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nytimes.com/2024/04/01/business/dealbook/auto-execs-call-for-new-measures-as-ev-wars-heat-up.html
Andrew Ross Sorkin, Ravi Mattu, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch, Ephrat
Livni, Vivienne Walt
1 April 2024
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Luca de Meo, the C.E.O. of Renault Group, is calling for an “Airbus of E.V.s” to help European
automakers better compete against low-cost Chinese rivals.Credit...Gonzalo Fuentes/Reuters
Tesla’s stock is down nearly 30 percent this year, with short sellers circling.
Politicians and auto executives on both sides of the Atlantic are calling for more
protectionist measures. After Tesla lost its crown to BYD as the world’s biggest E.V.
maker, Elon Musk signaled that trade barriers may be needed. Otherwise, the Tesla
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C.E.O. said, Chinese E.V. makers “will pretty much demolish most other companies in the
world.”
Luca de Meo, Renault Group’s C.E.O., is pushing for a more radical approach, Vivienne
Walt reports for DealBook. His answer to the China threat: an E.V. alliance modeled on
Airbus, the heavily state-supported planemaker.
Here’s what de Meo has in mind: European auto giants would join forces on battery and
semiconductor production and on research and development in an effort to bring down
E.V. manufacturing costs and better compete against their non-European rivals. “If they’re
competing as they are, they are weaker in front of China,” Felipe Munoz, senior analyst
for JATO Dynamics, an auto consulting firm, told DealBook. “Their E. V.s are still very
expensive. They have problems with battery production.”
Airbus is one of Europe’s great successes, having overtaken Boeing as the world’s
largest commercial planemaker. (Both companies have accused the other of receiving
unfair competitive advantages, culminating in a W.T.O. ruling that each of them had
received preferential subsidies.)
Trade barriers are unlikely to slow China’s growth. “Any tariff increase will have an
impact, but it won’t deter them from arriving,” Munoz said. “This will be a war between
tariffs on one side, and subsidies on the other.”
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A $20-per-hour minimum wage for fast-food workers begins today in California. The
law, which has been vigorously opposed by the industry, applies to most of the sector’s
workers in the state, and requires that employers also offer paid overtime and family
leave. Under Gov. Gavin Newsom, a Democrat, California has championed some of the
nation’s most generous workers’ rights provisions, with all health care employees set to
receive a $25 minimum wage by 2028.
The Senate reportedly plans to amend the House’s TikTok bill. Senator Maria
Cantwell of Washington, the Democratic chair of the Commerce Committee, is expected
to push for changes to a proposal that could ban the app in the U.S., The Wall Street
Journal reports. This could include giving ByteDance more time to divest TikTok, or
broadening the bill to address other social media platforms. Meanwhile, the former
Treasury secretary Steve Mnuchin’s bid to buy TikTok is meeting increased skepticism.
Nippon Steel vows to press ahead with a $14 billion deal to buy U.S. Steel. Tadashi
Imai, Nippon’s new president, said the Japanese company would negotiate with U.S.
Steel’s union workers to win their support. The acquisition has become a hot election
issue, with President Biden signaling that U.S. Steel should be domestically owned ahead
of a summit with the Japanese prime minister, Fumio Kishida, on April 10.
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Pete Buttigieg, the transportation secretary, yesterday urged Congress to authorize the
needed money, emphasizing that the bridge collapse could have an impact on the wider
economy. With cost estimates of at least $2 billion, not everyone in Washington is on
board, however.
“Your district could be next, and this has historically been bipartisan,” Buttigieg told
CBS News’s “Face the Nation.” Biden said last week that the federal government would
pay “the entire cost” of rebuilding — the Transportation Department has secured a $60
million “down payment,” but that’s not enough to complete the work.
Our business reporters. Times journalists are not allowed to have any direct financial
stake in companies they cover.
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Other lawmakers want tosee the companies involved in the crash (and their insurers) pay
at least part of the cost. “I don’t think it has to be federal taxpayer money,” John
Garamendi, a Democrat from California and a senior member of the House
Transportation Committee, told Bloomberg last week. “Let’s first go to the insurance side
of it, and then we’ll see what’s left over.”
The industry is bracing for a hefty tab. John Neal, the C.E.O of Lloyd’s of London,
called the disaster “one of the biggest marine losses in history.” Morningstar analysts,
meanwhile, estimate that it could cost insurers as much as $4 billion.
The collision puts the spotlight on maritime safety and size. Larry Hogan, the former
Republican governor of Maryland who is running for U.S. Senate, courted mega-ships
during his term in office, from 2015 to 2023, according to Lever News. That’s despite a
report from Allianz, the insurer, that flagged “risk management concerns” posed by the
giant vessels.
The supersized ship that crashed into the Francis Scott Key Bridge was loaded with
about 4,700 40-foot shipping containers, an increasingly common sight amid a global
shipping boom. In contrast, ships that sailed at the time the bridge was built in 1977 held
about half that.
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The idea would be for tech companies to use the label to inform businesses and
consumers about how they are using their data for A.I. Such labels could “present the
most important information about a model in a relatively brief, standardized, and
comparable form,” the report said.
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Wednesday: EurozoneConsumer Price Index data is scheduled for release. The markets
are pricing in a June interest-rate cut if inflation can remain in check.
Elsewhere, Levi Strauss, whose jeans make a prominent appearance in Beyoncé’s latest
album, reports earnings. Disney holds its annual shareholders meeting, where its fight
against the activist investor Nelson Peltz is expected to come to a head.
Thursday: Donald Trump faces a deadline in his civil fraud case: post a $175 million
bond, or risk the New York attorney general seizing assets.
Friday: It’s jobs day. Economists polled by Bloomberg have forecast that employers
added at least 200,000 jobs in March. They also expect a slight slowdown in wage gains.
B) Japan’s Nikkei
C) Cocoa futures
D) Brent crude
The answer: C, cocoa futures, which have more than doubled this year following
exceptionally poor cocoa bean harvests in West Africa.
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Deals
Potential bidders could scoop up some the world’s top ice cream brands, with
Unilever’s Ben & Jerry’s and the company behind Haagen-Dazs for sale.
(Bloomberg)
The huge investments in A.I. are leading to hype and “grifting” reminiscent of the
crypto boom, says Google’s A.I. boss, Demis Hassabis. (FT)
Election 2024
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China’s increasingly sophisticated efforts to influence the U.S. election are raising
the alarm in Washington. (NYT)
Companies are rushing to meet financing needs ahead of the election to forestall
any market volatility. (FT)
U.S. oil exports have hit records since Western countries imposed sanctions on
Russia. (Bloomberg)
“The Celebrity Chef Who Beat the U.S. Military at Getting Aid Into Gaza” (WSJ)
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