Industry News | Power Systems Research

2025-05-25

Komatsu Reports $650 Million USD Impact of US Tariffs

Komatsu announced that its consolidated net income for the fiscal year ending March 2026 is expected to decrease by 30% year on year to 309 billion yen. This is lower than the market forecast of 403 billion yen. The U.S. administration’s tariff policy will have a negative impact of $650 Million USD (94.3 billion yen). The exchange rate assumption of 1 yen = 135 yen (compared with 152.8 yen in the previous fiscal year) is also a factor, as it reflects an appreciation of the yen by approximately 8 yen compared with the current market rate.

Of the 943 billion yen, 785 billion yen is attributable to increased production costs due to tariffs, and 158 billion yen is attributable to a decrease in sales volume due to reduced demand.

Categories: Economics, Financial, Japan, Tariff

Office: Japan Office

2025-05-24

Layoffs Begin in the North American Truck Segment

Chris Fisher

Both Volvo and International Truck have initiated layoffs this year due to sluggish orders and high production capacity in preparation for a potential 2026 truck pre-buy ahead of the phase 3 GHG Emission Regulations scheduled for implementation in 2027.

Volvo Trucks North America plans to lay off up to another 350 workers from a Virginia plant as part of job cuts affecting up to 980 employees across the country since the beginning of the year.

Employees at the New River Valley plant in Dublin, Virginia, were notified of the workforce reduction this month, and their last day at the facility will be June 27, Volvo spokesperson Janie Coley said.

Categories: Commercial Vehicles, Economics, Legislation, North America, Tariff

Office: United States Offices

IMO Votes First-Ever Global Carbon Price on Shipping

Guy Youngs

The International Maritime Organization (IMO), a UN agency which regulates maritime transport, has voted to implement a global cap on carbon emissions from ocean shipping and a penalty on entities that exceed that limit.

The agreement makes the shipping industry the first sector to agree on an internationally mandated target to reduce emissions along with a global carbon price. The agreement includes standards for greenhouse gas intensity from maritime shipping fuels, with those standards starting in 2028 and reducing through 2035. The end goal is to reach net-zero emissions in shipping by 2050

Categories: Alternative Power, Emissions, Global, Legislation, Marine

Office: United States Offices

2025-04-25

2-Wheelers Demand Crumbles Across European

Emiliano Marzoli

Brussels, Belgium. Registrations of power 2-wheelers across the top 10 markets in Europe were down 19% in the first quarter of 2025 compared to the same period of 2024. This result is mainly a consequence of the introduction of the Euro 5+ emissions standards on Jan. 1, 2025, and it was anticipated after the very positive results of 2024.

Germany, Austria and the UK saw the harsher decreases, reporting respectively a -41%, -27% and -22% compared to last year. On the other hand, Switzerland limited the loss to -6%, while Poland and Spain were the only countries to report positive growth, +3% and + 6%.

Categories: Emissions, Europe, Motorcycles, Recreational Products, Sales

Office: Europe Office

2025-04-21

France, Germany Endorse Electric Trucks

Guy Youngs

French Conseil d’Analyse Économique (CAE) and the German Council of Economic Experts (GCEE) finally weighed in on the EV vs. Hydrogen debate. And they didn’t fall for the hydrogen fantasy. Instead, they did what economists do best: they looked at the numbers, ran the models, and calmly declared that battery-electric trucks are not just viable—they’re the smart bet

Categories: Alternative Power, Electrification, Hydrogen, Legislation, Passenger Cars, Minivans, and SUVs

Office: United States Offices

Europe Tesla (TSLA) Deliveries Down 43%

Guy Youngs

The official numbers from European Automobile Manufacturers Association (ACEA) are out, and they confirmed that Tesla deliveries have crashed by 43% in Europe so far this year.

Based on the main European auto markets already having reported vehicle registrations earlier this month, we already had a good idea of Tesla’s performance in the market, but now the ACEA has made it official.

Categories: Alternative Power, Passenger Cars, Minivans, and SUVs, Sales

Office: United States Offices

2025-04-20

UK Reconsidering Tesla Subsidies

Guy Youngs

US President Donald Trump imposed tariffs on imported automobiles (again), and one reaction from the UK is to reconsider its policy on electric vehicle subsidies, especially since it is providing so much money to Tesla buyers.

“Tesla has benefited from £188m in UK taxpayer subsidies in nine years,” The Independent writes.

After imposing a 25% tariff on automobiles exported from the UK to the US, it’s quite natural for British people in the auto industry and politicians to say, “Hey, we’re spending hundreds of millions of dollars to subsidize your cars, and now you want to slap a tax on ours? Let’s reconsider how our EV policies work….” UK Chancellor Rachel Reeves said the government is reviewing its electric vehicle transition rules, amid calls for reciprocal tariffs on Tesla imports,

Source: Clean Technica: Read The Article

PSR Analysis: The backlash against the Trump tariffs is slowly starting to take shape and a lot of this is directed at Tesla because of Elon Musk and his support for Trump. Given that Tesla put an end to the myth that Europeans won’t buy American cars, it’s a very odd place for Tesla to be in and they probably will remain there until such time as the dump Musk or go bankrupt. PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Categories: Alternative Power, eMobility, Europe, Legislation, Passenger Cars, Minivans, and SUVs, PowerTALK, Tariff

Office: United States Offices

South Korea Considers Tariff Bargaining Chips

Akihiro Komuro

South Korea is considering purchasing liquefied natural gas (LNG) and sharing the cost of stationing U.S. troops in the country as bargaining chips in negotiations with the U.S., which President Trump is seeking to revive, but these are not sufficient materials, and the future is uncertain. South Korea is the second largest shipbuilding nation after China and can produce high value-added vessels such as LNG carriers.

Categories: Economics, Marine, PowerTALK, Tariff

Office: Japan Office

ASEAN Leaders Consider Tariff Response

Akihiro Komuro

The numbers vary greatly from country to country. This is strongly influenced by the geopolitical and economic intentions behind them. Broadly speaking, it seems that countries with strong economic and strategic ties to China have been given a higher tax rate as a form of sanction. Cambodia, Laos, Vietnam, and Myanmar are all examples of this. On the other hand, countries where U.S. companies have a direct presence have also been given a more restrained rate from a supply chain perspective. Furthermore, from a political and security perspective, the Philippines, for example, which has close military and diplomatic ties with the United States, can be said to be relatively privileged.

Categories: Economics, PowerTALK, Southeast Asia, Tariff

Office: Japan Office

US Tariffs Could Hurt Japan GDP

Akihiro Komuro

On April 12, as I write this, things are still in flux. There is a lot of media coverage every day, with reports on the tariffs reaching almost hysterical levels. The reciprocal tariff rate for Japan announced by the U.S. is 24%, which is an unexpectedly high level given the past relationship between the two countries.

As a result, Japan’s real GDP is expected to fall by about 0.6% in the short term (2025) and 1.8% in the medium term (2029). This will have a huge impact on Japan, which has maintained a growth rate of around 3% per year. It has been reported that Japan is currently negotiating with the Trump administration, but it is doubtful whether the current Japanese government will be able to negotiate effectively with the US. We will see whether the terms will be reconsidered after the negotiations in the future.

I would just like to point out one thing: President Trump talks about Japan’s failure to buy American cars as unfair and negligent, but this is a clear mistake. It is true that American cars do not sell well in Japan. GM is the only company with a formal dealer network in Japan, and it is even hard to find GM dealer shops in Japan. Chrysler pulled out in 2018 and Ford in 2016.

Categories: Economics, Japan, Tariff

Office: Japan Office

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