Author: IsaacMG

SEOUL (Reuters) – From an eponymous cocktail to eager buyers following the shipping routes of long-awaited cars, Tesla Inc (TSLA.O) is having a moment in South Korea, particularly among tech-savvy professionals.

Kang Sung-mo, who runs an advertising production agency in Seoul, is a convert.

“I am not interested in cars, but I am interested in the Tesla brand and its technology,” the 39-year-old told Reuters.

Kang bought a Tesla Model 3 in December, ditching the Hyundai crossover he bought only last summer. Being associated with Tesla’s reputation for innovation was good for his image, he said.

The U.S. electric car maker had its best month for South Korea in June, selling 2,827 vehicles and bouncing back from weak sales in April and May which were hit by U.S. production disruptions due to the coronavirus. The Model 3 is now the country’s No.2 imported vehicle, ahead of the BMW 5 series and the Audi A6, and just behind the Mercedes E-Class.

By contrast, Hyundai Motor Co (005380.KS), the dominant automaker in South Korea, saw sales of its Kona EV slump 31% in June to 2,513 vehicles.

Another 4,000 to 5,000 South Korean customers have the Model 3 on order, although most of them may have to wait until at least September for delivery, said a source familiar with the matter. The source was not authorised to speak to the media and declined to be identified.

Tesla’s rising popularity among affluent professionals in South Korea, who have been relatively unscathed by the pandemic, is one of many feathers in its cap.

Highlighting the threat it poses to established brands, Tesla last week surpassed Toyota Motor Corp (7203.T) as the World’s most valuable automaker while its second-quarter deliveries smashed expectations at a time when sales at rivals have been laid low by the pandemic.

South Korea’s generous subsidies of 12.43 million won ($10,380) for the Model 3 have definitely helped sales, bringing the car’s price down to less than $40,000, but the Silicon Valley automaker has also generated a genuine buzz.

In social media posts, South Korean Tesla fans avidly track the routes of ships bringing its cars to Asia, while at the country’s bars, the latest trendy cocktail is a mix of HiteJinro’s (000080.KS) Terra-brand beer and the Korean traditional liquor ‘soju’. Smashed together, their names are pronounced “Tesla” in Korean.

The automaker has additionally benefited from free advertising after popular Korean actor Yoo Ah-in, known for his sense of style, drove his Tesla Model X SUV to go grocery shopping on a reality show aired last month. That has led to a spike in orders for the vehicle, a second person familiar with the matter said without elaborating.

Some new Korean owners noted they bought a Tesla for practical reasons.

Kim Dong-hwan, who works in IT in Seoul, wanted to avoid public transportation during the pandemic and driving fatigue on his long commute.

Not everything is perfect – his Model 3 has a panel gap and he has to wait several months before it will be fixed – but Kim says the benefits and emotional appeal of a technologically advanced brand were worth it.

“I am very satisfied given that Tesla’s self-driving feature has reduced fatigue while driving,” he said.

SEOUL (Reuters) – From an eponymous cocktail to eager buyers following the shipping routes of long-awaited cars, Tesla Inc is having a moment in South Korea, particularly among tech-savvy professionals.

Kang Sung-mo, who runs an advertising production agency in Seoul, is a convert.

“I am not interested in cars, but I am interested in the Tesla brand and its technology,” the 39-year-old told Reuters.

Kang bought a Tesla Model 3 in December, ditching the Hyundai crossover he bought only last summer. Being associated with Tesla’s reputation for innovation was good for his image, he said.

The U.S. electric car maker had its best month for South Korea in June, selling 2,827 vehicles and bouncing back from weak sales in April and May which were hit by U.S. production disruptions due to the coronavirus. The Model 3 is now the country’s No.2 imported vehicle, ahead of the BMW 5 series and the Audi A6, and just behind the Mercedes E-Class.

By contrast, Hyundai Motor Co, the dominant automaker in South Korea, saw sales of its Kona EV slump 31% in June to 2,513 vehicles.

Another 4,000 to 5,000 South Korean customers have the Model 3 on order, although most of them may have to wait until at least September for delivery, said a source familiar with the matter. The source was not authorised to speak to the media and declined to be identified.

Tesla’s rising popularity among affluent professionals in South Korea, who have been relatively unscathed by the pandemic, is one of many feathers in its cap.

Highlighting the threat it poses to established brands, Tesla last week surpassed Toyota Motor Corp as the World’s most valuable automaker while its second-quarter deliveries smashed expectations at a time when sales at rivals have been laid low by the pandemic.

South Korea’s generous subsidies of 12.43 million won ($10,380) for the Model 3 have definitely helped sales, bringing the car’s price down to less than $40,000, but the Silicon Valley automaker has also generated a genuine buzz.

In social media posts, South Korean Tesla fans avidly track the routes of ships bringing its cars to Asia, while at the country’s bars, the latest trendy cocktail is a mix of HiteJinro’s Terra-brand beer and the Korean traditional liquor ‘soju’. Smashed together, their names are pronounced “Tesla” in Korean.

The automaker has additionally benefited from free advertising after popular Korean actor Yoo Ah-in, known for his sense of style, drove his Tesla Model X SUV to go grocery shopping on a reality show aired last month. That has led to a spike in orders for the vehicle, a second person familiar with the matter said without elaborating.

Some new Korean owners noted they bought a Tesla for practical reasons.

Kim Dong-hwan, who works in IT in Seoul, wanted to avoid public transportation during the pandemic and driving fatigue on his long commute.

Not everything is perfect – his Model 3 has a panel gap and he has to wait several months before it will be fixed – but Kim says the benefits and emotional appeal of a technologically advanced brand were worth it.

“I am very satisfied given that Tesla’s self-driving feature has reduced fatigue while driving,” he said.

(Reuters) – U.S. auto safety regulator on Tuesday disclosed it has opened an investigation into complaints of fuel leaks in older Chevrolet Cobalt compact cars and HHR wagons, manufactured by General Motors Co (GM.N).

The National Highway Traffic Safety Administration (NHTSA) said the investigation, which was opened on Sunday, covers more than 614,000 vehicles from 2008 to 2010 model years.

“The fuel leaks are the result of corrosion of the metal fuel lines underneath the vehicle towards the rear and in the vicinity of the left rear wheel well,” the regulator said after it received 208 complaints of fuel leaks from vehicle owners.

The NHTSA said there were no reports of fires or injuries from such leaks, and it was probing the scope and severity of the potential problem to assess any possible safety issues with the vehicles.

GM said it will continue to cooperate with the NHTSA in the investigation.

RIYADH/DUBAI (Reuters) – People in Saudi Arabia rushed to buy goods from imported fruit juices to cars ahead of a sharp hike in value-added tax on July 1, introduced by the oil-rich kingdom to boost state revenues amid its worst ever economic decline.

The tripling of VAT to 15% comes against a backdrop of lower consumer spending and an easing of inflation due to a three-month coronavirus lockdown that was fully lifted on June 21.

Supermarkets in the capital Riyadh were packed over the weekend as shoppers stockpiled non-perishable goods. Furniture and appliances stores offered discounts to lure buyers.

“Demand has been very weak but people are now actively buying ahead of the VAT so there is a bit of demand,” said Najem Alotaibe, a car dealer in Riyadh.

Jaber al-Sahari, who works in a gold shop, also reported an increase in demand in the last two weeks.

Saudi Arabia announced the VAT hike and suspension of a cost of living allowance in May, shocking citizens and businesses expecting more support from the government.

“Life is getting more expensive. I bought some imported food and juices and stored it because prices will rise,” said Sarah, a Saudi mother of two.

In recent months inflation eased to around 1% due to low demand for non-food items and reduced fuel prices, but some analysts expect it to surge by up to 6% year-on-year in July due to the VAT hike.

Authorities this month increased import tariffs to contain a ballooning fiscal deficit, which the International Monetary Fund projects at over 12% of GDP from 4.5% last year.

These steps could reduce the overall deficit by 4.5% to 6% of GDP, but may dampen economic recovery, Arqaam Capital has said.

For Abu Omar, an Egyptian expatriate, the VAT hike comes on top of a 20% salary reduction due to the coronavirus crisis.

“So now I have to live with 35% less, this will be very difficult with three kids,” he said.

(Reuters) – Formula One champions Mercedes unveiled black-liveried cars for the 2020 season on Monday as part of a public pledge to further improve diversity within the team and the World of motorsport.

Mercedes have traditionally raced in silver throughout their time in Formula One but will switch to black and have ‘End Racism’ emblazoned on the halo of both cars.

The team said the Black Lives Matter movement has “shone a searching light on how much we need new measures and actions in the fight against racism and all forms of discrimination”.

The new livery will make its debut when Britain’s World champion Lewis Hamilton and Finnish team mate Valtteri Bottas feature in the season-opening Austrian Grand Prix on Sunday.

“Racism and discrimination have no place in our society, our sport or our team: this is a core belief at Mercedes,” Mercedes team principal Toto Wolff said in a statement here

“But having the right beliefs and the right mindset isn’t enough if we remain silent.

“We wish to use our voice and our global platform to speak up for respect and equality, and the Silver Arrow will race in black for the entire 2020 season to show our commitment to greater diversity within our team and our sport.”

Mercedes said only 3% of their workforce identified as belonging to minority ethnic groups, while just 12% are women.

The team plans to launch a diversity and inclusion programme before the end of the season as they look to improve those numbers and encourage more people from under-represented backgrounds into Formula One.

Six-times Formula One champion Hamilton said: “It’s so important that we seize this moment and use it to educate ourselves whether you are an individual, brand or company to make real meaningful changes when it comes to ensuring equality and inclusivity.”

WASHINGTON (Reuters) – House Democrats on Tuesday will unveil a plan to cut nearly 90% of U.S. greenhouse gas emissions by 2050, including mandating sales of zero-emission cars by 2035 and decarbonizing the power grid by 2040.

The policy recommendations are intended as a blueprint for lawmakers to fight climate change should Democrats win control of Congress in the November election. But they do not go nearly as far as the Green New Deal resolution previously floated by the party’s progressive wing that called for a 10-year transition to a 100% clean energy economy.

The plan proposes expanding the $7,500 electric vehicle tax credit after both Tesla Inc and General Motors Co vehicles’ credits expired. It calls for raising the 200,000 vehicle individual manufacturer cap and new incentives to help consumers buy used electric vehicles.

Republicans have labeled plans like the Green New Deal “socialist” and President Donald Trump, who is seeking re-election, has made rolling back environmental regulations to support the drilling and mining industries a centerpiece of his economic agenda.

The 500-page plan drafted by the House Select Committee on the Climate Crisis would support clean energy businesses, ban drilling on public lands, protect minority communities from climate impacts and bolster the climate resilience of farmlands, according to a summary seen by Reuters.

Together, the recommendations would put the United States on track to slash net greenhouse gas emissions 88% below 2010 levels by 2050, according to Energy Innovation, a nonpartisan climate policy research group that modeled the plan with committee staff.

The policy recommendations “satisfy the scientific and moral imperatives to reduce carbon pollution and as quickly and aggressively as possible make communities more resilient to the impacts of climate change,” according to the summary.

House Speaker Nancy Pelosi will join committee chair Rep. Kathy Castor and Democratic panel members to unveil the blueprint Tuesday.

Environment America, a coalition of state environmental advocacy groups, praised the plan. It was not immediately clear if lawmakers and other green groups will support it.

(Reuters) – Carbon dioxide emissions from new cars in Europe rose for a third year running in 2019, provisional data from the European Union’s environment agency (EEA) showed on Friday, with carmakers further lagging the bloc’s upcoming climate goals.

The European Commission said carmakers must significantly reduce their emissions or risk missing tougher EU targets coming into force this year.

“Manufacturers will have to improve the fuel efficiency of their fleet and accelerate the deployment of zero- and low-emission vehicles,” it said.

Average emissions for new cars registered in the EU’s 27 member states plus Britain, Iceland and Norway were 122.4 grams of CO2 per kilometre in 2019, an increase of 1.6g compared with 2018, the EEA said.

This was comfortably below the EU’s target for last year of 130g of CO2 per kilometre, but far off tougher EU targets that take effect this year.

To meet those and avoid paying fines, carmakers would need to slash their emissions by 22% from 2019 levels. The 2020 target caps average CO2 emissions from new cars at 95g CO2/km.

Emissions climbed as fuel-guzzling SUVs continued to grow their share of the market, accounting for 38% of Europe’s new car sales last year.

Average CO2 emissions from new vans also increased in 2019 for a second consecutive year.

Electric and hybrid vehicles made up 3.5% of new car sales in 2019, with Norway accounting for 56% of registrations.

EU car sales have plummeted this year as the coronavirus pandemic ravaged Europe’s economies and lockdown measures to contain the virus kept millions of people at home.

The Commission urged member states to introduce incentive schemes for cleaner cars and invest in electric vehicle charging infrastructure to help push carmakers towards meeting emissions goals.

France and Germany have already unveiled electric vehicle purchase incentives as part of their coronavirus economic recovery packages.

DETROIT (Reuters) – Waymo and the Volvo Cars Group have agreed to develop a self-driving electric vehicle designed for ride hailing use, as part of a new global partnership, the companies said on Thursday.

Waymo, a unit of Silicon Valley’s Alphabet Inc, said it will be the exclusive global partner for Volvo Cars for developing self-driving vehicles capable of operating safely without routine driver intervention.

Waymo will focus on the artificial intelligence and certain hardware, including cameras, lidar and radar, for the automated “driver.” Volvo will design and manufacture the vehicles. The companies said Waymo will work with Volvo’s global brands, including Polestar and Lynk & Co.

Waymo and Volvo did not say when or where they expect to launch their new ride-hailing vehicle.

Volvo, owned by China’s Zhejiang Geely Holding Group Co, has a separate agreement to deliver vehicles to ride hailing company Uber Technologies Inc that Uber will equip to operate as self-driving vehicles. Volvo Cars is continuing to deliver vehicles to Uber.

Uber’s development of self-driving vehicle technology was disrupted after a self-driving Volvo SUV operated by Uber struck and killed a pedestrian in Arizona in 2018. More recently, Uber has been slashing costs and staff to offset revenue lost to the coronavirus pandemic. Chief Executive Dara Khosrowshahi has said Uber is open to using competitors’ technology..

The Waymo-Volvo deal marks a return by Waymo to its early goal of rethinking how cars that can pilot themselves should look. Since retiring its Firefly self-driving car in 2017, Waymo has retrofitted its software and sensors into conventional vehicles such as Chrysler Pacifica minivans. Waymo also is developing technology for self-driving commercial trucks.

Waymo earlier this year raised $3 billion in its first external investment round.

Rival Cruise, majority-owned by General Motors Co, last year unveiled a prototype for an electric, self-driving people carrier called the Cruise Origin. (link: reut.rs/31mTjiG)

Waymo said it will continue working with Fiat Chrysler, Jaguar Land Rover [TAMOJL.UL] and the Renault Nissan Mitsubishi Alliance.