Tesla urges tariff exemption for Chinese-made car computer 'brain'

WASHINGTON (Reuters) - Tesla Inc has asked the Trump administration to exempt the Chinese-made car computer “brain” of its new Model 3 sedan from 25 percent tariffs imposed in August, saying they threaten the electric carmaker’s bottom line. “Increased tariffs on this particular part cause economic harm to Tesla, through the increase of costs and impact to profitability,” the company said in a previously unreported request for tariff relief from the government.

Led by tech billionaire Elon Musk, Tesla is among a host of companies, including No. 1 U.S. automaker General Motors Co, to warn of growing costs related to the tariff war between the world’s two largest economies. The Chinese-made computer, used by Tesla in the car assembled in Fremont, California, was among $16 billion in imports that were hit with 25 percent tariffs by the United States Trade Representative’s Office in 2018.

In a redacted request posted on a government website by the USTR on Dec. 17, Tesla did not identify the supplier of the computer. But it said it had been unable to find another manufacturer “with the required specifications, at the volume requested and under the timelines necessary for Tesla’s continued growth.” Tesla, which called the Model 3’s computer “the brain of the vehicle,” added that “choosing any other supplier would have delayed the (Model 3) program by 18 months with clean room setup, line validation, and staff training.” Using a new supplier “substantially increases the risk of poor part quality that could lead overall vehicle quality issues that would impact the safety of our vehicles and the consumer acceptance of the final product,” Tesla added in its request for tariff relief. Tesla declined to comment on the tariff matter on Friday. But it has been aggressively cutting costs as it works to meet production goals for the Model 3, which has become a top-selling luxury sedan on the U.S. market alongside the larger Model S.

Other automakers have sought similar exemptions but have not yet received an answer. GM in late July sought an exemption to a 25 percent U.S. tariff on its Chinese-made Buick Envision sport utility vehicle. The Envision accounted for nearly 15 percent of U.S. Buick sales last year, even as sales fell by 27 percent. In October, GM also sought exclusions for about two dozen parts, including push button ignition switches and transmission bearings. Nissan Motor Co and Fiat Chrysler Automobiles NV have also filed exclusion requests for parts, while Uber Technologies Inc [UBER.UL] asked for an exclusion for electric bikes rented through the Uber app. The Trump administration has imposed 25 percent tariffs on a total of $50 billion in annual Chinese exports and 10 percent tariffs on an additional $200 billion in Chinese exports. The tariffs were in response to what the Trump administration calls China’s unfair trade practices.

https://www.reuters.com/article/us-autos-tariffs-tesla/tesla-urges-tariff-exemption-for-chinese-made-car-computer-brain-idUSKCN1OZ00C

Iran To Sail Warships Into The Atlantic, Pushing Near US Waters

At a moment a US aircraft carrier group led by the USS Stennis is stationed in the Persian Gulf, putting Iran's military on edge, the Iranian navy has announced plans to deploy warships to the Atlantic starting in March, in a clear attempt to increase the operating range of its forces and extend into the United States' backyard. A top Iranian naval commander told the the Islamic Republic News Agency (IRNA) on Friday, “The Atlantic Ocean is far and the operation of the Iranian naval flotilla might take five months,” and also identified that among the deployed vessels will be its Sahand destroyer, touted as Iran's latest domestic built stealth destroyer.

While suggesting that the ships could traverse the globe as part of the mission to extend operations, the IRNA described the Sahand as a "four-engine destroyer [that has] has been designed and made more advanced than its predecessor, Jamaran destroyer, with radar-evading capabilities." The navy's media statements issued by top ranking Rear Admiral Touraj Hassani also suggested the mission was handed down from the highest levels of Iranian leadership. The Sahand is also known to be outfitted with a flight deck for helicopters and anti-aircraft systems, advanced missiles, and electronic warfare capabilities.

This latest provocative statement comes after Admiral Hassani last month declared Iran would soon deploy two or three warships on a mission to Venezuela, which the US would see as the most brazen mission yet, following on the heels of Russian temporary deployment of long range nuclear capable bombers to the Latin America country and longtime enemy of Washington. Iranian military leaders have cited their intent to carry out such missions according to maritime law and in international waters, citing US carriers doing the same, just as American ships commonly pass near Iranian waters in the Persian Gulf.

Friday's statement comes after on Thursday US Secretary of State Mike Pompeo and Iranian Foreign Minister Javad Zarif engaged in a war of words via Twitter over Iran's space program. Hours Pompeo claimed Iran was using "virtually the same technology as ICBMs" in a "defiant" Space Launch Vehicles launch that will "advance its missile program," Iran's Zarif shot back saying "Iran's launch of space vehicles — & missile tests — are NOT in violation of Res 2231," — the UN resolution which endorsed the Joint Comprehensive Plan of Action (JCPA) on Iran's nuclear program — which the Trump administration pulled out of last May.

https://www.zerohedge.com/news/2019-01-04/iran-plans-sail-warships-atlantic-pushing-near-us-waters

China Releases Footage Of "Mother of All Bombs" Dropped By Nuke Capable Jet

On Friday China unveiled video from a successful test of its most powerful non-nuclear weapon, dubbed the "Mother of All Bombs" in reference to a weapon previously used by US forces in Afghanistan. The official Xinhua news agency published details of the weapon for the first time while calling it the "Chinese version of the 'Mother of all Bombs'".

It is reportedly 5-6 meters long and its massive weight means the delivery vehicle, in this case China's H-6K long range nuclear capable bomber, can only carry one at a time. While China has denied that it is a thermobaric bomb — an explosive that uses oxygen in the surrounding air to generate a high-temperature explosion — its incredible size mimics the 22,000-pound GBU-43 Massive Ordnance Air Blast (MOAB) bomb that US forces dropped in Afghanistan’s Nangarhar province targeting a jihadist hideout tunnel complex in April of 2017. While the Chinese bomb is long, it actually reportedly weighs less than the American version, according to military analyst Wei Dongxu, who was quoted by the semi-official Global Times further as saying, "The massive explosion that was generated would easily wipe out land fortifications." he short video of the test was published to the website of state arms manufacturer Norinco and shows the bomb producing a massive ball of fire and black smoke over a nondescript plain.

Chinese media gave no details as to the date, location or range of the bomb blast, but the video was first released on Chinese social media on Wednesday, Jan. 2. It remains, however, the US is the only military that has ever actually used such an oversized non-nuclear device in battle. In 2017, following the April 13 MOAB blast in Afghanistan, US Central Command (CENTCOM) released aerial video confirming the bomb was used against ISIS in Afghanistan.

https://www.zerohedge.com/news/2019-01-04/china-releases-test-footage-mother-all-bombs-dropped-nuke-capable-jet