Tesla’s Full Self-Driving (Supervised) system, along with its ambitious claims, has repeatedly drawn the company into controversy, and it now faces yet another round. The company is once again facing legal trouble, this time after a U.S. District Judge in California ruled that Tesla must answer a certified class action alleging it misled drivers about the self-driving abilities of its vehicles. Tesla had argued the case should be dismissed, but the court disagreed.

Read: Musk’s Robotaxi Pitch Just Backfired And Shareholders Are Suing

The automaker has consistently promoted the idea that all vehicles it built since 2016 came equipped with hardware capable of full self-driving, albeit under supervision. These assurances were made across Tesla’s website, blog posts, social media channels, and directly by chief executive Elon Musk.

In practice, though, the cars have not lived up to those promises. Tesla also asserted that vehicles with its Full Self-Driving package would eventually deliver Level 4 and Level 5 autonomy, but neither has materialized.

Judge’s Assessment

U.S. District Judge Rita Lin noted that claims about Tesla vehicles lacking the necessary hardware for autonomous driving, combined with the company’s failure to “demonstrate a long-distance autonomous drive with any of its vehicles,” provide grounds for lawsuits brought by two groups of drivers.

Tesla does not engage in typical mass advertising, and the Judge noted that ordinarily, the channels it used to promote its self-driving hardware and software may not be “enough to establish a class-wide exposure for a traditional car manufacturer.”

However, she said it’s reasonable to infer that class members went to Tesla’s website for information on its Full Self-Driving (Supervised) technology. She added that thousands of people likely saw a claim on Tesla’s website from October 2016 to August 2024 that said its vehicles contained the hardware necessary for fully autonomous driving.

Tesla’s Defense

Tesla countered that it is unreasonable to assume all class members saw those statements. The automaker also argued there is no unified proof showing the claims were significant enough to influence purchasing decisions, according to Reuters.

The class actions in California include drivers who purchased the Full Self-Driving Package from May 19, 2017, to July 31, 2024, and who opted out of Tesla’s arbitration agreement, as well as drivers who purchased the package from October 20, 2016, to May 19, 2017.

In the US, Tesla’s arbitration clause requires all disputes to be resolved through arbitration rather than in court, unless a purchaser or lessee opts out of the clause within 30 days of buying or leasing a Tesla vehicle.

Since the late 1990s, Honda has worked side by side with Dongfeng in China, producing hundreds of thousands of internal combustion engines through a long-standing joint venture.

That partnership may soon look very different, as Dongfeng has decided to sell its 50 percent stake, a move that reflects the sharp decline of traditional engine sales in China and a growing push toward electric vehicles.

Read: Honda S7 Is A $36,000 Electric SUV That’s Not For US

Dongfeng officially listed its stake on the Guangdong United Assets and Equity Exchange earlier this week. While no reserve price has been set, the listing carries a deadline of September 12.

Details in the filing show the joint venture held assets worth 5.4 billion yuan ($752 million) last year, along with debts totaling 3.3 billion yuan ($459 million). The factory tied to the venture employs 827 workers.

Pressure on Legacy Partnerships

Japanese carmakers like Honda have been feeling the squeeze from homegrown Chinese brands, many of which have surged ahead in producing innovative and competitive EVs. Dongfeng has faced a similar struggle, lagging behind rapidly expanding rivals such as BYD.

The company’s annual sales tell the story clearly, falling from 3.8 million vehicles in 2016 to just 1.5 million last year across both its own brand and joint ventures with Honda and Nissan.

It’s unclear what the next step for Dongfeng Honda will be. Honda may opt to buy out Dongfeng and bring its Chinese engine operation completely in-house, or it may hope for another local brand to step in for a new joint venture. For now, Honda’s automobile production joint venture partnership with Dongfeng remains intact.

Earlier this year, Honda introduced a new EV designed specifically for the Chinese market in collaboration with Dongfeng. At the same time, it also launched the GAC Honda GT through its other joint venture with GAC Group, showing that while the old engine-focused model may be fading, the EV era is already shaping the company’s next chapter in China.

In the USA, electric vehicle sales are suffering some major hurdles. Tariffs, dying incentives, and preconceptions contribute to a reduction in sales momentum. Despite all that, overall EV sales have increased compared to 2024. In fact, the latest data suggests that EVs are getting more popular not just in America but in most other major markets around the world.

RHO Motion specializes in EV supply chain research and insights and sales data are a key factor in its business. After studying the first seven months, it says the entire globe is buying electric vehicles at a higher rate than last year. That rate isn’t a measly basis point or two either – sales are up globally by 27 percent year over year.

EV Sales Jan-Jul 2025 vs 2024

• Global: 10.7 million, +27%
• China: 6.5 million, +29%
• Europe: 2.3 million, +30%
• North America: 1.0 million, +2%
• Rest of World: 0.9 million, +42%

In total, 10.7 million EVs have been sold, the vast majority of which, specifically 6.5 million, in China. While that market is up 29 percent on its own, European EV sales are up 30 percent (2.3 M) over the same seven months in 2024. The “Rest of World” saw sales increase 42 percent up to 0.9 million. Notably, North America saw the least amount of growth (2 percent) with just 1 million sales.

More: Gas Cars Are Saving Kia From A Full-Blown Electric Sales Disaster

Of the slower uptake west of the Atlantic, RHO Motion says that “North America’s growth has been muted so far in 2025, with the US facing policy headwinds and Canada seeing a slowdown. We expect a short-term lift in US demand ahead of the IRA consumer tax credit deadline in September, followed by a likely dip. Despite regional variations, the overall trajectory for EV adoption in 2025 remains strongly upward.”

Notably, that growth is seeing some signs of slowing. China’s sales rate fell 13 percent from June to July. It’s unclear how much of that is tied to suspect subsidy programs. Overall, it appears that every market outside of the USA is embracing EVs and hybrid technology. Whether or not that affects the U.S. auto industry is something we won’t know for quite a while.

Credit: RHO Motion

The big news from Ford the past week was the announcement of the $30k electric pickup arriving in 2027, an EV that’s just the first of many coming in the next five years. But its engineers say the really big story is how they ripped up the rulebook on building EVs to come up with a production process that will leave rivals, and especially newcomers in the industry, floundering in its wake.

“I don’t think many legacy car manufacturers could pull off a project like this,” said Doug Field, Ford’s Chief EV, Digital and Design Officer. “And I don’t believe new electric vehicle startups will be able to keep up with our Ford engineers and manufacturing teams making this a reality.”

Related: Mustang Mach-E Appears Unable To Stop Before Violent Crash In Viral Clip

Ford’s Universal Electric Vehicle Platform was conceived by a small skunkworks team headed by former Tesla engineer Alan Clarke, who worked in near secrecy in California with a bunch of brains recruited from inside and outside of the automaker’s ranks.

The architecture the team created broke from Ford tradition in key ways. One is the use of unicasting, where large one-piece aluminum castings replace multiple welded panels on a current Ford vehicle. This technology – also being used or developed by other brands, including Tesla and Toyota – allowed the team to eliminate three-quarters of the parts, two-thirds of the welds, and half of the fasteners versus a traditional pickup. Another big leap that saves both time and weight is the removal of almost a mile (1.6 km) of wiring versus an older of Blue Oval’s EV.

Ford

But equally important is how these new-generation EVs will be produced inside Ford plants. Henry Ford is credited with revolutionizing the car industry by introducing a moving production line that ramped up efficiency and drove down cost. Now, though, the company is moving away from the idea of a single production line to what it calls a production tree.

Instead of vehicles moving down one track, they’ll start off on three parallel lines, one building the front, one the rear and the other the structural battery core. When each sub-section is complete the three lines converge and the EV is finished off, having spent far less time in build than a conventional car. Ford says these combined efficiencies – the platform and the production process – will help it compete with Chinese automakers.

“The Model T was affordable not because it was a thrifted version of other cars, but because brilliant minds took fundamentally new approaches to old problems,” said Doug Field. “That’s exactly what we set out to do in creating the Ford Universal Electric Vehicle Platform.”

Ford says the 2027 mid-size electric truck will be as quick as an Ecoboost Mustang and as roomy as a Toyota RAV4. It also promised a five-year cost of ownership that will be “lower than buying a three-year-old Tesla Model Y.” Images shown at the pickup’s announcement revealed the same platform could be used to create a diverse range of other vehicles from a two-door panel van to a three row SUV.

Less than a month from now, Mercedes CEO will reveal the company’s new GLC EV at the Munich IAA and tell the world how this fast, long-range SUV with the retro-futuristic illuminated Benz grille will drive the three-pointed star into the 2030s. But separately, Ola Källenius is calling for an urgent rethink on EU legislation that will force buyers and carmakers to go electric by the middle of that decade.

Related: EU May Quietly Ban Gas Rentals Starting In 2030

“We need to do a reality check,” Källenius told Germany’s Handelsblatt newspaper, referring to the EU rules that will effectively outlaw combustion-powered cars from 2035. “Otherwise, we’ll be driving full speed into the wall.”

Concerns over market readiness

Källenius is concerned that the European car market could collapse if lawmakers force EVs on buyers who aren’t ready for them. He believes customers will rush to buy the last remaining petrol and diesel cars in the years running up to the 2035 cut-off, and claims there are better ways to clean up the continent’s air without threatening entire nations’ economies.

“Of course, we have to decarbonize,” Källenius said, “but it has to be done in a technology-neutral way. We mustn’t lose sight of our economy. I wouldn’t set a specific date for the phase-out of combustion engine technology. An absolute target at a fixed time with draconian penalties won’t help.”

Incentives over bans

Instead, the 56-year-old German suggests more needs to be done to persuade buyers to make the shift of their own accord.

“Look at China. There, there’s no end date on this issue, no ban on any technology,” he told Handelsblatt. “Instead, low prices at charging stations and tax breaks provide strong incentives to buy all-electric cars. At the same time, however, unlike in Europe, various hybrid versions and combustion engines are permitted.”

Industry pushback grows

Källenius is pushing for a 2035 rethink not only as CEO of Mercedes, but in his new role as president of the European Automobile Industry Association (ACEA). And he’s not the only senior industry figure calling for the combustion ban to be overturned. Last year, BMW CEO Oliver Zipse declared the 2035 cutoff “unrealistic,” warning that it could increase European automaker reliance on Chinese batteries. 

Elon Musk’s long to-do list contains plenty of projects deemed more important than the long-awaited Roadster, which still has no firm ETA. But a British startup hopes to capitalize on that delay by launching its own Roadster EV, and it’s already snagged some high-level car industry execs to help make it happen.

Related: Former Tesla Execs Debut New Electric Roadster Named To Taunt Elon Musk

Former McLaren CEO, Mike Flewitt, ex-Lotus Europe CEO Dan Balmer, and Michael van der Sande, whose resume includes stints at Lucid Europe, JLR’s special projects division, and as head of Alpine, have all joined the advisory board of Longbow. The company was co-founded by engineer Daniel Davey, who brings experience from Lucid and Tesla.

Two cars, one platform

Longbow is working on two similar cars built around the company’s own aluminium EV architecture, the first of which is scheduled to start production in the UK in 2027. Called the Speedster, it’s a two-seat, rear-wheel-drive EV with no windshield, a target curb weight of an incredible 1,973 lbs (895 kg), and a promised zero to 60 mph (97 km/h) time of 3.5 seconds.

Launching after the $110,000 Speedster is the related Roadster – and yes, that name is a deliberate dig at Tesla, whose own Roadster was originally mooted to carry a $250,000 price tag.

Costing just $84,000 if things go to plan, the removable-roof fastback is a tenth slower to 60 mph than the Speedster due to a 220 lbs (100 kg) weight penalty. Though even with the extra ballast, it still weighs less than a 15-year-old Lotus Elise, and half as much as most modern EVs.

“You have plans and you have ideas, but what you need to be able to do is sense check each of those with people who’ve done it before,” Davey told Autocar, explaining his rationale for bringing Flewitt, van der Sande, and Balmer on board.

Flewitt, who resisted calls for McLaren to produce an SUV and resigned abruptly in 2021, told the magazine he saw qualities in the Longbow cars that are no longer evident at other carmakers.

Veteran insight

“You look at [the Longbow] product, it’s a compact sports car; it’s built around driver engagement;  it’s a good size; It emphasises lightweight,” Flewitt said.

“These are all the characteristics which, frankly, I feel are starting to be lost in the industry. And to see somebody coming in with leading edge technology, but with those attributes at the forefront, is quite novel, and it really stood out to me.”

Longbow

The sands of the automotive industry are always shifting, but 2025 has been on another level. The Trump administration’s policies, flip-flopping on tariffs, and removal of regulatory hurdles are changing the landscape incredibly fast. One byproduct is the expectation that big SUVs and trucks will get a new lease on life. Automakers couldn’t be more excited about that.

Specifically, the CEOs of the ‘Big Three’ in America are clearly fans of what they see coming. Trump’s EPA has removed penalties for automakers that fail to meet CAFE standards. That’ll save car companies billions every year.

With no penalty for building gas-guzzling trucks and SUVs, they have the ability to lean into those high-margin segments even more than they already do.

More: US Tariffs Just Hit This Dodge So Hard It May Skip 2026 Entirely

The Wall Street Journal reports that Stellantis CEO Antonio Filosa openly said, “This will mean to us a lot of additional profit.” Speaking of the new industry landscape, GM CEO Mary Barra said on an earnings call that “It also gives us the opportunity to sell EV vehicles… Excuse me, ICE vehicles, for longer and appreciate the profitability of those vehicles.”

Ford’s Jim Farley is on board too, saying, “This is a multibillion-dollar opportunity over the next couple of years.”

EV momentum slows as profits take priority

All three of these brands have spent billions on EV development, CAFE fines, and other tech in an effort to expand into more sustainable products. GM promised years ago that it would be an EV-only brand by 2035. Ford was planning to build a three-row EV in Canada. Stellantis famously axed the HEMI and kicked off the latest Charger generation with EV power only.

Clearly, it’s proven very tough for them to successfully break into the EV space and so the incentive now is to lean back into what they already know makes a big profit, ICE vehicles. Stellantis is going to announce new information on the gas-powered Dodge Charger with the Sixpack in just a few days.

Ford is now going to build big trucks in Canada rather than the three-row electric SUV, and GM hasn’t mentioned its all-EV by 2035 plan in quite some time.

Trucks, SUVs, and a new strategy

From a business standpoint, the pivot makes sense. American consumers continue to buy large vehicles in high volumes.

“Americans do like buying giant vehicles,” said Adam Lee, chairman of Maine-based Lee Auto Malls. “They’re going to see how many more giant SUVs they can pump out, because they sell a lot of them and make a lot of money on them.” He’s concerned that without continued investment in EVs that the US will fall behind in terms of sustainability and technology. 

For now, there’s no reason to think that automakers are going to scrap the EV work they’ve done, but their focus is likely changing for at least the next few years. It’s easy to see a path where the roadways are even more full of giant vehicles than they already are. 

Earlier this year, two Tesla board members joined a special committee with a singular mission: figure out how to “retain and incentivize Elon.” After several months of deliberation, the solution has come into focus. It wasn’t a brainstorming session or a bold new vision, it was $29 billion. In cash-equivalent stock. Turns out, when it comes to keeping Elon Musk engaged, nothing speaks louder than a mountain of money.

More: Elon Musk Somehow Managed To Make Everyone Hate Electric Cars

Before we get too far along, don’t forget that in 2018, a Delaware court struck down a $50 billion pay package to CEO Elon Musk. It said that there were issues in the board approval process and that it was unfair to investors. Musk has appealed the ruling, but in the interim, Tesla and its board just approved a new $29 billion pay package.

What’s in the Package?

The award consists of 96 million shares of Tesla, granted to Elon as a ‘good faith’ payment. The committee is also working on a long-term CEO payment plan that it’ll put to a shareholder vote on November 6. Regardless of how things come out, this interim pay package ensures that Musk remains a part of Tesla leadership for at least two years. If he were to leave before that, he would lose it.

As Bloomberg points out in its coverage, Musk has already committed to staying on with Tesla for at least five more years. According to the board, this move is all about satisfying Elon’s personal desire to have increased voting rights.

In a post on X, the company explained: “This interim award is structured to incrementally increase his voting rights upon grant, which he has repeatedly told us—and shareholders have confirmed—is an important part of incentivizing him to stay focused on the critical work we are doing here at Tesla.”

A Letter to Our Shareholders on the 2025 CEO Interim Award

Dear Fellow Tesla Shareholders,

Today we announce an important first step in compensating Elon Musk for his extraordinary work at Tesla. As you know, Elon has not received meaningful compensation for eight years since…

— Tesla (@Tesla) August 4, 2025

No Overlap With the 2018 Package

Importantly, the Tesla board made it clear in no uncertain terms that Musk won’t get this pay package and the 2018 one if the courts reverse their ruling.

“If the Delaware courts fully reinstate the 2018 CEO Performance Award, this interim award will be forfeited or returned or a portion of the 2018 CEO Performance Award will be forfeited,” it wrote in a letter to shareholders. “To put it simply, there cannot be any “double dip.” Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award should the courts rule in our favor.

As of this writing, Musk hasn’t commented on the package, though knowing his usual online habits, it’s entirely possible he’s saving his thoughts for a meme, a Mars reference, or a reply to someone asking about Dogecoin. Subtlety was never really his thing.

For Hawaiians looking to drive electric, be that a pure EV or PHEV, a new obstacle has rolled in. Matson, Inc., one of the state’s primary shipping providers and a major player in Pacific cargo routes, has decided to stop transporting electric and plug-in hybrid vehicles.

The company serves regions including Alaska, Guam, and Micronesia, but this latest policy shift puts the brakes on EV imports to the islands, at least for now.

Read: Thousands Of Chinese Cars Sank With This Ship And The Bill Keeps Climbing

In the wake of the Morning Midas shipping disaster in June, when a cargo ship sank due to a fire while carrying 3,048 vehicles, including 70 EVs and 681 hybrid, Matson has raised concerns about transporting vehicles powered by large lithium-ion battery packs.

The decision to halt EV and PHEV shipments comes despite the company previously forming a collaborative team to address the challenges of moving cars equipped with lithium batteries.

Immediate Suspension of EV Shipments

“Due to increasing concern for the safety of transporting vehicles powered by large lithium-ion batteries, Matson is suspending acceptance of used or new electric vehicles (EVs) and plug-in hybrid vehicles for transport aboard its vessels,” the company stated. “Effective immediately, we have ceased accepting new bookings for these shipments to/from all trades.”

As noted by The Maritime Executive, unlike the Morning Midas and other dedicated car carriers such as the Felicity Ace or Fremantle Highway, Matson’s vessels don’t feature large, open storage decks. Instead, all vehicles are shipped in individual containers. That setup, while practical for general cargo, complicates fire detection and suppression compared to specialized roll-on/roll-off car carriers.

Future Possibilities Still on the Table

Hawaii is currently home to about 37,000 electric vehicles, and demand continues to grow. Importantly, Matson’s ban may not be permanent. The shipping firm recently sent a letter to its customers saying it “continues to support industry efforts to develop comprehensive standards and procedures to address fire risk posed by lithium-ion batteries at sea and plans to resume acceptance of them when appropriate safety solutions that meet our requirements can be implemented.”

For now, though, those looking to ship an EV to the islands may have to explore other options, or wait until the industry finds safer ways to move high-voltage cargo across the Pacific.

Much has changed for Porsche since its 2022 stock market debut, and we’re not just talking about the share price, which has fallen to less than half of its peak value. Sales are down, too, and so is faith in the electric-focused future model plan Porsche had put in motion before the IPO. Now the company’s boss admits it was wrong to turn away from combustion power, and he’s taking steps to rectify the mistake.

Related: Porsche Could Announce A New Macan ICE As Soon As March

Maybe mistake is too harsh a word. Porsche created its EV-heavy product strategy, which included phasing out the combustion 718 twins and Macan in favor of electric versions, when all the market signals pointed to sustained growth in EV sales and the brand was flying high in China. It didn’t read the signals wrong, the signals themselves proved to be wrong.

After Sales Slump, Strategy Shift

“We continue to face significant challenges around the world,” CEO Oliver Blume conceded as Porsche announced half-year figures showing total sales were down 6 percent and profit had slumped by a scary 67 percent. “This is not a storm that will pass. The world is changing dramatically, and above all, differently than expected just a few years ago,” he added.

That’s not to say Porsche’s EVs have gone down like lead balloons. Taycan sales were strong until recently, and the new Macan Electric has been a big hit. More than a third of all Porsches sold in Europe are now fully electric, and half of buyers choosing a Macan, Porsche’s best selling model, go for the EV.

That gives the brand a bigger slice of the electric segment than some of its rivals, but the slower than expected growth in the EV market – particularly in the US, where growth appears to be stalling – means that segment is smaller than predicted.

Macan’s ICE Successor Coming By 2028

Part of Blume’s plan to steady the ship is to put more energy into traditional combustion models. “A more balanced drivetrain portfolio from 2028 onward will enhance market positioning and underpin sustainable long-term growth,” said Blume.

It’s not abandoning EVs by any means, but the Macan Electric is getting a previously unplanned ICE counterpart after all. When asked by an investor during the H1 2025 Earnings Call about the ICE Macan’s successor, Blume revealed that it will be introduced no later than 2028.

“It won’t be later than 2028. We’re developing a compact SUV with both ICE and hybrid versions,” said Blume. “And that’s what we said by the end of the decade, a global rollout in all markets. We are speeding up the process with very short development times and making a very, very typical Porsche for this segment and also differentiated from the BEV Macan. So we think, especially for the SUVs now, we’ll have a very flexible product lineup between Macan and Cayenne across all drivetrain options.”

One thing Blume didn’t clarify is whether the new combustion-powered compact SUV will retain the Macan name or debut under a new nameplate, potentially setting it apart from its electric sibling. That decision could signal how closely Porsche intends to align the two models, or how much distance it wants between them.

Furthermore, the Cayenne (pictured below) will be offered with a choice of electric and combustion engines and the electric K1 super-SUV due at the end of the decade could now also get an ICE option, Automobilwoche reports.

The 718 Boxster and Cayman – believed to be delayed until 2027 due to the collapse of battery supplier Northvolt – would seem even more deserving of an ICE option, but it’s unclear if that will happen.

Global Hurdles Beyond Powertrains

Making more combustion cars won’t help fix the sales disaster in China, where deliveries have fallen by 28 percent this year and are unlikely to fully recover, or deal with President Trump’s new 15 percent tariffs on Porsche cars coming to the US from Europe. Job cuts and price increases are helping to minimise the financial sting from those problems being felt at the Stuttgart HQ.

Apart from slightly higher prices, though, as far as Porsche buyers are concerned this upheaval, and the greater choice of powertrains and cars it will bring, can only be seen as good news.

Motorcycle brands are struggling with a 15 percent fall in global demand, and Harley is faring worse than most. CEO Jochen Zeitz just revealed an 18 percent drop in registrations for 2025, along with news of a bargain-priced Hoglet that might just turn that slide around.

Related: Harley Rider Hits Deer At Speed And Somehow Never Falls Off

It’s no secret that Harley has been working on more affordable models for a while – the cheapest of its current bikes in the US costs around $10,000, making it irrelevant to many younger buyers. The brand will reveal the first of its budget machines later this year, ahead of sales starting in 2026, Zeit confirmed on a recent earnings call, adding that it was targeting a price “below $6,000.”

A Familiar Name, Revived

Called the Sprint – a name used on budget Harleys designed to combat Honda’s offensive in the 1960s – the new bike is due to be presented to dealers in October, and will be joined next year by a companion cruiser-style model presumably built around the same basic components.

No technical details were revealed, but in keeping with its price and aim of attracting new riders, it will have a much smaller capacity than the brand’s current 975-cc and up machines.

“Inspired by our heritage and the spirit of the iconic Harley Davidson Sprint motorcycle, this new bike embodies boldness, irreverence and fun, capturing the rebellious energy that defines the Harley-Davidson experience,” Zeitz said.

“We believe this motorcycle will not only be highly accessible, but also profitable, marking a significant step forward in driving Harley-Davidson’s future profitable growth and opening up a new path in motorcycle segment for the company in future years for its key markets.”

Harley hasn’t revealed where the bike will be manufactured or by whom. It has already found huge success marketing a circa-$3,000, single-cylinder bike, the X440, in India, but this is engineered and built by local company Hero Motorcorp and is not available in Europe or the US.

LiveWire Looks to Go Smaller

Zeit also confirmed that Harley’s struggling LiveWire electric sub-brand will also target younger, cost-conscious buyers by putting into production a pair of mini motos it showed in concept form earlier this year. The bikes, one intended for trails, the other for road use, can reach 30 mph (50 km) in 3 seconds, top out at 53 mph (85 km/h), and have a 100-mile (160 km) range.

The move comes at a critical time for LiveWire, which sold just 88 electric bikes in the first half of 2025, a steep 68 percent decline. The brand posted a $38.4 million loss over the same period, underscoring the urgency of finding a more viable product-market fit.

LiveWire

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VW’s sporty Cupra brand just posted its best-ever half-year sales figures, but one plan that could have helped supercharge the company’s growth has just hit the skids. A project to launch Cupra onto the American market within five years is now off the table, it confirmed this week.

Related: Cupra’s Latest Concept Hints At Its Future

Citing “ongoing challenges within the automotive industry” and “evolving market dynamics,” Cupra has abandoned its US 2030 expansion strategy, and though it didn’t go into any more detail than that, a slowdown in EV take-up in America and import tariffs on cars exported there from Europe are surely behind the decision.

Under the terms of a deal just reached between the US and the EU, European cars will attract a 15 percent levy, up from just 2.5 percent before the tariff chaos started this spring.

Electric Crossovers and a North American Footprint

Cupra announced it would land on US soil with two electric crossovers, one a successor to the current combustion Formentor, and the second a bigger electric SUV. The larger model was to be built at a VW Group plant in North America, though possibly one in Mexico, whose output is now subject to hefty 30 percent tariffs. Another report suggested Cupra was talking to the US Penske dealer group about selling EVs, PHEVs, and combustion models.

But Cupra was eager to make clear this week that it wasn’t abandoning its ideas of expanding to North America altogether, merely putting them on indefinite hold. Four years from now, with another US president in the hot seat, the trade situation could look quite different.

“We’re not stopping, just postponing our U.S. launch and will continue to monitor market developments in the coming years to determine the best timing and approach, aligned with the brand’s long-term vision,” said Sven Schuwirth, Executive Vice-President for Sales, Marketing and Aftersales at Cupra’s parent company, Seat.

Tariffs Are Taking a Toll Elsewhere, Too

Cupra’s sales are already impacted by another set of tariffs because the China-built Tavascan is clobbered with a 21.3 percent duty when entering the EU, on top of the 10 percent applied to all imports. But despite the setback, increased production costs for all of its models, and greater competition, Cupra deliveries grew by 33.4 percent to 167,600 in the first six months of 2025.

Lead image Cupra/ChatGPT

In another galaxy not that long ago, conversations about contracting school transportation focused solely on the yellow school bus. Not anymore. Today’s discussions, while still centering on school buses, have evolved to include the growth of alternative vehicles such as vans, sedans and SUVs.

Many of these are operated by third-party companies with no previous school bus experience. Traditional school bus contractors also now offer this form of transportation, and that has led the industry to do something that is even more historic. As previously reported, the National Congress on School Transportation in May for the first time approved non-school bus recommendations. This month, I talk with the recent alternative transportation writing committee chair, Tyler Bryan.

He is the education associate for the Delaware Department of Education and de facto state director of student transportation. Bryan is also the president-elect for the National Association of State Directors of Pupil Transportation Services, which organizes NCST.

He told me that this topic has been of great interest to him because Delaware, like all states, is grappling with alternative transportation for schoolchildren and how to provide training and oversight. A couple of states have strong laws or regulations, such as California’s inclusion of mandatory pre-employment drug and alcohol testing among the provisions that go into effect this month. But most states do not. Hence, the writing committee was formed at the behest of my good friend and renowned expert in transporting students with disabilities and preschoolers, Linda Bluth, TSD Conference tenured faculty emeritus and long-time magazine contributor.

The main issues discussed at NCST were driver credentialing, vehicle inspection and student behavior management, as the intent of the recommendations is to more align vans and the like with what is required to operate a school bus. These are much needed aspects of alternative transportation and reasons why recommendations needed to be made in the national school transportation specifications and procedures.

In the meantime, one of the vital aspects of alternative transportation that had not been addressed, at least to the liking of certified child passenger safety technicians I have spoken with, is the issue of child safety restraint systems on these alternative transportation vehicles. The NHTSA-sponsored, eight-hour, hands-on Child Passenger Safety on School Buses seminar that is presented again at STN EXPO West in Reno, Nevada, this month and returns to the TSD conference in Frisco, Texas, in November provides everything a student transporter or a child passenger safety technician needs to know about the differences with CSRS in school buses, compared to other vehicles.

The training also demonstrates how to properly and safely secure students in a variety of CSRSs, whether those are traditional rear- or forward-facing car seats for infants and toddlers, the various safety vests and harnesses that students with disabilities might need, or proper securement and support in wheelchairs.

CPSTs I’ve spoken with were at first dismayed that initial industry conversations on alternative transportation lacked focus on CSRS. In the run up to NCST, a NASDPTS paper on alternative transportation did not mention the need for training alternative transportation providers on correct CSRS usage (Indiana is the only state that requires CSRS for preschool children riding in school buses.) Those same CPSTs expressed relief when CSRS training did make it into the NCST proposal in Des Moines, Iowa, where state delegates approved it.

That was a win for the industry. It gives the guidance that alternative transportation companies as well as school districts need when increasingly transporting students with disabilities, out-of-district students, and preschoolers in non-school bus vehicles. Already we have seen proactive measures taken by providers when it comes to managing student behavior. EverDriven announced earlier this year it is requiring video cameras in all vehicles. Ostensibly in response to the CSRS inclusion in the national specifications, HopSkipDrive last month said it was offering new rider assistants and a “car seat program” in addition to wheelchair-accessible vehicles.

The new industry recommendations that give best-practice guidance on alternative transportation could be a defining moment in the industry’s evolution.You can bookmark that, literally. The updated National School Transportation Specifications and Procedures manual is expected to be available later this summer.

Editor’s Note: As reprinted in the July 2025 issue of School Transportation News.

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Related: NHTSA Rulemaking at Heart of NCST Resolutions Focused on Safety
Related: NASDPTS’ Weber Provides EXPO Attendees with Updates from NCST
Related: (STN Podcast E266) Recap STN EXPO West: It All Comes Back To Safety & Training
Related: Update: NHTSA Seeks Fix to Child Safety Restraint Standard Affecting School Buses

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For Canadians navigating an increasingly pricey auto market, more choices could be part of the solution. The federal government has a range of priorities, but one of them is maintaining a strong, competitive car market. Tariffs imposed by Donald Trump haven’t made that easier, but some dealers have an idea.

They want government officials to open up regulations to allow European market cars into the country. Now, a major electric vehicle advocacy group is on board and joining the push.

Read: 80% Of Car Tariffs Could Be Passed Directly To You

A solid car market has to do with more than just keeping prices down; it requires having options for buyers, too. At the moment, Canada’s safety regulations fall closely in line with those south of the border.

Changing them, or at least expanding them to include cars sold in Europe, would sidestep American tariffs and make several popular models across the pond available in Canada. Of course, Transport Canada, the country’s regulatory body, has its hesitations.

“Right now, there is a blockage, saying that for safety reasons, they cannot let these cars in,” says Daniel Breton, head of Electric Mobility Canada. “Right now, Transport Canada is saying, well, we have to change the bumpers and we have to change the headlights and this and that for safety reasons, which, as far as I’m concerned, is total B.S.,” he continued.

His argument is a simple one¨“If the car is good enough to be driving on European roads, where you can drive much faster than here, don’t come and tell me that they’re not safe enough to be driven in Canada.” That’s hard to debate, and some Canadian dealers agree, but some in the government are trying to argue against it anyway.

Safety Standards, Road Realities

“The certification requirements of other jurisdictions may not be sufficient to meet the safety needs of Canadian road users due to Canada’s distinct driving environment,” said spokesman Hicham Ayoun in an email to CTVNews. “Some European crash testing requirements are not as stringent as the Canadian regime due to differences in their driving environment.” To their point, Canadian roads are very similar to those in the USA.

That means lots of big, wide-open stretches of road. But there’s no reason to believe that’s the only place small cars imported from Europe or China will end up driving. Opening up regulations is one way that Breton sees the nation continuing to support its own goals to get more people into affordable electric cars.

Public Support Builds

A poll of 2,585 Canadians showed that 70 percent were in favor of allowing European-approved EVs into Canada. Now, it’ll be up to the government to decide whether the support it’s seeing is enough to move forward. 

Interest in electric luxury vehicles remains strong, but for some automakers, getting new models to market is proving slower than planned. More than 60,000 people have reportedly lined up for Range Rover’s first all-electric SUV. Jaguar, meanwhile, is staking its entire brand on an all-new, all-electric future.

More: Range Rover Just Changed Its Logo But Not In The Way You Think

Now, customers for both brands will have to wait a little longer to actually get their hands on either offering. A new report claims that Jaguar and Land Rover are pushing back production amid other issues.

As we reported earlier today, the Jaguar Land Rover group is cutting up to 500 management jobs in the UK. Tariffs are hitting the company hard. And it’s no secret that sales are struggling as a result of all the changes going on inside and outside of the brands. That said, it appears as though things just got worse for prospective clients.

Launch Delays for Key Electric Models

A new report says that Jaguar Land Rover is pushing back the launch of the Range Rover EV and two Jaguar EVs. Previously, Land Rover had targeted a late-2024 release for its electric SUV, while Jaguar’s models were scheduled to enter production by mid-2026. Those dates are now being pushed back as the company is waiting to allow for “more testing and for demand to pick up,” says the Guardian.

A Flexible Strategy, but No Firm Timelines

A company spokesperson told the news outlet that, “By 2030 JLR will sell electric versions of all its luxury brands. Our plans and vehicle architectures are flexible so we can adapt to different market and client demands. We are committed to the highest standards of design, capability and quality, and we will launch our new models at the right time for our clients, our business and individual markets.”

Waiting for the Right Moment?

What’s odd about that is that both brands need a shot in the arm sooner rather than later. As industry trends continue to develop, it doesn’t appear as though electric vehicles are suddenly going to shoot up in popularity anytime soon.

No doubt, the influence of the U.S. market and the political administration there will also have a hand in that. If Jaguar and Land Rover are waiting for the perfect time, it might not come for quite a while.

Volvo’s U.S. sales have grown 6 percent so far this year, reaching 64,680 units by midyear. Even with that upward trend, the company is taking a cautious turn, announcing plans to cut around 15 percent of its local commercial workforce in an effort to reduce expenses and brace for potential instability.

Read: Volvo Laying Off Hundreds Of US Workers Over Tariff Fallout

On the surface, the job cuts seem to be happening at an inopportune time. Volvo has several new models in its line-up, including the all-electric EX90 and ES90. However, it’s been revealed that most of the workers affected by these cuts were hired during the pandemic, and some cuts were made through attrition.

Jobs Cut at U.S. Headquarters

Citing an unnamed sourced within Volvo, , approximately 60 jobs have also been eliminated, with most of these positions located at the company’s headquarters in New Jersey. According to Volvo, it “is taking measures to become a leaner, more efficient organization with a structurally lower cost base.” The company added this “will better position us to build a profitable … future for the Americas region and for Volvo Cars overall.”

It’s not just in the US where Volvo is reducing its workforce, Auto News reports that the company is looking to slash 15 percent of its global workforce, or roughly 3,000 jobs. The majority of these will be in Sweden and come in part due to President Donald Trump’s tariffs.

Approximately 90 percent of all vehicles Volvo sells in the US are imported, and to offset the costs of these tariffs, it plans to save the equivalent of $1.87 billion.

Other Layoffs

In April, Volvo announced that it would lay off roughly 800 workers across its US operations, impacting factories in Dublin, Virginia, and Hagerstown, Maryland, as well as its Mack Trucks plant in Macungie, Pennsylvania.

At the same time, Volvo is reportedly looking to make better use of its Ridgeville, South Carolina plant. Just 20,000 vehicles were produced there last year, representing only 13 percent of the facility’s total capacity. To boost output, the company is considering adding XC60 production to the site.

The electric vehicle boom in China has reshaped the global automotive landscape, but not every player in the field is built to last. While China’s automotive industry has grown into a formidable force, a new report suggests that only a fraction of the country’s EV brands may survive the coming years.

Read: China’s Auto Industry Is A One-Way Street As Exports Boom And Imports Collapse

With hundreds of startups already gone and consolidation gaining momentum, China’s EV market is headed for a major transformation.

Industry Faces Sharp Consolidation

In 2018, it was estimated that over 500 companies in China were developing and planning to build “new energy” vehicles. Many of these companies failed to get off the ground and quickly folded. As of 2024, it’s understood that there were 129 companies selling NEVs in China.

According to consulting firm AlixPartners, just 15 of these are expected to remain financially viable through 2030. While the consultancy firm didn’t name which companies it expects to thrive, these 15 brands could account for roughly 75 percent of China’s total EV and plug-in hybrid market. Some of them have already reached full-year profitability.

According to the head of AlixPartners’ automotive practice in Asia, Stephen Dyer, some local governments may support non-viable companies to protect jobs and economies. As such, consolidation may proceed more slowly across the industry in the coming five years.

Intense Competition and Rapid Innovation

“China is one of the most competitive new energy vehicle markets in the world,” Dyer said. “It is experiencing a fierce price war. Its rapid innovation speed is constantly being refreshed by new forces. Such an environment drives significant breakthroughs in technology and cost efficiency, but it also makes it difficult for many businesses to become sustainably profitable.”

As we reported in March, only three EV brands in China are believed to have achieved profitability. These are BYD, Li Auto, and the Seres Group, which includes the Seres, Aito, and Landian brands. Some other local companies are edging towards profitability, including Zeekr, Xpeng, and Leapmotor.

Electric or not, Mercedes-AMG’s latest concept makes a strong first impression. The AMG Concept GT XX doesn’t just aim to keep up with combustion-powered predecessors; it wants to make sure you hear and feel every bit of its presence.

Strongly hinting at a production car that may launch in 2026, it boasts 1,341 horsepower (1,000 kW), four doors, and a top speed of 223 mph (359 km/h). That’s not all, though, because we know it’ll also come with fake sounds. Now, in a new interview, we’re learning more about that and new insights on how AMG will evoke emotion from its drivers.

More: AMG Is Ditching Its Hated Four-Cylinder C63 For Something Much Better

From the outset, Mercedes-AMG confirmed that the production car, likely the next AMG GT 4-Door, will have speakers to make engine noises. Sure, placing them at the front of the car in the headlights does seem a bit odd, but we digress. We’ve actually heard the fake engine noises already, too. They’re the main feature in a new Instagram post from Mercedes.

Engineering Emotion

That said, tech chief of Mercedes AMG, Markus Schäfer, is still dropping new information in an interview with Autocar. There, he says that evoking emotion is a paramount concern for AMG.

“How does the car feel in terms of noise, in terms of sound level, in terms of the vibration, in terms of the gearshift?,” he asked. “It has to touch the emotional side of you. And if it doesn’t, it doesn’t do the job. This is what AMG cars do, and that’s exactly what we transferred piece by piece into this AMG GT XX.”

Apparently, Mercedes is taking this lightly. “It has to be authentic when it comes to power and drivability and track performance,” Schäfer remarked, “but the AMG is also an emotional experience from an acoustic standpoint, from noise and vibration harshness, and that’s exactly what you should expect in this car as well.”

At this point, it’s fair to expect the first all-AMG EV to rumble, shake during simulated gear shifts, and deliver a soundtrack that mimics the drama of a combustion engine. That actually sounds pretty promising. Interestingly, it’s also not far off from what Hyundai has already achieved with the well-received Ioniq 5 N.

Ultimately, this shouldn’t be all that shocking. Whether electric vehicles end up taking over or not (ed’s note: they likely will, since automakers have already invested too much and will want to recoup it), they’re a part of the auto industry for the foreseeable future. It’s also pretty clear that they have enormous performance potential. Still, a brand like AMG would be putting itself at great risk by not at least planning for what EV models would look like. By extension, that same logic applies to how an AMG EV would sound and feel.

Thankfully, the Hyundai Ioniq 5 N proves that an EV can indeed be genuinely fun. If a Korean automaker, mostly known for everyday people carriers, can manage it, surely AMG can too. We can’t wait to see and, more importantly, experience whatever it dreams up. 

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As Rivian prepares to kick off production of its more affordable R2 series next year, it is making some tough staffing decisions . More than 100 salaried employees at its Normal, Illinois, facility are being let go, with most of the cuts affecting the manufacturing team.

While the layoffs are part of the company’s broader effort to streamline operations, the news has opened the door for another electric vehicle startup to step in. Scout Motors, a new EV brand launched by Volkswagen in the US market, is taking advantage of the opportunity. Rather than sitting on the sidelines, it is actively courting the newly displaced talent.

As Autoblog noticed, shortly after the layoffs were announced, Scout Motors’ head of logistics, Jacopo Marzetti, took to LinkedIn to express support for the affected Rivian workers, encouraging them to consider applying for positions at Scout. While Rivian hasn’t disclosed the exact number of job cuts, TechCrunch reports that around 140 positions are being eliminated and can, therefore, apply for a job at Scout.

Read: These Are The New Scout Terra Truck And Traveler SUV

According to Rivian, the layoffs are being made “as part of an ongoing effort to improve operational efficiency for R2.” Crain’s Chicago Business adds that “affected employees are eligible for rehire and encouraged to apply to other open positions within Rivian.”

A look at Scout Motors’ career page reveals it has 133 current vacancies. Some of these positions are crucial in engineering, focusing on body systems, drive systems, and energy systems. It’s also seeking vehicle software and electrical engineering staff, as well as specialists in logistics.

Most of the positions are in Columbia, South Carolina, the location of Scout’s forthcoming factory. There are also several positions available in Fremont, California, as well as at the brand’s innovation center in Novi, Michigan.

Shared DNA, but Key Differences

Former Rivian employees will bring valuable expertise to the Scout brand. Just like Rivian did, Scout is launching with an electric pickup and an electric SUV. However, the VW-owned brand is also readying range-extended models, something that Rivian doesn’t do. Even so, like Rivian, Scout’s models promise to be rugged and perfect for those with an adventurous spirit.

A key differentiator will be price. The Scout models will be priced from as low as $50,000 after incentives. By comparison, the Rivian R1T and R1S start at $69,900 and $75,900, respectively.

As demand patterns shift in the auto industry, the tension between future-focused electric vehicles and proven combustion models continues to shape manufacturing plans.

Toyota has always been a strong believer in that a multi-energy approach is best, which is why you’ll find EVs, hydrogen fuel-cell cars and combustion models in its showrooms. But the brand is experiencing such a massive demand for one particular ICE SUV it was forced to press pause on a planned new EV to make room.

Related: Akio Toyoda Says EVs Are Dirtier Than You Think

An electric SUV that was to be built at the automaker’s Princeton, Indiana, plant from 2027 now won’t start rolling off the line until 2028, according to a Bloomberg report. And that line has been switched to Toyota’s Georgetown site, where another EV will start production in the back end of 2026, around six months later than planned.

This is bad news for EV fans, but could be good news for anyone looking to buy a Grand Highlander in the next couple of years.

There are a couple of reasons for the delay and switcheroo, one of which is that EV sales haven’t taken off in the way Toyota – and every other automaker – thought they might. Although the brand’s own bZ4X had a great first quarter, and the facelifted model, now called simply bZ, is a much stronger proposition, the overall US EV market is growing at a slower rate than in previous years.

Hybrids and Gas Models Are Still Pulling Ahead

And going hand-in-hand with that is the much faster growth being experienced by the hybrid segment and the continued appeal of simple gas cars, trucks and SUVs. Toyota’s Grand Highlander – which is available in gas and hybrid forms – has proved such a hit with buyers that the automaker desperately needs to make more of them.

The Grand Highlander was Toyota’s second-best-selling non-truck model in June, deliveries jumping 92 percent when, at the same time, even the number one spot RAV4 was down 4.5 percent.

The rush to pick up one of the midsize SUVs left dealers with just a three-day supply at the end of that month, Bloomberg reports, and switching production of the delayed-to-’28 EV will ensure Toyota has plenty of spare Grand Highlander capacity at Georgetown going forward.

Toyota