Manufacturers Cut Spending as Trade War Dents Confidence

U.S. manufacturers are investing less in their factories and workforces as the trade dispute with China makes it more difficult for executives to anticipate costs and demand.

The shifting contours of the tariffs that the U.S. and China have applied to each other’s goods are prompting some companies to put business plans on hold. Others are cutting back investments as trade volumes and economic growth slow around the world.

Read the source article at Stock Market Quotes and News

Carmakers alarmed over latest round of Chinese tariffs

Washington — Alarm bells are ringing at carmakers after the latest round of retaliatory tariffs that will hit cars exported to China from the United States. China said Friday it will impose tariffs on $75 billion worth of U.S. goods, including cars, in response to President Donald Trump’s plans to levy tariffs on $300 billion worth of Chinese goods before the end of the year.

Read the source article at The Detroit News

Decade of growth for auto parts industry may soon be over

The auto parts industry has chalked up a decade of steady growth, but analysts and forecasters believe the strains of falling vehicle sales, rising material costs and huge demands for r&d spending could bring the party to an end.

The combination of uncertainty over future technologies, lingering import tariffs and unsettled trade issues with key trading partners — China, Mexico, Canada and Europe — will erode supplier company values and stock prices, making it harder to keep up current spending demands, many now worry.

Read the source article at Automotive News Europe

Auto supplier Magna tackles tariffs as it transforms

curata__RimptBWTv5VZ2xg.jpeg

TRAVERSE CITY, Michigan — As Magna International prepares its business for tomorrow, it’s been forced to reckon with challenges that threaten the bottom line today. This year, it scrambled to move wire harness production from China to Thailand after the Trump administration slapped 25 percent tariffs on Chinese goods. And company officials say they have been forced to consider moving production of other components.

Read the source article at Automotive News Europe

Pence says clock ticking on USMCA, but Democrats won’t be rushed – Reuters

WASHINGTON (Reuters) – U.S. Vice President Mike Pence on Tuesday said that a new U.S.-Mexico-Canada trade deal needs to be approved without delay, but Democrats and organized labor said certain provisions must first be improved. Pence told reporters he was hopeful that the U.S. House of Representatives, which is controlled by Democrats, would pass the agreement this fall. “The clock is ticking,” Pence said.

Read the source article at reuters.com

Whole Lotta Shaking Going on in Auto Industry

curata__6u7BKtonvNepiLN.jpeg

It’s already been an eventful year for the automotive industry. Let’s review some of the biggest trends and headlines we’ve seen so far and consider what the future might hold.

Shake-Ups and Industry Disruptors

We can’t discuss the industry in 2019 without mentioning tariffs, so let’s start there.

The U.S. and China have made a lot of noise by threatening to impose new or raise existing tariffs on automobiles. The potential of higher costs is affecting factories worldwide, and the situation is made more complex by the fact that many auto makers have plants in countries other than their home base (for example, GM builds cars in China; BMW in the U.S.; VW in Mexico).

Read the source article at WardsAuto

Q&A: Tariffs, duties have had little effect on CMA

curata__BgmIc3n7l0bg2uE.jpeg

Tariffs and antidumping/countervailing duties on TBR tires have caused great volatility for many tire makers, especially those based in China. Walter Weller, senior vice president at China Manufacturers Alliance L.L.C., the North American subsidiary of Double Coin Holdings Ltd., discussed this issue, among others, with Tire Business.

Read the source article at Tire Business

In 2019 a turnover decline of up to 10% is expected

In 2018, the German plastics and rubber machinery manufacturers generated a turnover plus of 2% again compared to the previous-year period. “The growth rate of 3% originally predicted for 2018 could not be reached. Nevertheless, we are pleased about the positive all-year results as in particular towards the end of the year, deterioration of the market became already apparent”, explains Ulrich Reifenhäuser, Chairman of VDMA Plastics and Rubber Machinery.

Read the source article at macplas.it

Vipal Rubber’s Mexican partner opens new unit in Nuevo Laredo

curata__Mt7pFWMrcQt66Jj.png

Vipal Rubber has celebrated the achievements and growth of one of its Monterrey network members in Mexico, Llanco. Recently the retreader opened its second unit in the country, in Nuevo Laredo, in the state of Tamaulipas.

The plant began operations in early May, with a production capacity of up to 2,200 retreads per month. With the new factory’s opening, the retreader expects an approximate growth of 50% in the first year and 100% in the second year.

Read the source article at Tire Technology International

Kenda moving U.S. order production out of China

curata__2j5gZlYaGLu5SqI.jpeg

CHANGHUA, Taiwan—Amid U.S. tariff angst, Kenda Rubber Industrial Co. Ltd. is transferring some of its tire production from China factories to other Asian areas.

“Kenda has many tire manufacturing facilities in Asia, we can offer productions from different factories to cover demands from customers in a different part of the world,” Chairman Jimmy Yang said.

Read the source article at Rubber and Plastics News