Mobility Lifecycle Policy

UK automotive industry faces twin crisis of job losses and skills shortages amid global instability

Policy769 words4 min read5 days ago

As UK car manufacturing declines and global trade tensions threaten exports, industry charity Ben enhances support for displaced workers with proactive upskilling and mental health initiatives in a bid to stabilise the sector's future.

The UK automotive industry is currently going through quite a tough patch, with production numbers declining, a significant number of jobs being lost, and a real urgency to tackle skills shortages. Industry charity Ben has stepped up its support for automotive workers affected by redundancies. They're not just offering immediate help for those losing their jobs but also focusing on proactive solutions like upskilling and career coaching. For instance, with UK car manufacturing dipping nearly 12% in the first half of 2025, and thousands of jobs being cut across the supply chain, Ben’s expanded ‘Work, health & wellbeing’ services aim to serve as a safety net. These include free online tools, personalized coaching for CV writing, job hunting strategies, managing stress, and financial advice. Plus, there's added digital mental health support programs to back workers up.

Rachel Clift, Ben’s CEO, points out that the industry faces a two-fold challenge: “The automotive sector is dealing with redundancies while also having a long-term technician shortage,” she explains. This concern isn’t unfounded — predictions suggest that by 2035, the industry may need to fill over 111,400 new and replacement roles, including 45,800 technician positions. Ben also works closely with key industry players like Rygor, the Institute of the Motor Industry (IMI), and the Society of Motor Manufacturers and Traders (SMMT). These groups provide tailored career resources to help workers manage these turbulent times.

Right now, things are made worse by a handful of economic and geopolitical issues. Recently, Lotus announced plans to cut 550 jobs in the UK — around 40% of their 1,300-strong workforce. The company cited falling sales and financial instability caused by global uncertainties such as trade tensions and tariff implications. Although Lotus said it plans to keep manufacturing at its Norfolk plant, the company’s shift towards third-party production and consolidating globally reflects broader instability across the industry. Interestingly enough, this restructuring follows a government-backed intervention that previously prevented the plant’s closure, which really highlights just how fragile UK automotive manufacturing has become given the changing trade policies.

Tariffs from the US are still a huge threat, especially to the UK’s luxury brands like Aston Martin, Bentley, Jaguar Land Rover, and McLaren. These companies face a 25% import tariff on foreign-made vehicles, and Mike Hawes, SMMT's CEO, has warned that these tariffs are quickly eating into export volumes. Unless the government steps in or manages to negotiate better trade deals, thousands of jobs — estimates suggest over 25,000 — could be at risk. These tariffs push up costs and also scare away wealthy American buyers, which directly hits order books and company forecasts. Industry experts warn that unless something changes, many jobs in the UK automotive sector could be lost.

On top of that, suppliers in Germany connected with car manufacturing are also feeling the pinch. Thyssenkrupp, for example, announced plans to cut around 1,800 jobs, blaming weak market conditions and tariff concerns. Meanwhile, recruitment firm Hays has issued a serious profit warning, mainly because of reduced hiring in Germany’s automotive sector. That market’s been especially hit by US tariffs and economic headwinds. These issues highlight how intertwined the European automotive supply chain is — problems in one area quickly ripple out and affect employment and investment confidence throughout.

Despite a slowdown in job openings across the UK motor trade — vacancies dropped to a vacancy rate of 2.7% in May 2025, a 21% decrease from the previous year — there’s still a strong demand for skilled technicians. Many automotive firms report difficulties in filling these technical roles, and wages are climbing for those positions. The average salary for vehicle technicians is now well above the government median, which shows how competitive the market for skilled, hands-on workers has become. This ongoing skills gap underscores the importance of initiatives like the ones Ben supports—focused on reskilling and career development—to help secure a sustainable workforce long term.

As the industry grapples with all these challenges, there's a growing consensus that a unified support system is crucial. Combining immediate aid for workers who’ve lost their jobs with longer-term investments in talent development seems to be the best way forward. While companies and policymakers are trying to navigate economic and trade uncertainties, charities and industry organisations are playing an increasingly vital role — helping automotive professionals shift careers, and ensuring the workforce’s capabilities adapt to evolving industry needs.

Source: Noah Wire Services

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German Chancellor Friedrich Merz urges flexible trade stances to protect automotive sector amid global tensions

Policy717 words4 min read8 days ago

German Chancellor Friedrich Merz has called for pragmatic trade strategies and flexible automotive regulations at the IAA Mobility trade show, highlighting the sector’s critical role amid rising tariffs and global market shifts.At the recent IAA Mobility trade show in Munich, German Chancellor Friedrich Merz made a pretty clear statement against protectionist policies and tariffs. He pointed out how these measures generally have a broad negative effect on global trade—especially in the automotive sector. Merz emphasized that innovation needs to be the main strategy for staying competitive as challenges from China and the US continue to grow. It’s worth noting that he highlighted just how vital the automotive industry is to Germany’s economy. He made it clear that without this sector, the country could face pretty serious economic decline. His speech also illustrated Germany’s stiff opposition to rising trade barriers, like the 15% tariffs that the US has slapped on European imports—which he called damaging for both sides. This position of Merz's really echoes wider worries expressed by industry folks at the event. European automakers are already feeling squeezed with rising costs tied to electrification, and the global market is shifting rapidly. Chinese carmakers, like BYD, Changan, and GAC, are expanding their footprint in Europe—almost doubling their market share to about 4.8% by mid-2025—which adds extra pressure on European brands that are already trying to adapt. Interestingly enough, Merz also urged the European Union (EU) to pursue a more flexible, pragmatic approach to electric mobility, pushing for rules that support sustainability but don’t crush innovation. This fits with lots of industry concerns about the EU's planned ban on internal combustion engine sales by 2035. Some industry leaders, like BMW’s CEO Oliver Zipse, have called that plan ill-advised, especially given current market realities and tech development. Merz’s criticism of tariffs and stiff regulations isn’t just talk. It goes along with his broader effort to keep Germany’s automotive sector safe from unfavorable trade policies. He was quite vocal about the recent EU-US trade deal, which still includes a 15% tariff on European cars exported to the US. That’s a step back from the initial threat of 30% tariffs, but it’s still a hindrance—especially for exporters. These tariffs just pile on top of the challenges the industry already faces, like declining demand in China and slower-than-expected growth in electric vehicle sales. He also announced plans to hold a high-level summit with key industry players—OEMs and suppliers included—in the next four to six weeks. It signals he’s serious about tackling these issues proactively and protecting Germany’s automotive future. That said, Merz’s approach hasn’t been universally praised. Some folks within and outside the EU called his hopes for an exemption for German automakers from US tariffs a bit unrealistic, especially given the protectionist mood evident in recent US trade moves. Negotiations are complicated, and there are threats of even higher US tariffs if a deal doesn’t happen, not to mention the EU’s plans to retaliate with tariffs of its own. So, it’s really a tightrope walk between defending Germany’s industrial interests and managing broader diplomatic and trade relations. And let’s not forget, Germany’s auto industry contributes around 5% to the country’s GDP—so, you see, it’s a pretty significant piece of the economic puzzle. On top of that, Merz voiced opposition to some strict EU regulatory proposals—like mandates that would require rental companies and large firms to buy only electric vehicles by 2030. He argued such policies could lead to an early and potentially damaging transition before EV tech is fully ready for mass adoption. Instead, he’s advocating for more flexible, technology-neutral policies that reflect real market and technological developments—probably a wise approach, given how fast the EV scene is shifting. All in all, Merz’s address at the IAA Mobility truly encapsulates Germany’s delicate balancing act amid a turbulent global automotive environment. His call for innovation, adaptable regulation, and more industry dialogue shows a clear understanding of the tough challenges faced from China and the US, the rapid push towards electric vehicles, and the importance of keeping Germany’s famed automotive industry competitive under increasingly complex global trade pressures. Honestly, it’s going to be interesting to see how these strategies develop over the next few months. Source: Noah Wire Services

Automechanika Johannesburg CEO Breakfast highlights resilience and innovation amidst global trade challenges in 2025

Policy994 words5 min read9 days ago

Industry leaders at the 2025 Automechanika Johannesburg CEO Breakfast discussed strategies for resilience, tech innovation, and regional growth amid US trade tariffs and evolving market dynamics.The 2025 finale of the Automechanika Johannesburg CEO Breakfast, which took place at the famous Kyalami Grand Prix Circuit, pulled together an impressive lineup of senior leaders from the automotive world. The goal? To talk through some of the biggest challenges and opportunities facing South Africa’s auto sector — especially in light of the complicated global trade environment we’re currently navigating. As the Festival of Motoring was in full swing in the background, this event turned into a crucial space for strategic discussions about how the industry can transform, stay resilient, and innovate moving forward. Kicking off the session, Victor Radebe, who’s the Chief Director of the Programme Management Office for Gauteng’s Premier, emphasized how important it is to combine transformation efforts with resilience if the sector is to stay ahead in the future. Honestly, his remarks set a solid tone for the whole day, prompting a deep dive into several key themes shaping our industry right now. Sandile Ntseoane, heading up the Southern African Vehicle Rental and Leasing Association (SAVRALA), painted a picture of the rental and leasing sector as a crucial yet sometimes overlooked driver of mobility in South Africa. Post-pandemic, the industry has found its footing again, boosted by a rebound in tourism that’s led to increased fleet numbers. He also pointed out that customer preferences are changing — folks tend to prefer shorter lease periods these days, and there's a growing cautiousness around adopting electric vehicles. Interestingly enough, he noted how advances in telematics and artificial intelligence are having a real impact on fleet management, signaling some pretty major tech shifts in the sector. The conversation didn’t shy away from external hurdles either. Duane Newman, a partner at EY South Africa, provided a comprehensive analysis of how US trade tariffs — enacted under the previous American administration — are affecting us. The tariffs, including a 25% duty on automotive products and 50% on steel and aluminum, create some pretty tough obstacles for South African exporters. He explained that these measures could lead to losses of around $1.4 to $1.6 billion annually, and, more worryingly, might mean between 50,000 and 100,000 jobs could be at risk across the economy. To combat these challenges, he suggested that players in the industry should crank up regulatory monitoring, streamline their supply chains, adopt more strategic pricing strategies, and explore technology partnerships to stay competitive. On the home front, Brandon Cohen, who’s the National Chairperson of the National Automobile Dealers’ Association (NADA), shared some encouraging news about recent changes in South Africa’s automotive aftermarket policies. These new guidelines have effectively opened up the warranty service market for independent service providers, letting them compete with franchise dealerships without voiding warranties. That’s actually a pretty big breakthrough. Not only does it give consumers more choices, but it’s also had the unexpected benefit of boosting parts sales for the dealers themselves. It’s a rare example of government intervention that actually balances opening up the market with keeping industry stability intact. Looking at the bigger picture economy-wise, Nicky Weimar, the Group Chief Economist at Nedbank, offered a somewhat cautious but optimistic outlook. South Africa’s economy is on a slow recovery track, with GDP growth sitting near 1% — and the domestic vehicle sales for the year up by about 13.8%. Inflation has eased to 3.5%, and interest rate cuts of around 125 basis points are making it easier for folks to buy cars. Household debt levels, which used to be a concern, are now lower — below 9%, which helps. Still, Weimar pointed out some persistent problems, like struggling municipalities, high electricity costs, and logistics inefficiencies — all made worse by external pressures from US tariffs. Despite these hurdles, she remains optimistic about continued growth in domestic vehicle demand, driven by higher household incomes and better financing options. Finally, Michael Dehn, the Managing Director of Messe Frankfurt South Africa, wrapped things up by talking about the demographics of the industry and how they’re changing. The audience at the Festival of Motoring is getting noticeably younger — mostly under 40 now — and the gender balance is shifting too, moving toward parity from a previously mostly male dominance of about 70-30. Dehn said these shifts reflect the broader, more collaborative spirit of South Africa’s automotive industry, highlighting how it’s adaptable and ready to meet new challenges together. Beyond just looking inward, industry leaders are also thinking regionally and globally. There’s a strong focus on using the African Continental Free Trade Area (AfCFTA) as a strategic tool—to try and offset some of the negative impacts of US tariffs, and to expand market access across the region. This trade zone offers a potential market worth around $3.4 trillion, with lots of growth prospects, aligning with broader efforts to deepen regional integration. Alongside AfCFTA, agreements like the African Growth and Opportunity Act (AGOA) and trade relationships within BRICS are also on the radar as ways to open up new markets and form partnerships. Another key theme is compliance and technology. Presentations from the National Regulator for Compulsory Specifications (NRCS) underscored just how important it is for the industry to meet international safety and environmental standards—especially with the rapid pace of technological change, like electric vehicles and autonomous driving systems on the rise. Adhering to these regulations isn’t just about safety; it’s essential for maintaining access to markets and staying competitive. Looking ahead, the Automechanika Johannesburg CEO Breakfast — and the bigger trade fair it’s part of, sponsored by major players like Nedbank, the Automotive Industry Development Centre (AIDC), and SKF — continue to serve as valuable platforms for industry learning, strategy sharing, and growth. These gatherings aren’t just about tackling today’s challenges; they’re about paving the way for innovation, collaboration, and sustainable development in South Africa’s automotive aftermarket and manufacturing sectors. Source: Noah Wire Services

Volkswagen edges closer to US tariff deal amid push for localisation and electric expansion

Policy863 words4 min read9 days ago

Volkswagen is negotiating a tariff reduction with the US government, aiming to ease financial strain and bolster its US and electric vehicle strategies amidst ongoing trade tensions and industry challenges.Volkswagen is pretty close to striking a deal with the US government over a tariff reduction, and honestly, that could really ease the heavy financial burden the German automaker has been feeling thanks to ongoing trade tensions. Oliver Blume, who’s the CEO of Volkswagen Group, mentioned that the company has lost “several billion euros” so far this year because of tariffs imposed by the Trump administration—these tariffs have hit especially hard on their luxury brands like Porsche and Audi. Right now, US tariffs are set at 27.5% on European vehicle imports. Blume called this rate a "burden" for the group, even after they were promised it would be reduced to 15%. During the IAA Mobility show in Munich, Blume spoke quite openly about Volkswagen’s strategy to handle these costs. He talked about exploring options like increasing local manufacturing in the US—including a possible Audi plant—with a decision expected by the end of 2025. “We are counting on our own offer investing heavily in the US,” he said, emphasizing that negotiations are ongoing to try and get tariff rates below the current 15%, and maybe even secure some tax breaks tied to these investments. This approach fits with Volkswagen’s broader plan—how they want to invest significantly in the US market to restore a more level playing field, which the CEO described as an “asymmetric deal” between the US and EU. Now, the company’s financial vulnerabilities are especially sharp when it comes to Porsche. Unlike some of its peers like Audi, BMW, or Mercedes-Benz, Porsche doesn’t have a big manufacturing presence in the US, which means it’s taking the full hit of import tariffs on its cars. To make matters worse, Porsche is also seeing demand weaken in China—sales have reportedly fallen sharply by around 28%. Industry analysts are pointing out that this double whammy—tariffs in the US and shrinking markets in China—puts Porsche in a sort of “sandwich position,” which is never ideal. The struggles are reflected in Porsche’s stock price, which has been under pressure and is set to be removed from Germany’s DAX blue-chip index soon, highlighting just how turbulent things are for the brand right now. On the product side, Volkswagen is really pushing ahead with electrification as a way to revive sales and grab more market share across Europe. At the Munich event, Blume unveiled a concept for a new affordable, compact electric car, aiming to meet rising consumer demand for e-mobility. The plan is to snag about 20% of the compact electric car market in Europe—a pretty ambitious target. They want models that are both accessible and profitable. Interestingly enough, this is part of a wider industry move, as competitors like BMW are developing region-specific versions of electric SUVs, including a Chinese-market model of the iX3 that’s customized with local software and features to suit regional tastes. The broader impact of the Trump-era trade policies is felt across the European auto industry. Beyond Volkswagen, brands like Jaguar Land Rover and Chinese-owned Lotus have announced major job cuts, partly because of economic uncertainties spun up by tariffs. Plus, the European auto sector is also facing stiff competition from Chinese automakers—brands like BYD, Changan, and GAC have almost doubled their market share in Europe, hitting about 4.8% in the first seven months of 2025. This rising Chinese presence is forcing European carmakers to rethink their strategies, especially with discussions about whether the EU’s upcoming restrictions on combustion engines are the right move, since some European executives think that timing might not be ideal given the intense market pressures. Trade diplomacy remains a tricky subject. While the EU and US have apparently reached a tentative deal to bring tariffs down to 15%, there’s skepticism in the European Parliament. Bernd Lange, who heads up the trade committee, has expressed doubts about whether such an agreement will hold up or be fair, especially considering ongoing US tariff hikes on steel and other goods. On the flip side, the European Commission sees this as a practical step to keep trade flowing—yet opposition persists within political circles, and legal challenges continue as courts look into whether these tariffs are even lawful. Economists and industry leaders warn that these policies could harm growth, investments, and supply chains in key sectors like automotive manufacturing. All of this underscores how complicated the situation really is—grope for trade deals, geopolitical tensions, and market shifts in China and the US all happening at once. Volkswagen’s push to localize production in the US and to accelerate its electric vehicle ambitions fits into a broader industry effort to cut down on the tariff impact and stay competitive against rising rivals. Still, the landscape remains pretty fluid. The next few months are going to be critical, really, in seeing whether Volkswagen and other European automakers can navigate this tricky trade environment and establish a new framework that supports sustained growth in a world that’s changing so rapidly. Source: Noah Wire Services

Detroit automakers boost profits as US emissions regulations relax, risking long-term EV leadership

Policy801 words4 min read9 days ago

Major US automakers like GM, Ford, and Stellantis are shifting focus from EV development to traditional internal combustion and hybrid vehicles amid a broad rollback of federal emissions standards and incentives, sparking concerns over long-term competitiveness and climate goals.Detroit’s major automakers are currently positioned to benefit significantly from a broad rollback of federal emissions regulations and electric vehicle (EV) incentives. Firms like General Motors (GM), Ford, and Stellantis are shifting billions—funds previously designated for the development of advanced EVs and compliance with strict regulations—toward the production of internal combustion engine (ICE) vehicles and hybrids. This shift highlights a notable change in the industry’s regulatory environment that spans multiple U.S. administrations. For instance, Ford has already saved approximately $1.5 billion in regulatory credits this year alone, nearly offsetting the anticipated $2 billion net profit losses due to tariffs in 2025. The company has redirected resources from a canceled three-row electric SUV project to support future hybrid and gasoline-powered models, which typically offer higher profit margins. GM, having spent about $3.5 billion since 2022 on purchasing credits to satisfy fuel economy and emissions standards, now expects to see significant cost savings beyond 2026 as fines for compliance failures are eliminated. Stellantis is revisiting its Hemi V-8 engine platform, favoring traditional high-margin vehicles over battery-powered options. Analysts believe these regulatory relaxations could unlock a “multibillion-dollar opportunity” for Detroit’s automakers over the next couple of years. The regulatory landscape has undergone substantial changes: the Environmental Protection Agency (EPA) plans to revoke its 2009 determination that greenhouse gases endanger public health, which strips away the legal basis for stringent emissions controls. Simultaneously, federal tax credits for EV purchases have been abolished, and fines for failing to meet fuel efficiency standards have been rescinded. Previously, automakers could offset these fines by purchasing credits—Tesla, for example, earned around $2.8 billion in 2024 from such transactions. With these mechanisms now eliminated, companies are adjusting their strategies and costs accordingly. However, this policy shift has drawn criticism. Environmental advocates warn that the rollback could suppress incentives for cleaner vehicles and hinder U.S. efforts to reduce emissions. Analysts project EV sales might decrease by as much as 40% by 2030, risking factory closures and the cancellation of investments in EV infrastructure. Such a decline could lead to an additional 49 million tonnes of CO₂ emissions, undermining climate mitigation efforts. Industry experts also voice concerns that emphasizing high-margin ICE vehicles could compromise the long-term global competitiveness of Detroit’s automakers. As markets in China and Europe rapidly advance in electrification, U.S. companies risk falling behind in EV innovation and market share. Cox Automotive analysts note that increased production of larger, more expensive vehicles could push the average new vehicle price in the U.S. above $50,000 by 2025, potentially limiting affordability for mainstream consumers and dampening overall vehicle sales. Amid these regulatory changes, some automakers are adopting a cautious approach. While they capitalize on short-term profit opportunities from traditional vehicles, ongoing investments in EV infrastructure and plans to develop more affordable electric models continue. For example, Ford’s $3 billion EV battery plant in Marshall, Michigan, is about 60% complete and expected to begin battery production in 2026. Thanks to recent legislation favoring domestic manufacturing and restricting credits linked to certain Chinese parts, this plant is likely to qualify for federal incentives, illustrating how automakers are hedging their bets. Furthermore, recent policy adjustments by the Biden administration aim to ease the timeline for EV adoption and provide automakers with more flexible ways to meet emissions standards. Although this has been beneficial for legacy automakers seeking more manageable targets, the broader industry still faces uncertainty. The potential for increased regulatory relaxations signals a shift away from aggressive EV mandates. This tendency could slow EV industry growth; for example, projections by S&P Global Mobility now estimate that U.S. EV sales by 2030 might reach only around 5 million annually, about 30% of the market, instead of previous forecasts exceeding 6.5 million vehicles, which anticipated a 40% EV market share. In addition, some recent developments include ongoing efforts under the current administration to revisit environmental regulations. While not as expansive as previous policies, these efforts include proposals under various agencies to modify fuel economy standards beyond model year 2027 and revise long-term CO₂ standards. This evolving regulatory environment offers short-term financial relief for Detroit automakers but also raises questions about their long-term competitiveness amid a rapidly transforming global automotive industry. Overall, Detroit’s automakers are now experiencing a significant deregulation-driven profit boost, primarily through enhanced focus on traditional ICE vehicles and hybrids. Yet, they must carefully navigate the future landscape marked by technological advances and international competition, balancing immediate gains with the strategic need to stay competitive in an increasingly electrified world. Source: Noah Wire Services

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ACTECMAX universal AC electric compressor sets new standards in automotive aftermarket reliability

Policy1120 words5 min read11 days ago

The ACTECMAX 20cc/r Universal AC Electric Compressor combines advanced control features, compatibility with R134a refrigerant, and a robust design, offering a dependable option for auto technicians seeking efficient and durable cooling system upgrades.The ACTECMAX Universal AC Electric Compressor 20cc/r Air stands out quite a bit in the automotive aftermarket scene as a dependable and quite efficient choice for fixing or upgrading auto air conditioning systems. Its detachable 12V controller—well, at least to me—allows for pretty precise and adaptable control. It features a 3-gear setup that effectively adjusts to different cooling needs, which, honestly, improves its overall stability and helps give it some durability over time. It comes pre-filled with about 120 ml of POE oil 68, making installation a lot simpler and trimming down maintenance hassles—definitely something that catches the eye in busy workshop environments focused on saving time. Plus, compatibility with the popular R134a refrigerant ensures it can fit into a wide range of systems, and its quiet operation is definitely a major plus compared to older, noisier models. For professionals who want a bit more reassurance, the included 12-month warranty adds an extra layer of confidence—giving some peace of mind when it comes to durability and real-world performance. Now, if you're trying to figure out which manufacturers are top-notch when it comes to auto air conditioning compressors, a few key traits really stand out. For starters, strong build quality using durable materials is essential—something brands like Bosch have nailed. They’re known for making parts that last and perform well over the long haul, which is pretty important considering how much wear and tear these compressors take. Energy efficiency is another big deal—thanks to variable displacement technology, compressors can now match their cooling output to what’s needed at the moment, which helps cut down on fuel use and emissions. This is especially important these days, with stricter regulations and fleet managers trying to go green. Of course, good cooling performance is vital too, especially in different climates—companies like Denso are often praised for their quick cooling capabilities. Noise reduction also plays a role here; drivers prefer a quieter ride, and brands like Sanden work hard to incorporate soundproofing tech to keep things peaceful inside the cabin. Innovation, with smarter controls and system integration, also adds to a product’s appeal. And let’s not forget the importance of solid warranties and excellent customer service—that trust factor can make a real difference. Being compliant with evolving environmental standards certainly helps these brands stand out even more, aligning with industry efforts to reduce ecological impact. Figuring out if a manufacturer is truly reliable means taking a broad look at their reputation, the quality of their products, warranty offers, customer feedback, and certifications. Well-established companies with a long history tend to be more committed to strict quality control and ongoing improvements. Their product specs often highlight tough, durable materials and engineering excellence, and transparent performance data is usually available. The length and terms of warranties are good indicators, too—they show how confident the manufacturer is in their products. The longer the warranty, generally, the better the quality and the more rigorously they've tested their stuff. Customer reviews, including peer feedback, give real-world insights into how these compressors behave over time—are they reliable, do they perform consistently? Certifications like ISO 9001 (quality management) and ISO 14001 (environmental responsibility) also play a crucial role—they’re signs that the company adheres to internationally recognized standards. All these factors combined help fleet managers, workshops, and parts distributors make smarter, more informed choices based on reliable, objective indicators of quality. Now, certifications such as ASME, ISO 9001, ISO 14001, and CE marking are pretty important when it comes to top compressor manufacturers. For example, ASME certification assures that a company’s pressure vessels meet strict safety standards—critical for maintaining operational integrity, especially under tough conditions. ISO 9001 certification shows a commitment to high-quality management processes, which tends to mean more consistent product quality, and happier customers. ISO 14001 indicates a focus on environmental sustainability, which is becoming increasingly important as regulations tighten worldwide. CE marking is a must for those wanting to sell in European markets—it confirms compliance with safety, health, and environmental norms across the EU. Besides these, other certifications like API or UL can be relevant for specialized uses and electrical safety, expanding a product’s appeal and ensuring it meets various industry standards. Knowing which certifications a compressor has can really help aftermarket professionals pick products that meet both industry requirements and legal standards, making the whole process smoother. When we talk about leading compressor brands in the automotive world, a few names like Denso, Sanden, and Delphi tend to come up frequently, each bringing their own strengths to the table. Denso, for instance, is well-known for its durability, efficiency, and close ties with OEMs—think of their variable displacement compressors that optimize energy usage. Sanden puts a strong emphasis on environmentally friendly designs and lightweight constructions, perfectly matching the modern vehicle’s push for lower emissions and better fuel economy. Delphi is recognized for producing high-performance compressors emphasizing leak-proof technology and adaptive cooling—key features to maintain system integrity and ensure driver comfort. Other noteworthy brands include Valeo and Aisin, which contribute innovations in hybrid systems and forged solid OEM partnerships for tailored vehicle fitments. These companies provide wide parts availability and good technical support, helping aftermarket distributors and service shops maintain long-term, reliable system operation. Pricing is always a factor too, but it’s helpful to see it in context. Generally speaking, more expensive compressors tend to feature advanced tech, better materials, and longer warranties—these actually pay off through greater reliability and lower total costs in the long run. On the flip side, budget models might save you some money upfront but could end up costing more in repairs or replacements later. This makes sense from a procurement perspective, especially for workshops or fleet operators who really focus on overall system uptime and lifetime costs. The market encourages manufacturers to strike a balance between price and performance, but wise buyers often prioritize proven quality and certification status to protect their investment in air conditioning systems. Finally, the ACTECMAX Universal AC Electric Compressor really exemplifies what a modern aftermarket component should be—suited for professionals who need precise control, trustworthiness, and straightforward installation. Its features align closely with what many industry leaders offer. And for those involved in the automotive supply chain, understanding factors like durability, efficiency, certified quality standards, and brand reputation is key. These aspects ensure that both operational performance and customer satisfaction stay high—pretty much the foundation for long-term success. References: - [1] pickthetools.com - [2], [4], [6] Amazon product pages for ACTECMAX units Source: Noah Wire Services

Canada delays electric vehicle sales mandate to support auto industry amid trade tensions

Policy771 words4 min read11 days ago

Prime Minister Mark Carney announces a delay in Canada’s EV sales target amid rising U.S. tariffs and industry pressures, launching a 60-day review to balance climate goals with economic stability.Canadian Prime Minister Mark Carney has recently announced a significant delay in putting into effect Canada’s planned electric vehicle (EV) sales mandate, which was initially scheduled to begin in 2026. This decision comes as a response to increasing pressure from U.S. tariffs that were implemented under President Donald Trump’s administration. The move highlights the growing worries within the automotive industry, as it deals with the combined impact of these tariffs and regulatory commitments that could potentially worsen the financial hardships faced by domestic automakers and suppliers. The original mandate, the brainchild of former Prime Minister Justin Trudeau, stipulated that by 2026, 20% of all passenger cars sold in Canada should be zero-emission vehicles. The targets would become progressively stricter, leading up to an entire shift to electric and hybrid plug-in vehicles by 2035. This policy was part of a larger Canadian environmental plan aimed at lowering greenhouse gas emissions in transportation, dovetailing with the existing Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations. That said, Carney’s government has acknowledged that Canada’s auto sector—an essential part of the country’s economy, directly and indirectly employing around 625,000 people—is under extraordinary strain right now. The industry faces tariffs of up to 50% on steel and aluminum, a 25% tariff on vehicle parts and finished cars, and other trade disruptions, despite protections under the U.S.-Mexico-Canada Agreement (USMCA). These measures have added up to billions of dollars in costs for Canadian automakers, impacting their liquidity and their ability to stay competitive globally. Carney highlighted that the government understands these issues, saying, “We have an auto sector that, because of the huge changes in U.S. trade policy, is under intense pressure. The EV mandate just adds more to the liquidity problems they are already facing, the financial hurdles these producers have. They've got quite a lot on their plate right now, so we’re taking some of that off.” Industry groups like the Canadian Vehicle Manufacturers’ Association and the Automotive Parts Manufacturers Association welcomed this move, having pushed for the delay because they were concerned that the combined burden of tariffs and strict EV targets was just too much to handle. As part of this response, the government is putting a hold on the 2026 EV sales requirement and conducting a 60-day review of the entire mandate program. This review will look into possible adjustments to the annual sales targets, including the long-term 2035 goal, and seek flexible approaches that could help lower costs and provide more stability for automakers. While Carney didn’t completely cancel the mandate, he stressed that this step is part of a broader climate and industrial competitiveness strategy designed to achieve meaningful emission reductions while supporting local industry. To help soften the blow from tariffs and trade tensions, the federal government is also launching a C$5 billion strategic response fund, aimed at sectors hit hardest—like steel, automotive, and lumber. This initiative is part of a wider ‘Buy Canada’ campaign focused on strengthening domestic supply chains by prioritizing Canadian-made materials and labor for public projects. Additional measures include better employment insurance benefits and a C$370 million production incentive for canola farmers, who are dealing with retaliatory tariffs from China tied to disputes over agricultural and automotive trade. The Canadian economy, meanwhile, has shown signs of strain. It shrank by 1.6% in the second quarter of 2025, and unemployment rose to 7.1%. These figures underscore just how urgent it is to manage trade shocks, all while trying to meet environmental goals. On the market side, EV sales in Canada had been growing rapidly until recently. They reached nearly 18% of new vehicle sales during times when generous rebates were available. But when those incentives ended, sales dipped, and latest figures show EVs now make up about 8% of new sales as of mid-2025. Industry watchers are watching closely to see whether the new government support measures and revised targets will help stabilize and eventually boost consumer interest in electric cars. All in all, Canada’s adjusted approach shows the difficult balancing act between protecting a key part of its industrial base and pushing forward on climate change policies, especially given the complicated geopolitical and economic landscape. The upcoming review is sure to be scrutinized by automotive stakeholders, environmental groups, and policy experts alike—everyone will be keen to see what direction Canada takes moving forward in the fast-changing global auto scene. Source: Noah Wire Services

Canada delays EV sales mandate amid US tariffs and economic pressures

Policy671 words3 min read11 days ago

Canadian Prime Minister Mark Carney announces delay to electric vehicle sales mandate and unveils measures to cushion industry impact amidst trade tensions with the US and China, reflecting a pragmatic response to economic challenges.Canadian Prime Minister Mark Carney has announced that the country will be delaying the rollout of its electric vehicle (EV) sales mandate, which was originally set to require 20% of passenger vehicle sales to be zero-emission by 2026. This move mostly responds to economic pressure on the automotive sector, largely caused by tariffs imposed by the United States under President Donald Trump. The mandate was first introduced by the previous Prime Minister Justin Trudeau as part of Canada's broader plan to encourage a shift toward cleaner vehicles. Carney admitted that the auto industry is feeling quite strained due to U.S. trade policies, including a hefty 50% tariff on steel and aluminum imports and a 25% tariff on vehicle parts and finished vehicles—despite some protections offered by the USMCA deal. Business representatives have actually welcomed the delay. Flavio Volpe, who heads the Automotive Parts Manufacturers Association, pointed out that Canada’s auto production is pretty much concentrated for the U.S. market. Recently, the U.S. has scaled back EV incentives and support for its industry, turning attention back to more traditional vehicles like pickups. Volpe mentioned that the delay is a necessary stay of execution given the “massive change in U.S. trade policy,” and the financial difficulties carmakers are already facing. Likewise, the Canadian Vehicle Manufacturers' Association had pushed to scrap the EV sales target altogether, arguing that the sector is struggling with liquidity issues and operational hurdles. Beyond just postponing the EV mandate, Carney unveiled a wider set of initiatives meant to cushion the blow of U.S. tariffs on Canadian industries. The government plans to launch a C$5 billion fund, called the “strategic response fund,” aimed at giving flexible financial aid to businesses across sectors hit hardest, such as steel, autos, and lumber. This is part of a strategic pivot to lessen Canada's reliance on U.S. markets and encourage more domestic procurement. There’s also an effort, through a “Buy Canada” campaign, to prioritize Canadian-made materials and labor in government projects—to give local industries a boost. Employment insurance policies are also being tweaked to offer more flexibility, and benefits are being extended to workers in industries affected by trade tensions. In addition to these broad initiatives, the government announced a separate C$370 million in incentives targeted at Canadian canola producers, especially after China placed retaliatory tariffs on the commodity. This move was widely viewed as a response to Canada’s own tariffs on Chinese electric vehicles. It’s part of a bigger challenge, since Canada also faces tariffs on steel and aluminum exports—key inputs for both automotive and manufacturing sectors. Carney noted that in the second quarter of 2025, Canada's economy shrank by 1.6%, and unemployment increased to 7.1%, which underscores the urgent need to counteract tariff impacts through both financial aid and smarter policy steps. While Canada is still engaging in trade negotiations with the U.S. to seek tariff relief, progress has been cautious. Carney expressed some cautious optimism after a recent phone chat with President Trump but emphasized that any resolution will take time. Meanwhile, Canada continues to maintain a full 100% tariff on Chinese electric vehicles, adding another layer of complexity to its trade relations, especially as China steps up its investigation into Canadian canola imports. The automotive sector remains a cornerstone of Canada’s economy—employing about 125,000 workers directly and around 500,000 in related fields. The country produces just under two million vehicles annually. The decision to push back the EV sales target, together with the rollout of these relief programs, signals a practical, pragmatic approach by Carney’s government. It’s about protecting the industry through these turbulent trade times, while also re-examining long-term regulatory goals, especially given the shifting geopolitical landscape and economic realities. Honestly, it’s a delicate balancing act, but one necessary for now. Source: Noah Wire Services

Canada’s EV ambitions face delays and new opportunities amid trade tensions

Policy797 words4 min read12 days ago

Canada’s push for 100% zero-emission vehicle sales by 2035 is hampered by trade disputes with the U.S., prompting strategic shifts towards localisation, mineral resource investment, and supply chain resilience.Canada’s ambitious plans for 2025 concerning electric vehicles (EVs)—aiming for a full 100% zero-emission vehicle (ZEV) sales goal by 2035—signal a significant shift for its auto industry. However, the rollout of this policy is occurring amid escalating trade tensions with the U.S., complicating the sector’s transition. This situation necessitates a careful re-evaluation of strategic priorities, as the combination of aggressive climate targets, retaliatory tariffs, and supply chain disruptions both challenges and creates potential investment opportunities within Canada’s automotive landscape. The federal government, under Prime Minister Justin Trudeau, initially announced a mandate to accelerate EV adoption, setting a goal of achieving 20% ZEV sales by 2026. However, in response to ongoing trade tensions, notably tariffs imposed by the U.S., the government has suspended this 2026 target. This suspension reflects a recognition of the economic pressures automakers are facing, including increased costs due to tariffs and supply chain uncertainties. In addition, Prime Minister Mark Carney, now in office, emphasized the importance of economic self-reliance and announced a 60-day review to explore measures to reduce costs associated with the emissions mandates. To support industries affected by trade disruptions, the government also introduced a C$5 billion fund aimed at aiding businesses, along with incentives such as a C$370 million biofuel production subsidy to support farmers. Despite these adjustments, challenges remain, particularly for steel and aluminum sectors, which are heavily impacted by tariffs, highlighting vulnerabilities within upstream supply chains. Trade tensions extend beyond policy delays; they have directly influenced industry operations. Major automakers like Ford and Volkswagen have had to halt production and shipments due to tariff-related cost increases, leading to a shift towards localized production and resilient supply chains. Moreover, Canada faces infrastructure gaps; its EV charging network and domestic battery manufacturing capacity are still underdeveloped compared to the U.S., making it more difficult to meet the 2025 ZEV sales goals. Additionally, automakers often rely on purchasing compliance credits from EV leaders, raising questions about the practicality of current policies under economic and infrastructural constraints. To counterbalance these challenges and seize strategic advantages, Canada is investing heavily in securing critical mineral resources such as lithium and nickel—key components for EV batteries. The country’s abundant mineral reserves position it well to benefit from global shifts in supply chains, especially as the U.S. seeks to reduce reliance on China-led production. Diversifying export markets is also a priority; by increasing trade with the UK, Netherlands, and Germany, Canada aims to lessen dependency on the U.S., thereby cushioning against political and trade disruptions and fostering new opportunities within the EV supply chain. Amidst these dynamics, Canadian investors are advised to focus on enhancing domestic production and supply chain resilience, especially in sectors like defense and infrastructure. Dual-use investments—those serving both military and civilian needs— can mitigate geopolitical risks while promoting long-term growth. In response to tariffs, Canada has also implemented reciprocal measures, imposing tariffs on U.S. steel, aluminum, and other goods, underscoring a more assertive stance in protecting its industries. These tariffs, along with measures to support domestic manufacturing, illustrate the country’s efforts to safeguard essential sectors during a period of trade volatility. Additionally, green energy projects linked to EV infrastructure development could serve dual purposes by advancing climate objectives and bolstering national security. Overall, Canada’s EV policy framework, combined with ongoing trade tensions, is reshaping the country’s automotive sector. While the decision to suspend the 2026 EV sales target reflects current economic realities, the overall push toward electrification remains active. Success will depend on close collaboration among policymakers, automakers, and investors to balance environmental goals with economic stability. For industry stakeholders, the evolving landscape underscores the importance of strategic diversification, localization, and resilience in supply chains. Those able to adapt to these changes are positioned to capitalize on Canada’s transition toward a more integrated and resilient EV ecosystem. References: - The policy shift is documented as a suspension of the 2026 EV sales target (see Reuters, September 2025). - The initial 20% sales target, set for 2026, has been suspended to address economic pressures. - Investment figures such as the C$5 billion support fund and C$370 million biofuel incentive are rooted in government announcements. - Tariff levels—25% on U.S. goods and reciprocal tariffs on steel and aluminum—are confirmed by official Canadian government releases. - Statements on trade disputes highlight Canada’s efforts to defend its industries under international obligations. (Note: The attribution of the EV policy to Prime Minister Justin Trudeau has been corrected to reflect it as a government initiative, with the current Prime Minister Mark Carney overseeing recent policy adjustments.) Source: Noah Wire Services

U.S. auto industry faces rapid transformation as Japan and South Korea trade policies diverge in 2025

Policy865 words4 min read13 days ago

The U.S. automotive sector is navigating a seismic shift amid new trade agreements and tariffs, with Japanese automakers benefiting from tariff reductions while South Korean firms scramble to adapt to ongoing barriers, reshaping supply chains and investment strategies in 2025.The U.S. automotive industry is currently undergoing quite a significant shift, mainly because President Donald Trump’s trade policies for 2025 are reshaping global supply chains and investment patterns. This is especially true because of the renewed tariff frameworks involving Japan and South Korea. At the center of this upheaval are the recently formalized reciprocal tariff adjustments, which have created different competitive dynamics between these two major Asian automakers. Each of them is now responding with specific production and investment strategies designed to offset the emerging hurdles. What’s really driving this change is the U.S.-Japan trade agreement finalized in July 2025, and which was put into effect through an executive order on September 4. This deal cut tariffs on Japanese auto imports from a steep 25% down to a more manageable 15%. That’s a pretty handy relief—especially for manufacturers like Toyota and Honda. According to official White House information and industry reports, this tariff reduction is retroactive to August 7, and it includes detailed rules to prevent any further stacking of tariffs on items that were already taxed above 15%. In return, Japan has agreed to channel around $550 billion into U.S. sectors such as energy, semiconductors, shipbuilding for defense, and agriculture. This reflects a strategic approach to strengthen bilateral economic ties — aiming for stability but also growth. Japanese automakers, naturally, have greeted the agreement positively. Their stocks jumped—Toyota shares, for example, went up around 12%, and Honda about 8.4%, if you can believe it. Still, political nuances remain, with Prime Minister Shigeru Ishiba facing some challenges domestically, partly because of how the trade deal’s timing and impact are being perceived within Japan’s own industry landscape. The deal also includes commitments like Japan purchasing 100 Boeing aircraft and increasing U.S. agricultural imports, all working toward balancing trade practices and boosting cooperation. But, of course, some uncertainty remains, especially around tariffs on chips and pharmaceuticals—areas Japan plans to tackle in upcoming negotiations. Meanwhile, South Korean automakers are still stuck with unresolved tariff issues. The U.S.-South Korea trade agreement has yet to provide the same kind of tariff relief that Japan received. Importantly, South Korean vehicles are still subject to the original 25% tariff, creating a cost disadvantage that they’re quickly trying to address by investing heavily in U.S. facilities. Hyundai and Kia, for instance, announced plans to put in about $21 billion into American manufacturing, including a massive $7.6 billion plant focused on electric vehicles in Georgia. These investments seem like a strategic move to localize their production lines and avoid punitive tariffs, a pretty smart adaptation in a trade environment that’s anything but stable. This uneven tariff landscape has significant ripple effects across the entire U.S. auto supply chain and aftermarket sector. Steel and aluminum tariffs—set at 50%—are still pushing costs upward at every stage of production. Manufacturers and investors are reacting by shifting supply chains, ramping up automation, and sourcing parts from different regions to buffer against unpredictable tariffs. The aftermarket, in particular, might actually see growth, as consumers tend to hold off on buying new vehicles when prices climb; instead, they turn to replacement parts and maintenance for their existing cars. Industry experts believe this segment could act as a stabilizer for the market amid all this upheaval. Of course, legal uncertainties make long-term planning tricky. Trump has indicated that if the Supreme Court rules some current trade agreements unlawful, he might reverse them. That’s adding a layer of volatility because companies aren’t completely sure what the future holds. Japanese suppliers like Asahi Tekko, for instance, are worried about potential disruptions in demand and supply chains in the U.S. Investors are also being cautious—diversifying portfolios, keeping extra liquidity, and generally approaching risk with care, especially in automotive and related high-tech sectors. As for the U.S.-South Korea trade deal announced on July 30, 2025, there’s some optimism about future stability. It promises about $350 billion in investments across semiconductors, energy, and shipbuilding. But without matching tariff reductions on auto imports, South Korean firms still face a short-term disadvantage compared to their Japanese counterparts. These developments highlight the strategic need for near-shoring and dual sourcing — with companies trying to reduce the impact of tariffs and make their supply chains more resilient. Looking ahead, the automotive industry in the U.S. will have to adapt quickly. The key will be a combination of operational flexibility, innovative supply chain management, and responsive investments. The lower tariffs on Japanese vehicles provide some immediate opportunities, but challenges remain—especially with South Korea’s pending tariff issues and the ongoing legal uncertainties. Manufacturers, suppliers, and investors will need to stay agile to navigate this evolving geopolitical and trade environment. This ongoing shift is sure to influence everything from fleet management and OEM decisions to distributors and aftermarket providers, as they all adjust to what’s basically a new normal in North American auto trade and production. Source: Noah Wire Services

Growing demand for automation accelerates setup of automotive control cable manufacturing plants

Policy684 words4 min read13 days ago

As global vehicle production expands, the automotive control cable sector is seeing rapid growth driven by automation, new materials, and increasing safety standards, creating lucrative opportunities for new manufacturing plants worldwide.Automotive control cables are pretty essential parts in today’s vehicles. They’re responsible for transmitting mechanical forces that operate a range of critical systems—think brakes, clutches, accelerators, gear shifts, and even seating mechanisms. These cables need to be tough, flexible, and perform consistently across all sorts of driving conditions, which really pushes manufacturers to adhere to strict standards throughout the supply chain. As global vehicle production continues to climb—plus, with an increasing aftermarket demand and consumers paying closer attention to safety and comfort—the sector for automotive control cables is experiencing strong growth. All of that creates quite a few opportunities for setting up manufacturing plants. Starting a plant that makes automotive control cables isn’t just a matter of tossing some machinery together. It involves several precise steps—initially, wire drawing and stranding, then applying sheaths and insulations, assembling the cables, testing for quality, and finally packaging and shipping. Each step requires specialized equipment: extrusion units, stranding machines, wire drawing setups, sheathing tools, assembly lines, and testing devices. These are needed to make sure products are consistent and meet stringent industry standards like ISO/TS 16949. The raw materials typically include high-grade steel and copper wires, along with assorted plastics, rubber compounds, and lubricants, which makes having dependable supply chains really important. From an investment point of view, putting a plant into operation means considering costs for land, plant design, construction, buying and installing machinery. On the operational side, expenses include utilities like electricity, water, compressed air, and HVAC systems, plus salaries for engineers, technicians, and inspectors—along with raw materials procurement and logistics. Industry reports suggest that the profit margins look promising, especially with rising vehicle production, particularly in the Asia-Pacific region where manufacturing is dominant. Meanwhile, Europe and North America tend to focus more on specialized, custom cable solutions. Still, investors need to keep in mind challenges like volatile raw material prices, stiff competition, and the rapid pace of technological developments, which require ongoing upgrades. An important trend that’s shaping this sector is automation—something highlighted in recent research from The International Journal of Advanced Manufacturing Technology. Automated processes like laser cutting, machining, bending, and welding are helping to improve precision and overall productivity. They’re also cutting down on manual labor and making operator safety better—thanks to physical barriers and integrated systems. When it comes to materials, choosing carbon or stainless steel for various cable parts helps strike a balance between strength, corrosion resistance, and flexibility. Looking beyond just control cables, the broader domain of automotive wiring and harness manufacturing shares similarities in terms of complexity and quality standards. For example, techno-economic studies show that producing wiring harnesses involves processes like wire cutting, stripping, terminal crimping, assembly, and extensive testing—such as conductivity, voltage resistance, and vibration tests—to meet certifications like IATF 16949 and UL. Automating wiring harness production has proven to improve throughput and reduce defect rates, trends that can also influence how companies plan their capex and operations in cable manufacturing. For businesses and investors eyeing this industry, focusing solely on production isn’t enough. They also need to think about innovating with lightweight, high-performance materials suitable for electric vehicles, and building strong collaborations with OEMs and aftermarket distributors. Maintaining tight quality controls, keeping costs under control, and staying adaptable to new tech will be crucial for staying competitive as safety standards evolve and automotive designs become more sophisticated. All in all, setting up a plant to produce automotive control cables can be quite a lucrative opportunity, especially given the ongoing growth of vehicle manufacturing and consumer expectations. The key to success, I think, is meticulous planning—covering everything from process technology and resource management to financial planning—and staying ahead of technological and market trends. References Map: - Paragraph 1 – [1], [2] - Paragraph 2 – [1], [3], [7] - Paragraph 3 – [1], [4] - Paragraph 4 – [5], [6] - Paragraph 5 – [1], [2] Source: Noah Wire Services