June 3 (Reuters) -

By Nick Carey, European Autos Correspondent

Greetings from London!

Having kicked off a confusing trade war with friends and foes alike that has taken markets on a rollercoaster ride, U.S. President Donald Trump appears to be in a hurry to bring it to a swift close.

According to an exclusive report from my Reuters colleague Jarrett Renshaw – which you can read here – the Trump administration is asking countries to come up with their best trade offer, including tariff rates and potential U.S. investments, by Wednesday.

There are many possible reasons behind Trump’s need for speed, but one of them could be that his trade war is getting uncomfortably close to the holiday ocean shipping season.

As my Reuters colleague Lisa Baertlein reports here, shipping volumes at the Port of Los Angeles are down significantly and executive director Gene Seroka says the nearly 60 different Trump administration announcements on trade policy and tariffs since January have left companies “on pause” until the uncertainty ends.

Which brings us to today’s Auto File…

• Big tasks for Stellantis’ new boss

• China’s carmakers argue over price war

• Musk’s return to Tesla

A new CEO for Stellantis

After a lengthy six-month search for a new CEO, the world’s No. 4 automaker Stellantis settled on… inside man Antonio Filosa.

While some see Filosa as a natural choice for the role given his experience as head of North American operations – U.S. experience is handy when dealing with the dizzying array of tariff announcements coming out of the Trump administration – some investors were unimpressed that it took so long to settle on an obvious candidate who had been a frontrunner from the outset.

Six months in the auto industry today is a very long time, especially since Trump’s return to office in January.

And the challenges that Stellantis faces are no less urgent than when former CEO Carlos Tavares was pushed to resign in December.

Perhaps the biggest of the challenges facing Filosa is having to figure out what to do with Stellantis' sprawling portfolio of 14 brands. Some of those brands may have to go, raising the prospect of a fight with staff and unions.

If anything, that task is even more urgent than it was six long months ago when Stellantis’ chairman set out to hire Filosa.

Recommended reading:

• India’s carmakers try to block hybrids

• Looming magnet shortage

• Trump: build it all here

China price war frays nerves

Tensions over the long-running EV price war in China finally broke into the open over the last week.

Chinese automaker shares tumbled last week after Great Wall Motor chairman Wei Jianjun called the market “unhealthy.”

His remarks were echoed by Zhu Huarong, chairman of state-owned Changan, who said the industry needs to pay more attention to risks.

The hit to automaker shares was exacerbated by BYD’s decision to offer fresh incentives on over 20 models.

But an executive at BYD, China’s No. 1 automaker, slammed Wei Jianjun’s comments, calling them alarmist.

Others, however, are alarmed at the damage they say the fight for market share is causing.

A group representing Chinese auto dealers has called on automakers to stop offloading too many cars on dealerships because it is driving down profitability and forcing dealership closures.

And China’s industry ministry has called on automakers to call a truce, saying there are “no winners” in a price war.

Investors want Musk to run Tesla

Elon Musk’s tumultuous – and a tad controversial – time working for the Trump administration came to an abrupt end last week, leaving investors hopeful that he will focus his time on companies he is still CEO of, including Tesla and SpaceX.

The latest sales news out of Europe shows that Tesla still has a lot to fix to get back on track, with a fifth consecutive month of sharp drops in France, Sweden, Spain and other markets.

But there was some hopeful news amid the carnage. Sales in Norway jumped, thanks to the new Model Y.

Tesla fans have argued that once the revamped car – Europe’s best-selling model in 2023 – arrived that the company’s fortunes would revive.

Deliveries of the new Model Y will begin in a number of European countries this month, so we will soon know whether it can overcome Musk’s controversies and compete in a market filling up with new EVs from traditional automakers and new Chinese rivals.

Xiaomi’s YU7 arrives

Speaking of Tesla, China’s Xiaomi has rolled out its new sports utility vehicle, the YU7, which is expected to further challenge Musk’s company in the world’s largest car market.

The firm best known for smartphones and consumer electronics launched the YU7 at 13 of its Beijing showrooms and will start taking orders for the vehicle in July.

Xiaomi is keen to repeat the success of its sporty SU7 sedan, which launched last year and has outsold Tesla's Model 3 on a monthly basis since December.

Analysts say the YU7 could challenge Tesla's best-selling Model Y.

But the launch also comes as Xiaomi, a newcomer in China's highly-competitive EV market, has seen new EV orders fall after a series of controversies including a fatal crash and complaints of false advertising.

Fast Laps

Nissan is offering buyouts to U.S. workers and has suspended merit-based wage increases worldwide, as it expands cost cuts amid weak performance in key markets.

Geely is undervaluing Zeekr  with a $2.2 billion take-private offer, five early investors in the premium electric car unit have told the Chinese automaker’s board, according to sources.

Stellantis brand Alfa Romeo will postpone the launch of the new version of its Stelvio large SUV until late 2026 amid tepid demand for electric vehicles, two sources told Reuters.

Porsche  will set up a China research and development centre in Shanghai in a deal that will see its models equipped with an infotainment solution tailored for the Chinese market in 2026. 

Ford’s  Executive Chair Bill Ford said proposals to eliminate U.S. production tax credits for making EV batteries using Chinese technology would threaten the automaker’s projected $3 billion investment in a plant in Michigan.

S&P lowered the outlook for its BB+ credit rating on Volvo Cars  to "negative" from "stable", saying U.S. tariffs and tougher competition in China were hurting the automaker’s growth prospects.

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(Editing by Mark Potter)