Ferrari have both launched plug-in hybrid versions of their best-selling mid-engined supercars, […]]]>

Supercar manufacturers such as Ferrari have found it harder to reduce CO2 emissions by switching to electrified vehicles due to the disproportionate effect of battery weight and customer reluctance to give up the characteristic noise of V engines -8 or V-12.

McLaren and Ferrari have both launched plug-in hybrid versions of their best-selling mid-engined supercars, but customers are unlikely to achieve the claimed CO2 figures when driving in the real world given the limited range of the battery.

The waiver extension is a win for the European Small Volume Car Manufacturers Alliance (ESCA), which represents brands such as McLaren, Aston Martin, Bugatti, Pagani, Koenigsegg, Ineos Automotive and Rimac (but not Ferrari or Lamborghini) .

The Brussels and London-based organization argued that special rules need to be applied because supercars have a longer life cycle, they have a limited overall impact on emissions and brands have limited resources.

Small-volume automakers have announced plans for electric vehicles in recent months, most recently Lamborghini, whose CEO Stephan Winkelmann told the Le Sole 24 Ore newspaper this week, the Volkswagen Group subsidiary would release an electric car by the end of the decade as part of a $1.8 billion electrification investment.

Ferrari, meanwhile, announced earlier this year that it would unveil its first electric vehicle in 2025.

The push for supercars to run solely on battery power makes little sense for purely environmental reasons, said Phillippe Houchois, global automotive analyst at investment bank Jefferies. “Putting a big battery in a supercar has a negative impact on manufacturing emissions because they are driven so little [to offset the extra emissions in producing the battery]he told Automotive News Europe.

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1 federal lawsuit against CDK dismissed, but 6 others remain https://cheapautoinsuronline.com/1-federal-lawsuit-against-cdk-dismissed-but-6-others-remain/ Thu, 30 Jun 2022 16:39:59 +0000 https://cheapautoinsuronline.com/1-federal-lawsuit-against-cdk-dismissed-but-6-others-remain/ A lawsuit alleging CDK Global Inc. omitted crucial information related to its pending sale to investment firm Brookfield Business Partners was voluntarily dismissed, but six other federal lawsuits alleging similar behavior against the technology company concession are still ongoing. The lawsuit, which was voluntarily dismissed by plaintiff Matthew Hopkins on Friday, was filed May 4 […]]]>

A lawsuit alleging CDK Global Inc. omitted crucial information related to its pending sale to investment firm Brookfield Business Partners was voluntarily dismissed, but six other federal lawsuits alleging similar behavior against the technology company concession are still ongoing.

The lawsuit, which was voluntarily dismissed by plaintiff Matthew Hopkins on Friday, was filed May 4 in U.S. District Court for the Eastern District of New York. He alleged CDK had filed a solicitation statement with the U.S. Securities and Exchange Commission that omitted “material information regarding the proposed transaction” that made the statement “false and misleading.” Hopkins was seeking to file a new statement and block the acquisition of Brookfield.

The voluntary dismissal came after a federal judge issued a cause order on June 10, noting that the plaintiff “did not identify any concrete harm resulting from the absence of this information, and he only alleged that the mere possibility that failure to provide the information could lead to “possible future injury.”

A lawyer for Hopkins did not immediately respond to Automotive News‘ request for comment.

Six other federal shareholder lawsuits were filed against CDK, the company’s board of directors and Brookfield Business Partners between April 26 and May 5, alleging critical information was omitted from acquisition disclosures, according to a regulatory filing posted on CDK’s investor page in May. Lawsuits generally ask that the offer to purchase be barred or that damages be awarded. Three of the remaining six suits are scheduled for a July 22 status conference, according to a Automotive News review of publicly available Federal Court records.

According to the regulatory filing, CDK also faces two lawsuits in state court regarding the sale to Brookfield, one in the Delaware Court of Chancery and the other in the Circuit Court of Cook County, Ill.

“The outcome of these lawsuits cannot be predicted with certainty. However, the buyer believes that the plaintiffs’ allegations in each of the above complaints are without merit,” the regulatory filing states.

A CDK representative did not respond to Automotive News‘ request for comment.

Hoffman Estates, Ill.-based CDK, a provider of dealership management systems and other automotive retail software, announced in April that it had agreed to be acquired by Brookfield in a an agreement valued at 8.3 billion dollars. Under the agreement, Brookfield will purchase all outstanding shares of CDK, with CDK shareholders receiving $54.87 per share in cash upon closing of the transaction. It is expected to close in the third quarter and CDK shares will no longer be listed on the stock exchange after the transaction is completed.

Lindsay VanHulle contributed to this report.

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Goeasy acquires $40 million stake in Canada Drives https://cheapautoinsuronline.com/goeasy-acquires-40-million-stake-in-canada-drives/ Mon, 27 Jun 2022 20:06:16 +0000 https://cheapautoinsuronline.com/goeasy-acquires-40-million-stake-in-canada-drives/ The finance company Goeasy Ltd. buys a minority stake in online used car retailer Canada Drives, as the venture lender seeks to increase its stake in the Canadian auto finance market. Goeasy announced the $40 million equity investment, coupled with a business partnership, on June 27. The deal will make Goeasy the “preferred” non-bank finance […]]]>

The finance company Goeasy Ltd. buys a minority stake in online used car retailer Canada Drives, as the venture lender seeks to increase its stake in the Canadian auto finance market.

Goeasy announced the $40 million equity investment, coupled with a business partnership, on June 27. The deal will make Goeasy the “preferred” non-bank finance provider within online retail platform Canada Drives and will give the lender a minority stake in the Vancouver-headquartered used-vehicle dealership. located.

As more Canadians turn to buying vehicles online, Goeasy CEO Jason Mullins said Canada Drives is “well positioned” to be an industry leader.

“Our partnership and investment will help Canada Drives accelerate its growth and enable us to capture an even greater share of the auto finance market, on our journey to becoming the largest unpreferred consumer lender in Canada,” Mullins said. in a press release.

Goeasy operates a range of finance services for people with poor or limited credit histories, known as non-preferred borrowers. LendCare, the company’s point-of-sale brand that provides consumer financing for vehicle, powersports and other retail purchases, will be integrated into the Canada Drives platform as part of the agreement. , giving non-preferred buyers access to financing. The interest rates offered were not immediately available.

Canada Drives CEO Cody Green said integrating LendCare into the company’s platform will make the car shopping experience more seamless.

“Our partnership and technology integration with Goeasy will allow us to further grow our inventory, enhance our platform and enhance our financing programs for Canadian consumers looking to buy and finance their car online. »

Founded in 2010 to simplify online vehicle transactions, Canada Drives says it offers transparent pricing, instant trade-in valuations and home delivery. It operates in Alberta, British Columbia, Ontario and Saskatchewan.

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Solis Yanmar aims to launch three new tractors https://cheapautoinsuronline.com/solis-yanmar-aims-to-launch-three-new-tractors/ Sun, 26 Jun 2022 09:47:07 +0000 https://cheapautoinsuronline.com/solis-yanmar-aims-to-launch-three-new-tractors/ Solis Yanmar has become the first tractor export brand to Turkey from India. By : HT automatic office | Updated: 26 June 2022, 15:17 market share in 12 European countries.” title=”Solis Yanmar has a leading market share in 12 European countries.” style=”width:auto;”/> Solis Yanmar has a leading market share in 12 European countries. Solis Yanmar […]]]>

Solis Yanmar has become the first tractor export brand to Turkey from India.

By :
HT automatic office

|
Updated:
26 June 2022, 15:17

market share in 12 European countries.” title=”Solis Yanmar has a leading market share in 12 European countries.” style=”width:auto;”/>
Solis Yanmar has a leading market share in 12 European countries.

Solis Yanmar plans to launch three new tractors in the sub-30hp class, the company said. The company announced that it would expand the line of compact tractors. This announcement comes after the successful launch of the CRDi 75hp tractor range. The company also claimed in a statement on Sunday that it has become India’s top tractor export brand to Turkey. It also claims a leading position in 12 European countries in key segments.

(Also Read: Mahindra Scorpio-N to Toyota Hyryder: 3 New SUVs to Debut in India Next Week)

Speaking about the plan, Raman Mittal, co-general manager of Solis Yanmar, said the company has already sold more than 5,000 tractor units in Turkey. Furthermore, he asserted that Solis Yanmar is the fastest growing tractor brand in Turkey, while taking the top spot in the position of tractor export brand. “The Turkish market has a huge demand for tractors between 30 and 90 HP, which makes our Solis 50 and Solis 90 our flagship products. Our S26 model has 88% market share in calendar year 2021 and, overall, we have captured 8% market share in Turkey.We also recently unveiled the 75 HP CRDi tractor at the national shows in Izmir and Konya held in February and March 2022 respectively, which was We are now expanding our range of compact tractors up to 30 HP with the launch of 3 new models with Japanese technologies to address the niche segment and take the Turkish tractor market by storm,” he said. he adds.

Date of first publication: June 26, 2022, 3:17 PM IST

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Five countries seek to delay the phase-out of fossil fuel cars in the EU https://cheapautoinsuronline.com/five-countries-seek-to-delay-the-phase-out-of-fossil-fuel-cars-in-the-eu/ Fri, 24 Jun 2022 17:29:36 +0000 https://cheapautoinsuronline.com/five-countries-seek-to-delay-the-phase-out-of-fossil-fuel-cars-in-the-eu/ BRUSSELS – Italy, Portugal, Slovakia, Bulgaria and Romania want to delay by five years a European Union plan to effectively ban the sale of new petrol and diesel cars from 2035, a document says consulted by Reuters. The policy is a key pillar of EU plans to tackle rising emissions from transport and accelerate the […]]]>

BRUSSELS – Italy, Portugal, Slovakia, Bulgaria and Romania want to delay by five years a European Union plan to effectively ban the sale of new petrol and diesel cars from 2035, a document says consulted by Reuters.

The policy is a key pillar of EU plans to tackle rising emissions from transport and accelerate the shift to electric vehicles, as the bloc strives to reduce net greenhouse gas emissions at home. scale of the economy by 55% by 2030, compared to 1990 levels.

The car emissions proposal, made by the European Commission last year, would require a 100% reduction in CO2 emissions from new cars by 2035, making it impossible to sell petrol vehicles in the EU from from this date.

Ministers from EU countries plan to agree their position next week, before negotiating the final law with the European Parliament – ​​which backed the 2035 ban in a vote this month .

In a document circulated among EU states, the five countries instead called for a 90% reduction in CO2 from cars by 2035 and reaching the target of 100% by 2040.

They said light commercial vehicles should achieve an 80% CO2 reduction by 2035 and 100% by 2040, rather than the 100% reduction by 2035 proposed by the Commission.

“Adequate and suitable transition periods should be established,” the document says, citing the need to expand charging infrastructure.

A Bulgarian official, who did not wish to be named, said climate policies needed to take into account economic and social factors such as “significant differences” in purchasing power between EU countries.

Brussels says the 2035 date is crucial because the average lifespan of new cars is 15 years – so a later ban would prevent the EU from reaching net zero emissions by 2050, scientists say this global milestone would avoid disastrous climate change.

Some EU governments have rallied behind the 2035 target, but Germany’s finance minister said this week that the EU’s biggest car market would not support it.

Ford and Volvo Cars have publicly backed the plan, and Volkswagen aims to stop selling combustion engine cars in Europe by 2035. But industry groups including the Association of European Automobile Manufacturers have opposed the plan. 2035 target, citing concerns such as the uncertain deployment of chargers.

The EU is negotiating another law requiring countries to install millions of vehicle chargers this decade.

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Ford ends car production at its German factory https://cheapautoinsuronline.com/ford-ends-car-production-at-its-german-factory/ Wed, 22 Jun 2022 11:44:24 +0000 https://cheapautoinsuronline.com/ford-ends-car-production-at-its-german-factory/ Ford does not intend to replace Focus production at its vehicle assembly plant in Saarlouis, Germany, in 2025. Instead, the US company will seek “alternative opportunities” for the plant, including selling it to another automaker, said Ford of Europe President Stuart Rowley. . Rowley, however, refrained from saying the establishment would close. “We are looking […]]]>

Ford does not intend to replace Focus production at its vehicle assembly plant in Saarlouis, Germany, in 2025. Instead, the US company will seek “alternative opportunities” for the plant, including selling it to another automaker, said Ford of Europe President Stuart Rowley. .

Rowley, however, refrained from saying the establishment would close.

“We are looking for other alternative opportunities for vehicle production in Saarlouis, including other manufacturers,” Rowley said in a conference call with reporters on Wednesday. “We do not have in our planning cycle an additional model that goes to Saarlouis.”

Saarlouis lost out to Ford’s plant in Valencia, Spain, in its bid to produce vehicles on the company’s next-generation electric vehicle architecture from the end of this decade, Ford said in a statement. communicated.

Valencia and Saarlouis will see “significant” job cuts as Ford shifts to an all-electric future, Rowley has warned. “The industry reality is that producing electric vehicles will require fewer people,” he said.

Ford currently employs 6,000 people in Valencia and 4,600 in Saarlouis. Ford’s site in Cologne, Germany, is not affected by the downsizing. Rowley gave no numbers or timeline for the downsizing.

Ford gave no indication in which segment the Valencia-built electric models will compete.

The plant is currently building the Kuga compact SUV alongside the large Galaxy and S-Max minivans.

Production of the Mondeo mid-size family at the plant has ended.

Saarlouis, which received a 600 million euro investment in 2017 to prepare to manufacture the current Focus, has long been under threat as Ford has turned to lower-cost production sites in Europe. These sites include its facilities in Craiova, Romania, where it builds the small Puma SUV, and in Kocaeli, Turkey, where it builds its Europe-leading range of commercial vehicles.

Production in Saarlouis has been hit by supply chain shortages and lower demand for compact sedans in general.

Ford Germany’s attention is focused on its Cologne plant, which will start building a new SUV based on Volkswagen’s MEB electric platform from 2023.

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Revenues from automotive accessories could increase; supply chain issues https://cheapautoinsuronline.com/revenues-from-automotive-accessories-could-increase-supply-chain-issues/ Mon, 20 Jun 2022 13:45:06 +0000 https://cheapautoinsuronline.com/revenues-from-automotive-accessories-could-increase-supply-chain-issues/ In the past fiscal year, 31 automotive component companies with cumulative revenues of more than ₹1.75,000 crore had seen a 23% year-on-year revenue growth. By : PTI | Updated: June 20, 2022, 7:15 PM File photo used for representational purposes. (Bloomberg) Auto accessories revenue is expected to rise 8-10% in 2022-23 on steady demand and […]]]>

In the past fiscal year, 31 automotive component companies with cumulative revenues of more than 1.75,000 crore had seen a 23% year-on-year revenue growth.

By :
PTI

|
Updated:
June 20, 2022, 7:15 PM

File photo used for representational purposes. (Bloomberg)

Auto accessories revenue is expected to rise 8-10% in 2022-23 on steady demand and a likely easing of supply chain concerns in the second half, Icra said on Monday. At the same time, hedging measures for the sector should also remain comfortable in 2022-23, benefiting from healthy claims and relatively low additional debt funding requirements, the rating agency said in a statement.

In the past fiscal year, 31 automotive component companies with cumulative revenues of more than 1.75,000 crore had seen 23% year-over-year revenue growth, driven by domestic original equipment manufacturers (OEMs), replacement, export volumes and the pass-through of raw material prices.

(Also read | Car sales take a hit due to semiconductor shortages, Covid-19 measures)

Although growth occurred on a relatively weak FY21 base, actual revenue growth was better than Icra’s estimates, in part due to better-than-expected exports and an increase achievements to pass on the impact of rising inflation in raw materials and freight costs, he said. Icra’s estimate of operating margins for fiscal year 2022 had taken into account the benefits of operating leverage.

However, unprecedented raw material and transportation cost inflation in the second half of FY2022 (October-March) and the inability to fully pass them on in a timely manner impacted profit margins. of the previous fiscal year, according to the press release. Operating margins for the 31 auto component companies in the sample in fiscal 2022 were the lowest in the past five years, he added. “ICRA expects auto accessory revenues to grow 8-10% in fiscal 2023, supported by stable demand as well as the expected easing of supply chain issues in the second half of the 2023 financial year.

(Also read | Wholesale sales of passenger vehicles more than doubled in May)

“Over the long term, premiumization of vehicles, a focus on localization, improved export potential and opportunities for electric vehicles, resulting in higher content per vehicle, would in our view result in growth healthy for automotive component suppliers,” said Vinutaa S, Vice President. and sector head at Icra According to her, automotive auxiliaries showed an adequate liquidity position, especially among Tier I and Tier II players.

Icra expects hedging metrics for this sector to also remain comfortable going forward, helped by healthy accrued liabilities and relatively low incremental debt funding, it said.

Estimated revenue growth for the sample in fiscal year 2022 was limited by factors such as semiconductor shortage issues, weak demand for two-wheelers and tractors, and the impact of geopolitical developments on international trade, she said.

Archive photo for representation purposes:

Archive photo for representation purposes: (Bloomberg)

“However, the industry’s real revenues were supported by healthy exports and better achievements. ICRA’s sample of 30 companies (excluding a large automotive component supplier) reported FY2022 operating margins of 10.6%, 10 basis points lower on a annual and 40 basis points lower than projections,” she added.

Uncertainties on the supply chain front and cost inflation have led auto accessories to store higher inventory, with sample inventory levels at their highest as of March 31, 2022, compared to the four last years.

Nevertheless, working capital intensity remains comfortable, at levels below 10%, according to Icra. He pointed out that the sample’s operating profits were higher in the prior fiscal year compared to fiscal 2020 and 2021, helped by healthy revenues, despite a marginal decline in operating margins.

Icra said that while debt levels increase with increasing working capital intensity, improved operating profits translate into comfortable debt coverage metrics for the industry.

(Also read | Auto retail still feeling Covid jitters, lower fuel prices could boost sales: FADA)

He also said the auto accessories sample’s capital expenditures for fiscal 2022 as a proportion of their operating profit were 5.9%, below pre-COVID levels by more than 7.5%. %, which was in line with Icra’s estimates.

The incremental investments were primarily for capacity expansion – new product additions, product development for engaged platforms, and development of advanced technology components and electric vehicles – in contrast to the capacity expansion investments seen in the past. .

Going forward, the recently announced PLI program will help accelerate medium-term capital expenditures in addition to investments by new entrants in the electric vehicle segment, he said, adding that most auto accessories rated by the CPBI are investment grade, reflecting a healthy credit profile. .

Date of first publication: June 20, 2022, 7:15 PM IST

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Online sales tool TrueCar+ is heading to more markets this year, says CEO Mike Darrow https://cheapautoinsuronline.com/online-sales-tool-truecar-is-heading-to-more-markets-this-year-says-ceo-mike-darrow/ Fri, 17 Jun 2022 23:36:05 +0000 https://cheapautoinsuronline.com/online-sales-tool-truecar-is-heading-to-more-markets-this-year-says-ceo-mike-darrow/ TrueCar CEO Mike Darrow said the company hopes to expand its TrueCar+ digital sales tool to other markets by the third quarter, with used vehicles likely growing faster than new vehicles. darrow said Automotive News Friday that the goal is to have used vehicles available nationwide through TrueCar+ in early 2023 and new vehicles available […]]]>

TrueCar CEO Mike Darrow said the company hopes to expand its TrueCar+ digital sales tool to other markets by the third quarter, with used vehicles likely growing faster than new vehicles.

darrow said Automotive News Friday that the goal is to have used vehicles available nationwide through TrueCar+ in early 2023 and new vehicles available in three to four other markets outside of Florida along the East Coast of by the end of this year.

And TrueCar’s acquisition this month of digital retail provider Digital Motors has already produced new functionality for TrueCar’s own online retail platform.

The integration of Digital Motors’ technology comes as TrueCar, of Santa Monica, Calif., aims to expand the reach of its TrueCar+ tool, which allows consumers to choose a vehicle, set up financing, add protection products, arrange delivery and complete a transaction. all primarily within the TrueCar platform. It began as a pilot project in Tampa, Florida in September and expanded to other markets in that state for a public launch in March.

Darrow said Digital Motors’ technology helps power a menu of vehicle protection products that consumers can select from TrueCar+.

“We’ve already got them on board. They’re very nimble,” Darrow said after a presentation at the Automotive Press Association in Detroit. “We think they’re going to be a good asset to us. And they’ve done or worked on a lot of the things that we’re working to bring to market, so we think they can definitely accelerate us to get there.”

Digital Motors, founded by Andy Hinrichs, went live in March 2020 at the start of the pandemic, months ahead of schedule. Darrow said in May that TrueCar was considering acquisitions that could provide “smart, integrated opportunities” that could advance TrueCar’s own technology platform.

“We think they’re going to speed us years to get things out,” Darrow said. “And it gives us an additional development team. It gives us some experience in areas that we didn’t have.”

TrueCar aims to be a vehicle ad marketplace that connects vehicle buyers and sellers, Darrow told the Automotive Press Association. Auto retail is changing, he said, with new entrants bringing new models of online sales – from start-up electric vehicle makers to digital used-vehicle retailers such as Carvana and vroom.

Automakers, too, are expanding into space. But Darrow said he believes marketplace sales platforms such as TrueCar+ have a role to play alongside other models, including enabling consumers to cross-shop.

“We can help consumers figure out which brand they’re interested in, and if that brand has an ordering system that they want us to pass on, we can do that as well,” he said.

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Sony and Honda finalize 50-50 joint venture to build electric vehicles in 2025 https://cheapautoinsuronline.com/sony-and-honda-finalize-50-50-joint-venture-to-build-electric-vehicles-in-2025/ Thu, 16 Jun 2022 11:30:00 +0000 https://cheapautoinsuronline.com/sony-and-honda-finalize-50-50-joint-venture-to-build-electric-vehicles-in-2025/ Sony Honda Mobility, which will be based in Tokyo, will combine Honda’s expertise in vehicle engineering and manufacturing, as well as its after-sales service competence, with Sony’s strengths in imaging, sensing, telecommunications and entertainment, the companies said. The deal formalizes a memorandum of understanding that Honda and Sony announced in March. The new company is […]]]>

Sony Honda Mobility, which will be based in Tokyo, will combine Honda’s expertise in vehicle engineering and manufacturing, as well as its after-sales service competence, with Sony’s strengths in imaging, sensing, telecommunications and entertainment, the companies said.

The deal formalizes a memorandum of understanding that Honda and Sony announced in March. The new company is expected to sell its vehicles in Europe, the United States and Japan.

Toshihiro Mibe, CEO of Honda said the initial venture is expected to be small, but this is an important step in testing new business models for an industry beleaguered by change.

“In the new company, we will strive to create new value through the merger caused by the combination of our different industries,” Mibe said in the joint statement.

Honda, in the in the midst of a drastic corporate metamorphosissaid in April that it would invest 5 trillion yen ($37.16 billion) over the next 10 years in electrification, as it deploys 30 full electric vehicles globally and boosts its production capacity of 2 million electric vehicles per year by 2030.

Detailing the strategy, Honda said it will also shift its business from one-time hardware sales to recurring service sales that combine hardware and software.

It’s part of the new software-defined EV platform, dubbed e:Architecture, that the company will launch in 2026 to support Honda’s next generation of full-size battery-electric cars.

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Korean truckers end week-long strike https://cheapautoinsuronline.com/korean-truckers-end-week-long-strike/ Tue, 14 Jun 2022 20:28:55 +0000 https://cheapautoinsuronline.com/korean-truckers-end-week-long-strike/ Striking truckers in South Korea have reached a deal with the government, ending a week-long strike that has increased pressure on global supply chains. Truckers will return to work immediately after agreeing to extend a freight rate system guaranteeing a minimum wage, according to a statement from the Cargo Truckers Solidarity division of the Korea […]]]>

Striking truckers in South Korea have reached a deal with the government, ending a week-long strike that has increased pressure on global supply chains.

Truckers will return to work immediately after agreeing to extend a freight rate system guaranteeing a minimum wage, according to a statement from the Cargo Truckers Solidarity division of the Korea Public Service and Transport Workers Union.

Under the agreement, the Department of Transport will provide subsidies to ease pressure on soaring fuel prices, the statement said.

The union was calling for the freight rate system to be extended to help drivers cope with rising fuel prices. The Safe Trucking Freight Rates System was introduced in 2020 for three years, aimed at preventing unsafe driving practices, such as overloading freight, and ensuring minimum rates for truckers. The system was due to expire this year.

The deal with the Department for Transport was reached on Tuesday evening after four previous talks failed.

The strike, which began on June 7, has rocked industries amid fears of rising costs and a wider upheaval in global supply chains after China’s Covid-19 lockdowns and the invasion of Ukraine by Russia.

The Ministry of Commerce, Industry and Energy estimated this week that key industries have seen production disruptions worth about 1.6 trillion won ($1.2 billion).

Deliveries of cars, petrochemicals, steel and materials for semiconductor chips have been suspended or delayed, and concerns have grown that a prolonged strike would force larger production stoppages and even endanger the energy security of the country.

The country’s biggest steelmaker, Posco, suspended production at its four wire rod plants and one cold-rolled steel plant after the strike exhausted warehouse space. Petrochemical producers also saw their warehouses fill up, as they were unable to deliver the raw materials used to make everything from clothes to cars.

The daily volume of containers transported to and from the country’s 12 ports fell 53% on Tuesday from the May average, according to data from the Department of Transport. Inbound and outbound volumes at Busan, the world’s seventh-busiest port, were about half their usual volume.

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