Business Insights and Market Implications Summary

NHTSA Investigation

• NHTSA investigating 1.4 million Honda and Acura vehicles (2016-2020 models) for potential engine failures linked to connecting rod bearing issues.
• Investigation follows prior November 2023 recall and consumer complaints.

Global Market Overview (April 15, 2025)

• Global markets rose after President Trump's positive signals on tariffs.
• Trump eased some tariffs but hinted at new tariffs on pharmaceuticals, computer chips, and related products.
• European markets gained:
  • CAC 40 (+0.6%)
  • DAX (+1.5%)
  • FTSE 100 (+1.0%)
• Asian markets mostly up:
  • Nikkei 225 (+0.8%)
  • S&P/ASX 200 (+0.2%)
  • Kospi (+0.9%)
  • Hang Seng (+0.2%)
  • Shanghai Composite (+0.2%)
• Automobile manufacturers saw gains:
  • Toyota (+3.7%)
  • Honda (+3.6%)
• U.S. crude oil fell slightly to $61.51/barrel, Brent crude down to $64.85/barrel.

Honda Production Shifts

• Honda considering moving Canadian CR-V and Civic production to the U.S. to meet 90% of U.S. sales with U.S.-produced vehicles.
• Honda's Alliston, Ontario plant:
  • Produced ~375,000 vehicles in 2023.
  • Employs 4,200 people.
• Shift follows U.S. imposing 25% tariffs on imported vehicles.
• Honda investing $15 billion in Canada to create an EV supply chain.

Nissan Production Cuts

• Nissan cutting Rogue SUV production by 13,000 vehicles at Kyushu, Japan plant (May-July) due to U.S. import tariffs.
• The U.S. is Nissan's largest market.
• Nissan also produces Rogue models in Smyrna, Tennessee.

Dow Jones Report

• Honda Motor plans to move car production from Canada and Mexico to the U.S. in response to Trump's 25% tariffs.
• Honda could increase U.S. production by nearly one-third, reaching 90% of U.S. sales with domestically produced cars.

Trade War Impact on U.S. Brands in China

• Chinese consumers increasingly favoring domestic brands due to rising nationalism and tariffs.
• American brands like Nike, Starbucks, and Apple facing stiff competition and declining sales in China.
• Restrictions on American films increasing.

GMC Yukon Denali Price Hike in Australia

• GMSV raised the price of the GMC Yukon Denali in Australia by $5000 ahead of deliveries, now priced at $174,990.
• Reason for increase: foreign exchange rate volatility and cost increases.

Trump's Potential Tariff Relief and Investigations

• Trump floated potential tariff relief for auto companies sourcing parts from Canada and Mexico.
• Commerce Department investigations under Section 232 of the Trade Expansion Act of 1962:
  • Semiconductors
  • Pharmaceuticals

HondaJet Details

• HondaJet HA-420:
  • Cruises at 422 knots with a 1,223 NM range.
  • Seats 4-5 passengers.
  • Features over-the-wing engine mount (OTWEM) design, composite fuselage, and GE Honda HF120 engines for efficiency.
  • Over 250 jets delivered globally, accumulating ~100,000 flight hours.
• Future developments:
  • Efficiency packages
  • Personalization options
  • Improved electronics
  • Certification by late 2020s
• Honda addressing demand for bigger jets with the upcoming HondJet Echelon, capable of carrying up to 11 passengers.

MotoGP Results

• Marc Marquez won the Qatar GP, leading the championship.
• Alex Marquez received a penalty for dangerous riding.
• Maverick Vinales penalized for tire pressure issues.