Daily brief
Automotive & Business Brief — 21 October 2026
Parliament’s centre groups agreed a 2035 target of 95% that is effectively 87.5% with EU green-steel credits, plus 2029–2031 averaging for the 2030 target. Committees vote Thursday; the plenary in December.
Executive Snapshot
- Parliament’s centre groups agreed a 2035 target of 95% that is effectively 87.5% with EU green-steel credits, plus 2029–2031 averaging for the 2030 target. Committees vote Thursday; the plenary in December.
Top Developments
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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
Europe
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. For 2030, the car target stays at 55% but can be met on the average of 2029–2031; vans get 35% in 2030 (Commission: 40%) and 80% in 2035. Cars running only on renewable or low-carbon fuels could be registered as zero-emission (SPD negotiator Tiemo Wölken says biofuel use was limited), and small affordable or very efficient EVs could earn super-credits. The groups still have to sign off. Transport (TRAN) and industry (ITRE) committees vote on Thu 22 Oct, the lead environment committee follows in early November and the plenary in December; trilogue with Council comes after that.
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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)
Americas
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. At the meetings, managers said Golf production will run on two shifts instead of the three originally planned, which drew whistles and chants of ‘huelga’ (El Economista). In separate sessions for technical staff, management said a strike could delay the Golf project planned for 2027 and that by 2034 Puebla could be left with the Golf only (Telediario). VW says operations continue normally until the deadline; the strike can start at 11:00 on 22 Oct (19:00 CEST) if the union proceeds.
Companies Volkswagen
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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
Americas
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). On the call, GM said spot copper and hot-rolled steel are each up 10–15% since July and about 50% above last year’s average; commodity, logistics and DRAM inflation will total about $2bn in 2026 (about $1.3bn so far), and gross tariff costs will be at the low end of $2.5–3.5bn. CFO Paul Jacobson said steel, aluminium and logistics costs rose sharply over the last two months and, if they do not ease, could weigh on 2027 by another $2bn (Reuters). Fourth-quarter pickup volume will be about 35,000 lower because of the new full-size truck launch. On the LME, copper cash settled at $14,540/t on 20 Oct, about $180 above three-month ($14,357), a sign of tight nearby supply.
Companies General Motors
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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
Europe
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. On 19 Oct it inaugurated its fourth Moroccan plant, in Kenitra’s Atlantic Free Zone, making exterior body parts for an unnamed major carmaker with more than 100 jobs (Moroccan workforce above 1,400). Earlier in October the group cut its 2026 targets and announced about 770 job cuts in Europe, including the Sterbfritz site.
Companies OPmobility
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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
Asia
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). CATL held 40.9% of China’s power-battery installations in September; China’s energy-storage battery sales doubled year on year to 73.5 GWh.
Companies CATL
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Huawei steps back abroad: Seres’ Aito brand will use ‘Bosch Inside’ driver-assistance, cockpit and chassis systems on its European models from 2027 (report)
Europe
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. Aito announced at the Paris show on 12 Oct that it enters Europe in autumn 2027 with four SUVs. Chery’s Luxeed brand also plans to go abroad on Chery’s own E/E architecture without Huawei systems. Neither Bosch nor Seres has confirmed the Bosch deal.
Companies Huawei, Bosch, Chery
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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
Europe
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. The UK is also trying to avoid a 10% tariff on EVs traded with the EU from 1 January, when stricter rules of origin apply. Automotive World notes that Nissan Sunderland’s talks to build Chery vehicles partly depend on Made in Europe eligibility, and that Chinese brands hold more than a fifth of the UK market, mostly with hybrids that EV-only tariffs would not touch.
Companies Nissan, Chery
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Schaeffler opens a ‘humanoids making humanoids’ factory in Taicang, China: six robots run a five-station line, and humanoid orders reach about €400m
Asia
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. A digital twin mirrors the line in real time, and a training centre teaches robots tasks such as visual inspection, packaging, container moving and line-side material replenishment under conditions modelled on Schaeffler’s roughly 100 plants. Schaeffler says the site marks the start of mass production of these components and that two new Greater China customers in Q3 took its humanoid-robotics order intake to about €400m.
Companies Schaeffler
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Koito closes a second of its three China lighting plants as Japanese carmakers keep losing share in China
Asia
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. It already dissolved Fuzhou Koito in April 2025 and consolidated signal-lamp production in Guangzhou in March 2026, which leaves Guangzhou as its only China plant. Koito expects no significant effect on results for the year to March 2027; no completion date is set.
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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
Europe
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.
Companies Subaru, Toyota, Aisin, Panasonic
Earnings Calendar
| Date | Company | Event | What to watch |
|---|---|---|---|
| TeslaOEM | Tesla Q3 | ||
| Texas InstrumentsElectronics | Texas Instruments Q3 after the US close | after the US close | |
| ValeoTier-1 | Valeo Q3 sales | 18:30 CEST | |
| AutolivTier-1 | Autoliv Q3 | 07:00 CEST | |
| Volvo CarsOEM | Volvo Cars Q3 | 07:00 CEST | |
| AmphenolElectronics | Amphenol Q3 | ||
| Mercedes-BenzOEM | Mercedes Q3 | ||
| TE ConnectivityElectronics | TE Connectivity Q3 | ||
| RenaultOEM | Renault Q3 | ||
| VolkswagenOEM | VW nine-month | ||
| LearTier-1 | Lear Q3 | ||
| Mitsubishi ElectricElectronics | Mitsubishi Electric’s revised forecast | ||
| AptivTier-1 | Aptiv Q3 | ||
| MothersonWire harness | Motherson results |