All articles tagged with #auto industry
A Associated Press report notes that the average cost of a new car is approaching $50,000 due to post-pandemic demand, ongoing supply disruptions, tariffs, and rising insurance and repair costs. The affordability squeeze is prompting many buyers to consider used cars or delay purchases, while automakers point to cheaper models and options like EVs; tighter used-car supply and longer ownership periods are further complicating the market.
Sony and Honda have canceled the Afeela project, including the Afeela 1 sedan and a planned SUV, after Honda scrapped its own new platform. Production had been planned at Honda’s Ohio plant, with the SUV potentially arriving by 2028. The Afeela concept included a 40-sensor suite and PlayStation integration, but market shifts and tech dependencies led to the halt.
Western automakers are retreating from electrification and doubling down on combustion engines, a move critics say risks repeating the 1980s decline as Chinese brands like BYD and Leapmotor gain ground globally. Policy hesitations in the EU and US, along with costly write-downs and stalled battery initiatives, are slowing electrification in Europe and America, enabling China to capture market share in Europe, India, Mexico and Brazil. Industry experts urge a full, scalable shift to EVs and domestic battery production to avoid ceding leadership to China and missing the remaining window to compete.
Canada will start importing Chinese electric vehicles—49,000 per year at a 6% tariff, potentially rising to 70,000 annually over five years—marking a policy reversal that diversifies from the U.S. and could give Chinese automakers a foothold in North America, reshaping supply chains and market dynamics even as U.S. tariffs and cybersecurity rules complicate entry.
Volvo will discontinue the EX30 in the U.S. after the 2026 model year, with production winding down after the summer and orders open until March 20, 2026. The EX60 and EX90 will continue in the U.S., while the EX30 remains available in other markets.
Honda said it would scrap plans for three battery-powered EVs in the United States and posted its first annual loss since going public, underscoring a widening divide in the auto industry as traditional automakers pull back on EV investments while startups push ahead with cheaper, faster-charging models.
Honda is canceling the planned launches of three EVs (the Honda 0 SUV, Honda 0 Saloon, and Acura RSX) as it reassesses its EV strategy amid U.S. policy shifts and rising competition from China. The company will refocus on hybrids, warns of record losses for the year ending March 2026 with operating expenses projected at 820 billion–1.12 trillion yen and total costs potentially reaching 2.5 trillion yen. The move contrasts with peers pursuing volume EVs, while Honda cites a tougher competitive environment and consumer concerns as key headwinds.
New-car prices are rising not just because of tariffs but also due to automakers prioritizing upscale models and limiting budget options, pushing the average price toward about $47,000. Dealers report a 75-day supply as demand cools, meaning inventory lasts longer even with more cars on lots. In China, February vehicle deliveries fell about 15% after subsidy cuts, though exports rose and BYD expanded; Porsche’s China sales are shrinking as local EVs gain ground. Taken together, these dynamics suggest a tougher market that could push more buyers into the used-car market and influence future model strategies.
Volkswagen will cut about 50,000 jobs in Germany by 2030 across the group (including Audi and Porsche) after posting a 44% drop in post-tax profits to €6.9bn in 2025, pressured by US tariffs, competition from China, and high EV-shift costs; the company says further cost cuts are needed even as it anticipates a recovery and targets a 2026 core margin of 4–5.5%.
With December 2025’s average new-car price at a record $50,326, buyers are increasingly financing for longer terms: 20.8% of loans were 84 months or longer and the average payment reached $722, while down payments dipped to about $6,228. The total cost of ownership has risen roughly 48% since 2019. A January dip to around $49,191 is not yet a trend. Longer loan terms also raise the risk of negative equity if car values fall.
Stellantis posted a $2.2 billion North American loss last year, largely due to tariffs costing about $1.4 billion, leaving no margin to fund profit-sharing for 2025 and resulting in zero payouts for UAW workers—unlike Ford and GM, which still paid bonuses, and unlike Stellantis’ Italian salaried bonus which was also zero. UAW leaders criticized management amid a broad corporate reset, with hopes that improved results in 2026 could restore payouts if targets are met.
Lamborghini is scrapping its Lanzador all-electric supercar and shifting to plug-in hybrids, after CEO Stephan Winkelmann said demand for EVs among its customers is almost zero and investing in full EVs would be an “expensive hobby.” By 2030 the brand plans all models to be PHEVs while maintaining internal combustion engines for now, and will continue electrification efforts but only when customer demand justifies it. Never say never on EVs, but the current market isn’t ready for a pure electric Lambo.
CNN reports that the EPA repealed the 2009 greenhouse‑gas endangerment finding, removing a federal basis for vehicle emissions regulation. The change is expected to nudge automakers toward higher‑margin, gasoline‑heavy SUVs and hybrids, potentially reduce certain tech like stop‑start systems, and slow the EV ramp‑up—though electrification isn’t disappearing and global markets will continue pushing toward it. The impact will likely unfold gradually over multiple model years rather than as an abrupt shift.
Only a few automakers plan to air ads during Super Bowl 60 in 2026, with GM, Toyota and Volkswagen leading the lineup as industry turbulence, high 30-second costs, and a shift from traditional TV to streaming drive a pullback from national spots; Stellantis and Nissan take more measured approaches while others redirect spend to year-round and digital strategies.
Stellantis posts a $26.2 billion write-down as it resets its electrification plan after overestimating the pace of the energy transition, joining Ford and GM in trimming EV bets. Charges cover canceled Jeep EVs, non-amortized platform costs, cash obligations, supply-chain cuts, and European job impacts. The company will accelerate US investments ($13B) to add 5,000 jobs and expand trucks/SUVs, including a Ram 1500 V8 and a gas Dodge Charger, reflecting a shift toward realism about demand and execution.