Stellantis has published its 2025 financial results, and they make for sobering reading. The headline figure is a €22.3 billion deficit, equal to $26.3 billion at current rates, marking the group’s first-ever annual loss. That swing looks even worse when set against 2024’s €5.5 billion ($5.8 billion) profit, which was already down 70% compared to 2023. In the span of two years, the company has gone from profitable to deep in the red.

The group, which owns 14 brands including Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall, attributes the damage to €25.4 billion ($30 billion) in “unusual charges,” largely tied to what it calls a “profound strategic shift to meet customer preferences.” In plain terms, Stellantis overestimated how quickly the market would pivot toward electric mobility and is now paying to recalibrate.

More: Stellantis Bet Big On EVs, Now It’s Betting On The Engine Europe Wrote Off

That is only part of the story. It wasn’t just a matter of customers being slow to embrace EVs. Several of Stellantis’ electric efforts, particularly in the US, struggled on their own terms. Models such as the Dodge Charger Daytona EV and the Jeep Wagoneer S were priced at the upper end of their segments yet struggled to justify that positioning against established rivals.

Rethinking Its EV Strategy

Regardless, that recalibration means canceling several electric models that were in development, mainly for the US market, and putting new emphasis on high-margin combustion engines. The return of the HEMI V8 in North America is the obvious attention grabber.

In Europe, diesel and mild-hybrid gasoline options are being folded back into the lineup across several current and upcoming models, including the now-delayed Alfa Romeo Stelvio and Giulia replacements.

“Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies,” said Stellantis CEO Antonio Filosa.

“In the second half of the year we began to see initial, positive signs of progress with the early results of our drive to improve quality, strong execution of the launches of our new product wave and a return to top line growth. In 2026 our focus will be on continuing to close the execution gaps of the past, adding further momentum to our return to profitable growth.”

How Does Stellantis Plug The Gap?

The financial strain has prompted the board to suspend the 2026 dividend and authorize up to €5 billion ($5.9 billion) in hybrid bonds to shore up liquidity. Industrial free cash flow remained firmly negative at €4.5 billion ($5.3 billion), although that represents a 25% improvement on the previous year.

Net revenue totaled €153.5 billion ($181.1 billion), down 2% year-on-year. The decline is attributed to exchange rate headwinds and net pricing drops in the first quarter of 2025, neither of which tends to flatter the bottom line.

More: Stellantis Adds A Third Shift Where You Least Expect It

The group posted an adjusted operating loss of €842 million ($993.5 million). Still, the second half of the year showed signs of stabilization. Revenues rose 10% and shipments climbed 11% as inventories normalized. Stellantis also highlighted that H2 2025 marked the first six months under its renewed leadership team, a detail clearly intended to signal that the worst may already be in the rearview mirror.

Shipments Went Up But Shares Go Down

Combined shipments for 2025 reached 5.573 million vehicles, up 1% year-on-year. That keeps Stellantis in fifth place globally by volume, behind Toyota (11.3 million), Volkswagen Group (8.98 million), Hyundai Motor Group (7.27 million), and General Motors (6.11 million).

Momentum was stronger in the second half, with 2.883 million shipments, up 11% over H2 2024. North America did most of the heavy lifting, posting a 39% H2 increase as inventories returned to more normal levels and demand improved.

Investors, however, appear less convinced. Reuters reports that Stellantis shares have fallen by more than 30% this year, sliding to their lowest level since the PSA-FCA merger in 2021.

Stellantis

The Volvo EX30 has been updated in Europe for 2026, mirroring changes already introduced on the US-spec model. The range now gains a new entry-level powertrain, refreshed infotainment, new Vehicle-to-Load capability, and a Europe-exclusive Black Edition.

For European buyers, the headline is a lower entry point into the Volvo EV range. The EX30 now comes with a less potent electric motor producing 148 hp (110 kW / 150 PS), positioned as a more affordable alternative to the existing single-motor 268 hp (272 PS) and dual-motor 422 hp (428 PS) versions.

More: Volvo Pulls 40,000 EVs Back For Costly Battery Replacement

This new variant, not available in North America, can be paired with a 51 kWh battery pack delivering 339 km (211 miles) of WLTP range. Step up to the 69 kWh battery and the range increases to 476 km (296 miles). More miles, same compact footprint, and a little more choice at the showroom.

Turn Your Volvo Into A Power Bank

Volvo says the EX30 is now hardware-compatible with Vehicle-to-Load (V2L), though the feature will initially roll out in selected markets. With an optional adapter, the battery can power external kit such as electric bicycles, sound systems, or your increasingly elaborate camping setup.

More: Volvo’s Giving Millions Of Older Cars A New Brain Without Touching The Hardware

There is also an infotainment update, bringing what Volvo calls a completely redesigned settings and controls system, plus a customizable content bar. Crucially, existing EX30 owners are not being left behind. The new user experience and V2L functionality will arrive via over-the-air updates scheduled for this summer.

The EX30 Black Edition

The EX30 only arrived in 2023, so there was no pressing need for a mid-cycle nip and tuck for either the standard model or the chunkier Cross Country. Instead, Volvo has opted for a wardrobe change. Enter the new Black Edition, now extended to its smallest SUV in line with the rest of the range.

Review: New Zeekr X Got Me Questioning My Feelings For Volvo

Despite the name, you are not limited to one shade of noir. The Black Edition can be specified in Onyx Black, Vapour Grey, or Crystal White. Whichever you choose, the chrome has been quietly retired in favor of a high-gloss black finish. That treatment covers the 19-inch alloy wheels, the Volvo badge up front, and the lettering across the tailgate.

Inside, there is Nordico upholstery with contrasting stitching and dark flax decor to complete the theme.

If you like the darker cabin but not the full blackout look, the Black interior specification is also available across the broader EX30 lineup. There is also a new option called Harvest. Inspired by late Scandinavian summer evenings, it brings light-colored, woven recycled textile upholstery for the seats and door inserts, paired with a Nordico dashboard, dark flax decor, and a black headliner.

Pricing for the updated range will be confirmed at a later date. European-market EX30s are now built in Belgium, after Volvo shifted production from China to sidestep import tariffs.

Volvo

Europe’s new car market didn’t exactly start the 2026 race in a flurry of smokey wheelspins. Registrations across the EU, UK, and EFTA slipped 3.5 percent year-on-year to 961,382 units in January. But beneath that soggy headline number, one brand was busy throwing its own party.

And it wasn’t Tesla. Across the EU, UK, and European Free Trade Association (EFTA) regions combined, Tesla registrations dropped 17.0 percent to 8,075 cars in January. That left the American EV giant with a 0.8 percent market share, down from 1.0 percent a year earlier, according to data from industry body ACEA.

It was also Tesla’s 13th consecutive month of declining sales in Europe, a reminder that this is no short-lived dip.

Also: Tesla’s Sales Collapsed By Nearly 90% In The Land Of EVs

BYD, meanwhile, went into overdrive with its mix of EVs and hybrids. The Chinese brand shifted 18,242 cars across the same region, an impressive increase of 165.0 percent year-on-year (175 percent in the EU alone), and its share climbed to 1.9 percent, more than double Tesla’s slice of the pie.

Dacia’s Fall From Glory

Tesla was far from the only automaker to take a beating in January. Renault Group also had a bruising month, its sales falling 15.0 percent to 83,201 units. That is a slide not too far off Tesla’s in percentage terms, though the Renault brand itself was up 4.4 percent. It was Renault-owned Dacia’s disastrous 35 percent drop that ruined the overall picture.

BMW (down 8.7 percent) and the VW brand (down 11.2 percent) were also left licking their wounds, while sister companies Mini (up 11.2 percent) and Skoda (up 10.1 percent) gleefully rubbed salt in them.

One In Five Cars Now An EV

On the powertrain front, the shift to electrification keeps gathering pace. Sales of battery electric cars climbed 13.9 percent, meaning they now account for 19.3 percent of the EU market in January, up from 14.9 percent a year earlier. And plug-in hybrids climbed 32.2 percent while petrol registrations plunged 25.7 percent and diesel slid 22.0 percent.

Country by country, the picture was mixed. Germany and France both saw total registrations fall 6.6 percent, but their EV registrations jumped by 23.8 and 52.1 percent, respectively. And Norway, always an EV bellwether, endured a dramatic 76.3 percent drop in overall registrations, mostly due to the end of government incentives.

European Car Sales

ACEA: Figures for EU + UK + EFTA

Winter has a way of exposing weaknesses, and in Norway it does so without mercy. A group of 24 of the newest and best EVs were recently subjected to one of the most demanding range tests imaginable in the depths of Scandinavia’s winter, and it was an American made EV that came out on top.

Read: 90% Of Vehicles Sold In Norway Last Year Were Electric

Conducted by Norwegian publication Motor as part of its biannual El Prix winter range program, the evaluation set out to measure how bitter cold affects real world driving range, and some of the findings are striking.

How The Test Was Conducted

Held twice a year, in winter and in summer, the drive follows a predetermined route. This time, 24 EVs were evaluated in temperatures that dipped as low as -24°F (-31°C), the coldest conditions recorded in the test event’s history and well below previous editions, when temperatures rarely fell under 14°F (-10°C).

For much of the global population, numbers like these might as well belong in weather reports from another planet. Still, they provide a useful stress test. As in previous El Prix runs, each car was driven along the set route until it could no longer maintain the posted speed limit.

The Winners

Coming into the test, the Lucid Air had the highest quoted WLTP range of 960 km (596 miles). In Motor’s winter run, it covered 520 km (323 miles) before the battery was fully depleted. On the other hand, while that figure was higher than any of the other cars evaluated, it is still 46 percent lower than the claimed range.

In terms of outright driving range in the frigid conditions, the Mercedes-Benz CLA also performed well, driving 421 km (261 miles), or 41 percent less than its claimed 709 km (440 miles) WLTP figure. Other strong performers included the Audi A6, which traveled 402 km (250 miles), the BMW iX with 388 km (241 miles), and the Volvo ES90 with 373 km (232 miles).

Two Ways To Look at Numbers

Total driving range, though, is not the most revealing part of the story. What stands out more is how much, or how little, each car’s range shrinks in the cold. By that measure, the MG 6S EV and Hyundai Inster led the field, with their ranges falling just 29 percent from their WLTP claims. They recorded 345 km (214 miles) and 256 km (159 miles), respectively.

A second Chinese MG also performed well, namely the IM6, with its range falling 30 percent from a claimed 505 km (314 miles) to 352 km (219 miles). The KGM Musso was another strong performer, seeing just a 31 percent drop in its range from 379 km (235 miles) to 263 km (163 miles).

At the other end of the scale, the Opel Grandland matched the Lucid Air for the steepest decline, surrendering 46 percent of its claimed range in the cold. The Volvo EX90 was not far behind with a 45 percent drop, while the Tesla Model Y and Suzuki eVitara each gave up 43 percent. The Skoda Elroq and Mercedes CLA also struggled to contain losses, both finishing with a 41 percent reduction.

Cold EV Test

Motor.No

The Volkswagen Group has been doing some careful footwork lately, trying to stay ahead as Europe tightens the rules on electric cars coming in from China. Cupra boss Wayne Griffiths warned just over a year ago that the brand could be “wiped out” by new European Union tariffs on electric vehicles imported from China.

But now, the VW Group might get a special lane through Europe’s new tariffs on Chinese-built EVs, and that possibility isn’t going unnoticed in Beijing.

More: Ford May Fill Its Factory With Chinese EVs So They Can Dodge Tariffs

Here’s the deal in simple terms. The EU slapped tariffs on electric cars made in China, arguing they benefit from heavy state support. But there is a loophole. Instead of paying those extra duties, a carmaker can agree to sell a model at a minimum price.

Volkswagen looks set to use that option for the Cupra Tavascan, which is built in China, Germany’s Handelsblatt reports. If Brussels signs off, VW can ship it into Europe without being stung by punitive 20.7 percent tariffs, as long as it sticks to the agreed pricing rules. Officially, this is all perfectly above board and part of existing procedures.

Not A U-Turn

The European Commission’s diplomats in Beijing say these kinds of allowances do not constitute a U-turn on its Chinese vehicle policy, a complaint leveled by some critics. Beijing, meanwhile, is being outwardly positive about the rumored EU concessions.

But behind closed doors, the Chinese worry that Volkswagen might be getting friendlier treatment than other manufacturers because it’s a European brand. China had pushed for an industry-wide solution, but now seems to be accepting smaller, case-by-case deals, realizing that letting individual brands cut their own deals may be better than endless stalemate.

Long Process

Each application for a minimum pricing deal can take well over a year and must be reportedly handled on a car-by-car basis, the report says. Industry watchers doubt every Chinese brand will rush in, especially those already making healthy margins even with tariffs in place, but VW evidently believes it’s worth the admin in the Tavascan’s case.

The Tavascan is Cupra’s sportier take on the VW ID.5, a 182.8-inch (4,644 mm) electric crossover built around the MEB platform and offering a mix of single and dual-motor powertrains with up to 353 miles (568 km) of electric range.

Cupra

Tesla might be providing employment for thousands of Germans at its Berlin Gigafactory, but the nation’s car buyers have no interest in returning the favor by getting a Tesla of their own. A new survey suggests most Germans aren’t just hesitant about buying a Tesla, they’re actively swiping left on the idea.

Related: Tesla’s Budget Model Y Gets Grip And Grit For $2K More, But Don’t Call It Standard

According to research from the German Economic Institute, more than three quarters of Germans say buying a Tesla is off the table. Around 60 percent called it completely out of the question, while another 16 percent polled in the study said they probably wouldn’t buy one.

That’s not a minor wobble in brand appeal, it’s a serious collapse, and helps makes sense of Tesla’s 27 percent sales decline in Europe last year.

What makes it more awkward is that interest in electric cars in general is not the problem. According to DW, the same survey shows plenty of Germans are open to EVs, especially from domestic brands. Around one in five new cars sold there is fully electric and roughly 40 percent of those surveyed said they could imagine buying an electric car from a German brand.

Musk Is The Problem

Researchers point to Tesla boss Elon Musk as a big part of the story. His outspoken political positions, including voicing support for Germany’s far-right AfD party, and his association with President Trump, and by proxy, tariffs and US threats against Greenland and European security, have not exactly gone down smoothly with many German buyers.

Read: Europe Just Replaced Tesla With A New EV Sales Champion

Political views now play a major role in EV purchasing decisions in Germany, turning what used to be a tech and environmental choice into something that feels far more tribal.

Even groups you might expect to be more Tesla friendly aren’t rushing to sign order forms. Among supporters of Germany’s Green Party, who are generally enthusiastic about electric mobility, only one in 10 said they could imagine buying a Tesla.

On the other end of the political spectrum where AfD supporters live, enthusiasm for EVs overall is low, which drags Tesla interest down even further.

A Win For BMW And Mercedes

For German automakers, this looks like an unexpected gift. With Tesla stumbling in the court of public opinion, local brands suddenly have more room to sell their own electric models without having to wrestle with Silicon Valley star power. BMW’s new iX3 is one EV capitalizing on Tesla apathy. It’s nearly sold out for the year.

It is a reminder that in the EV era, software and charging speeds matter, but so does how people feel about the badge on the hood. But maybe Elon Musk doesn’t care, because he has his eyes on a bigger prize.

Having revolutionised the car market, Musk is going all in on robots and robotaxis, which have the potential to generate even more money for Tesla. Last month the CEO confirmed the Model X and S would be axed this spring to make way for Optimus robot production.

Source DW

GM’s BrightDrop electric vans may not be done just yet. After nearly four months of uncertainty, an unexpected lifeline may be taking shape. GM had announced it would end production of the vans at its Ontario plant in Canada, effectively shutting down one of its more high-profile EV ventures. Now, a European engineering firm has reportedly shown interest in buying the facility and restarting production.

The company in question is Dumarey Group, a Belgium-based engineering and manufacturing firm. In 2020, Dumarey acquired GM’s propulsion engineering center in Turin, Italy, and now appears poised to deepen its relationship with the American automaker.

Read: GM And Stellantis Got The Cash, Now Canada Wants A Refund

According to a recent report, the group aims to build BrightDrop vans in Canada, then ship them across the Atlantic to European markets.

Limited details about the potential deal are known, but GM Authority reports the firm’s chief executive and founder, Guido Dumarey, plans to tour the Ingersoll plant soon.

A Fragile Hope for CAMI Employees

This could be great news for workers at the plant, many of whom have been facing an uncertain future since GM announced it would stop production. However, a significant number of the laid-off employees remain on GM’s callback list in case production resumes on a new vehicle at the CAMI facility. That means Dumarey would likely need to negotiate with GM to bring those workers on board.

Speaking with CTV News, Brendan Sweeney, managing director of a London-based non-profit agency, said Dumarey could be a good fit. However, he suspects it may only need a few hundred workers to handle production, meaning it’s unlikely the plant will return to the 3,000-strong workforce it had when it was building the Chevrolet Equinox and GMC Terrain.

“[Dumarey are] diversified,” Sweeney said. “They engage with a number of different technologies, including fuel cells, which is a really interesting play for Canada that, you know, might get a bit more gain more steam.”

The CAMI assembly plant began producing BrightDrop electric vans in 2022. Despite GM’s hopes, the program struggled to maintain momentum. Even after BrightDrop was folded into Chevrolet to bolster visibility and sales, the vans failed to establish a solid foothold in the EV delivery space.

It’s no secret that Tesla’s dominance in Europe has been under pressure for a while, but few expected just how steep the drop would be in one of its most loyal markets. While Elon Musk’s polarizing behavior and the rise of competitive alternatives have chipped away at Tesla’s popularity across the continent, one country had stood firm. Until now.

Read: Europe Just Replaced Tesla With A New EV Sales Champion

It turns out that even Norway, long considered Tesla’s European stronghold, may be losing interest. New registration data from January 2026 shows that only 62 units of the Tesla Model Y were delivered in Norway last month, accounting for just 2.8 percent of new car sales.

Across its full range, Tesla sold just 83 vehicles in total, marking an 88 percent decline compared to the same period last year.

Changing of the Guard

Several other electric vehicles now comfortably outpace the Model Y in Norwegian sales. Leading the pack in January was the Volkswagen ID.3, with 299 units registered, nearly five times as many as the Tesla.

Norway January 2026 Sales by Model

The Toyota bZ4X followed with 184, ahead of the Toyota Urban Cruiser at 98 and the Skoda Elroq at 78. Even the relatively obscure Deepal S05 managed to beat the Model Y with 75 new registrations, while the Volkswagen ID.4 came in just above Tesla’s numbers with 69.

EVs Still Reign Supreme

Despite Tesla’s stumble, the Norwegian EV market remains overwhelmingly electric. A staggering 94 percent of all new vehicles sold in Norway last month were EVs. Diesel cars accounted for just 98 sales, while only 7 petrol-powered vehicles were registered across the entire country, the lowest number on record.

While Tesla endured a difficult month in Norway, it did actually experience a bump in sales in certain European markets. For example, sales rose 70 percent in Spain to 456 examples. Additionally, sales jumped 75 percent in Italy to 713 units, rose 26 percent in Sweden to 512, and increased 3 percent in Denmark to 458.

Likely contributing to this growth are the newly available, affordable, and stripped-out versions of the Model 3 and Model Y. These Standard variants were introduced to breathe new life into Tesla’s aging lineup, which has been increasingly criticized for lagging behind newer, more dynamic competitors.

Still, Tesla’s European picture remains mixed. A Reuters report highlights significant losses in key markets: sales in France fell 42 percent, Belgium dropped 31 percent, and the Netherlands saw a dramatic 67 percent decline. In Portugal, the dip was modest but noticeable at just over 3 percent.

New Threats on the Horizon

It will be interesting to see how the rest of 2026 plays out for Tesla in Europe. A growing number of Chinese brands are launching several new models in Europe, and in the second quarter, BYD will start mass production at its plant in Szeged, Hungary, allowing it to sell EVs tariff-free in the region.

Norway January 2026 Sales by Brand

Concerns over data security are prompting fresh scrutiny of Chinese-made electric vehicles in Europe, and Poland appears to be the latest country preparing to act. Officials there are looking to prohibit these cars from entering sensitive military areas, citing fears they could be used for surveillance.

The move would follow the UK’s recent decision to restrict Chinese EVs from military zones, part of a wider effort to prevent potential access to sensitive information gathered by modern automotive tech like cameras, radars and sensors that are now common on new cars.

Are Vehicles Becoming Spy Tools?

Cars from China, particularly EVs, are becoming an increasingly common sight on European roads, including in Poland. A recent study in the country referred to these vehicles as ‘Smartphones on Wheels,’ noting that onboard technologies enable environmental scanning and can capture sensitive geolocation data, among other capabilities, which can pose a serious safety risk.

Read: Chinese EVs Banned From UK Military Sites Amid Fears They’re Watching Every Move

“Smart cars have enormous data collection capabilities through high-resolution cameras, sensors, and LiDAR systems, which use active 3D mapping technology,” said Paulina Uznańska, author of the study, in comments reported by the Polish news agency PAP. “This creates a very high potential for the use of such vehicles for intelligence analysis purposes.”

Responding to the findings, General Wiesław Kukuła, Chief of the General Staff of the Polish Army, is expected to issue a formal directive soon that would ban Chinese-made vehicles from all military installations across the country. This would also include adjacent parking areas.

The Ministry of National Defense confirmed to national news agency PAP that it is currently drafting a policy to that effect.

Security Policy Tightens

UK lawmakers noted last year that the Chinese government holds legal rights to access data collected by the cameras, sensors, and radar systems in vehicles built with Chinese technology.

Following a similar approach, Poland’s ban is expected to apply not only to models from brands like BYD, MG, Nio, Xpeng, and Aiways, but also to any vehicles equipped with Chinese-made software or sensor components.

Beyond military installations, there is speculation that similar measures could reach other sectors. One industry expert has floated the possibility of extending the restrictions to key infrastructure hubs like airports. That said, such a policy would have to be carefully structured to comply with European competition laws and avoid regulatory backlash

Sluggish demand is putting pressure on Ford’s European EV strategy, as two of its newest models struggle to gain traction. The Explorer and Capri have fallen short of sales expectations across the region, prompting the company to scale back shifts and lay off workers at its Cologne factory in Germany.

To rekindle buyer interest in its VW-based EVs, Ford has upgraded the Standard Range versions with added power and extended driving range.

More: The Ford Explorer Just Got A Makeover You Won’t See In America

The 2026 Ford Explorer and Capri Standard Range look the same as before, but benefit from hardware upgrades under the skin. The 52 kWh battery has the same capacity but now features lithium iron phosphate technology, unlocking more range.

According to Ford, the WLTP range figures have been increased by up to 70 km (52 miles). More specifically, the Explorer can travel 444 km (276 miles) between charges, and the more aerodynamic Capri has a range of 464 km (288 miles).

Acceleration Gets a Modest Bump

Furthermore, the rear-mounted electric motor is now making 187 hp (140 kW / 190 PS) and 350 Nm (258 lb-ft) of torque. This represents an increase of 20 hp (15 kW) and 40 Nm (30 lb-ft) compared to the outgoing Standard Range models, allowing the 0-100 km/h (0-62 mph) sprint to be completed in 8 seconds flat (-0.7 seconds).

More: VW’s Killing The ID.4 To Bring Back A Familiar Name

Those suffering from range anxiety can still get the Extended Range RWD, which comes with a bigger 77 kWh battery and a more powerful 282 hp (210 kW / 286 PS) motor, or the flagship Extender Range AWD with a 79 kWh battery and dual motors producing 335 hp (250 kW / 340 PS).

The Ford Explorer was introduced in 2023, followed by the Capri in 2024. Both models are produced at the Cologne Electric Vehicle Center in Germany, following a multi-billion-dollar investment to convert the historic Fiesta plant into an EV hub.

Ford has yet to announce pricing for the updated EVs. In Germany, the current Explorer and Capri start from €39,900 ($47,600) and €42,400 ($50,700) respectively. It remains to be seen whether the improved specs will lead to increased customer demand.

What’s Going on With the Competition?

Meanwhile, over at Volkswagen, the German brand is preparing to replace the ID.4 with a refreshed model named ID. Tiguan, while quietly retiring the ID.5.

Ford’s rivals in the segment continue to grow, with the list including the Skoda Enyaq, Renault Scenic E-Tech, Nissan Ariya, Kia EV6, Hyundai Ioniq 5, Peugeot E-3008, Opel Grandland Electric, Citroen e-C5 Aircross, Jeep Compass Electric, and the ever-present Tesla Model Y

Ford

Electrified vehicles are no longer playing second fiddle in Europe’s car market. Sales of battery-electric, plug-in hybrid, and traditional hybrid models climbed sharply across the continent last year, while demand for gasoline and diesel vehicles continued to shrink.

Read: One in 10 New Cars Sold in Europe Last Month Was Chinese

The shift picked up real momentum in December, when BEV sales pulled ahead of gas-powered cars for the first time in the European Union, even as policymakers were making plans to ease emissions regulations.

That month, BEVs accounted for 22.6 percent of the market, slipping just ahead of petrol cars at 22.5 percent. Hybrids held the largest share overall at 33.7 percent, followed by plug-in hybrids with 10.7 percent. Diesel fell further to 7.2 percent, while alternatives like LPG closed the list at 3.3 percent.

Across the European Union, the UK, and members of the European Free Trade Association, including Iceland, Norway, and Switzerland, a total of 13,271,270 new vehicles were sold throughout 2025. That marks a modest but notable 2.4 percent uptick from the previous year. Within that total, BEVs accounted for 2,585,187 sales, a significant 29.7 percent increase over the 1.9 million sold in 2024.

Hybrids Lead the Charge

Despite the BEV surge, traditional hybrids took the crown as the continent’s best-selling powertrain last year. A total of 4,566,850 hybrids were sold, reflecting a 12.4 percent increase and pushing them past gasoline-powered cars for the first time.

In 2024, petrol models held a narrow lead with 4,273,880 units sold, but in 2025, that number dropped sharply by 18.9 percent to 3,467,041.

Similarly, demand for diesel cars fell by a considerable 24 percent, down from 1,349,899 to just 1,026,354 units. This allowed plug-in hybrids to overtake diesels, selling a total of 1,272,901, or a 33.4 percent rise from 2024.

December’s numbers laid bare the speed of change. BEV registrations soared to 308,955, up 50.3 percent compared to the same month a year earlier. That was enough to edge out gasoline car sales, which declined 17.7 percent to 254,449. Diesel models also slumped in December, with sales falling 23.1 percent to 73,195.

As in the January-December period, hybrids remained the most popular powertrain choice in December, with sales reaching 380,921, up 4.9 percent. Demand for plug-in hybrids also rose 35.8 percent to 123,460.

The Story Behind the Numbers

While it’s easy to conclude that EVs outsold gas-powered cars entirely in December, that’s not entirely true. These figures from the European Automobile Manufacturers’ Association include full and mild hybrids in the ‘hybrid electric’ category, which led the industry in sales.

The vast majority of full hybrid and mild hybrids on sale use gas-powered combustion engines, whether that’s to drive the wheels, charge the battery pack, or a combination of both, so it would perhaps be more accurate to lump together hybrid electric and gas-powered vehicles into the same category. If that were the case, they would come out well ahead of BEVs.

While VW and Xpeng are teaming up to develop new EVs for China, the partnership hasn’t stopped a quiet rivalry from unfolding. Xpeng has just rolled out its latest electric sedan, the P7+, across European markets, and it’s not shy about naming its target, which is none other than the VW ID.7, one of Europe’s top-selling EVs.

Read: Xpeng P7+ Is The Latest Ultra-Efficient EV From China

The P7+ has already spent time on the Chinese market, but it recently arrived in Europe with more than just a new badge. It debuted in European specification at the Brussels Auto Show earlier this month and is now being built locally at Magna Steyr’s contract manufacturing facility in Graz, Austria.

Like the ID.7, it’s a streamlined, low-profile sedan with a strong focus on range and high-speed charging.

A Cheaper Entry, With Compromises

One thing the Xpeng has going for it over the VW is price. In Germany, the entry-level P7+ starts at just €43,600 ($51,200), significantly undercutting the ID.7 that kicks off from €54,105 ($64,900). However, whereas the base ID.7 uses a 77 kWh battery and has a WLTP driving range of 385 miles (619 km), the base P7+ uses a much smaller 62 kWh pack, restricting its range to 283 miles (455 km).

Shoppers who want to travel farther between stops will need to pay at least €49,600 ($59,500) for the long-range model, which boasts a 75 kWh pack and a 329-mile (530 km) range. However, that pales in comparison to the flagship ID.7 Pro S with its 86 kWh pack and 440-mile (708 km) range.

Charging Without Compromise

According to Sven De Smet, head of brand and marketing at Xpeng Europe, who spoke to AutoNews, one of the key advantages of the P7+ is its faster charging capability. The VW tops out at 200 kW for DC fast charging, while the base P7+ can reach 350 kW, and the long-range version peaks at 446 kW.

“We believe charging is one of the pain points,” De Smet said. “A big battery is heavier, which means it consumes more electricity, which means you charge it more.”

Xpeng also points out that the smaller, lighter battery packs in the P7+ should have a positive impact on handling and overall driving dynamics. That could prove appealing to European drivers, who often place a premium on responsiveness and efficiency.

The question now is whether the P7+ can match the ID.7’s strong European sales. Last year, VW moved 76,368 units of the ID.7 across the continent, putting it in seventh place among all EVs sold. That figure put it just 10,000 units behind the Tesla Model 3. Xpeng may be the challenger in this case, but it’s stepping into a crowded field.

Strategic Partners, Not Just Rivals

VW holds a five percent stake in Xpeng following a $700 million investment, but the ties run deeper than capital. The two brands are jointly developing several EVs for the Chinese market, including at least one model built on Xpeng’s Edward platform. VW has also committed to integrating aspects of Xpeng’s tech stack, including its proprietary Turing chip and VLA 2.0 software, into future models.

Xpeng

India has long guarded its domestic car industry with near-impenetrable tariffs, making foreign vehicles a rare sight on its roads unless built locally. That’s about to change.The country is now getting ready to lower those duties on European Union cars, dropping them from a steep 110 percent to 40 percent.

Final terms of the trade agreement between India and the EU will be outlined later this week, but the current proposal outlines that tariffs on EU-made combustion-engine cars will fall to 40 percent for up to 200,000 units annually. Over time, that figure is expected to drop even further, eventually settling at 10 percent.

Read: India’s New Renault Duster Looks Like A Rich Man’s Dacia Duster

In order to protect local firms like Mahinda & Mahindra as well as Tata Motors, battery-electric vehicles would be excluded from the tariff cuts for the first five years. After that, European-made BEVs will also qualify for the reduced tariff structure.

Only cars priced above €15,000 (roughly $17,700) would be eligible for the reduction, a threshold designed to limit direct competition with mass-market offerings from firms such as Maruti Suzuki. These models dominate India’s affordable car segment and are critical to local industry stability.

According to Reuters, the deal is still under negotiation, with finer details yet to be finalized. Certain provisions remain subject to revision before the full announcement is made.

A Massive Market, Ripe for Growth

India now ranks as the third-largest new car market in the world, trailing only the United States and China. Yet European brands currently hold less than a 4 percent share of annual sales, positioning India as a key target for future expansion. Around 4.4 million new vehicles were sold in the country last year, with forecasts suggesting that number could climb to 6 million by 2030.

While the trade pact is expected to give EU carmakers a clearer path into the Indian market, it could also make things easier for Indian textile and jewellery exports. Those goods currently face US tariffs as high as 50 percent, and access to a new market could help take some pressure off.

President Donald Trump speaks at the Justice Department March 14, 2025, in Washington, DC.  (Photo by Andrew Harnik/Getty Images)

WASHINGTON — President Donald Trump promised Thursday his newly established “Board of Peace” will not “be a waste of time,” just after the leaders of several countries signed its charter at the World Economic Forum in Switzerland. 

Trump, who has been vocal about his hopes to one day win the Nobel Peace Prize, said he expects the board to work in concert with the decades-old United Nations, though he didn’t detail how, since many of the countries belong to both international organizations. 

“Once this board is completely formed, we can do pretty much whatever we want to do, and we’ll do it in conjunction with the United Nations,” he said. “You know, I’ve always said the United Nations has got tremendous potential, has not used it. But there’s tremendous potential in the United Nations.”

The board includes Argentina, Armenia, Azerbaijan, Bahrain, Bulgaria, Egypt, Hungary, Indonesia, Jordan, Kazakhstan, Kosovo, Mongolia, Morocco, Pakistan, Paraguay, Qatar, Saudi Arabia, Turkey, the United Arab Emirates and Uzbekistan, according to a list shared by the White House. 

The Trump administration earlier this month stopped processing visas for residents from several of those countries, writing in a social media post that those “migrants take welfare from the American people at unacceptable rates.” Countries on the list include Armenia, Azerbaijan, Egypt, Jordan, Mongolia, Morocco, Pakistan and Uzbekistan. 

Belgium declines

The White House originally included Belgium on the list of Board of Peace members, but Deputy Prime Minister Maxime Prévot wrote in a social media post the country’s leaders have “NOT signed the Charter of the Board of Peace. This announcement is incorrect.”

“We wish for a common and coordinated European response,” Prévot wrote. “As many European countries, we have reservations to the proposal.”

Trump has been highly critical of European allies and repeatedly criticized NATO during his second term, especially as he’s ramped up pressure to acquire Greenland. 

Trump said during his speech, while members of the Board of Peace sat nearby in chairs, that he believes it “has the chance to be one of the most consequential bodies ever created.”

“Together, we are in a position to have an incredible chance — I don’t even call it a chance. I think it’s going to happen — to end decades of suffering, stop generations of hatred and bloodshed, and forge a beautiful, everlasting and glorious peace for that region and for the whole region of the world because I’m calling the world a region,” Trump said. “The world is a region. We’re going to have peace in the world. And boy, would that be a great legacy for all of us. Everybody in this room is a star, or you wouldn’t be here.”

Electric sports cars are finally happening in a big way, but Europe might not be waiting for Porsche or Alpine to lead the charge. A small Chinese brand you have probably never heard of wants in on the action, and it looks like a far more serious enthusiast proposition than the MG Cyberster.

More: Chinese Sports Car Looks Like A Tesla Roadster Hooked Up With A Lancia

The car is the SC-01, a lightweight electric sports coupe that’s not just headed to Europe, as the company itself has confirmed, but also set to be built there, according to Chinese media. Backed by Xiaomi and Jiangling’s JMEV brand, around 1,000 of these compact two-seaters are expected to be produced in Italy.

Visually, the SC-01 leans hard into classic wedge territory. Think Lancia Stratos proportions filtered through a modern EV lens, with compact dimensions and proper sports car stance.

At 4106 mm (161.7 inches) long it’s a smidge shorter than an Alpine A110 and around 270 mm (10.6 inches) more compact than the recently axed ICE Porsche 718 Cayman. The real headline, though, is the weight.

Hardcore Diet

At 1,365 kg (3,009 lbs) the aluminium SC-01 is astonishingly light for an EV – 520 kg (1,150 lbs) lighter than a RWD MG Cyberster and 620 kg (1,370 lbs) down on MG’s AWD variant.

The Cyberster already seemed more like a mini Mercedes SL than a hardcore sports car, and those numbers, plus the SC-01’s front and rear pushrod suspension only underline the impression.

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A post shared by SC01 EUROPE (@sc01.eu)

Power comes from dual electric motors producing a combined 429 bhp (434 PS / 320 kW), enough to launch the SC-01 to 62 mph (100 kmh) in a claimed 2.9 seconds.

A 60 kWh battery gives the car a quoted 311-mile (500 km) range on the optimistic CLTC cycle, so reckon on more like 270 WLPT miles (435 km) and even less if you’re driving it like you’re supposed to.

Minimal Screen Tech

Inside, the SC-01 might surprise you even more. There’s no massive touchscreen wall of the kind you might expect from a modern Chinese EV. Instead you get a single driver display and physical climate controls.

In other words, it feels like someone built it for people who actually enjoy driving, and plan to be driving too hard to spend precious moments hunting for a switch on a digital display.

How Much will it Cost?

Exact Euro prices and an on-sale date are still TBC, but according to Car News China, the car may launch at around 500,000 yuan, which comes to around $72,000, €61,000, or £53,000. That’s a significant step up from its domestic Chinese price of 229,800 yuan, or roughly $33,000 / €28,500 at current exchange rates.

Still, that would put it at a competitive advantage to the new generation of electric sports cars from Porsche, Alpine, and Lotus, some of which are still years away, and are sure to cost more.

SC-01

BYD has quickly become one of the most significant forces in the global auto industry’s post-Covid transformation, expanding its reach at speed and establishing itself as a dominant player in both EV and PHEV segments. Its rise has been rapid, but not without friction, especially in countries where shifting electrification policies continue to create uncertainty.

Speaking at the World Economic Forum in Davos, Switzerland, BYD executive vice president Stella Li called out the complications these changing policies create for manufacturers.

Read: The EU Blinked And Gas Cars Live To See Another Generation

In her view, the constant shifts make it difficult for companies like BYD to commit capital or build out reliable supply chains. The result, she said, is a climate that “will confuse manufacturers.”

Can Carmakers Keep Up?

“The back and forth policies at the national level have made it more difficult for industry to throw all in and ramp up the way that some of the Chinese companies have been able to,” she revealed, during a panel discussion.

When governments draw a “very clear line” and stick to it, automakers can plan more confidently, Li said. She added that stable direction helps them execute consistently and align their production timelines with long-term goals, according to a report from Business Insider.

The contrast between the Biden and Trump administrations highlights just how disruptive these swings can be. While BYD hasn’t felt the effects of U.S. policy, the European Union’s recent decision to scale back its proposed 2035 ban on internal combustion engine vehicles could potentially impact the company’s future strategy in the region.

China Leads EVs

Li pointed out that China continues to lead the global EV sector. She credited the country’s expansive charging infrastructure, fast-moving technology, and high consumer demand as key factors driving adoption.

Elaine Buckberg, former chief economist at General Motors, echoed the need for regulatory stability during the panel discussion. She emphasized that predictable incentives play a central role in supporting long-term investment.

“Keeping those incentives stable, that’s really powerful,” she said. “That’s a place where the US is really pulling back under the Trump administration.”

It’s no secret that Tesla had a tough run in Europe last year. After several years of outpacing legacy automakers in EV sales, 2025 brought a sharp reversal that few would have seen coming just a couple of years ago. The brand that once led the electric car race is now falling behind a familiar rival with a very different backstory.

Read: BYD Sold Nearly Three Times As Many Cars As Tesla In Europe

Volkswagen sold more battery-electric vehicles in Europe than Tesla last year. Yes, VW, the same manufacturer that was mired in the diesel emissions scandal just as Tesla was gearing up for the Model 3, has now overtaken the American brand on its home turf.

Changing of the Guard

According to figures from Dataforce reported by Autonews, the VW brand moved 274,417 fully electric vehicles in Europe in 2025, a jump of 56 percent from its 2024 total of 175,654. Things weren’t so pretty for Tesla.

Its sales declined 27 percent last year, dropping from 326,714 units to 238,765. This came despite the fact that the Tesla Model Y remains Europe’s best-selling EV with 151,331 units sold last year, significantly more than the 94,106 Skoda Elroqs that were sold over the same period. However, Model Y sales were still down 28 percent from 2024, when 210,265 were sold.

Europe’s Best-Selling EVs

Dataforce

Helping the VW brand take the top place from Tesla is the fact that it has a larger range of EVs. For example, the VW ID.4 sold 80,123 units last year, up 23.8 percent. A total of 78,667 VW ID.3s were sold, up 44.4 percent. The ID.7 also saw growth, with 76,368 units finding new homes, a 137.2 percent rise.

To put these figures into perspective, Tesla sold 86,261 Model 3s. And while that beat out any individual VW model, it was still down 23.6 percent from 2024.

VW Conquers All…Almost

VW’s strong year wasn’t limited to EVs. It also topped Europe’s plug-in hybrid (PHEV) segment, selling 159,173 units, a 205 percent jump from 2024. That was enough to comfortably beat BMW, with 142,285 sales, followed by Mercedes-Benz at 135,878 and Volvo at 104,270.

The VW brand also led in both gasoline and diesel vehicle sales. Its gas-powered lineup moved 737,821 units in 2025, staying well ahead of Peugeot’s 492,133, despite VW recording a 7.3 percent decline. Diesel sales reached 269,277 units, down 19.4 percent from the previous year, but still enough to edge out Mercedes, which sold 250,326.

Europe’s Top-Selling EV Brands

Dataforce

Traditional hybrids were the only powertrain segment that VW didn’t take top honors in, as Toyota held the crown with 626,675 sales. Although VW didn’t rank in the top five, things could change this year as it plans to launch the new T-Roc, complete with a hybrid powertrain.

U.S. President Donald Trump gives a speech at the World Economic Forum on Jan. 21, 2026 in Davos, Switzerland. (Photo by Chip Somodevilla/Getty Images)

WASHINGTON — President Donald Trump announced in a social media post Wednesday that he and NATO Secretary General Mark Rutte brokered a possible agreement on Greenland, though Trump provided few details or a timeline. 

Trump’s comments came just hours after he took his case for acquiring the Arctic island to the World Economic Forum in Switzerland, urging European leaders to begin negotiations while appearing to rule out a military takeover. 

A few hours later, Trump wrote after meeting one-on-one with Rutte that the two “have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region.” 

“This solution, if consummated, will be a great one for the United States of America, and all NATO Nations,” Trump wrote. “Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

Trump threatened over the weekend to place a 10% tariff on goods coming into the United States from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom if they continued to oppose his attempts to acquire Greenland. Trump wrote he would increase the tariffs to 25% in June if a deal hadn’t been brokered before then.

Trump wrote in his most recent social media post that further negotiations about Greenland will be handled by Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and several other officials. 

“Additional discussions are being held concerning The Golden Dome as it pertains to Greenland,” Trump wrote, referring to a possible missile defense system. “Further information will be made available as discussions progress.”

Asked by reporters if the framework includes U.S. ownership of Greenland, Trump declined to say directly.

“It’s a long-term deal. It’s the ultimate long-term deal. And I think it puts everybody in a really good position, especially as it pertains to security and minerals and everything else,” Trump said, later adding it would last “forever.” 

White House spokeswoman Anna Kelly wrote in a statement that if the “deal goes through, and President Trump is very hopeful it will, the United States will be achieving all of its strategic goals with respect to Greenland, at very little cost, forever.”

“President Trump is proving once again he’s the Dealmaker in Chief,” Kelly added. “As details are finalized by all parties involved, they will be released accordingly.”

‘I don’t have to use force’

Trump insisted during the 75-minute, wide-ranging speech he gave a few hours before his announcement that Greenland represents “a core national security interest” that “would greatly enhance the security of the entire” NATO alliance if it were fully controlled by the United States. 

“I’m seeking immediate negotiations to once again discuss the acquisition of Greenland by the United States,” Trump said. “Just as we have acquired many other territories throughout our history, as many of the European nations have … there’s nothing wrong with it.”

Trump signaled he will likely not use the U.S. military to take over Greenland, saying, “I don’t have to use force. I don’t want to use force. I won’t use force.”

But he indicated any European country that objects to the U.S. making Greenland part of the country will face repercussions.

“You can say ‘yes,’ and we will be very appreciative, or you can say ‘no’ and we will remember,” Trump said. 

Greenland would become the site of a missile defense system that Trump refers to as the Golden Dome, which he said could “keep our very energetic and dangerous potential enemies at bay” if the island becomes part of the United States. 

Trump bashes NATO

Trump repeatedly criticized the other NATO countries during his speech, falsely claiming more than once the United States has never benefited from the military alliance formed following World War II. 

“What we have gotten out of NATO is nothing, except to protect Europe from the Soviet Union and now Russia,” Trump said. “I mean, we’ve helped them for so many years.”

The United States is the only country in the history of the alliance to invoke Article 5, which says that an attack against one is an attack against all.

That led NATO countries to send their military members to fight alongside U.S. troops in Afghanistan following the 2001 terrorist attacks. More than 1,000 of those NATO troops died, according to the 9/11 Memorial and Museum. 

NATO Secretary General Mark Rutte sought to reassure Trump of NATO’s security commitment to all of its member countries later in the day, when the two met one-on-one during the forum. 

“Let me tell you, they will. And they did in Afghanistan, as you know,” Rutte said, according to audio of the exchange shared by the White House pool.

Rutte noted that for “every two Americans who paid the ultimate price, there was one soldier from another NATO country” or Australia. 

“So you can be assured, absolutely, if ever the U.S. will be under attack, your allies will be with you. Absolutely. There’s an absolute guarantee,” Rutte said. “I really want to tell you this, because this is important. It pains me if you think it is not.”

Trump told reporters ahead of his meeting with Rutte that he “could see” paying a price for Greenland, though he did not elaborate. He said he had “no idea” when he might speak directly with leaders of Denmark about trying to acquire Greenland. He said he believes Rutte is “frankly more important.”

Investors and single-family homes

Trump focused some of his speech in Davos on domestic issues, talking briefly about an executive order he signed this week focused on the availability of housing within the United States. 

“I have signed an executive order banning large institutional investors from buying single-family homes. It’s just not fair to the public. They’re not able to buy a house,” Trump said. “And I’m calling on Congress to pass that ban into permanent law, and I think they will.”

Trump said he wanted to take steps to help Americans afford homes, but that he didn’t want those actions to reduce the value of homes people already own. He didn’t elaborate on how that would work. 

“I am very protective of people that already own a house, of which we have millions and millions and millions. And because we have had such a good run, the house values have gone up tremendously, and these people have become wealthy. They weren’t wealthy. They become wealthy because of their house,” he said. “And every time you make it more and more and more affordable for somebody to buy a house cheaply, you’re actually hurting the value of those houses, obviously, because the one thing works in tandem with the other.”

Trump said if he wanted to, he could “really crush the housing market” and decrease housing prices, though he didn’t say how exactly he would go about doing that if he wanted to. 

Trump said he’s ordered “government-backed institutions to purchase up to $200 billion in mortgage bonds,” and that he expects to announce a new Federal Reserve chairman “in the not-too-distant future,” who he believes will decrease interest rates. Trump has been feuding over interest rates with Federal Reserve Chair Jerome Powell, whose term as chair ends in May although Powell can remain as a governor. 

Trump also called on Congress to approve legislation that would prevent credit card companies from hiking their interest rates above 10% for one year, saying that would help people save some money that they could use for buying a house. 

The global electric car party is still raging, but the US has decided to go home to bed early with a nice soothing cup of gasoline. New data shows worldwide EV sales hit 20.7 million units in 2025, up a healthy 20 percent from 2024.

That total was capped by a strong finish, with roughly 2.1 million EVs sold globally in December alone, underlining that momentum elsewhere remained intact through year-end. Almost everywhere on Earth people bought more electric cars. But in North America it’s a different story.

More: If You Think EV Sales Are Dead, You’re Probably Staring At The Wrong Map

China remained the heavyweight champion with 12.9 million EVs sold, up 17 percent. Europe turned into the surprise star, rocketing ahead by 33 percent to 4.3 million units. Even the rest of the world got in on the action with a massive 48 percent surge to 1.7 million units.

Much of that growth outside the traditional EV strongholds was fueled by a flood of Chinese-built models, as domestic price competition pushed manufacturers to look overseas.

Then we get to North America, which managed a rather awkward 4 percent decline, Rho Motion reports. And it would have been worse if Mexico’s EV sales hadn’t grown 29 percent thanks to an influx of cheap Chinese cars.

In the US, that annual decline masked a sharp late-year swing, with buyers rushing to lock in incentives before September, followed by a steep pullback once those credits disappeared.

Tax-Credit Carnage

The removal of federal tax credits at the end of September pulled the rug out from under the US market, and buyers reacted exactly as you might expect, meaning that EV sales for the full year grew by just 1 percent. Sales spiked in August and September as incentives wound down, then collapsed in the final quarter, dropping nearly 50 percent compared with the previous quarter.

But in Canada, which lost its EV incentives much earlier in 2025, full-year sales tanked by 49 percent.

Analysts now predict US EV sales will shrink by almost a third in 2026. No wonder Ford is scrapping its F-150 Lightning in favor of a hybrid and Ram opted not to bring an electric truck to market at all.

Europe Keeps Plugging In

Across the Atlantic the mood could not be more different. Europe sprinted ahead thanks to stronger subsidies and looming emissions rules. Germany jumped 48 percent and the UK rose 27 percent.

Even France managed to finish the year in positive territory after a slow start. That late recovery in France was driven largely by renewed consumer incentives, after months spent underwater earlier in the year.

Other regions quietly delivered impressive numbers too. Southeast Asia almost doubled sales, South and Central America grew by 49 percent, and South Korea enjoyed a 50 percent rise thanks to new models and government incentives.

Japan, however, stayed stubbornly loyal to hybrids, proving not every country is ready to go fully electric. EV penetration there remained stuck at around 3 percent for yet another year, despite steady gains elsewhere in the region.

Incentives Are Key

The message from the data is clear. Around the world the EV transition is still accelerating, but America had a taste and decided that, without financial sweeteners, it preferred the old menu. Whether that’s a temporary pause or a long detour will depend on politics, prices, and what carmakers do next.

EV sales by region 2025

Data: Rho Motion

People hold Greenlandic flags as they gather to march in protest against U.S. President Donald Trump and his announced intent to acquire Greenland on Jan. 17, 2026 in Nuuk, Greenland. (Photo by Sean Gallup/Getty Images)

WASHINGTON — President Donald Trump showed no signs Tuesday of backing off his goal to acquire Greenland, after saying over the weekend he would place a 10% tariff on eight European countries that object to his plans and posting several times on social media.

Trump’s insistence that the United States gain control of the Arctic island from Denmark came just hours before he was set to travel to Davos, Switzerland, to meet with other world leaders at the World Economic Forum.

Trump said during an afternoon press conference that threatening tariffs on allied countries that oppose his plans is “the best, the strongest, the fastest, the easiest, the least complicated” way to obtain Greenland. 

Trump said he has “other alternatives” and that people will “find out” how far he’s willing to go to make Greenland part of the United States, though he seemed somewhat optimistic he can reach a deal. 

“I think that we will work something out where NATO is going to be very happy and where we’re going to be very happy,” Trump said, referring to the military alliance founded after World War II. “But we need it for security purposes, we need it for national security and even world security. It’s very important.”

Trump said he plans to talk with people living in Greenland when asked about residents not wanting to become part of the United States.

“I haven’t spoken to them,” Trump said. “When I speak to them, I’m sure they’ll be thrilled.”

Trump posts about Greenland repeatedly

Trump posted on social media numerous times earlier Tuesday and throughout the weekend, pressing other leaders to help him secure Greenland, despite ongoing opposition. 

“I had a very good telephone call with Mark Rutte, the Secretary General of NATO, concerning Greenland,” Trump posted at 12:26 a.m. “I agreed to a meeting of the various parties in Davos, Switzerland. As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back — On that, everyone agrees!” 

Trump posted an altered image of him showing a map to European leaders that had a version of the U.S. flag covering Canada, Greenland and Venezuela. He also posted a fabricated image of him planting the U.S. flag in Greenland and declaring it a territory with Vice President JD Vance and Secretary of State Marco Rubio standing behind him. Both were published around 1 a.m.

Trump posted screenshots of text message conversations with Rutte, who pledged to find “a way forward on Greenland” as well as French President Emmanuel Macron, who told Trump that he does “not understand what you are doing on Greenland,” and asked to set up a dinner in Paris with other world leaders to discuss the issue this week. 

Trump said during his press conference that he didn’t intend to accept Macron’s invitation. 

“No, I wouldn’t do that,” Trump said. “Because, you know, Emmanuel is not going to be there very long and, you know, there’s no longevity there. He’s a friend of mine. He’s a nice guy. I like Macron. But he’s not going to be there very much longer as you know. And I think I have meetings with the people that are directly involved.”

Island of Diego Garcia

Trump posted to social media again around 1:38 a.m., this time criticizing the United Kingdom over its plans “to give away the Island of Diego Garcia, the site of a vital U.S. Military Base, to Mauritius, and to do so FOR NO REASON WHATSOEVER.”

“There is no doubt that China and Russia have noticed this act of total weakness. These are International Powers who only recognize STRENGTH, which is why the United States of America, under my leadership, is now, after only one year, respected like never before,” Trump added. “The UK giving away extremely important land is an act of GREAT STUPIDITY, and is another in a very long line of National Security reasons why Greenland has to be acquired. Denmark and its European Allies have to DO THE RIGHT THING.”

A BBC news article from September 2024, where one of its reporters was granted access to the island, notes that “Diego Garcia is one of about 60 islands that make up the Chagos Archipelago or British Indian Ocean Territory (Biot) – the last colony established by the UK by separating it from Mauritius in 1965. It is located about halfway between East Africa and Indonesia.”

The U.K. and U.S. originally signed a 50-year lease in 1966 that was later extended for 20 years and is set to end in 2036, according to the BBC article. 

A U.S. military website states that access to “Diego Garcia is restricted, requiring area clearance by U.S. Navy Support Facility Diego Garcia.”

Tariffs, text messages, Nobel Peace Prize

Trump posted on social media Saturday that he would place a 10% tariff on goods coming into the United States from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom before increasing that to 25% in June if the countries continue to oppose his attempts to acquire Greenland. 

Trump wrote the tariffs would stay in place “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”

Norwegian Prime Minister Jonas Gahr Støre released a statement Monday that he and Finland’s President Alexander Stubb sent a text message to Trump to express their opposition to his tariff announcement. 

“We pointed to the need to de-escalate and proposed a telephone conversation between Trump, Stubb and myself on the same day,” Støre wrote. “The response from Trump came shortly after the message was sent. It was his decision to share his message with other NATO leaders.”

Several news organizations, including PBS News reported that Trump sent a message to Støre stating that because he didn’t receive the Nobel Peace Prize he no longer feels “an obligation to think purely of Peace, although it will always be predominant, but can now think about what is good and proper for the United States of America.”

Støre wrote in his statement that he could confirm the text message conversation and reinforced that European leaders don’t believe the United States needs to acquire Greenland. 

“Norway’s position on Greenland is clear. Greenland is a part of the Kingdom of Denmark, and Norway fully supports the Kingdom of Denmark on this matter,” Støre wrote. “We also support that NATO in a responsible way is taking steps to strengthen security and stability in the Arctic. As regards the Nobel Peace Prize, I have clearly explained, including to president Trump what is well known, the prize is awarded by an independent Nobel Committee and not the Norwegian Government.”