Germany will relaunch EV incentives for low- and middle-income buyers.
Eligible buyers can receive up to €4,000 on EVs priced under €45,000.
The new €3 billion plan starts in 2026 and runs through the end of 2029.
In politics, few things vanish faster than inconvenient promises. Policies that once seemed carved in stone tend to crumble the moment the weather changes. The US may have stepped back from its federal EV tax credits, but in the heart of Europe’s car industry, the story is moving in the opposite direction.
Two years after Germany scrapped its incentives for electric vehicles, a move that triggered a sharp drop in demand as we widely reported, the country is preparing to bring them back. The new purchase program will take effect in January 2026.
Renewed Push For Affordability
The new scheme will be introduced at a pivotal time for the European car industry as it struggles with US-imposed import tariffs and new competition from China.
German Chancellor Friedrich Merz revealed earlier this week that €3 billion ($3.5 billion) will be allocated for zero-emission vehicle purchase incentives through 2029, targeting low- and middle-income households.
It’s understood that the program will offer incentives worth up to €4,000 ($4,600) on the purchase of a new EV that’s priced under €45,000 ($52,600). That is a big change from the previous scheme that had a higher price limit of €65,000 ($76,000).
Importantly, plug-in hybrid vehicles will not be included in the program, although used EVs will, for the first time, be eligible, too according to German media, as reported by Autonews.
Who Qualifies
While some finer details about the program are still being ironed out, an income cap of around €45,000 ($52,600) is expected. While speaking about the new incentives, Social Democratic Party secretary-general Tim Kluessendorf said that “everyone must be able to afford the [electric] transition.”
“What is important to me in designing the subsidy program is that it must benefit the German and European automotive industry in particular,” he added. “The Ministry of the Environment will ensure that this is the case. The future is electric, and we want it to be written in Germany.”
The remark suggests the incentives could be limited to vehicles produced by European manufacturers, though no official confirmation has been made. We’ll have to wait and see if this case, but the local car industry could do with all the help it can get at the moment.
Germany’s previous EV subsidy scheme paid out roughly €10 billion ($11.7 billion) to buyers between 2016 and 2023 before being shut down due to budget constraints.
GM was forced to adjust its EV capacity to the tune of $1.2 billion.
Its EV sales skyrocketed 105 percent through the first three quarters.
Changes will not affect the current EV lineup of Chevy, GMC and Cadillac.
The removal of the federal electric vehicle tax credit at the end of September is set to cost General Motors as much as $1.6 billion in the next quarter, a direct result of the adjustments it must make to its electric vehicle strategy.
This follows Ford’s recent announcement that it will write down up to $400 million in manufacturing assets and reduce $1.5 billion in EV-related spending, scaling back projects including a three-row electric SUV and a full-size electric pickup.
Industry Recalibration
In its third-quarter report, GM confirmed that its board of directors had approved $1.6 billion in charges tied to what it described as the “strategic realignment of our EV capacity and manufacturing footprint to consumer demand.”
The company specified that $1.2 billion of that amount relates to adjustments in its EV capacity, while the remaining $400 million stems “primarily from contract cancellation fees and commercial settlements associated with EV-related investments, which will have a cash impact.”
GM also noted that “it is reasonably possible that we will recognize additional future material cash and non-cash charges that may adversely affect our results of operations and cash flows.”
GM emphasized that the measures it’s taking will not affect its existing range of electric models sold under the Chevrolet, GMC, and Cadillac brands.
Electric vehicle sales in the United States climbed sharply through the third quarter, yet GM cautioned in its filing that it expects “the adoption rate of EVs to slow” due to “the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations.”
During the July-September period, GM’s sales of electric vehicles rose 107 percent and have increased 105 percent year-to-date. In Q3, it sold a total of 66,501 EVs, and Chevrolet cemented its position as the second-largest EV brand in the country. In addition, the Equinox EV was the best-selling non-Tesla-branded electric vehicle.
Hyundai recently upped its US investment commitment from $21B to $26B.
Company’s investment may have weakened Korea’s leverage in US trade talks.
South Korea is still trying to get the US government to drop its hefty tariffs.
The South Korean government is none too pleased with Hyundai’s massive US investments, particularly as tensions linger with the Trump administration over a new trade deal. Indeed, one lawmaker has even gone so far as to accuse Hyundai of trying to curry favor with President Donald Trump.
Just two weeks after Hyundai’s massive plant in Georgia was raided by US Immigration and Customs Enforcement agents, and hundreds of Korean workers were detained, the automaker announced plans to boost its American investments by 32 percent, bringing the total to $11.6 billion.
This move landed awkwardly back home. Many in South Korea had warned that the raid could discourage local companies from expanding into the United States, and Hyundai’s timing only added to the unease.
While recently speaking with members of the press, South Korea’s industry minister Kim Jung-kwan described the timing of the investments as “deeply regrettable.”
“We told Hyundai that [its] conduct was deeply regrettable, especially considering that our efforts have been made for the sake of Hyundai and Kia’s industry,” Kim said. “I believe that Hyundai now fully understands the Korean public sentiment.”
According to the South China Morning Post, Korean officials have clashed with US counterparts over roughly $350 billion in American investments as Seoul seeks lower tariffs on Korean cars.
Who Benefits Most?
According to independent lawmaker Kim Jong-min, Hyundai’s investments weakened Korea’s leverage during trade talks. “Isn’t the Korea-US tariff negotiation essentially a negotiation concerning Hyundai?” he asked.
“Since Hyundai is the main player in this issue, I believe that the way Hyundai responded was not helpful to the negotiations.”
Hyundai has been particularly active on the investment front this year. In March, it pledged $21 billion to strengthen its automotive, steel, and robotics businesses. By August, that figure had grown to $26 billion, with a promise to create 25,000 direct jobs in the United States by 2028.
Canada imposed 100 percent tariffs on Chinese EVs to protect its industry.
China retaliated with heavy duties on key Canadian agricultural exports.
Some Canadian premiers want tariffs dropped to protect canola producers.
China isn’t pleased about the 100 percent tariffs that Canada imposed on its imports, including electric vehicles, in October last year. Seeking to persuade Ottawa to reconsider, Beijing has offered to lift its own retaliatory tariffs on Canadian agricultural goods.
Even so, Canada’s automotive parts industry head has cautioned against easing the restrictions, warning that doing so could open the door for low-cost Chinese EVs to flood the market.
Trade Tensions at Full Charge
When the tariffs were first introduced, Canada described them as measures to safeguard national security and defend domestic manufacturing. Officials also argued that China’s electric vehicle industry benefited from unfair state subsidies.
Beijing’s reaction was swift. The People’s Republic struck back with tariffs on Canadian agriculture, imposing a 100 percent rate on canola oil and meat, along with a 75.8 percent duty on canola seed.
According to Chinese ambassador Wang Di, Beijing is ready to roll back the tariff measures if Canada does the same.
“If Canada removes the unilateral unjustified tariffs on Chinese products, China will also reciprocate accordingly,” he said, “and if the EV tariffs are removed, then China will also remove the tariffs on the relevant products of Canada.”
The Canadian government says it is conducting an informal review of its tariffs on Chinese EVs, CTV News reports. It adds that since the trade dispute started, exports from Saskatchewan dropped 76 percent in August from the year prior.
Both the premiers of Manitoba and Saskatchewan have called for tariffs to be lowered to protect the local canola industries.
A Divided Response
Still, Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, has pushed back against any move to abandon the tariffs on Chinese EVs.
“I am reminding (the premiers) publicly, that if Canada is in a trade war with a country, then the response has to be a Canadian response,” he told CTV.
“These Chinese EVs are not made for profit, they are subsidized. We’re in the middle of a game, and the only thing that changed… was the Chinese ambassador said, ‘If you do this, we’ll give you that.’ And last time I checked, the Chinese ambassador was sent from Beijing, not from Ottawa.”
Ferrari’s stock plunged over 15 percent after its Capital Markets Day event.
The fall followed weak financial guidance rather than the new EV’s unveiling.
Analysts said the cautious outlook disappointed investors across both markets.
Moments after Ferrari revealed the first details of its long-awaited EV, currently known as the Elettrica, the company’s shares took a sharp dive on the Italian stock market, marking its worst trading day on record.
However, the sell-off wasn’t triggered by the car’s reveal or by news of fewer electrified models in Ferrari’s future lineup, but by weaker-than-expected financial results and a cautious outlook that rattled investors.
Markets React Sharply
The Italian brand’s shares plunged 16.1 percent after its annual Capital Markets Day and ended the day down 15.4 percent on the Milan stock exchange. They also fell by a considerable 15 percent on the New York Stock Exchange, higher than its previous largest single-day decline of 12.4 percent from February 2016.
The company said it expects a net revenue of at least €7.1 billion ($8.2 billion) this year, slightly higher than a previous forecast of more than €7 billion.
It also confirmed that its net revenue is expected to increase to roughly €9 billion ($10.4 billion) in 2030 and predicts an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of at least €3.6 billion ($4.1 billion) by 2030.
As reported by CNBC, analysts from Citi commented that Ferrari’s updated guidance “falls below our ‘lower growth case’ estimates from our CMD preview and reflects conservatism from management, we think.”
Ferrari Elettrica
Lower EV Ambitions
Perhaps the most noteworthy announcement made by Ferrari is related to its electrification plans. In 2022, Ferrari announced that 40 percent of the vehicles it sold would have battery-electric powertrains by 2030. However, like many other car manufacturers, it has been forced to wind back these ambitions due to a slowdown in EV uptake in key global markets.
Now, Ferrari believes that pure-ICE models will account for approximately 40 percent of its sales, hybrid-powered ones for another 40 percent, and EVs for the remaining 20 percent in 2030. This means that Ferrari now expects to sell half as many EVs in 2030 as it had initially anticipated.
The company attributed the change to its “client centricity approach, the current environment and its expected evolution.”
The reception to the Elettrica may force Ferrari to adjust EV sales targets in the near future. The upcoming model’s underpinnings were shown during the event, alongside confirmation that it will deliver over 986 hp and have more than 329 miles (530 km) of driving range. Ferrari says it’ll hit 62 mph (100 km/h) in 2.5 seconds and reach a 193 mph (310 km/h) top speed.
Found beneath the skin of the new model will be a sizeable 122 kWh battery pack with an energy density of 195 Wh/kg at pack level and 305Wh/kg at cell level. It will also feature an 800-volt electrical architecture that supports 350 kW DC fast charging.
Jerome Dillard, executive director of Ex-Incarcerated People Organizing (EXPO) (left) holds book discussion with author and activist Bianca Tylek (right). (Photo by Isiah Holmes/Wisconsin Examiner)
“We’re talking about a major, major industry in our society today,” activist and writer Bianca Tylek told a group of about 20 people who packed a room at Madison’s Lake City Books Monday night. At the Q&A and book signing event, hosted by Ex-Incarcerated People Organizing (EXPO), Tylek — described as a leading expert in the prison industry — discussed her new book The Prison Industry: How It Works and Who Profits, offering her insights into what she called a $80-90 billion industry in America.
“This is just a massive industry of folks who are using the correctional system to essentially extract either wealth or resources either from public coffers, or from low-income … communities that are directly impacted by incarceration,” said Tylek, who also founded and leads the non-profit organization Worth Rises, which works to confront and reform the prison industry. Tylek’s book delves into multiple aspects of the prison industry from food distribution to telecommunications and examines privatization, who profits and the lives of the people who are directly affected.
The Wisconsin Examiner’s Criminal Justice Reporting Project shines a light on incarceration, law enforcement and criminal justice issues with support from the Public Welfare Foundation.
The discussion was moderated by Jerome Dillard, EXPO’s executive director, who sat beside Tylek asking questions. Dillard called Tylek “my daughter in the movement,” and spoke of his admiration for her work and her spirit in fighting for change within the prison system.
Dillard described attending an event in Appleton last week with Tylek where he was invited to receive an award, “not knowing what we were going into,” and realizing it was a Wisconsin Correctional Association conference.
“I just couldn’t believe all the industries that were there with tables, and tabling the event with new devices and all this,” said Dillard. “I left there really broken and heavy. These conferences opened my eyes to how big this industry is … that individuals are capitalizing on human misery.” Conference tables displayed new kinds of spit masks and shock gloves to prospective correctional customers, some of whom made joking comments about using the devices on the job. “It just blew me away, you know, that she’s bragging about punishing and torturing people in their care,” said Dillard, recalling a woman who made such remarks.
Tylek said that there are over 1,400 manufacturers of correctional and policing equipment nationwide. “Every single state has a correctional conference,” said Tylek. “Every single state has a sheriff’s association,” as well as conferences and associations dedicated to jails, parole and other aspects of the correctional system. Tylek recalled attending the American Correctional Association conference, one of the largest in the nation, where she saw an exhibit hall “with hundreds of corporations” with their own exhibit tables.
“And not just tables,” Tylek told the crowd. “Probably the wildest thing I saw was one company drive a full bus into the convention center, where staff from correctional institutions could step onto the bus and play with all the equipment and trinkets that they were selling. And they gave out free raffle tickets and all these things, and probably the grossest thing that I experienced was all the tickets to private events. And I made my way up to a private event for Securus.” Tylek said that the company is one of the nation’s two largest prison telecommunication companies, and was one of the largest sponsors of the conference that year. “And they had a happy hour that involved a full open bar,” said Tylek, “a full swing dance performance, everyone just having the most joyous time of all. All while on the walls there were the kiosks, the tablets, the phone devices that you could go and speak to a Securus representative while you have your cocktail. And all of this built on about 2 million people who are sitting in a cage somewhere who will never see this, who don’t get to enjoy these luxuries in any of this. It’s heartbreaking, and it’s repulsive, I think, more than anything.”
Later, Tylek elaborated more on how companies use things like gifts and luxury vacations to grow their relationships with correctional and law enforcement leaders. “At conferences, you would get these private event tickets,” she said. At one such event, she recalled, attendees were given hand-rolled cigars. “That’s just the legal stuff that looks gross,” said Tylek. There are also “questionably legal” practices, such as offering “training cruises” in the Caribbean for prison and sheriff staff in brochures distributed during contract bidding processes.
Author and activist Bianca Tylek signs copies of her book The Prison Industry: How It Works & Who Profits. (Photo by Isiah Holmes/Wisconsin Examiner)
On the dark end of the spectrum is bribery, such as the case of a Mississippi prison commissioner who was involved in a bribery and kickback scheme with private prison companies. Tylek highlighted how in Mississippi, a prison commissioner went on to work for a private prison company as a lobbyist. Similar revolving doors exist between the prison industry, especially private prisons, Homeland Security and immigration agencies, said Tylek.
Tylek described the rise of the prison industry as a relatively new phenomenon in America. Prior to the abolition of slavery, she said, the prison population was predominantly white, and only shifted to being predominantly Black in the decades after abolition — a move to “re-confine and re-enslave” Black people. Prison populations continued to grow into the 1970s and 80s, leading into the War on Drugs. “Really around the 1980s is when you start to see industry recognize a potential opportunity,” said Tylek.
That’s the era during which most of the private prison companies featured in her book began to emerge. Private prison industry representatives helped craft some of the nation’s most punitive laws such as three-strikes laws, truth in sentencing and mandatory minimums, which helped grow the prison population. “Those three pieces of model legislation were drafted by the prison industry, and specifically by private prison executives,” said Tylek.
The consequences have been devastating for individuals and families, and also ripple out into society. “The impact of the prison industry bleeds far beyond prison walls,” Tylek said. Among those ripple effects are the cost borne by families that put money on the books for incarcerated loved ones to have food and hygiene supplies or simply to communicate, incarcerated people who work long hours for 14 cents an hour on average, missed child support payments from incarcerated parents and victims who don’t receive restitution. In addition, many small towns which once saw prisons as economic saviors now see them as burdens.
“In the end, all of us are impacted,” said Tylek. “When we exploit people who are incarcerated, or we have a system that wants to put more people behind bars and for longer because a few stand to benefit, then socially we are all harmed by that.”
Waupun prison gates, with no-visitors sign, in the middle of a residential area in Waupun. The city of Waupun was built around the prison, which is Wisconsin’s oldest correctional facility. (Wisconsin Examiner photo)
Yet a space ripe with so many problems also invites solutions. In several states, Tylek has been involved in movements to make phone calls to incarcerated people free and in more than one of those places, that effort succeeded. “Something that everyone can understand is what’s the importance of a phone call home,” Tylek told her bookstore audience. Families of incarcerated people often face significant financial challenges, including debt, income loss and unemployment.
In 2017, Tylek began to focus on the prison telecommunications industry. “We led the first successful campaign to make communication completely free in a jail system,” said Tylek. That was in New York, and affected the infamous Rikers Island jail. From 2019 to 2023, Tylek’s organization Worth Rises pushed for free jail calls in San Francisco, San Diego, Los Angeles, Massachusetts, free prison calls in Connecticut, California, Colorado, Minnesota. Free prison calls were enshrined in the CARES Act as a result of that work. “We’ve been able to save families $600 million to date,” Tylek said, “and generate over 3 billion additional call minutes between people who are incarcerated and their loved ones.”
Dillard recalled celebrating some of those victories with Tylek, but the fight continues. “We’re in a dozen more states trying to fight for the exact same legislation to make communication free in our prisons and jails,” said Tylek. “The outcomes that we get are life-changing. In Connecticut we saw phone volume increase by over 120% overnight. In New York just recently, first data’s coming back and we are north of 40% increases in calling.” Some of that difference is also due to inconsistent call rates across different states, with incarcerated people being charged 2.8 cents per minute in New York versus people in Connecticut who were paying 32.5 cents per minute.
“No matter where it happens, the change is substantial,” said Tylek. “These are real people with real lives. We have talked to families whose autistic child stopped speaking when her father went to prison. And when phone calls became free and he could call home again she started speaking again, her child development changed, she started engaging more in school, and now she’s flourishing, all off a simple phone call.”
Bianca Tylek signs copies of her book (Photo by Isiah Holmes/Wisconsin Examiner)
“What I love about the examples in Wisconsin is that we had nothing to do with them,” Tylek said, drawing laughter from the audience in Madison. “My biggest goal has been for this movement to take itself.”
BMW and Mercedes have released sales data for July-September.
Mercedes sold 441,500 cars, but deliveries were down 12 percent.
BMW sales rose 9 percent to 514,620, and by 25 percent in the US.
Rivals for decades, BMW and Mercedes largely fish in the same pool. But while one of the big German brands saw its catch rate tumble, the other is soon going to need a bigger boat, judging by sales figures released this week.
Mercedes shifted 441,500 cars in Q3 (plus 83,800 vans), a drop of 12 percent on the same quarter in 2024, while BMW moved 514,620 BMW-branded vehicles, representing a rise of 5.7 percent. Factor in the BMW Group’s other brands, including Rolls Royce, BMW M and Mini, and total sales hit 588,300, or 8.8 percent more than in Jul-Sep last year.
What’s really interesting is how differently the two brands performed in certain key markets. In the US for instance, which has been impacted by tariffs this year, it’s probably not a surprise to see that Mercedes sales dropped 17 percent to 70,800 units.
But turning that logic on its head, BMW actually grew its US sales by a whopping 24.9 percent in the same period to 297,247.
And even in China, where both brands – like many Western automakers – are having a tough time, Mercedes fared much worse. Benz sales sank by a shocking 27 percent but BMW escaped with an 11 percent drop. Still terrible, but much less so.
BMW vs Mercedes Sales Q3
Q3 25
Diff.
YTD 25
Diff.
Mercedes cars
441,500
-12%
1.34 million
-9%
Mercedes Group
525,300
-12%
1.6 million
-8%
BMW brand
514,620
5.7%
1.59 million
0.1%
BMW Group
588,300
8.8%
1.8 million
2.4%
SWIPE
The electric (and electrified) numbers deepen the divide. For Mercedes, battery-electric vehicle (BEV) deliveries flatlined. The company delivered 42,600 BEVs in Q3, essentially holding steady year-on-year as it battles cost pressures, tariff headwinds, and intensifying EV competition in China.
BMW’s story is more complicated. The BMW Group’s electrified portfolio (including BEV + PHEV) showed healthy growth overall, as it moved 151,282 electrified units in Q3, up 8 percent. But they were down 2.8 percent in the US. Full EV sales in that same period fell by 0.6 percent to 102,864 units globally, though they’re up 10 percent YTD.
Both automakers have some crucial new products coming through including the GLC with EQ Technology and iX3, so it’ll be fascinating to see how those cars impact next year’s numbers.
Jim Farley says the new Ford EV will have more cabin space than a RAV4.
Innovative new production methods will make it faster and cheaper to build.
Universal EV Platform will underpin many upcoming models in the next years.
Ford is preparing to expand its EV lineup in a way that could reshape how the company builds and markets its vehicles. And according to CEO Jim Farley, the upcoming mid-size electric pickup won’t just be another truck, but something designed to stretch beyond the typical template.
While the company remains cautious about how the loss of federal tax credits may affect demand, development is moving ahead on the new Universal EV Platform. This fresh architecture will debut with a $30,000 mid-size pickup truck, first mentioned in August, and now detailed further by Ford’s top executive.
Not Just a Truck
During a recent interview with The Verge’s podcast, Farley explained that the pickup will be the first model underpinned by the new architecture “but it’s not really a pickup. I would say it’s a new silhouette.”
It’s hard to know exactly what Ford’s head honcho means, as the teaser image Ford released earlier this year suggested a conventional truck shape, one instantly recognizable across all segments with the exception of the outlier Tesla Cybertruck.
Farley added that the new EV “has more room than a RAV4, the best-selling passenger car in the US. That doesn’t include its trunk and pickup truck bed”. The teaser indicated it’ll hit the market with a dual-cab design, helping to ensure that the second row has enough room for adult passengers.
It’s not just space that Ford is promising. Farley noted that the vehicle will be rear-wheel drive, “very fast,” and “super fun to drive,” which isn’t the case for most pickup trucks. Not only that, but it will offer a “digital experience that no one’s seen – at least that we’ve seen – even in China.”
“The digital experience is quite different for customers,” Farley said. “I think the whole package is something that has not been offered in the US or anywhere else to date. I think this first product is quite revolutionary.”
Building EVs Differently
It’s not just the technology of the model that is promising to be revolutionary; the Universal EV Platform will be brought to life on an all-new form of assembly line and be made of three large cast pieces.
The revolution isn’t limited to the product itself. Ford plans to manufacture the Universal EV Platform in a new way, using just three large castings to form the vehicle’s structure. The process will involve 20 percent fewer parts, cut plant workstation needs by 40 percent, and speed up assembly at the Louisville facility by a similar margin.
Farley underlined the ambition of this approach. “No one has ever built a car in three pieces,” he said. “No one’s offered their own electric architecture at this price. We’ve never done it. We’ve never had two large unit castings and high quality. No one’s done it. Tesla’s talked about it, but it hasn’t done it. In fact, our manufacturing process has radically moved on beyond what Tesla’s ever shown in its unboxing. So, there’s a lot of risk here. This is not a guarantee that Ford’s going to get this done.”
Passport sales have surged nearly 75% in 2025, led by the TrailSport trim.
Honda hybrids set new records, with CR-V, Accord, and Civic leading the charge.
Acura’s discontinued ZDX continues to struggle, reinforcing its short-lived fate.
Car buyers might be feeling the pinch of limited supply, but Honda’s sales figures show that demand for its lineup remains strong. Together with Acura, the group moved 105,097 vehicles in September, despite tighter inventories across popular models. The real standout was the Passport, which is having its best year ever. On the flip side, Acura’s ZDX, which was recently discontinued after just a single year on the market, struggled.
Total Honda sales reached 95,391 for the month, which is virtually unchanged from last September at just 0.3 percent lower. Looking at the bigger picture, year-to-date deliveries are up 4.1 percent. Passport demand has been a major driver, with sales up 75.5 percent for the year and a striking 108.8 percent for September alone. Nearly 80 percent of buyers are choosing the rugged TrailSport trim, suggesting that Honda’s more adventurous positioning has struck a chord.
SUV Strength
The CR-V continued its domination with over 28,000 sales in September, more than half of which were hybrids, while the Pilot and HR-V chipped in another 20,000 sales combined. On the passenger car side, Honda sold almost 30,000 sedans and coupes in September.
Accord and Civic hybrids made up 47 percent and 36 percent respectively. Electrified models in general set a new monthly record (32,387), thanks in part to the rollout of the Prologue EV.
Acura’s Mixed Bag
Acura, meanwhile, moved 9,706 vehicles in the ninth month of the year. That’s actually a drop in sales year over year of 2.2 percent. The Integra held firm at sales of over 1,500 units. The MDX and RDX combined for over 4,800 deliveries, and the ADX is, according to the brand, “capturing a segment-leading nearly 30% of retail sales”.
On the downside, the ZDX continues to be the white elephant in the lineup, experiencing a 61.3 percent drop in September sales year over year. While that might sound excessive, in cold hard units, that’s a drop from 979 units in 2024 to just 395 this year.
Since the start of the year, Acura has delivered only 11,915 examples. To put that into perspective, Honda has already sold more than three times as many Prologues in the same period. With numbers that lopsided, it is not surprising production of the ZDX has already been cut short.
Toyota sales rose 6.2 percent to over 7.4 million vehicles this year so far.
Global Toyota EV sales climbed 20.6 percent to 117,031 units year-to-date.
Hybrids dominate Toyota’s Japanese lineup with 603,676 units sold in 2025.
Sales momentum keeps building for Toyota, with last month’s modest increase adding to what has already been a strong run through the first eight months of the year. At the current pace, Toyota looks set to surpass the 10.8 million vehicles it sold globally in 2024.
But a closer look at the company’s latest report uncovers some striking details, or anomalies if you will, including the fact that only 18 battery-electric vehicles were sold in its home market of Japan during August.
The good news for Toyota is that this year, the company has sold 7,409,273 vehicles across the Toyota, Daihatsu, Hino, and Lexus brands. This represents a 6.2 percent increase over last year. That said, August growth slowed to 900,598 units, down 1.3 percent year on year. More concerning was the drop at home, where Toyota’s group sales in Japan fell 10.2 percent in August despite being up 17.8 percent across the year so far.
Excluding Daihatsu and Hino, Toyota and Lexus deliveries in Japan dropped 12.1 percent last month to 96,269 units. The slowdown has been linked to operational setbacks and delayed deliveries connected with issues in the Kamchatka Peninsula, alongside lingering fallout from a wide-ranging Prius recall last year.
Toyota’s BEV Sales
The report also highlights how Toyota and Lexus are faring with electrified models. Globally, year-to-date EV sales climbed 20.6 percent to 117,031 units. Yet in Japan, the story is very different. Sales of battery-electric vehicles collapsed by 84.9 percent in August, amounting to only 18 units. Over the first eight months, the total was just 469 BEVs in Toyota’s home market, down 71.1 percent.
This decline comes despite overall electrified vehicles in Japan rising 8.8 percent this year to 617,947 units. The vast majority of these are Toyota’s traditional hybrid models, accounting for 603,676 sales. It has then sold 13,551 plug-in hybrids in Japan this year and 251 hydrogen fuel-cell models.
Growth Abroad
Outside Japan, Toyota’s EV business is heading in the opposite direction. Global demand has strengthened, with 117,031 EVs sold this year, a solid 20.6 percent increase. August proved especially strong, with 17,056 units delivered, marking a 34.5 percent rise compared with the same month last year.
China will enforce EV export controls beginning January 1, 2026.
The move targets price wars and promotes healthy EV trade growth.
Mandatory customs inspections will apply under the new system.
Overseas buyers of Chinese electric cars may soon see tighter oversight of how these vehicles reach foreign markets. On Friday, Beijing confirmed it will introduce export controls on pure electric passenger cars, a move said to be driven by concerns at home over intense price competition and by global complaints abroad about a surge of cheap cars.
The government also wants stricter rules to guarantee proper after-sales support, meaning exporters will face greater scrutiny in the coming months and years.
The new licensing rules are scheduled to begin on January 1, 2026. From that date, the Commerce Ministry has confirmed that automakers and other authorized companies will need to apply for export licenses, much like the system already in place for hybrid and combustion-powered vehicles built in China and sold abroad. Officials are said to have grown increasingly frustrated with unauthorized exports sending cars overseas without the necessary after-sales support.
As reported by CBT News, poor service and missing support networks can leave customers stranded and undermine a brand’s reputation. The situation has also intensified price battles in several foreign markets, creating instability for local manufacturers.
According to the director of policy research at the China Automotive Technology Research Center Wu Songquan, it’s important for Chinese car brands to follow the lead of legacy carmakers and to standardize export processes and boost quality. It’s hoped this will build more long-term trust in vehicles exported from China elsewhere.
Exporting Powerhouse
The timing of these new measures is no accident. The move comes shortly after China officially established itself as the world’s largest car exporter, even surpassing Japan. And its growth shows no signs of stopping, as noted by the South China Morning Post.
The secretary general of the China Passenger Car Association, Cui Dongshu, believes that within five years the country could be exporting as many as 10 million vehicles to overseas markets annually. In China itself, local brands could be selling 30 million vehicles per year thanks to the nation’s huge population.
Massive Room To Grow
“There is still vast potential for market expansion in China’s less developed regions, such as mid-western districts and rural areas, where car ownership levels could gradually surpass those in metropolises like Beijing and Shanghai,” Cui noted.
For perspective, China currently has about one car per 1,000 people, a figure that underscores just how much space remains for growth. The contrast is stark when compared with Europe, where in 2020 there were 641 vehicles per 1,000 people, or the United States, where the number has been as high as 860.
Last month, Chinese brands took 5.5 percent of the Euro market.
Their 43,500 unit sales total was up 121 percent from August ’24.
During August, Audi sold 41,300 units and Renault 37,800 in Europe.
Overall car sales in Europe grew by 5 percent to 790,000 last month, buoyed by continuing enthusiasm for electric cars across the continent. Plug-in hybrids saw particularly strong momentum, with registrations climbing to 83,900 in August, a 59 percent increase on the previous year that lifted their market share to 10.6 percent.
According to Jato Dynamics figures, battery-electric cars (BEVs) also posted gains, up 27 percent compared with August 2024, giving them a record 20.2 percent market share, up 3.6 percentage points year on year. That brings Europe’s total for fully electric registrations in 2025 to 1.54 million so far. Analysts caution, however, that the headline growth figures for BEVs may not tell the full story
Numbers With Caveats
“The data shows that there was strong demand for BEVs in August, however a 27 percent increase is less significant than it looks when you consider how widely they are being promoted across Europe,” said Felipe Munoz, Global Analyst at JATO Dynamics. “The new record market share for BEVs achieved last month has been partly distorted by the fact that Italy – typically a less enthusiastic adopter of BEVs – is usually quiet during August,” Munoz added.
Europe Car Sales
Aug ’24
Aug ’25
Diff.
Total
752,847
790,177
+5.0%
BEV
125,494
159,746
+27%
PHEV
52,820
83,872
+59%
SUV
408,561
451,737
+11%
Chinese brands
19,707
43,529
+121%
Chinese-owned Western brands
23,601
19,613
-17%
SWIPE
Jato Dynamics
China’s Growing Momentum
Yet Europe’s traditional manufacturers may find little comfort in these results. The bad news for Europe’s carmakers is that interest in Chinese brands is growing at an even faster rate, and it’s coming at the expense of some very big household names.
Audi shifted 41,300 units in August, and Renault moved 37,800. Both are major players in the market but were outmaneuvered by Chinese brands who registered 43,500 sales, up a massive 121 percent versus August 2024, Jato reports.
Granted, that ‘Chinese brands’ figure is made up of 40 different automakers, but Jato points out that 84 percent of the total was achieved by only five of them, namely MG, BYD, Jaecoo, Omoda and Leapmotor. Whichever way you cut it it’s bad news for Europe’s legacy brands, and is only going to get worse, though at least Stellantis’s deal with Leapmotor means it gets to celebrate the win.
Even on their own, the Chinese brands took some big scalps. MG registered more cars than Tesla and Fiat, BYD beat Suzuki and Jeep, and Jaecoo and Omoda outsold Alfa Romeo and Mitsubishi.
“European consumers are responding positively to the growing, competitive line-up from China’s car brands,” Jato analyst Felipe Munoz said. “It appears that these brands have successfully tackled the perception and awareness issues they have experienced.”
Hybrids, not just EVs
It’s not only in the EV segment that Chinese brands are making gains. They’re also doing great in the PHEV space, where they’re not hobbled by the same tariffs applied to their fully electric vehicles.
More than 11,000 Chinese-brand plug-ins were sold this August compared with only 779 in the same month last year, BYD is now the eighth most popular PHEV brand overall and the BYD Seal U, Jaecoo J7 and MG HS bagged three spots in the top 10 best-selling models list.
However, if you simply looked at the table of 10 most-registered models, you’d never guess how quickly China was moving forward. The list contains no names from the People’s Republic and continues to be dominated by Volkswagen and Renault.
The VW T-Roc (which has since been facelifted) was the region’s biggest seller, with the Dacia Sandero scooping second spot and Toyota’s Yaris Cross bagging third. Tesla’s updated Model Y was the best-selling EV, but its sales were down 37 percent and it was nowhere to be seen in the overall top 10 cars table.
Acura confirms to Carscoops that ZDX production is over.
The move follows the end of Acura and GM’s EV program.
It’s sister model from Honda is not affected by this decision.
It’s official: Acura’s first all-electric SUV is dead. The brand chose to skip the 2025 model year after its joint venture with GM was cancelled in late 2023. Now, the Japanese automaker has confirmed to Carscoops that the ZDX will not return, with production ending immediately. The ZDX lasted just over a year, with assembly having kicked off in March 2024.
The decision also happens to line up with the federal $7,500 EV tax credit winding down in just a matter of days, and comes right after Nissan announced it would also scrap the Ariya EV.
“To better align our product portfolio with the needs of our customers and market conditions, as well as our long-term strategic goals, we can confirm the Acura ZDX has ended production,” an Acura spokesperson told Carscoops.
Setting the Stage for What’s Next
Although the model has reached the end of the road, Acura stressed that the ZDX still laid important groundwork for what comes next. “ZDX has played a valuable role for the Acura brand, and will provide a foundation we will build on next year with the arrival of the all-electric Acura RSX, which will be produced at the EV Hub in Ohio in the second half of 2026, as well as with hybrid-electric Acura models now in development,” the spokesman added.
As for current owners, Acura promised that “customers will continue to receive full product support through our dealer network, including service, parts, and warranty coverage.”
The news first emerged earlier today through Car Dealership Guy News, which cited an internal memo distributed to Acura dealers. Until now, though, it had not been formally confirmed.
The ZDX was based on GM’s Ultium platform and shared bones with the Cadillac Lyriq and Chevrolet Blazer EV, as well as the Honda Prologue. Ultimately, it never really took off. Incentives topped $30,000 off MSRP at times and then, Acura skipped 2025 altogether. Suffice it to say, this news isn’t all that shocking.
When the partnership between GM and Honda ended in late 2023, the two brands said it was a mutual decision. “After studying this for a year, we decided that this would be difficult as a business, so at the moment we are ending development of an affordable EV,” said Toshihiro Mibe, CEO of Honda. Despite the death of the ZDX, the brand is clearly pushing forward on some of its EV plans. The all-electric RSX will arrive in the latter half of 2026.
What About The Prologue?
Carscoops can also confirm that the Honda Prologue will continue on. Essentially, it serves as Honda’s primary EV offering until its next-generation electric architecture arrives. The Prologue has enjoyed steadier demand and certainly plays a role in the brand’s long-term EV-only strategy.
Berkshire Hathaway fully divested its 17-year investment stake in BYD.
Warren Buffett first bought 225 million BYD shares in 2008 at HK$8 each.
BYD sold 4.27 million vehicles in 2024, including 1.76 million EVs.
In 2008, an audacious bet was placed on a little-known Chinese automaker, one that most outside the country had never heard of. Warren Buffett’s Berkshire Hathaway invested HK$1.8 billion ($231.7 million) in BYD, a company still in its early days and largely unproven on the global stage. Seventeen years later, the gamble has paid off handsomely, and Buffett has decided the time is right to walk away.
A quarterly filing from Berkshire Hathaway Energy confirms that the firm has now sold its entire stake in BYD. The exit didn’t happen overnight. Beginning in 2022, the company quietly trimmed its holdings across 15 separate rounds, each documented in financial reports. Before the sell-off began in late summer of that year, Berkshire’s stake was valued at roughly $7.7 billion.
From Penny Stock To Powerhouse
When Buffet first purchased 225 million shares in BYD at the insistence of investment partner Charlie Munger, the company’s shares were trading at just HK$8. According to CNBC, BYD’s shares have surged by 3,890% since Buffet’s investment. It’s unclear exactly how much money Berkshire Hathaway has made through its BYD investments, but it’s certainly billions of dollars.
After the sale, BYD’s general manager for branding and public relations, Li Yunfei, thanked Buffet and Berkshire Hathaway for the investment. At its peak, the investment company owned roughly 10 percent of the Chinese automaker.
News of the divestment, immediately weighed on the market, with BYD shares slipping 3.4 percent and landing among the weakest performers on a Hong Kong index of Chinese companies.
“In stock investments, buying and selling is a normal part of the process,” Li said. “We appreciate the recognition from Munger and Buffett of BYD, as well as their investment, support and partnership over the past 17 years. We appreciate all long-term investments.”
Last year, BYD sold 4.27 million vehicles around the world, consisting of 1.76 million battery-electric vehicles and 2.49 million plug-in hybrids. This year, it had hoped to deliver as many as 5.5 million vehicles, but due to increased competition, as well as a slowdown in its home market, it has cut this forecast down to 4.6 million.
China launches three-month crackdown on auto industry online disinformation.
Carmakers like MG and BYD offer huge rewards for tips on malicious accounts.
Officials say influencers with millions of followers spread damaging anti-EV claims.
Chinese automakers have never been shy about defending their reputations, and over the years they’ve taken aim at social media users they believe are spreading damaging claims about their vehicles.
Sometimes those accounts are run by ordinary users, while in other cases competitors themselves are suspected of stoking the attacks. Now the Chinese government is stepping in, with a three-month crackdown on online disinformation that it says targets the auto industry.
Collisions Online And Off
Disinformation about many Chinese car manufacturers has become a common sight across local social media platforms, including Douyin, which is the Chinese version of TikTok. Sometimes, its even rival car companies themselves that use social media to target their competitors.
Nikkei Asia reports that, in July, Li Auto shared a video to social media that showed a collision between one of its SUVs and a truck from Dongfeng Liuzhou Motor. While the SUV escaped with very little damage, the cab of the truck was destroyed. Unsurprisingly, Dongfeng took issue with how its truck was depicted, prompting an apology from Li Auto.
Earlier this month, China’s Ministry of Industry and Information Technology said its new enforcement campaign will target malicious disinformation about the auto industry online. It added that steps will be taken against “illegal business practices, exaggerated or false advertising and slander.”
Carmakers Fight Back
It’s not just the government that is fighting back against disinformation, but also the automakers themselves. For example, MG is offering rewards of up to 5 million yuan ($703,000) for information about malicious social media accounts. Similarly, BYD is offering rewards of between 50,000 yuan ($7,000) and 5 million yuan ($703,000) for similar information.
The reach of some social media accounts cannot be overstated. In 2023, a Douyin influencer posted videos ridiculing the drivers of one particular EV startup in China. While this account was suspended by June 2024, it reportedly had as many as 5.4 million followers, and the damage was arguably already done.
Class action claims Tesla favored visa holders to cut labor costs over Americans.
Lawsuit says Tesla hired 1,355 H-1B workers while laying off thousands of citizens.
Plaintiffs allege Tesla refused interviews after learning they did not need sponsorship.
The way Tesla hires and fires its workers is under fresh legal scrutiny. A proposed class action lawsuit filed against Tesla in San Francisco alleges that the automaker has violated federal civil rights law by favoring visa holders over American workers to reduce labor costs. The suit also claims Tesla has fired US citizens at disproportionately higher rates compared to foreigners working at the company.
Alleged Hiring Bias
According to the complaint, Tesla hired roughly 1,355 skilled workers on H-1B visas in 2024 while laying off more than 6,000 U.S. workers, “the vast majority” of whom are believed to have been citizens. Although it remains unclear how the plaintiffs plan to prove the alleged discriminatory practices, they are seeking damages on behalf of American citizens who were rejected after applying for jobs at Tesla, as well as those who were terminated.
Two plaintiffs are named in the lawsuit. The first, Scott Taub, says he had been dissuaded from applying for one job after being told it was only available for H-1B visa holders, and he did not receive an interview for a second job. The second plaintiff, human resources specialist Sofia Brander, said Tesla would not interview her for two jobs, even though she had twice been a contract employee.
Both Taub and Brander claim Tesla refused to hire them after learning that neither of them would need sponsorship for employment, suggesting that they were US citizens, reports Reuters.
Claims of ‘Wage Theft’
“While visa workers make up just a fraction of the United States labour market, Tesla prefers to hire these candidates over US citizens, as it can pay visa-dependent employees less than American employees performing the same work, a practice in the industry known as ‘wage theft’,” the lawsuit claims.
Tesla CEO Elon Musk himself once held an H-1B visa, and the complaint cites a December 27, 2024 post he made on X voicing support for the program.
“The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B,” Musk wrote.
Geely re-hired former Volvo CEO Hakan Samuelsson to lead the automaker for two years.
Samuelsson says electrification is inevitable and will make cars cheaper within a decade.
He believes some Western automakers will fail to adapt and could disappear entirely.
Volvo may have walked back its commitment to transition to an all-electric brand by 2030, but despite that, it still acknowledges that EVs are the way forward, even if it takes the industry a little longer than originally forecast to make the shift.
As electrification begins to grow and brands from China establish themselves as serious global juggernauts, the Swedish automaker’s CEO predicts that some Western carmakers will collapse.
Since April, Volvo has been led by Hakan Samuelsson. The 74-year-old Swede had previously steered the carmaker for almost a decade but stepped down as boss in 2022, only to be brought back on a two-year contract to steer Volvo through choppy waters. Samuelsson believes that “there’s no turning back,” against the inevitable electric transition of the industry and that new dominant players will emerge.
Industry Upheaval Ahead
“The industry will be electric – there’s no turning back,” he told Bloomberg. “It may take a bit longer in some regions, but the direction is clear. In (about) 10 years, cars will all be electric and they will be lower cost. There will be new dominant players, exactly as Ford, GM, Toyota and Volkswagen were in the old world.”
“In the new world, there will be two or three very strong Chinese brands,” Samuelsson added. “That makes the room for the old ones tougher. So this will trigger a (wave of) restructuring. Some companies will adapt to new circumstances and survive. Others will not.”
An Electrified Future
To ensure it can survive, Volvo is investing heavily in battery-electric vehicles and plug-in hybrids, ensuring it can cater to demand for different electrified vehicles around the world. According to Volvo’s boss, plug-in hybrids will serve as an important “bridge until charging is everywhere,” noting that it “may take some more years beyond 2030,” before EVs can dominate, depending on customer demand and charging infrastructure.
Chinese Ties As An Advantage
Volvo is in a unique position among European car manufacturers as its parent company, Geely, is Chinese and among those brands at the forefront of the EV revolution as the owner of brands including Lotus, Zeekr, Polestar, and Lynk & Co. Samuelsson noted that “the stronger the Chinese car industry becomes, the more valuable our connection with Geely is.”
“Chinese brands are already more than half the market in China, and they are entering Europe. That puts pressure on Europeans and Americans, who are competing in a shrinking part of the market,” he added. “China, whether we like it or not, will be a very big player in the car industry in the future, not just in China.”
Musk’s 2025 CEO award sets an $8.5 trillion market cap by 2035.
Goals include $400B in annual EBITDA, 1M Robotaxis, and 1M AI bots.
He must stay at Tesla for up to 10 years before shares can vest.
Love him or hate him, Elon Musk has built a reputation for sometimes making the impossible seem inevitable. From electric cars dominating global markets to rockets that land themselves with pinpoint precision, his record is extraordinary. Yet, even for someone with those successes, the 2025 CEO Performance Award just presented by Tesla’s board represents a challenge of unprecedented scale.
The plan could grant Musk over 423 million shares and a total compensation package of around $1 trillion. Of course, that only happens if Tesla hits some staggering milestones. The award is split into 12 tranches, each unlocking as Tesla hits specific market capitalization targets.
According to the SEC filing detailing the package, it goes as follows: the first tranche at $2 trillion, nine more at $500 billion increments, and the final two at $1 trillion each, culminating in a mind-bending $8.5 trillion valuation by 2035. Right now, Tesla is worth a little over $1 trillion.
A Trillion-Dollar Tightrope
Market cap is only a small piece of the story, though. Musk must also achieve at least $400 billion in sustained annual adjusted EBITDA and hit operational targets that push Tesla into uncharted waters. Among them: putting 1 million fully autonomous Robotaxis into commercial service and delivering 1 million Optimus AI bots.
Market cap is only a small piece of the story. Musk must also deliver at least $400 billion in sustained annual adjusted EBITDA, which is finance-speak for the company’s earnings from its core business before accounting for things like taxes, interest, or non-cash costs such as depreciation.
On top of that, he faces operational goals that push the company into uncharted territory, such as putting 1 million fully autonomous Robotaxis into commercial service and delivering another 1 million Optimus AI robots.
Today, Robotaxi still requires a safety driver in the car, so these targets aren’t theoretical; they demand breakthroughs in autonomy, scaling, and execution. It’s a package that forces a hard look at Musk’s history. He’s undeniably a visionary, but he’s often over-promised and under-delivered. He’s often been late, sometimes very late, about tech promises. That’s to say nothing of his political engagement.
Betting His Legacy On Autonomy
At the same time, if he can actually achieve everything laid out in this compensation package, it’ll be hard to argue that he’s not the defining innovator of our era. That said, the board has set up this award in a way that Musk can’t simply hit the goals and cash out.
He must remain at Tesla for the next 7.5 to 10 years. The goals must be met by 2035. Tesla said it “believes that Mr Musk’s vision and leadership are critical to nailing that execution”.
At this point, all of Musk’s promises of autonomy are all the more intriguing. His salary and perhaps his legacy rely on him being right about Tesla leading the autonomy charge sooner rather than later.
US authorities have apprehended at least 450 people at a Hyundai EV plant in Georgia.
ICE teamed up with Homeland Security, the FBI, DEA and Atlanta ATF to raid the facility.
Multiple South Korean nationals were detained in the operation at the new $7.6 bn plant.
US immigration authorities have detained at least 450 people in a raid at Hyundai’s new EV plant in Georgia. Atlanta’s Bureau of Alcohol, Tobacco, Firearms and Explosives confirmed that it had apprehended hundreds of “unlawful aliens,” but South Korea has expressed concern over reports that 30 of the detained were its country’s nationals.
ATFA Atlanta said it had joined forces with various federal organizations including Immigration and Customs Enforcement (ICE), the FBI and Drug Enforcement Administration (DEA) to perform the operation on September 4. The search warrant executed cited allegations of “unlawful employment practices and other serious federal crimes,” the Department of Homeland Security said.
“Today @ATFAtlanta joined HSI, FBI, DEA, ICE, GSP and other agencies in a major immigration enforcement operation at the Hyundai mega site battery plant in Bryan County, GA, leading to the apprehension of [around] 450 unlawful aliens, emphasizing our commitment to community safety,” ATFA Atlanta wrote on X.
A High-Profile Target
The raid took place at the $7.6 billion, 3,000-acre EV site opened by Hyundai close to Savannah last year. Agents were focused on the construction zone for the new battery plant that’s scheduled to open in 2026, and Hyundai claims the operation didn’t impact the neighboring EV plant, which currently produces the Ioniq 5 and 9.
Though US authorities haven’t released names or details of the 450 people it detained at the site, Korean media reports that 30 are Korean nationals, something that has alarmed the country’s lawmakers.
Diplomatic Tension
“The economic activities of Korean investment companies and the rights and interests of Korean citizens must not be unfairly infringed upon during US law enforcement operations,” a spokesperson for the country’s foreign ministry said in a statement. South Korea sent diplomats to the site, BBC News reports.
President Trump pledged to deport undocumented migrants in the run-up to his 2024 election victory, but he has also said he welcomed foreign companies to set up manufacturing businesses inside the US, as Hyundai has done.
Atlanta ATF/Hyundai
Today, @ATFAtlanta joined HSI, FBI, DEA, ICE, GSP and other agencies in a major immigration enforcement operation at the Hyundai mega site battery plant in Bryan County, GA, leading to the apprehension of ~450 unlawful aliens, emphasizing our commitment to community safety. #ATFpic.twitter.com/su6raLrLu6
Rivian cut 1.5 percent of its workforce, mainly in sales and service departments.
It faces a projected $100M revenue hit from changes in credit and policy rules.
Legacy companies no longer need to buy compliance credits from EV makers.
For as good as the Rivian R1T and R1S are, they do not sell at the volumes needed to ensure the brand can be profitable. This is why it is venturing downmarket, gearing up to release a more affordable model range known as the R2. And in preparation for its launch, Rivian is looking to slash costs, which means making layoffs.
Rivian confirmed that it recently cut about 225 jobs, roughly 1.5 percent of its 15,000 employees. The reductions targeted its commercial division, which oversees sales and service operations, and affected staff in both the United States and Canada.
Speaking with The Wall Street Journal, a company spokesperson confirmed that employees who were let go are being encouraged to apply for other open positions.
The Trump Effect
While the arrival of Donald Trump to the White House for his second term has been good news for some car manufacturers, including Stellantis with its gas-guzzling Dodge and Ram brands, things are proving to be more difficult for EV makers like Rivian.
As the US administration has eliminated fines for violations of the Corporate Average Fuel Economy rules, Rivian will no longer need to sell compliance credits to other automakers that would have fallen foul of these rules.
According to Rivian, this alone will cost it an estimated $100 million in revenue. That’s money that could have come in very handy in launching the R2, as well as other future models like the R3, R4, and R5.
Industry Pullback
Rivian is not the only EV maker recalibrating under the new landscape. Several other car companies have also been preparing to reduce production of their EVs, given that the federal EV tax credit will end on September 30. In Detroit, GM has temporarily laid off roughly 360 employees for a month to reduce GMC Hummer EV and Cadillac Escalade IQ production.
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