By Paul Page 

Sign up: With one click, get this newsletter delivered to your inbox.

Consolidation in the aerospace sector is heading into space. Northrop Grumman Corp.'s planned $7.8 billion acquisition of Orbital ATK Inc. would give the company a foothold in the military space race, the WSJ's Doug Cameron reports, helping Northrop produce and launch large and small satellites while developing new defense and weapons systems. The deal could also rekindle consolidation among defense contractors that has been on hold since a series of big buys narrowed the field of suppliers in the 1990s. But the broader commercial aerospace market has been in upheaval lately, with United Technologies Inc.'s move this month to buy Rockwell Collins Inc. for $23 billion jolting the sector. U.S. defense companies are growing again after years of government budget pressures, but big opportunities are scarce. Still, the Pentagon is looking to make U.S. space assets less vulnerable by launching larger numbers of smaller satellites, and that would likely speed up production, putting a bigger premium on the ability to develop and deliver the equipment.

Ford Motor Co. is getting big help in its bid to expand in India. The car maker is linking with Indian automotive company Mahindra & Mahindra Ltd. in a three-year partnership, the WSJ's Christina Rogers writes, that could bring collaboration in areas such as electric vehicles and retail sales, giving Ford the supply-chain heft it needs to expand in the market. Ford is hoping to trim costs in India, a market that has become a drain on resources for many car makers struggling to turn a profit there. While demand is growing, the market remains overcrowded with competitors trying to sell low-price cars with slim margins. Mahindra is known for taking a frugal approach to engineering while developing vehicles that can appeal to budget-minded buyers. Such partnerships are increasingly popular in India, where regulatory demands and poor local infrastructure have made it tough for Western operators to build the business models that have worked in other countries.

Honda Motor Co. is betting big on its U.S. production of sedans even as the popularity of bread-and-butter family cars fades. The Japanese auto maker is putting $267 million into upgrading its Marysville, Ohio, factory along with the technology and styling in its signature Accord sedan, the WSJ's Adrienne Roberts writes, while shifting consumer tastes have many supply chains for trucks and SUVs at other car makers supplanting sedan production. Total midsize sedan sales in the U.S. have slipped more than 15% so far this year, leading some automakers to shift direction on manufacturing and focus on the bigger vehicles. Most of Honda's new investment will go toward new technologies to build the Accord while $47 million will go toward manufacturing engines for the cars in Ohio. That will keep parts moving to supply the plants for now, but drivers will have to buy into the new design to keep production moving over the long haul.

ECONOMY AND TRADE

The Trump administration is toughening its trade stance with China even as it tries to reset the North American trade framework. U.S. trade representative Robert Lighthizer told a forum in Washington that China represents an "unprecedented" threat to the world trading system, the WSJ's William Mauldin reports, saying its state-driven efforts "distort markets" and pose a greater challenge than in the past. The administration is focused most on technology transfers and issues such as China's enormous industrial production, which critics say is growing far more than demand because of Beijing's efforts to stimulate the country's economy. Mr. Lighthizer criticized China's push to "create national champions," a drive familiar in a transportation world that has seen Chinese operators expand rapidly in shipping and ports management. The White House hasn't laid out a specific plan on trade with China but is pursuing various investigations under U.S. law that could end in tariffs on Chinese goods.

QUOTABLE

IN OTHER NEWS

Crude oil prices are pushing toward a five-month high. (WSJ)

Wisconsin Gov. Scott Walker signed a bill that would give Taiwan's Foxconn Technology Group $3 billion in economic incentives to open a mega-plant in the state. (WSJ)

Major maritime groups say the shipping industry should put off aims to reduce carbon emissions until the second half of the century. (Lloyd's List)

California's legislature approved a union-backed measure barring the state from buying automated zero-emissions equipment for ports. (Sacramento Bee)

The International Maritime Organization issued a new warning about the dangers of shipping bauxite, a major source of aluminum. (Splash 24/7)

Cosco Shipping Holdings is diverting cargo away from Canada's Port of Prince Rupert because of congestion. (Journal of Commerce)

Maersk Line is using agreements with local transport providers in India to offer more end-to-end distribution service. (Economic Times)

ABB Ltd. plans to double production of industrial robots to meet China's growing factory automation demands. (Bloomberg)

Japan lifted an 11-year ban on the import of U.S. chipping potatoes. (AgDaily)

Australia's dairy farmers are breaking from traditional pacts with milk processors in an upheaval in the industry's supply chain. (Sydney Morning Herald)

FedEx Corp. is asking for an extension until next June of its authority to launch freighter service between Miami and Cuba. (Air Cargo News)

The driver turnover rate at large truckload fleets jumped 16 percentage points in the second quarter. (Commercial Carrier Journal)

Financially-troubled truckload carrier Celadon Group Inc. sold its flatbed trucking division to a unit of PS Logistics LLC. (American Shipper)

Amazon.com Inc. will move ahead with plans to build a 1-million-square-foot distribution center in southwest Ohio. (Columbus Dispatch)

Amazon is adding its third fulfillment center in Oregon. (Seattle Times)

FedEx Freight unit will build a trucking terminal on 49 acres south of Milwaukee. (BizTimes)

Fulfillment provider Menasha Corp. acquired retail-industry supplier ARI Packaging. (Modern Materials Handling)

Massachusetts brewers are pushing a measure allowing them to drop deals with distributors under most circumstances. (Fitchburg Sentinel & Enterprise)

Hurricane Irma has disrupted the distribution of flowers from South America that normally move through Miami. (Cedar Rapids Gazette)

ABOUT US

Paul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the entire WSJ Logistics Report team: @brianjbaskin , @jensmithWSJ and @EEPhillips_WSJ. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

Write to Paul Page at paul.page@wsj.com

 

(END) Dow Jones Newswires

September 19, 2017 06:52 ET (10:52 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Ford Motor (NYSE:F)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Ford Motor Charts.
Ford Motor (NYSE:F)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Ford Motor Charts.