Automotive and business brief

Snapshot

• European Parliament centre groups agree to soften the 2035 car CO₂ target: 95% on paper, effectively 87.5% with EU green-steel credits; transport and industry committees vote on Thursday
• VW Puebla: two new 12-month offers of about 8% go to the shop floor today; management says the Golf will run on two shifts, and the strike deadline stays Thursday 11:00 Mexico time (19:00 CEST)
• GM Q3: profit up 22%, but commodity, logistics and memory-chip inflation now costs about $2bn this year; GM says copper is at record levels and steel at four-year highs

Top Developments

1. European Parliament centre groups agree to soften the 2035 car CO₂ target: 95% on paper, effectively 87.5% with EU green-steel credits; transport and industry committees vote on Thursday

   Negotiators from the EPP, S&D and Renew reached an overnight compromise on 19–20 Oct on the car CO₂ part of the automotive package (Reuters saw the text). New cars must cut fleet CO₂ by 95% versus 2021 in 2035, but up to 7.5 percentage points can be covered by low-carbon steel made in the EU, so the effective tailpipe cut is 87.5%; combustion and hybrid cars could therefore still be sold after 2035. The Commission had proposed 90%, and France and Germany agreed last week on 90% without compensation.…

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   Sources: Reuters via Yahoo Finance (20 Oct) · tagesschau (20 Oct, DE) · tagesschau, first report (20 Oct, DE) · Eunews (20 Oct)

2. VW Puebla: two new 12-month offers of about 8% go to the shop floor today; management says the Golf will run on two shifts, and the strike deadline stays Thursday 11:00 Mexico time (19:00 CEST)

   After the 15 Oct rejection of the 13.16% / 24-month deal (3,135 against, 2,452 for, 90.3% turnout), the SITIAVW union and VW de México presented two 12-month alternatives at divisional assemblies on 20–21 Oct. Option A totals 7.98%: 4.0% on the base wage plus a one-off payment of MXN 13,200 (3.98%). Option B totals 7.95%: 4.18% on the base wage, a one-off MXN 11,650 (3.52%) and 0.25% into the savings fund.…

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   Sources: El Economista (20 Oct, ES) · Expansión (20 Oct, ES) · Telediario (20 Oct, ES) · Puebla Online (20 Oct, ES)

3. GM Q3: profit up 22%, but commodity, logistics and memory-chip inflation now costs about $2bn this year; GM says copper is at record levels and steel at four-year highs

   GM reported Q3 revenue of $50.0bn (+2.9%), EBIT-adjusted of $4.1bn (+21.6%, 8.2% margin) and North America EBIT-adjusted of $3.6bn (8.7% margin) on 20 Oct. It narrowed 2026 EBIT-adjusted guidance to $14.5–15.5bn and raised adjusted automotive free cash flow to $11.5–12.5bn, and approved a new $20bn buyback; shares fell about 5% on the lower-than-expected EPS midpoint (Reuters).…

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   Sources: GM Q3 release, SEC (20 Oct) · Reuters via Investing.com (20 Oct) · GM Q3 call transcript (Webull) · Westmetall LME prices (20 Oct)

4. OPmobility: Q3 revenue up 2.8% like-for-like, with Europe up 8.6% on module and exterior output in Eastern Europe; it opens a fourth Moroccan plant while cutting about 770 jobs in Germany and France

   OPmobility (ex-Plastic Omnium) reported Q3 revenue of €2.44bn on 21 Oct, up 2.8% like-for-like. Exterior and lighting grew 4.1%, modules 3.2% and powertrain 0.5%. Europe grew 8.6% like-for-like, ahead of regional production, driven mainly by module assembly and exterior parts made in Eastern Europe, while North America fell 5.9% and Asia 11.6%. The CFO said the easing of combustion-engine rules ‘does not change much’ for the group.…

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   Sources: Reuters via MarketScreener (21 Oct) · OPmobility press release, Kenitra (19 Oct, PDF) · Morocco World News (20 Oct)

5. CATL Q3: revenue up 59% but net profit up only 15% and down on Q2; margins, cash flow and inventories point to tougher battery pricing

   CATL reported Q3 revenue of RMB 165.2bn (+58.6% year on year) and net profit attributable to shareholders of RMB 21.25bn (+14.5%), which is 5.8% below Q2 (CnEVPost calculation). For the first nine months, revenue rose 56.2% to RMB 442.1bn and net profit 31.6% to RMB 64.5bn, but gross margin fell to 22.7% from 25.3%, operating cash flow fell 23.6%, receivables rose 47.8% and inventories 53.2% from end-2025. CATL’s Shanghai-listed shares fell more than 10% (SCMP).…

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   Sources: CATL Q3 report, HKEX (20 Oct, CN) · CnEVPost (20 Oct) · South China Morning Post (20 Oct)

6. Huawei steps back abroad: Seres’ Aito brand will use ‘Bosch Inside’ driver-assistance, cockpit and chassis systems on its European models from 2027 (report)

   According to a 20 Oct report by Chinese outlet 36Kr, overseas versions of the Aito M6, M7, M8 and M9 will carry Bosch’s full suite of driver assistance, smart cockpit and chassis systems instead of Huawei’s, with highway navigate-on-autopilot mass production tentatively set for September 2027. Bosch has started development; for Bosch it would be the first vehicle using its full intelligent-solutions suite. Huawei has handed the lead on overseas models to the carmakers.…

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   Sources: CnEVPost (21 Oct) · 36Kr (20 Oct) · Seres, Paris announcement (12 Oct)

7. UK moves closer to tariffs on Chinese EVs to get into ‘Made in Europe’; Beijing threatens to ‘resolutely retaliate’; decision expected around the 20 Nov UK–EU summit

   Business Secretary Jonathan Reynolds told Parliament’s business committee on 20 Oct that the UK’s position on trade defence is under close review and that Made in Europe access is a ‘very significant priority’, while any tariff decision would be taken in the UK’s own interest. China’s Commerce Ministry replied that if the UK restricts Chinese EVs, China ‘will resolutely retaliate’, and urged London not to follow the EU.…

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   Sources: Automotive World (20 Oct) · POLITICO Europe (20 Oct)

8. Schaeffler opens a ‘humanoids making humanoids’ factory in Taicang, China: six robots run a five-station line, and humanoid orders reach about €400m

   Schaeffler opened a 7,500 m² lighthouse factory for humanoid robotics in Taicang on 20 Oct. Six humanoid robots work at five stations on a line that assembles linear and rotary actuators and joint modules for the next generation of humanoids: they stage and sort parts, join, inspect, label and pack.…

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   Sources: Schaeffler press release (20 Oct) · Gasgoo (20 Oct) · heise online (20 Oct)

9. Koito closes a second of its three China lighting plants as Japanese carmakers keep losing share in China

   Koito Manufacturing announced on 20 Oct that it will dissolve and liquidate Hubei Koito Automotive Lamp (Xiaogan, Hubei; capital ¥5bn; established 2014; 100% owned), following a board decision on 28 Sep. Koito cites the fast shift to EVs, the rise of local Chinese carmakers, falling sales and share of Japanese carmakers (its main customers) and the impact of the Middle East situation.…

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   Sources: Koito announcement (20 Oct) · Koito announcement (20 Oct, JP)

10. Subaru will stop selling combustion-engine cars in Europe by the end of 2027 and keep only three EVs, citing CO₂ rules and safety-system costs

    Subaru will withdraw the Outback (petrol) from Europe before the end of 2026 and the Impreza, Crosstrek and Forester during 2027, leaving only the Toyota-based Solterra and Uncharted and the e-Outback from 2028 (electrive, heise, citing Auto Motor und Sport and Blick). Subaru cites EU fleet CO₂ rules and the growing number of mandatory driver-assistance and safety systems, which are expensive to adapt for low-volume models. Its own EV platform, with Aisin motors and Panasonic batteries, is due in 2029.

    AI-generated summary · not individually reviewed · check the linked sources

    Sources: electrive (20 Oct) · heise autos (20 Oct)

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Market data: TradingView, Yahoo Finance (delayed). Not investment advice.