Category: Newswire

Bond Default Looms for Cash-Strapped Hawtai Motor

A financially strapped private carmaker is likely to default on 1.5 billion yuan ($218 million) of privately offered bonds as a deadline approaches by the end of Friday with no payment yet made.The company has four outstanding bonds, including the one due Friday, a 1 billion yuan bond due Sunday and a 2 billion yuan note due Oct. 26.Hawtai pledged 10.5 billion yuan of plants and land, plus 3.58 billion yuan of financial assets by the end of 2018.

4 automakers cut deal with California on fuel efficiency regulations

Four major automakers have reached a deal with California to increase gas mileage and greenhouse gas emissions standards, bypassing the Trump administration’s plan to freeze standards at 2021 levels.The Trump administration has sought to freeze Obama administration standards that would have required the fleet of new vehicles to get an average of 36 miles per gallon in real-world driving by 2025.Under the deal with California, fuel economy and corresponding greenhouse gas emissions standards would rise by 3.7% per year starting with the 2022 model year, through 2026.

Magna, BAIC Group to establish JV for NEVs in East China

The joint venture marks Magna’s first investment in a complete vehicle manufacturing plant outside Europe.The joint venture will combine the company’s expertise in complete vehicle engineering and manufacturing with BAIC’s advantages in local manufacturing, marketing and distribution to support electric mobility in China, the world’s largest NEV market.China has been promoting the development of NEVs in recent years to help cut pollution.

Hyundai Motor chief meets Indonesian leader for future investments

Hyundai Motor Group Executive Vice Chairman Chung Euisun on Thursday held talks with Indonesian President Joko Widodo to discuss the carmaker’s market entry and future investment plans.During the meeting held at the presidential palace in Jakarta, the Indonesian leader reportedly sought more investments by Hyundai in the country, touting the carmaker as the most dynamic company in the world.Indonesian President Joko Widodo (right) and Hyundai Motor Group Executive Vice Chairman Chung Euisun shake hands prior to their meeting held at the presidential palace in Jakarta on Thursday.

Koreaʼs Bumchun picks Hungary for first foreign plant

South Koreaʼs Bumchun Precision revealed Wednesday it will build a HUF 13.3 billion plant supplying parts for electric cars in Salgótarján in northern Hungary.The Hungarian government will provide HUF 2.65 bln for the construction of the plant.Szijjártó welcomed the fact that on the 30th anniversary of the establishment of diplomatic relations between Hungary and South Korea, bilateral trade flow between the two countries increased by 41% during the first four months of this year.

VW second-quarter operating profit up 30% as SUV push pays off

Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins.Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling.By contrast, Volkswagen Group’s operating return on sales rose to 7.2% in the first half, up from 6.8% in the year-earlier period.