American Honda (HMC) Posts Strong Vehicle Sales Growth in First

The U.S. government repealed federal tailpipe emissions standards and lowered Corporate Average Fuel Economy (CAFE) regulations from 50.4 mpg to 34.9 mpg, effective December 2026. General Motors (GM) is expected to save $20.4 billion from 2026 to 2031, according to the U.S. Transportation Department. Other automakers, including Stellantis, Ford, Toyota, and Honda, are also projected to see significant cost reductions.

Toyota and Hyundai gained U.S. market share in Q3 2023, with Toyota's sales rising slightly and Hyundai posting record volume. GM's sales fell 5.5%, while Ford's results are pending. Rising car prices and fuel costs are reshaping the market, benefiting automakers with affordable and hybrid options. The average new car price topped $50,000, and monthly payments reached a record $821.

South Korean asset managers are avoiding local corporate bonds due to valuation losses from rising yields, which have reached 4%. Hyundai Motor Co. experienced its first full-scale strike in a decade, causing a shutdown of domestic assembly lines and a decline in its shares.

GM is expected to save $20.4B in compliance costs through 2031 due to relaxed fuel economy standards, according to the U.S. Department of Transportation. The company endorsed the change, citing alignment with market realities. Other automakers like Ford, Stellantis, Toyota, and Honda are also projected to save billions. The new rules take effect in December 2023.

The EU is considering a law requiring 70% of EV components to be sourced within the bloc, affecting Hyundai Motor Group. The rule, set to take effect in 2028, could impact subsidies and benefits. Hyundai has local production bases but faces challenges in meeting the component threshold. Chinese EV makers are gaining market share in Europe, while Hyundai's share has slightly declined.

Honda plans a $1.8B-$2.5B plant in Ohio by 2030 to produce 250,000 hybrid SUVs annually, aiming to compete with Toyota's 15 hybrid models. The move follows Honda's EV strategy reversal and $15.7B restructuring costs, targeting 15 new hybrid models in North America by 2030.