By Arno Schuetze FRANKFURT (Reuters) – Shares in car parts maker Schaeffler rose 8 percent in their market debut on Friday as investors bet on a recovery of automotive stocks in the wake of carmaker Volkswagen's emissions scandal. The rise is a positive sign for the Schaeffler family, one of Germany's wealthiest, after it had to push back and scale down the initial public offering (IPO) amid volatile markets and the scandal at VW, which accounts for more than 10 percent of group sales. The flotation follows the listings of plastic maker Covestro and classifieds group Scout24 , which both suffered from the wobbly stock markets.
Volkswagen needs to be pro-active in investigating the emissions data rigging scandal, Germany’s Economy Minister Sigmar Gabriel said on Thursday. Almost three weeks after it admitted publicly to rigging U.S. emissions tests, Europe’s largest carmaker is under huge pressure to identify those responsible, fix affected vehicles and clarify exactly how and where the cheating happened. “There should not be a debate about the automotive industry or about diesel technology,” Gabriel said after attending a meeting of Volkswagen’s world workers council in Wolfsburg.
United Auto Workers members are planning to strike at Fiat Chrysler Automobiles NV U.S. manufacturing plants as soon as Wednesday evening, threatening to bring manufacturing to a halt. A strike at its U.S. operations could cost the automaker $40 million a week in operating profit, said Sean McAlinden, chief economist with the Center for Automotive Research. Workers at several plants in Kokomo and at least one in Michigan received notices to be ready to strike but it was not clear whether all Fiat Chrysler plants would be involved.
Fiat Chrysler Automobiles NV stands to lose $40 million of operating profit a week from a strike of its plants by the U.S. labor union United Auto Workers, said an analyst with the Center for Automotive Research. Sean McAlinden, chief economist at the Ann Arbor, Michigan-based automobile industry consultancy, said the figure is based on the estimated per-vehicle profit of Fiat Chrysler autos sold in the U.S. market. Labor costs have fallen to about 4 percent of the total price of a vehicle at Fiat Chrysler, down from 15 percent at Detroit automakers in the late 1990s, McAlinden said.
Canada's Conservative Prime Minister Stephen Harper on Tuesday promised C$1 billion ($763 million) in assistance over 10 years for the automotive industry if he retains power in an Oct. 19 election. Polls show Harper may well lose his majority in the House of Commons and could even be turned out of office. "If automakers are prepared to make firm commitments to new and modernized plants in Canada for the long-term, our Government is prepared to partner with them," he said.
(Reuters) – Auto sales in Canada rose 3.7 percent in September, according to data compiled by DesRosiers Automotive Consultants on Thursday, a sign that parts of the economy are strong even though the broader Canadian economy contracted in the first half. Total light vehicle sales rose to 174,337 cars and trucks, as Fiat Chrysler Automobiles NV , Ford Motor Co and General Motors Co all reported higher Canadian sales for the month. "This week Statistics Canada released a positive report on the Canadian economy that exceeded expectations," DesRosiers wrote in a note. …
Jaguar Land Rover, owned by India's Tata Motors, said Wednesday it will push ahead with introducing more diesel vehicles in the United States despite Volkswagen's diesel-engine cheating scandal. "We're not going to change our strategy," Joachim Eberhardt, president of Jaguar Land Rover North America, said after a speech to the Automotive Press Association in Detroit, Michigan, the hub of the US auto industry. "You have to deal with the situation as it arises," Eberhardt said, in reference to the Volkswagen scandal that erupted two weeks ago after US environmental regulators reported VW had installed a "cheat device" on nearly half a million diesel cars in the country to fool US emissions testing.