Grabbing Some Facts

All at once, several Japanese automakers are dealing with scandals from their ICE-y past while trying to charge up their EV future.

Honda
Despite being late to the EV transition, Honda is making strides with an $11 billion investment in a Canadian EV hub and a $700 million investment in Ohio to produce both internal combustion engines and battery electric vehicles on the same line.

Recently, Honda was implicated in a test fraud investigation involving irregularities in noise testing for 22 models, all of which are no longer in production.

Toyota
Toyota is facing a setback due to a test fraud scandal, which led to a 5.4% drop in its stock value and the suspension of domestic shipments for three models. The Japanese Transport Ministry's investigation revealed that Toyota had falsified data in crash tests.

This scandal has also prompted central Japanese banks to divest their shareholdings in the automaker.

Mazda
Similarly, Mazda's stock dropped 7.7% due to the test fraud scandal. Due to doctored software in engine tests, the company has suspended production of affected models, including the Roadster RF and Mazda2. The Japanese Transport Ministry scrutinizes Mazda, along with other automakers, for certification irregularities.

Biden Administration Relaxes Vehicle Emission Rules

The White House recently relaxed some of its vehicle emission rules. The new rules still aim to move the U.S. auto industry in a sustainable direction but allow for more flexibility.

• New Rule: Fuel economy to increase 2% annually for 2027-2031 passenger cars; and 2029-2031 for light trucks.
• Impact: Expected average fuel economy of 50.4 mpg by 2031.
• Original Proposal: 55 mpg by 2026 for passenger cars; 4% annual increase for light trucks.
• Context: Part of broader efforts to reduce greenhouse gas emissions, balancing industry needs and environmental goals.

GM's EV Strategy Leverages Costco's Reach

General Motors is tapping into Costco's customer base to boost its EV sales.

GM offers members special pricing on EV models like the Chevrolet Equinox and Cadillac Lyriq through the Costco Auto Program. This partnership allows GM to access Costco's loyal and, often, affluent members, providing compelling incentives to make EV purchases more attractive.

Collaborations like this are only going to become more common. Who do you think will buddy up next? Will Tesla revive the Circuit City brand to create CyberCity?

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Does this mean we can invite Costco’s hotdogs to NADA?