Daily brief
Automotive & Business Brief — 16 October 2026
Franco-German draft points to ~80% CO₂ path and EU27+UK Made-in-Europe — SPD still blocking; Council wants deal by year-end.
Executive Snapshot
- Franco-German draft points to ~80% CO₂ path and EU27+UK Made-in-Europe — SPD still blocking; Council wants deal by year-end.
Top Developments
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Franco-German draft softens 2035 CO₂ to ~80% and narrows Made-in-Europe to EU27 + UK/Norway opt-in — but SPD still blocks a final deal; European Council invites the automotive package by year-end
Europe
On the sidelines of the 15–16 Oct European Council, Paris and Berlin circulated a draft quid-pro-quo on the automotive package and the Industrial Accelerator Act. AFP and Agence Europe report the draft would keep a 90% CO₂ cut for new cars by 2035, drop the Commission’s residual 10% green-steel / credit compensation, extend ‘super-credits’ beyond small affordable EVs, and (per Politico) allow a further ~10% leeway via alternative fuels — i.e. an effective ~80% path. Made-in-Europe for cars would be EU27, with opt-in for the UK and Norway under conditions (narrower than the Commission’s March partner-country list). Overnight Politico reported the text stalled on SPD objections that it kills the green-steel lead market; a German spokesperson said a final agreement has yet to be reached. Separately, European Council conclusions published 16 Oct invite co-legislators to conclude the automotive package by the end of 2026 and keep momentum into 2027 — a harder timeline than ACEA’s earlier ‘early 2027’ ask.
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TE Connectivity launches TE MINI FAKRA: up to 9 GHz RF and 24 Gbps for ADAS, cameras, V2X and digital cockpits
Global
On 15 Oct TE Connectivity introduced its TE MINI FAKRA connector system for connected, automated and software-defined vehicles. The company cites RF performance up to 9 GHz and data rates up to 24 Gbps (subject to validation and configuration), a compact footprint, anti-stubbing mating robustness, controlled insertion force, and compatibility with established Mini FAKRA interfaces and cavities. Named applications: ADAS, surround-view and front cameras, V2X, antenna modules, and digital cockpit / infotainment. The system is available globally through TE’s manufacturing network.
Companies TE Connectivity, BMW
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Volvo Cars expands NVIDIA partnership: Hyperion, Halos and Alpamayo for door-to-door supervised automated driving
Asia
On 15 Oct Volvo Cars and NVIDIA said they are expanding their collaboration (since 2017) so future Volvos can navigate highways, urban streets and parking door-to-door using NVIDIA’s Hyperion sensor/compute architecture, Halos OS and Alpamayo Stack driving software, paired with Volvo’s safety systems. Debut is planned in a next-generation Volvo as part of the company’s largest-ever product push, with a gradual path toward eyes-off / mind-off features. Coverage initially excludes China in some secondary reports; primary releases emphasise global next-gen EVs and software-defined cars.
Companies Volvo Cars, NVIDIA
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Aumovio (ex-Continental Auto) and Chery extend cooperation to Europe; first step is EU-built airbag control units
Europe
On 15 Oct Aumovio said it will help Chery establish future vehicle production in Europe under Chery’s ‘Joint Initiative for Building a Sustainable Automotive Supply Chain in Europe’. Aumovio will contribute its portfolio, R&D, European plants and regulatory expertise. First concrete award: airbag control units (ACU) for Chery models produced in Europe, manufactured in Aumovio’s European plants. The pair already cooperate in China on brakes, ECUs, passive/active safety, sensors and displays. Financial terms were not disclosed. The move lands days after the EU’s Chinese hybrid quota (≈350k/year from early December).
Companies Aumovio, Chery
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Chery picks Bosch for first localized European ADAS programme: six models, MPC4 + drive/park, >800k units, SOP 2028
Europe
Chery and Bosch signed a Paris project agreement for Chery’s first localized European ADAS programme covering six new models. Scope includes Bosch’s fourth-generation multipurpose camera (MPC4) and an integrated driving-and-parking system based on that camera. Series production is scheduled from 2028 with projected output above 800,000 units over five years. Model names, plants and financials were not published. Bosch says MPC4 already has nominations on >50 models / >10m units globally, and that its end-to-end ADAS stack has been validated in DE/FR/JP with further EU road adaptation by end-2026.
Companies Chery, Bosch
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Li Auto enters Europe: Li 6 deliveries in Netherlands and Norway from Q1 2027; Dutch parts RDC from December 2026
Europe
At the Paris Motor Show Li Auto unveiled its European strategy and the European-market Li 6 — an 800 V BEV with 5C charging and Europe-tuned chassis. Deliveries start in the Netherlands and Norway in Q1 2027, with gradual expansion thereafter. The company will stand up local sales, delivery and aftersales, including a regional spare-parts distribution centre in the Netherlands, roadside assistance and a call centre from December 2026. Software supports eight European languages plus local mapping, Spotify and Apple CarPlay. Li Auto plans at least one new European model a year from 2027 to 2029 on a dual BEV/EREV path and quarterly OTA updates.
Sources
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Copper retreats after Escondida ratification; Centinela strike continues and El Teniente’s open pit stays shut
Americas
With Escondida supervisors’ 36-month deal ratified, Mining.com reports Comex December copper fell about 1.2% on 15 Oct to ~$6.58/lb (~$14,508/t) — a third straight down day and ~4.5% below the 9 Sep record. LME three-month traded near $14,360/t. Saxo and Capital.com cite the removed Escondida strike premium plus hotter US inflation / stronger dollar and an AI-chip equity sell-off. Remaining Chile risk: Antofagasta’s Centinela is still on strike (company held 2026 guidance but cut 2027 output guidance), and Codelco’s El Teniente open pit remains shut after the fatal landslide. Tariff-premium in the Comex–LME spread has largely drained.
Companies Codelco
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Schmidt Light Metal (Portugal) closes: 318 jobs gone after VW orders collapse post-MBO
Europe
Schmidt Light Metal, a high-pressure aluminium die-caster in Oliveira de Azeméis (Aveiro) that supplied almost exclusively the Volkswagen Group, stopped production on 30 Sep and is dismissing its entire 318-person workforce; most contracts end 7 Dec and the site is to close by year-end. RTP and Portuguese press say workers were told of collective dismissal in August. A March 2026 management buyout (≈€8.5m, VW-supported after a 2025 insolvency) had promised to keep the plant open; orders then became too small to run. The plant dated from 1989.
Companies Volkswagen
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Lear to close Sterling Heights (ex-M&N Plastics) molding plant — 67 jobs; electrical & connectors plastics support
Americas
Lear filed a Michigan WARN for a facility closure at Sterling Heights affecting 67 workers, effective 9 Nov 2026. Automotive News notes the site is the former M&N Plastics injection-molding plant Lear said in 2021 it needed for plastics in its electrical and connectors business. Crain’s Detroit likewise reports the Macomb County molding plant closure and 67 layoffs (9 Oct).
Companies Lear
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Elrad WS-S (Slovenia) expands Serbian wiring-set capacity: ≥€10.1m, 215 jobs, €3.015m state aid by end-2028
Europe
Serbia’s Economy Ministry signed an incentive deal (24 Sep; reported early/mid-Oct) with Elrad WS-S of Vlasotince for a brownfield wiring-set plant in Malošište. Minimum investment €10.1m in building reconstruction and new equipment; at least 215 permanent hires by end-2028; state support €3.015m in four tranches. Elrad Group makes cable sets and electrical equipment for motor vehicles; key markets include the EU, Switzerland, UK, Serbia and Turkey. Separately in the same aid round, Chinese Huizhong (SHAC) won support for a ≥€33.5m chassis plant in Kać near Novi Sad citing BMW among customers — a complementary Chinese Tier-1 nearshore signal.
Companies BMW
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Huizhong (SHAC) gets Serbian state aid for first European chassis plant near Novi Sad; BMW named as a customer
Europe
Under the same early-October Serbian state-aid disclosures, Chinese-owned Huizhong Automobile Chassis System (Shanghai Huizhong / SHAC) will invest at least €33.5m in chassis systems in Kać near Novi Sad, create 50 permanent jobs by end-2029, and receive about €5.03m in incentives (~15% of committed capex). The ~19,000 m² plant is SHAC’s first European manufacturing base and is intended to sit inside European OEM supply chains; public reporting cites BMW among expected customers.
Companies BMW
Sources
Earnings Calendar
| Date | Company | Event | What to watch |
|---|---|---|---|
| RenaultOEM | VW nine-month / Renault Q3 | ||
| VolkswagenOEM | VW nine-month / Renault Q3 |