Author: CNBC Online news

Ranger redux: Ford hopes to claw its way back into exploding midsize truck market

Meghan Reeder | CNBC
2019 Ford Ranger pickup

The windshield wipers slap furiously as the pickup splashes its way through the deep mud bog, the last in a series of obstacles along an off-road trail rough enough to shake loose a few fillings.

It's not the sort of route most drivers will experience in a lifetime, but pickup owners expect their trucks to be ready to handle that sort of situation on a regular basis.

So, when Ford decided to give some automotive journalists a chance to drive the all-new Ranger pickup this month, it took them up into the mountains east of San Diego where they could put the truck through what can best be described as a torture test.

Ford's full-size F-Series pickups make up the best-selling product line in the U.S. automotive market, but the automaker has been notably absent from the midsize truck segment since killing off the old version of its Ranger back in 2012, shuttering the archaic Twin Cities Assembly Plant in Minnesota. It's a decision the automaker soon came to regret.

Rule the road

Through the 1980s, small trucks ruled the road. For then-young baby boomers, they were a cheap way to get a new set of wheels. But over the last two decades, the market has shifted to full-size models like the Ford F-150 and rival Chevrolet Silverado. With demand for midsize products spiraling downward, Ford and its Detroit rivals all pulled the plug, leaving just two imports, the Toyota Tacoma and Nissan Frontier, to fight it out for the remaining scraps. Ford, in particular, was betting it could get old Ranger buyers to cough up a bit more cash for the bigger — and markedly more profitable — F-150.

But things didn't work out quite as planned. For one thing, Ford didn't count on General Motors to get back in the game, in 2015 reviving its Chevrolet Colorado and GMC Canyon pickups. What seemed like a risky bet quickly began to pay off. Not only did sales of the sibling trucks take off, but they gave momentum to the midsize market as a whole, sales of the Tacoma and Frontier also improving. Two years later, Honda returned to the segment with a complete remake of its Ridgeline model.

Ford
The interior of the 2019 Ford Ranger

The irony is that Ford actually had a new midsize pickup, an all-new Ranger that it was producing in plants all over the world and selling just about everywhere but the U.S. The automaker was so sure there wouldn't be a market, it didn't even bother to engineer it to meet U.S. regulations — a process known as homologation — or make it robust enough for the unique demands of American buyers.

By 2016, it was obvious to Ford planners and senior executives that they were missing a huge opportunity, made all the more obvious by the explosive growth in light trucks, in general. Pickups, vans and utility vehicles now account for about 2 out of every 3 new vehicles sold in the States.

$100 million

Ford engineers had a good place to start with the new Ranger, but they couldn't just bring over the global model. It needed some major revisions to boost its cargo and towing capacity, as well as to let it handle serious off-road driving conditions.

The automaker won't discuss what the project cost but analysts like Joe Phillippi of AutoTrends Consulting estimate it ran well over $100 million — not including the price tag for tooling up a factory in the Detroit suburbs to build the U.S. Ranger. That was likely millions more than what it might have cost had Ford designed in the needs of the U.S. marketplace in the first place.

“We can't go back and change the past,” Joe Hinrichs, Ford's president of the Americas, said at an event marking the start of Ranger production at the Wayne, Michigan, truck plant six weeks ago. Looking forward, Hinrichs said, the midsize market should grow fast enough to make room for Ford's return.

Ford
2019 Ford Ranger

Since GM launched the revived Colorado and Canyon models, the midsize pickup segment has grown sharply, even as the overall U.S. market has struggled. In 2017, sales rose to 452,336, up from 448,398 the previous year. And with more new product, the forecast is for even faster growth. At the Wayne plant ceremony, Hinrichs told reporters that he expects the market will quickly reach 500,000, with “plenty of room for everybody.”

Crowded market

Not everyone is convinced Ford will have an easy go of it, however. Phillippi pointed out that “the market is going to get crowded.” At this month's Los Angeles Auto Show, Fiat Chrysler officially got back in the game by revealing the long-awaited Jeep Gladiator. It marks the first time that brand has had a pickup in nearly two decades.

The good news for Ford is that initial reviews of the Ranger have been solid. Autoblog declared that “it stands on its own and above the rest.” CNBC's own test found the Ranger to be solid and capable, with the ability to haul as much as 1,800 pounds of cargo and tow a 7,500-pound trailer.

Mike Blake | Reuters
The 2020 Jeep Gladiator is introduced during a Jeep press conference at the Los Angeles Auto Show in Los Angeles, California, November 28, 2018.

While that's well short of what some full-size models like the F-150 or the Chevy Silverado can handle, experts say that is more than enough for the typical truck buyer. Indeed, midsize models are nearly as large as — and boast nearly the same capabilities as — the full-size trucks of the 1980s thanks to the way the auto industry regularly upsizes its products with each new generation.

“These (midsize) trucks will do virtually everything a suburban cowboy needs,” said Phillippi. Add the ability to do some things that those full-size trucks can't, like park in the typical suburban garage.

MSRP gap

Then there's the matter of price. The aging Nissan Frontier starts at just $18,990, barely half the cost of the typical new vehicle sold in the U.S. this year. The 2019 Ford Ranger will carry a base MSRP of $24,300. While a stripped-down F-Series starts just over $28,000, the gap between midsize and full-size models, as buyers typically equip them, pushes quickly above $10,000.

Source: Nissan
The 2016 Nissan Frontier S King Cab Pickup.

Prospects for the midsize market seem solid enough that there could be still more entries. The five-year plan outlined last June by the late Sergio Marchionne, Fiat Chrysler's former CEO, called for the Dodge division to return to the segment after abandoning its own midsize truck, the Dakota, earlier in the decade.

Volkswagen might even get in the game. The German maker has its own pickup, the Amarok, which it sells primarily in Latin American and Europe. Last June, VW signed a memorandum of understanding with Ford that initially focused on joint efforts in the commercial vehicle segment. But company insiders confirm that the two potential partners are now looking at a variety of opportunities. That could even include a VW version of the Ranger, according to some sources.

Indian pickups

Then there's Mahindra & Mahindra. A decade ago, the Indian automaker attempted to launch a U.S. dealer network to market an SUV and a pickup. That effort collapsed during the Great Recession. But Mahindra recently launched production of a small off-road vehicle, the Roxor, at a plant in Auburn Hills, Michigan. And more could come, Group Chairman Anand Mahindra told reporters at the opening of the factory a year ago.

“I think a very logical step after that would be to get on-road,” he hinted. While a street-legal Roxor appears to be in the works, a version of one of Mahindra's Indian pickups could also follow.

Hyundai, meanwhile, is working on a slightly smaller truck based on the Santa Cruz concept that won rave reviews when introduced at the North American International Auto Show a few years back. A production version could be ready sometime in 2020 or 2021, according to the Korean carmaker.

Much as with SUVs, automakers are wondering whether there might be a market for still smaller pickups, more akin to the compact models that won the hearts of then-young boomers. Ford has dropped hints it may have something to slot in below the Ranger. How the midsize segment fares over the next several years could determine whether pickup buyers will get even more options.

CORRECTION: The article was updated to reflect that the Ranger will be reintroduced in 2019.

Paul Eisenstein
is a freelancer for CNBC. His travel and accommodations for this article were paid by Ford.

Uber’s self-driving cars are back on the road, nine months after a fatal accident

Source: Uber
Uber Volvo SUV

Uber's self-driving cars are back on the road Thursday, nine months after a fatal accident in Arizona stalled development and pushed the company into lengthy reviews.

The company says it conducted a “top-to-bottom” audit of its safety policies. It previously vowed to improve operations before returning self-driving vehicles to the road. Uber pulled all testing in March, after one of the company's autonomous vehicles struck and killed a pedestrian.

A self-driving Uber SUV recognized a pedestrian crossing the street but failed to slow down for the designated back-up driver to manually brake in time. The National Transportation Safety Board investigated the accident and found gaps in Uber's systems.

“Over the past nine months, we've made safety core to everything we do,” Eric Meyhofer, head of Uber Advanced Technologies, said in a statement. “We implemented recommendations from our review processes, spanning technical, operational and organizational improvements. This required a lot of introspection and took some time. Now we are ready to move forward.”

The company is resuming road tests in Pittsburgh, with approval from the Pennsylvania Department of Transportation. The company is also resuming manual testing, with a human driver directing the vehicle, in San Francisco and Toronto.

“We've reviewed and improved our testing program to ensure that our vehicles are considerate and defensive drivers,” Meyhofer said. “Before any vehicles are on public roads, they must pass a series of more than 70 scenarios without safety-related failures on our test track. We are confident we've met that bar as we reintroduce self-driving vehicles to Pittsburgh roadways today.”

Start-up Zoox is working on making the roads safer with self-driving cars
8:00 AM ET Wed, 24 Oct 2018 | 06:11

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These are the most disappointing cars we drove in 2018

These are the most disappointing cars we drove in 2018

Mack Hogan | CNBC

Mack Hogan | @macklinhogan

1 Hour Ago

With such steep competition, it's rare that automakers have truly haphazard entries in any segment. Still, some cars totally miss the mark on value.
Sure, the worst cars on sale today are still more livable and safe than cars from 20 years ago, but prices keep creeping higher. So for me, the biggest disappointments are all cars that have price tags divorced from the reality of the market.
With interest rates rising and shoppers looking for better deals, there are a few cars this year that we think most people should skip entirely.
Here they are, in alphabetical order.

Ford EcoSport

Price as tested: $28,235
Ford needed an entry in the subcompact crossover space, so it's easy to see why they brought over a years-old design from abroad. And to its credit, the EcoSport is decent inside and fun to toss around. Had it come in at a reasonable price, it could be a hit. But, with Ford axing most of its cars, the EcoSport is simply too expensive to be the starting point of the Ford lineup.

Adam Jeffery | CNBC

GMC Terrain

Price as tested: $40,550
At $40,550, our GMC Terrain tester was far more expensive than range-topping versions of its competitors. Yet, the fully-kitted Terrain costs as much as $10,000 more than competitors, offering few advantages besides an available rear-seat-entertainment system. There's nothing else to justify a 30 percent premium over compelling options from Honda, Mazda and Nissan. Buy something else and tape a pair of iPads to the headrests, because there's no way I would recommend the Terrain.

Mack Hogan | CNBC

Infiniti QX60

Price as tested: $65,930
My full review of the QX60 hasn't published yet, but it's safe to say I wasn't impressed. Some quilted leather and a good coat of paint can't hide the fact that the QX60 has pedestrian roots and an infotainment system out of 2012. The word “bumbling” was created to describe the QX60, with the mega monster feeling more unwieldy and less refined than some mainstream crossovers. It'd be a midpack finisher in the mainstream three-row crossover world, but against other $65,000 family haulers it makes no sense.

Infiniti

Toyota Yaris

Price as tested: $19,335
Let's be clear about three things. One, I love a cheap and cheerful car. Two, Toyota makes some good cheap cars. Three, the Yaris is not one of them. Sure, $19,335 doesn't sound like a lot of money, but the value proposition is nonexistent. The Yaris has a bad interior that doesn't make even a passing attempt to disguise its cheapness, while the powertrain is loud and clattery. In all forms, it feels like a car from a decade ago.
The most damning part of it all is the competition. Not from other automakers, but from Toyota itself. Between the Yaris iA (a completely different car despite the similar name), the Corolla iM and the Corolla, Toyota offers three better cars that start at under $19,335.
Instead of the cars on this list, consider buying one of the best I tested in 2018.

Mack Hogan | CNBC

more from Tech

Tesla stock falls after cutting prices in China and paying customers for missed tax credit

Noah Berger | Reuters
Tesla Chief Executive Office Elon Musk speaks at his company's factory in Fremont, California.

Tesla fell as much as 6.7 percent Monday after the company cut prices in China and said it would pay customers who missed a tax credit deadline due to the company's production delays. The Nasdaq Composite Index was down about 1 percent on Monday morning.

CEO Elon Musk tweeted Saturday that it would make sure customers weren't faulted for the tax credit they missed out on due to Tesla's production delays. The Republican-controlled U.S. Congress agreed to phase out tax credits for people who buy electric vehicles. Under the new policy, the tax credit would be reduced by 50 percent every six months until it was phased out completely.

Customers who had yet to received the cars they ordered from Tesla took to social media to complain about the lack of communication from the company, worried about getting their cars before the $7,500 tax credit was reduced by half on Jan. 1. In response to one tweet, Musk tweeted, “If Tesla committed delivery & customer made good faith efforts to receive before year end, Tesla will cover the tax credit difference.”

Tesla also recently cut prices for some of its Model 3 cars in China by up to 7.6 percent, according to the Chinese version of its website. Tesla has adjusted prices in China two other times in the past two months. The company said it was “absorbing a significant part of the tariff to help make cars more affordable for customers in China,” when it slashed prices of the Model X and Model S cars by 12 to 26 percent.

It again cut prices on its Model S and Model X cars earlier this month after China's finance ministry effectively lowered the cost of importing the cars from the U.S. by suspending additional tariffs on U.S.-made vehicles and auto parts for the first three months of 2019.

-Reuters contributed to this report.

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Watch: Watch what it's like to ride inside Elon Musk's first Boring Company Tunnel

Watch what it's like to ride inside Elon Musk's first Boring Company tunnel
11:55 AM ET Wed, 19 Dec 2018 | 01:36

Tesla loses former Gigafactory boss to start-up that makes designer molecules for food and drugs

via LinkedIn

Tesla is losing a battery manufacturing leader, Jens Peter Clausen, to Zymergen, a synthetic biology company funded by Softbank.

Clausen's move is the latest in a string of executive departures from Tesla. As CNBC previously reported, more than 40 executives have left this year as the company contended with a difficult production ramp-up for its Model 3, punctuated by high-profile antics from its eccentric CEO, Elon Musk. Among those who left are engineering leader Doug Field, now with Apple's self-driving car project, Titan, and Tesla's general counsel Todd Maron.

At Zymergen, Clausen will help the company scale its manufacturing teams, processes and facilities.

Zymergen is experiencing growth “at a pace that I'm not sure has been seen in life sciences,” CEO Joshua Hoffman said in a phone interview with CNBC.

Hoffman said his company hired Clausen after an extensive search, in part because of his experience “designing and improving largely automated manufacturing environments.”

As vice president of Gigafactory 1, Clausen oversaw a rapid expansion of battery manufacturing at Tesla's humongous plant outside of Reno, Nevada. Tesla manufactures its vehicle batteries and energy storage products there using a mix of automated and manual processes alongside Panasonic, its supplier and partner in the facility. Before joining Tesla in July 2015, Clausen spent more than a decade in manufacturing at Lego, the toy company whose products are often used for prototyping in robotics.

Tesla Gigafactory workers told CNBC this summer that they thought Clausen was on leave, and they weren't sure if he was returning to the company. On Sept. 7, Tesla announced a spate of promotions as part of a broader restructuring. In that announcement, it named Chris Lister as Gigafactory vice president. At that time, Tesla said Clausen had no plans to leave the electric vehicle maker.

Just raised $400 million

Earlier this month, Zymergen raised more than $400 million from the Softbank Vision Fund, Goldman Sachs and others.

The company said it takes a biological, rather than purely chemical-based approach, to make diverse things like insect repellent and new smartphone screens that fold. Ultimately, it is hoping to develop products that are not tied to the traditional petroleum-based manufacturing processes. Its closest competitor in doing that is Ginkgo Bioworks, which describes itself as learning from nature to develop “new organisms that replace technology with biology.”

Like Ginkgo, Zymergen relies heavily on robotics and automation, and describes itself as fundamentally different to life sciences labs. Its processes are designed to surpass the traditional method, which involves humans in lab coats who move sensitive biological materials around with pipettes.

Zymergen said the company already works with agriculture businesses, off-patent drugmakers, food manufacturers and others. Hoffman declined to name any of Zymergen's customers. But the company did disclose that it is working on a product of its own that it expects to release by 2021: an insect repellent and sun-screen combo.

Clausen's official start date at Zymergen is Jan. 3.

WATCH:
An inside look at Tesla's Gigafactory

An inside look at Tesla's Gigafactory
10:27 AM ET Thu, 15 Nov 2018 | 03:31

General Motors hints it could negotiate a way to keep one or more plants open

Jeff Swensen | Getty Images
An exterior view of the GM Lordstown Plant on November 26, 2018 in Lordstown, Ohio. GM said it would end production at five North American plants including Lordstown, and cut 15 percent of its salaried workforce. The GM Lordstown Plant assembles the Chevy Cruz.

At least one of three assembly plants that General Motors says it expects to close could find a reprieve based on the results of scheduled contract talks between the United Auto Workers and GM next year.

Detroit's biggest automaker announced plans in November to close five factories, including three assembly plants, and to cut 15 percent of its North American workforce. More than 14,000 employees are expected to lose their jobs, though GM has offered some factory workers the opportunity to transfer to other plants that may have openings.

The planned cuts have generated a political firestorm, President Donald Trump going so far as to threaten to take action against the automaker, possibly by eliminating federal tax incentives GM can offer buyers of its battery cars. It has also generated some positive press for GM's emerging rival Tesla, whose CEO Elon Musk has indicated he would consider buying the plant in Lordstown, Ohio.

The company is now giving a glimmer of hope that its plans to shutter all five plants may not be set in stone. In addition to Lordstown, the plants are Detroit-Hamtramck, Warren, Michigan, Baltimore and Ontario.

During several days of meetings on Capitol Hill earlier this month, CEO Mary Barra said she was willing to keep an “open mind” about the plant closings, though several senior insiders cautioned that it was unlikely GM would back down on the shutdowns.The automaker has also emphasized that it is required to negotiate plant closings with the UAW, which represents most of its U.S. hourly employees.”The future of the (Lordstown plant and others) is a matter of negotiations,” said GM spokesman Pat Morrissey.

Company officials previously told CNBC that GM isn't trying to create a bargaining ploy in a bid to win union concessions next year. They stress that the company simply has more capacity than it needs, especially for its passenger cars. If anything, several more assembly lines are at risk, including one in the Detroit suburb of Orion Township, where the Chevrolet Sonic subcompact and Bolt EV are assembled.

Trump disappointed

With an ongoing shift from sedans and coupes to SUVs and crossover vehicles, Barra emphasized that the automaker is simply trying to respond to market forces. But she and GM have come under heavy fire.

“I am very disappointed with General Motors and their CEO, Mary Barra,” Trump tweeted after the cuts were announced on Nov. 26. “The U.S. saved General Motors and this is the thanks we get! We are now looking at cutting all @GM subsidies.”

With the automaker targeted by an unusually bipartisan broadside, few would be surprised if it tries to at least soften the blow by holding out the prospect of saving one or more of the plants. And, as a likely battleground for both Democrats and Republicans — and particularly for the re-election bid by Trump — Ohio is seen as one of the factories that could be front and center in the GM/UAW contract talks set to begin this summer.

'Unallocated'

By then, however, the factory will already be idled. The current Chevrolet Cruise sedan being built there will be pulled from production in March, leaving nothing left to build there and the plant “unallocated,” using GM's contractual language. That means there are no plans to put anything else in Lordstown.

In past years, UAW negotiators were able to keep troubled plants open, or expand existing operations, by offering concessions meant to reduce production costs. The problem the union faces is that the three assembly plants targeted by GM aren't on the chopping block because costs are too high but, rather, because demand is too low. So, reducing labor costs or improving productivity would be less of an incentive for GM than in the past, according to observers.

There are, however, “a lot of different scenarios” that could play out, said Morrissey. That could include finding new models to go into Lordstown, perhaps something competing in the booming SUV or CUV market.

Mexico to Ohio?

One possibility would be to move production of the new Chevrolet Blazer from Mexico to Ohio, though Barra appeared to dismiss that idea during her appearance in Congress.

Another possibility is to consolidate several products from other underutilized plants into Lordstown. But such a move could force the shutdown of those other factories.

For now, GM is offering many of the workers at Lordstown the option of transferring to factories whose products are in high demand, such as a truck facility in Flint, Michigan, and other facilities in Ohio and Tennessee. The Flint plant alone needs another 1,000 workers, said Morrissey, adding that there have been at least 1,100 “hand-raisers” at the plants scheduled to close who have expressed interest in moving to other factories.

Cutting shifts

The three assembly plants targeted by GM have been on the decline for some time. Since the beginning of 2017 GM has cut operations at Lordstown back to just one shift, already idling 3,000 hourly employees, with just 1,500 continuing to collect paychecks.

Even if Lordstown can't find a reprieve with GM, it just might find a new lease on life. During an interview on CBS “60 Minutes” that aired earlier this month, Musk indicated he'd be open to buying the facility. How serious he might be, Musk hasn't said, though he previously indicated Tesla will eventually need more plants in the U.S., as well as one under construction in China.

“Hey @ElonMusk. Call me,” Ohio Gov. John Kasich tweeted to Musk this week. “There are no better workers than Ohio workers. And Lordstown is ready for you.”

There would be a certain irony to it if Tesla were to buy the Lordstown factory. The automaker's plant in Fremont, California, was purchased from Toyota in 2010. It had previously been the site of a joint venture between the Japanese automaker and GM and was originally built and run by the Detroit automaker.

Ford’s Ranger rides again. But will it win in a crowded truck market?

Ford
2019 Ford Ranger

Just weeks before Ford rolls out its new Ranger pickup, the automaker finds itself in a strange position: playing catch up on trucks.

After eight years of ignoring the midsize truck market while Toyota and General Motors racked up strong sales, Ford believes it's not too late for the new Ranger to make a splash.

“Ford is a huge truck seller,” said Karl Brauer, executive publisher of Cox Automotive. “They have built up a huge loyal truck buyer audience, and this group will look at the Ranger as another great Ford pickup truck.”

With pickup buyers wanting trucks that have greater capability and more technology, Ford has packed the Ranger with plenty of features, including a 10-speed transmission and towing capacity of 7,500 pounds. Both will be tops in the midsize category. And with a base model starting at just over $25,000, Ford believes the Ranger will have no problem attracting customers.

Ford's fight to remain an American auto icon
6:01 PM ET Thu, 6 Dec 2018 | 08:36

“We expect the buyers to come from new customers who want an open bed and a truck small enough to garage, but who also want to get out on the weekend,” said Brian Bell, marketing manager for Ford.

There's no doubt Americans have rediscovered smaller pickups. A decade ago Toyota's Tacoma defined the midsize truck category as Ford, GM and Fiat Chrysler's Ram focused on building bigger, more capable and more expensive full-size pickups. In 2011, with the country recovering from a recession and auto sales still lagging, Ford dropped the Ranger and said it would concentrate on its top-selling F-Series lineup of trucks. At the time, few argued with Ford's strategy.

A few years later, General Motors made a bigger push for midsize trucks with all-new versions of the Chevrolet Colorado and GMC Canyon, two models that hit showrooms just as Americans started buying more SUV's and trucks.

The timing was fortuitous. Since 2013, midsize pickup sales have doubled and are expected to top a half million vehicles this year, according to the auto website Edmunds.

Did Ford miss the boat by failing to bring back the Ranger sooner?

Brauer calls ignoring the midsize truck market a mistake.

“I think it is one of the reasons possibly why Mark Fields isn't at the helm [at Ford] anymore because this was seen as a miss,” Brauer said.

Instead of rehashing past decisions, Ford executives are looking to the future and predicting the Ranger model will hit the sweet spot of a hot segment. Sales of midsize pickups have jumped 22 percent this year, but the Ranger will face stuff competition. In addition to the Toyota Tacoma, Chevy Colorado and GMC Canyon, the new Jeep Gladiator will hit showrooms next spring. Given the popularity of the Fiat Chrysler's Jeep brand and the Gladiator's bold look, industry analysts will not be surprised if the new truck attracts people who otherwise would consider buying a traditional looking pickup.

It will be one of the story lines the auto industry will be watching closely next year. Ford, a company that has lead the full-size pickup market for more than 40 years thanks to the long-standing popularity of F-Series, will soon find out if the Ranger rides high with Americans who want a smaller truck.

— CNBC's Meghan Reeder contributed to this article.

Questions? Comments? BehindTheWheel@cnbc.com.

Meghan Reeder | CNBC
2019 Ford Ranger pickup

WATCH: How automakers sell a $71,000 version of a $27,000 car

How automakers sell a $71,000 version of a $27,000 car
10:40 AM ET Thu, 28 June 2018 | 02:46

China says it will suspend additional tariffs on US autos

China to suspend tariffs on US automobiles and auto parts
6:46 AM ET Fri, 14 Dec 2018 | 03:49

China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States.

The relief will last for three months staring from January 1, as part of an agreed truce between Beijing and Washington.

The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items.

U.S. President Donald Trump and President Xi Jinping agreed to lessen the impact of trade tariffs for the first 90 days of 2019, following a dinner in Argentina on December 1.

The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto parts. China's 40 percent tariff on U.S. car imports will now reduce to 15 percent for 90 days.

That brings the auto tariffs in China back down to the same level as before the point that the two countries began imposing tit-for-tat levies.

Tariffs help the big three?

Ina note released Thursday, auto analysts at the Swiss bank UBS said trade risks continue to linger and that under their worst scenario, U.S. sales could slump by as much as 12 percent.

But UBS highlighted Ford, General Motors and Fiat Chrysler as potential winners should tariffs prohibit imports, as all three have capacity to boost domestic production.

Meanwhile, auto sales in China fell 14 percent in November over the same month in 2017, the Chinese Association of Automobile Manufacturers said Tuesday.

That slowdown, while part blamed on the trade war, is also reflective of Chinese domestic demand losing steam.

And Anna-Marie Baisden, head of autos research at Fitch Solutions told CNBC on Friday that getting a tariff deal in place may not spark fresh demand.

“Lowering tariffs might not actually make a big difference because the Chinese market is slowing anyway so even domestic brands are suffering,” she said via email.

European auto stocks hit hard

Auto stocks in Europe were among the leading losers on Friday following a steep drop in the number of new car registrations.

European car sales dropped 8.1 percent in November, falling for the third straight month after the introduction of a new emissions-testing regime in September.

The Stoxx 600 Autos sector dipped 2.2 percent following the data but has since pared losses. At 6:02 a.m. Eastern Time, the index of major European auto and auto-supplier stocks was lower by 1.4 percent.

China Daily | Reuters
Employees assemble vehicles at a plant of SAIC Volkswagen in Urumqi, Xinjiang Uighur Autonomous Region, China September 4, 2018.

For new car registrations, Renault led the declines with sales falling by 16 percent, while Volkswagen and Fiat Chrysler also posted disappointing numbers.

Over the summer, auto dealers had offered incentives to empty stock before new emissions rules came into effect, according to the European Automobile Manufacturers' Association (ACEA).

“Ahead of the introduction of the new WLTP test in September, car registrations jumped by 31.2 percent in August, which has led to a drop in demand in the following months,” the ACEA said in a statement Friday.

The EMEA added that car demand for November had shrunk in all of Europe's five biggest markets.

Aside from the technology hurdle that prompted a summer rush of European car registrations, one analyst at Citi told “Squawk Box Europe” on Friday that said there was also evidence of a slowdown in the consumer's desire to borrow and spend.

“It is about lending conditions. It is not only the nominal rate but what kind of coverage is the bank charging on the loan,” said Luis Costa, head of CEEMEA FX and rates strategy at Citi.

Costa cautioned however that there had been no “massive tightening of lending conditions yet.”

European stocks as a whole have performed poorly Friday morning as the drumbeat of weak data has continued from China. Overnight investors learned that November's retail sales in China grew at their weakest monthly pace since 2003, hurting autos and other stocks with exposure to the country.

Tesla’s global sales director leaves for Airbnb, marking latest executive departure

Wang Zhao | AFP | Getty Images
People visit a Tesla showroom in Beijing.

A Tesla senior sales executive, Dan Kim, has left the company, according to a person familiar with the matter.

Kim, who joined Tesla in January, left for online travel site Airbnb, Bloomberg News first reported Tuesday. The job change was also reflected on a LinkedIn page that appears to belong to Kim, who was listed as the former head of global sales, marketing and delivery operations at Tesla.

Kim departed last month and his duties at the electric automaker are being handled by other people on his team, according to the person. Kim was a senior director in global sales and marketing under Robin Ren, the vice president of worldwide sales at Tesla.

Tesla declined to comment. Airbnb didn't immediately respond to a request for comment.

Prior to joining Tesla, Kim held executive roles in marketing at Solera, a company that makes vehicle analytics, according to his Wikipedia and LinkedIn pages. Before that Kim founded a chain of frozen yogurt stores called Red Mango.

Tesla has experienced intense turnover at several levels in its ranks. In September, short seller Jim Chanos compiled a list that showed the company had lost more than 40 executives in 2018. In late November, CNBC reported that Tesla's global head of security left after 11 months on the job and the company's head of digital product confirmed in December he has left the company.

Elon Musk says Tesla would consider buying idled GM plants, takes swing at the SEC on ’60 Minutes’

Getty Images
Elon Musk

Tesla would consider buying the factories that General Motors intends to idle, CEO Elon Musk said in an interview that aired Sunday on CBS' “60 Minutes.”

“It's possible that we would be interested. If they were going to sell a plant or not use it that we would take it over,” he said.

In a wide-ranging interview with Lesley Stahl, Musk made no apologies for his erratic behavior over the summer and reiterated his lack of respect for the Securities and Exchange Commission, which sued him in September for allegedly defrauding investors after tweeting that he wanted to take the company public at $420 a share and had “funding secured.” He didn't and pulled back on those plans a few weeks later.

“Nobody's perfect,” he said.

Musk acknowledged that he was “somewhat impulsive,” adding that he “didn't really want to try to adhere to some CEO template.” He stoked controversy all summer with his erratic behavior, taunting the SEC, calling a diver in the Thai cave rescue a “pedo” and capping the summer by appearing to smoke pot on the Joe Rogan podcast.

“I'm just being me. I mean, I was certainly under insane stress and crazy, crazy hours. But the system would have failed if I was truly erratic,” Musk said.

The SEC forced Musk to step down as chairman of the board for three years. The company named Robyn Denholm, who was already on the board, as chairwoman.

“I want to be clear: I do not respect the SEC,” Musk said. “I do not respect them.” But he said he was adhering to the agreement because he respects the U.S. justice system.

He scoffed at the idea that Denholm was put in place to keep him in line. “Yeah. It, it's not realistic in the sense that I am the largest shareholder in the company. And I can just call for a shareholder vote and get anything done that I want,” Musk said.

He said he does not want to return to the role of chairman. “I actually just prefer to have no titles at all.”

Tesla has struggled to ramp up production of its much hyped Model 3 midsize sedan. The company resorted to building a second assembly line inside a tent-like structure next to its main assembly plant in Fremont, California. The decision, like many Tesla has made, was ridiculed by some in the industry.

The last-minute push increased production by 50 percent, Musk told CBS.

“Those betting against the company were right by all conventional standards that we would fail,” he said, “but they just did not count on this unconventional situation of creating a second assembly in the parking lot in a tent.”

Musk said the long-awaited $35,000 version of the Model 3 will “probably” be available in five to six months. That is the price of the vehicle Tesla originally promised would be an electric sedan for the masses when it was first unveiled in March 2016. Since then, however, Tesla has only made higher-priced versions of the car.

Musk admitted he is notorious for missing deadlines.

“Well, I mean punctuality's not my strong suit. I think, uh well, why would people think that if I've been late on all the other models, that'd I'd be suddenly on time with this one,” he said.

WATCH: How taxpayers have helped Elon Musk and Tesla

How taxpayers have boosted Elon Musk and Tesla
10:06 AM ET Mon, 22 Oct 2018 | 07:43

GM's decision to idle plants in Ohio, Michigan, Maryland and Ontario and eliminate 14,000 jobs has caused anger and worry among lawmakers, labor leaders and people in the regions that depend on the factories for work. Some say GM's decision is a necessary step to ensure the company's future as it grapples with changing consumer tastes, new technologies and new potential competitors, including Tesla.

The possible plant closures present an opportunity to Tesla. It wouldn't be the first time Tesla bought a GM plant. The Tesla Factory in Fremont, California is a former GM plant that closed in 2010 but reopened later that year under Musk.

Under the terms of the SEC settlement, Musk had to pay a $20 million fine and step down as chairman for at least three years. Tesla also put in place a system for monitoring Musk's statements to the public about the company, whether on Twitter, blog posts or any other medium.

Musk told CBS the only tweets that need to be approved are ones that can move the stock price. He said he uses Twitter to express himself. “Some people use their hair,” he said, “I used Twitter.”