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

Stellantis’ grand Lancia revival, or as they called it, ‘Renaissance’, has not exactly burst out of the gates. The new Ypsilon subcompact hatchback has struggled to gain momentum, which is not quite a surprise. Still, phase two is already taking shape, and it brings with it a familiar name. The Lancia Gamma is coming back.

More: Lancia HF Integrale Returns With White Wheels And Something To Prove

This time, it arrives as an electrified crossover, and our spies have spotted a prototype for the first time during winter testing. The test car reveals enough to give us a better sense of what to expect ahead of its official debut later this year.

Unlike the original Gamma, which was offered from 1976 through 1984 as a fastback saloon and coupe, the new model takes a very different route. It is now a crossover, effectively the Italian sibling to France’s DS No8. From the spy shots, the Gamma appears more upright than the DS, leaning closer to coupe-SUV territory than to a traditional crossover.

Design Direction Takes Shape

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At the front, expect familiar cues borrowed from the smaller Ypsilon. The split LED headlight layout looks set to return, joined by an illuminated T-shaped grille that, intentionally or not, brings to mind a Mandalorian helmet. Down below, the lower bumper intake has a clean, contemporary design and seems to incorporate active shutters flanking an ADAS sensor.

Down the sides, the surfacing closely mirrors the DS, right down to the door handles and mirror caps, though the Gamma appears to get slightly larger windows. The wheels look modest in size, which is usually a giveaway that this is not the upcoming HF performance version.

More: One Lancia Ypsilon HF Is Fast The Other Just Pretends

At the rear, heavy camouflage does its best to hide the details, but you can still make out the coupe-style rear glass flowing into what seems to be an integrated spoiler. An official teaser released in late 2024 indicates that the full-width LED taillights will adopt a T-shaped lighting signature, directing your eye toward the Gamma lettering across the sculpted tailgate. There are no visible tailpipes beneath the diffuser, reinforcing the likelihood that this particular prototype is fully electric.

Inside, expect a mix of premium and sustainable materials, along with Lancia’s signature “tavolino,” a mini round coffee-table integrated into the center console. The digital setup should include a 10.25-inch instrument cluster paired with a 16-inch infotainment display running the Lancia SALA system.

A Broader Powertrain Mix

Like the DS No8, the Lancia Gamma will sit on Stellantis’ STLA Medium platform and roll out of the Melfi plant in Italy. Both models were originally pitched as fully electric, but Stellantis has since recalibrated. Mild-hybrid and plug-in hybrid options are now part of the plan.

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

Looking at what Stellantis already has on the shelf, we can speculate on the powertrain lineup. The entry-level Gamma is expected to be powered by a turbocharged 1.2-liter mild-hybrid unit generating 143 hp (107 kW / 145 PS). At the opposite end, the Gamma HF could pack dual electric motors delivering up to 370 hp (276 kW / 375 PS), complete with AWD.

In terms of range, the larger 97 kWh battery pack could allow the Gamma to cover up to 435 miles (700 km) between charging stops.

Lancia has confirmed the new Gamma will arrive in 2026, so expect a steady drip of details over the coming months. It will later be joined by a new Lancia Delta in 2028, rounding out a three-model lineup for the revived Italian brand.

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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

Mercedes’ upcoming baby-G was supposed to be the cute, chunky electric-only gateway into G-Class ownership. But the automotive market is changing fast, and so are Benz’s plans, as it reacts to cooling demand for EVs in some markets, especially for its own electric cars. As a result, the boxy SUV will now come with hybrid power.

More: Mercedes Wants This Baby G-Wagen To Win Buyers The Big One Never Could

Internally nicknamed Little G, Autocar reports, the compact, GLB-sized, two-row off-roader is due in 2027 and will still be available as a pure EV. But a companion hybrid model is now in development, using the turbocharged four-cylinder from the latest Mercedes-Benz CLA sedan.

The change speaks to a wider reset inside Mercedes. The company has stepped back from its earlier EV-only plans, with CEO Ola Källenius confirming it will keep selling combustion models well into the 2030s to stay flexible across different markets. Tepid demand for the electric G-Class has, by most accounts, helped concentrate minds.

Read: Mercedes’ Electric G Flops So Hard It Could Change What Comes Next

The hybridized 1.5-liter unit is designed by Mercedes and built by Horse Powertrain in China, a joint venture involving Geely and Renault. Exactly how much kick it will deliver in the Little G is unknown, but the new CLA 220 hybrid makes 208 hp (211 PS) and 280 lb-ft (380 Nm) of torque, and gets to 62 mph (100 kmh) in 7.1 seconds.

In the CLA, the engine is paired with a gearbox-mounted electric motor that allows short periods of engine-off driving.

450-mile Range

Prefer your G a little more refined? The EV variant will reportedly come standard with two motors and all-wheel drive to preserve off-road credibility, Autocar says.

Also: Mercedes’ Smallest SUV Points To A Different Kind Of Compact Future

An 85 kWh NMC battery is tipped to deliver close to 450 miles (724 km) of WLTP range, which would be seriously impressive for something shaped like a luxury brick – it’s not far short of the CLA 350 sedan’s 418-479 miles (672-771 km) figures. The full-size electric G580 with EQ technology, you might recall, is only rated for 280 WLTP miles (450 km).

Regardless of powertrain, the Little G will be sold exclusively with four-wheel drive, and both versions are tipped to feature advanced torque vectoring capable of distributing drive to individual wheels to mirror the off-road ability of the larger G-Class.

Slab Sides

Where the baby G does follow its big brother’s lead, though, is in military-chic charm. Unofficial renders from Nikita Chuyko for Kolesa give us a credible idea of what the finished SUV could look like, showing round headlights, upright glass, three big side windows and a tailgate-mounted spare.

It looks like someone left a G-Class in the dryer too long, and the good news is the slow-selling G580 EV’s $163k price should also shrink, hopefully by around 50 percent.

Unlike many compact crossovers pretending to be rugged, the Little G is said to ride on a bespoke ladder-frame platform rather than sharing underpinnings with Mercedes’ electric GLC or C-Class.

That should help it take on the incoming Land Rover Defender Sport, the Little G’s most natural rival, though that gets a unibody structure. We can’t wait to see them duke it out in the dirt next year.

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Electric vehicles are turning into a proper migraine for the insurance industry. According to the latest report from collision management software provider Mitchell, repairable collision claims for EVs jumped 14% in the US and 24% in Canada during 2025.

What makes these numbers particularly jarring is the fact that EV sales growth slowed down in 2025 as government tax incentives expired and consumer interest shifted to hybrids. Cox Automotive estimates that new EV sales dropped approximately 2% in the US, with S&P Global Mobility reporting a 0.4% decline in new EV registrations.

More: Car Repair Costs Are Exploding And It’s Not Just About Tariffs

Even Tesla’s grip on the market loosened slightly, with its US market share slipping to 46.2% from 48.7% in 2024 as more competitors gained ground.

Rising Repair Complexity

Even so, the existing EV fleet is aging into more accidents, and the complexity of repairing them is becoming a logistical and financial hurdle for the repair industry.

Ryan Mandell, Mitchell’s vice president of strategy and market intelligence, explained: “Due to their dense electrical architectures, software-driven systems and interconnected, sensor-heavy designs, these vehicles require additional diagnostic and calibration operations when damaged that can add cost, complexity and cycle time to each repair.”

The “Plugged-In: EV Collision Insights” report also examined other electrified vehicles. Repairable claims for PHEVs increased 6% in the US and 26% in Canada in 2025. Mild-hybrid models (MHEV) recorded increases of 20% in the US and 29% in Canada. It is worth noting, however, that MHEV sales in the US surged 28% in 2025.

Also: Why Even The Smallest Accident Is Designed To Destroy Your Wallet

Across North America, British Columbia recorded the highest EV repair demand at 8.48%, followed by Quebec at 8.21% and California at 6.58%.

Which Models Top The Claims List?

Looking at individual models, Tesla continues to dominate claims volume. In the US, the Model Y accounts for 30.32% of repairable BEV claims, followed by the Model 3 at 27.01%, meaning the two together represent more than half of all such claims. The pattern is similar in Canada, although the positions are reversed, with the Model 3 at 26.03% slightly ahead of the Model Y at 25.91%.

The Economics Of Fixing An EV

There is at least one sliver of good news. On the repair side, the average cost to fix an EV fell 5% in the US, from US$ 6,707 to US$ 6,395, and declined 2% in Canada in 2025. ICE-powered vehicles and PHEVs remained largely flat in the US, while MHEVs saw their average claim cost rise 4%, from $4,865 to $5,054.

Nevertheless, the higher repair complexity of electrified vehicles is reflected in their “calibrations per estimate” rating, which tracks how often sensors and systems must be recalibrated after repairs. In 2025, the average number of revisions was 1.70 for EVs and 1.63 for hybrids, compared to 1.54 for ICE-powered vehicles.

Mitchell’s data also shows that 86% of EV parts dollars go toward OEM components, with only 13% of parts deemed repairable rather than replaceable. For ICE-powered vehicles, 62% of parts dollars go to OEMs, and 15% of components are considered repairable.

The Depreciation Trap

Mitchell also reported that total loss market values declined across most powertrain types in 2025, with EVs seeing the sharpest drops. In the US, EV values fell 6%, from US$ 30,126 in 2024 to US$ 28,185 in 2025. In Canada, they dropped 13%, from CA$ 41,775 to CA$ 36,504.

More: China’s EV Boom Is Cooling, And The Big Names Are Feeling It

By comparison, ICE vehicle values declined 2.55% in the US, from $14,241 to $13,887, and 6.12% in Canada, from $17,049 to $16,005. Hybrids presented a more mixed picture, with US values rising 4.18%, from $18,453 to $19,225, while Canadian values fell 4.40%, from $30,268 to $28,938.

Analysts attribute the steeper EV declines to accelerated depreciation, the arrival of more budget-friendly models, and shifts in consumer sentiment.

The Jeep Avenger might still seem fresh to many drivers, but Stellantis isn’t waiting around. Just a few years after its 2023 debut, the small SUV is already heading for a mid-cycle refresh. The updated model is expected to arrive in early 2027, and now, we’re getting our first look.

Caught during cold-weather testing in Europe, a camouflaged prototype hints at what Jeep may be changing on its smallest offering.

Review: Jeep Avenger EV Is A Fun Little Gem That’s Too Small For US

The development vehicle wears a full wrap with Jeep-branded graphics, doing its best to hide the details. But through a few narrow openings, the split LED headlights and cooling intakes seem to be in exactly the same spots as before. One noticeable adjustment, though: the fog lights have shifted slightly lower in the front bumper.

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The sculpted profile of the Avenger will most likely be carried over from the current version. Still, the plastic cladding might get a mild revision, and we’re expecting some new alloy wheel designs and exterior colors to freshen things up.

Review: Jeep Avenger Proves ICE And Manual Combo Can Still Be Compelling

At the back, the prototype doesn’t seem to wear any redesigned panels, although this could change as we move closer to the launch date. The single tailpipe suggests that the turbo 1.2-liter three-cylinder gasoline engine lies under the hood, either in non-electrified or mild-hybrid forms.

What To Expect Inside

Our spy photographers managed to get a glimpse inside the cabin, though Stellantis engineers didn’t make it easy. Everything from the dashboard to the door panels and seats was concealed beneath vinyl. The SUV still appears to feature the free-standing infotainment display, positioned separately from the digital instrument cluster. Even so, the effort to hide it all suggests that changes are coming.

It remains to be seen whether Jeep will add softer materials instead of the hard plastics of the current model, at least on the main touchpoints. We also expect that equipment will be updated with the latest connectivity and safety tech from the Stellantis parts bin.

As for the mechanical side, it’s too early for specifics, but there’s no sign of a major overhaul. The current Avenger offers internal combustion, mild-hybrid, and fully electric options, and that lineup will likely continue. An all-wheel-drive variant is already available through the mild-hybrid 4xe trim, and that setup should carry over.

More: Jeep’s Smallest SUV Will Be Built In South America With A Local Twist

The Avenger rides on Stellantis’s updated CMP/eCMP platform, shared with several other models including the Alfa Romeo Junior and Fiat 600. It also underpins the Lancia Ypsilon, Opel Corsa and Mokka, Peugeot 208 and 2008, and DS3. That shared DNA means many of the same components and configurations are likely to remain in play for the refresh.

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We’ll keep watching the test fleet as Jeep continues development. With any luck, the next round of spy shots will reveal more by shedding some of the camouflage.

Outside of Europe, the smallest Jeep is getting ready for a wider rollout. Production will soon begin in Brazil, where the Avenger will be offered with region-specific updates. In fact, this camouflaged prototype might not just preview a facelift for Europe, it could also be part of the testing program for a localized South American version with its own powertrain changes.

When Mazda rolled out the gorgeous Iconic SP concept in 2023, the enthusiast collective brain immediately screamed “new RX-7 confirmed!” Now yet another interview with Mazda execs is gently fanning those flames again, but serving it with a generous helping of cold financial reality.

In a recent chat, Mazda insiders made it clear the idea of a rotary sports car is not locked in a dusty basement drawer and that the company’s workforce would love to crank out a new RX-7-style flagship.

Related: Mazda’s RX-7 Successor Meets The One Problem It Can’t Engineer Away

“The amount of car enthusiasts in this company is insane,” Mazda Europe’s planning chief Moritz Oswald told Auto Express. “Everybody loves cars, so of course there is a deep desire to keep on launching emotional products.”

Profit Is The Priority

The problem is passion doesn’t usually balance spreadsheets, and while no one doubts Mazda could deliver a great $100k sports car, guaranteeing that it would sell in sufficient quantities to make a decent profit is another matter altogether.

“So are we looking into [the Iconic SP]? Yes, of course,” Oswald continued. “But again, we are also a company that has to bring in revenues,” he aded, making clear that the MX-5 is “still our halo car.”

Christian Schultze of Mazda Europe’s R&D team also poured water on the RX-7 dream in the same Auto Express story, stating that “Mazda stands for cars for ordinary people,” not wealthy Porsche owners.

True rotary sports car

But Schultze did hint that if Mazda ever did build something like the SP, it could have a much better powertrain setup than the concept, which used its rotary engine only as a generator to power the 365 hp (272 kW / 370 PS) electric motors that turned the car’s road wheels.

“If you want to have it more sporty then maybe you look rotary plus a more sporty oriented hybrid, more parallel hybrid rather than a series hybrid,” said Schultze. “Because people who cherish the engine, they want to feel the power of the engine directly, not only listen to it.”

What Happened To “Coming Soon”?

This downbeat, pragmatic intel from Mazda Europe paints a very different picture of the SP’s future than the one presented by Masashi Nakayama, Mazda’s design chief, in November 2024.

“This concept is not just one of those empty show cars,” Nakayama said at the time. “It has been designed with real intent to turn it into a production model in the not-so-distant future.”

What feels more realistic to us is the Iconic SP acting as a design preview for the next MX-5. Not the full rotary fantasy, maybe, but still a pretty tasty compromise. And last year’s 503 hp (375 kW / 510 PS) Vision X four-door coupe concept hinted that we could still see a performance rotary powertrain in the near future, though probably not in a two-seat sports car.

Mazda

Genesis started out life as a high-end Hyundai, but it was eventually spun off as a luxury brand. The two companies have continued diverging ever since and a big differentiator is coming next year.

It’s a bespoke platform, which promises to deliver performance and refinement worthy of a premium brand. The architecture has reportedly been designed to be flexible and can accommodate both hybrid and electric powertrains.

More: There’s A V8 Under This Genesis Coupe That’s Breaking Every Rule It Can

Speaking to Autocar, Genesis Motor Europe’s Managing Director Peter Kronschnabl said, “It was decided that in order to fulfill the requirements of the brand’s driving dynamics, Genesis needs its own platform for … future models.”

Kronschnabl went on to suggest the architecture will be sporty as it will have “relatively direct steering” as well as a ride that’s firm, but comfortable. He added the new platform should enable Genesis to deliver driving dynamics that echo that of other premium brands.

It remains unclear what models will ride on the new architecture, but Genesis is working on an assortment of new vehicles including a high-performance sports car that was previewed by the Magma GT concept. The luxury brand is aiming to increase annual sales to 350,000 units by 2030 and this will be aided by the introduction of new hybrid, electric, and range-extended vehicles.

However, Kronschnabl suggested Genesis won’t go overboard and try to fill every niche known to man. As he explained, “We are not into that. At the moment, it’s very clear and segmented: we have the GV60, GV70 and the Electrified G80, and even with the new products we will not go to find the last niche, because this leads to confusion of customers.”

The average new car now stands at $50k, and that’s a stretch too far for many American drivers, who in some case have drifted to used lots and rival brands. But Ford wants to throw them a lifeline, well, actually five lifelines, promising a wave of sub-$40,000 vehicles before the end of the decade.

Ford executives told retailers at this week’s NADA Show meeting that five new models priced under $40k will join the lineup by the end of the decade, Automotive News reports. That is not just one bargain hero car, but a whole lineup.

Related: Ford Just Killed A Popular SUV And Dealers Are Not Happy

The first arrival is one we already know about, a midsize electric pickup coming next year, a truck dealers are already buzzing about. Previous reports suggest it could land around the $30k mark, which in today’s market qualifies as almost suspiciously affordable and could leave startup Slate’s electric truck dead in the water.

Cross-Segment

But Ford’s plans go far beyond one electric truck. Andrew Frick, who heads up Ford Blue and Model e, told Auto News the new products will span cars, trucks, SUVs, and vans with a mix of powertrains. These will be brand new nameplates, not just cheaper versions of existing models.

“It will be across our lineup of cars, trucks, SUVs, vans, and it will be multi-energy,” Frick said. “That’ll start to fill in the product side, but we have work to do to help affordability in the near term more tactically.”

That sounds great, but dealers still have some short term pain to manage.

Short-term Gap

A big hole in the lineup is centered around the Escape (pictured below). Ford stopped building its entry level crossover in December, and although dealers still have stock to sell, at some point this year they’ll be left with a gap right where many first time and budget focused buyers used to land.

“We understand we’ll be selling Escape into this year, but at some point we’ll run out,” Frick explained. “That does not mean we cannot continue to drive profitable growth through the nameplates we have.”

Dealers have been clear they would love a proper replacement, and while they are dreaming, maybe even an affordable sedan too.

In the meantime, Ford plans to push more entry level trims of models like Explorer and Bronco, lean harder on certified pre owned cars, and offer longer loans and first-time buyer programs. Frick told said there are about 10 separate actions in motion to tackle affordability, so the next time you head down to your Ford dealer, don’t be afraid to bargain hard.

Volkswagen is investing a significant amount of money to revive the Scout brand and is facing costly overruns. Still, the gamble might be paying off, as early demand for the upcoming Terra pickup and Traveler SUV has been unexpectedly strong.

In a recent interview, a company spokesperson confirmed that more than 150,000 reservations have been placed across the two models. It’s worth noting, though, that these are fully refundable, so as always, there’s a gap between raising a hand and writing a check. Still, for a vehicle that doesn’t yet exist beyond concept form, that’s a solid show of intent.

Read: Scout Concept Rethinks What Actually Belongs On The Back Of An SUV

Of those reservations, Scout CEO Scott Keogh told InsideEVs that roughly 85 percent are for the extended-range models, with only 15 percent opting for the pure EV variants.

A Telling Preference

The decision to launch both the Terra and Traveler as extended-range electric vehicles (EREVs) appears to have struck a nerve. Dubbed the “Harvester,” these versions use a compact four-cylinder generator mounted at the rear, paired with a 63 kWh lithium-ion battery and an electric motor. The result is a combined range of over 500 miles, which clearly resonates with customers wary of battery-only limits.

According to Keogh, Scout has been surprised by just how popular the EREV options are proving. “We felt very good about it,” he said. “Did I think it was 85/15? No. I thought it might be more 60/40, let’s put it that way.” 

He went on to point out that Scout’s call to go EREV from day one has since been echoed by announcements from other major brands, including Ford, Hyundai, Kia, and Jeep, all of whom are preparing range-extender models of their own.

“We felt good about it, and we still do obviously feel good about it,” he added. “We feel better about it now, because, let’s be honest, when you’re all alone, you feel good, but you’re still a little bit alone. Now that others have made similar announcements, it’s like, okay, yeah, people are jumping in.”

All future Scout models will be built at a plant in Blythewood, South Carolina. This site was initially expected to cost $2 billion, but according to a new report, that figure has ballooned to $3 billion. Production of the Terra and Traveler is scheduled to begin in 2027.

IM Motors, the upscale joint venture from MG and Chinese e-commerce giant Alibaba, has pulled the covers off its latest flagship. Named the LS9 Hyper, this SUV builds on the standard LS9 that debuted last year, layering in high-spec upgrades aimed at Chinese buyers who want their tech-laden luxury served in insulated comfort.

Read: ‘IM Presented by MG Motor’ Might Be The Most Ridiculous Car Brand Name Yet

Whereas IM Motors’ smaller offerings like the IM5 and IM6 go all-in on battery-electric power, the LS9 Hyper takes a different route. It’s a range extender rather than a full EV. Under the hood is a 1.5-liter turbocharged four-cylinder engine with 153 horsepower, but its only job is to recharge the 65.9 kWh battery.

Power is delivered through a single 215 hp electric motor at the front axle, backed up by two 261 hp motors at the rear. This setup offers an estimated all-electric range of 191 miles (308 kilometers). The three electric motors also provide torque vectoring, though we don’t think many owners will be hustling this beast through the corners.

The LS9 Hyper also debuts a clever all-electric, all-wheel 24-degree smart steering system, believed to be a first for a vehicle in this class. It achieves a turning radius of just 4.95 meters (16.2 feet), roughly two meters tighter than a Smart ForTwo.

As you can no doubt tell from the photos, this thing is big. In fact, it is 5,279 mm (207.8 inches) long, 2,000 mm (78.7 inches) wide, and stands 1,806 mm (71.1 inches) tall with a massive 3,160 mm (124.4-inch) wheelbase.

The exterior design isn’t particularly noteworthy, but it does look classy. At the front, a light bar and vertically oriented headlights. It also includes a roof-mounted LiDAR and is available with 20-, 21-, and 22-inch wheels. Adding to the fancy looks are silver accents running along the base of the side and rear windows.

Many of the fancy MG’s best features are found in the cabin, which hasn’t been revealed yet, though it’s expected to mirror the LS9 shown here. There’s a single 27.1-inch display, encompassing the cluster and infotainment screen, as well as a separate 15.6-inch monitor for the front passenger.

Audiophiles will have plenty to enjoy with the Bang & Olufsen sound system, while all occupants benefit from massaging seats and an underfloor heating system. Rear-seat passengers aren’t overlooked either, with access to a 27-inch 5K display that folds down from the headliner.

And in case that’s not quite enough, as with the regular LS9, IM will also offers the option of an integrated shower unit built into the tailgate.

The Toyota Corolla, the best-selling nameplate in automotive history, is gearing up for a major evolution for its 13th generation. This next iteration of the compact is expected to merge a more futuristic design with a broad range of powertrain options, including hybrid and, for the first time, fully electric. If all goes according to plan, this will be the most ambitious overhaul in the model’s six-decade run.

More: You Won’t Be Seeing These Stretched 2026 Corollas Over Here

Toyota offered a taste of that future with the radical concept unveiled at the 2025 Japan Mobility Show. While visually striking, the concept’s design leaned heavily into the avant-garde, raising doubts about how much of it would survive into production.

Is This What It’ll Really Look Like?

In response, digital artist Theophilus Chin stepped in with speculative renderings that balance the bold with the believable. His vision softens the extremes, wrapping forward-thinking design in a more grounded four-door sedan shape.

Theottle

The illustrations are actually based on the Lexus IS, implementing elements from the Toyota Crown Sedan before adding the signature styling features of the Corolla concept.

At the front, the design retains the hammerhead-style headlights introduced on the concept, now joined by additional daytime running lights integrated into the bumper. Below that sits a slim air intake, nestled under a full-width LED bar.

More: We Think We Know What Toyota Teased, And It Could Carry A Familiar Name

According to Toyota’s own designers, combustion-powered variants would require certain functional tweaks. This likely explains some of the more pragmatic adjustments in Chin’s version.

In line with that approach, several of the concept’s more dramatic features have been reined in. The low-slung hood and ultra-modern glasshouse have been scaled back to better suit a road-going car. Wheel sizes are more modest, and the flush door handles have given way to conventional ones. Even so, the side profile keeps its complexity, with angular character lines.

The biggest change is at the rear, where the concept’s futuristic tail has been swapped for a more conventional sedan layout, likely to align with mainstream Corolla tastes. Even so, the clean roofline, slim full-width LED taillights, subtle spoiler, and sharp surface work give it a more contemporary look than the current generation of the sedan

Did The Concept Take It Too Far?

Toyota Corolla Concept

The original concept was developed by Toyota’s European design center in France, signalling a radical shift for the popular nameplate. However, while the prospect of big changes sounds exciting, history suggests automakers tend to proceed cautiously with high-volume, globally popular models.

It wouldn’t be surprising if Toyota tempers the wildest aspects of the concept for the production version. Still, there’s always the chance they’ll take a bigger leap than expected.

What remains unknown is whether the new generation will follow the current model’s multi-body format. At present, the Corolla is sold globally as a sedan, hatchback, and estate, offering broad appeal across markets and use cases.

Toyota Corolla Concept

Besides the futuristic exterior, the concept came with a completely reimagined interior combining the latest technology with more premium materials and added space. Toyota’s messaging suggests they’re looking to elevate the segment, but production models are likely to tone things down for cost, practicality, and manufacturing scale.

Under The Skin

Toyota has not yet released technical specifications for the next-generation Corolla, but it did confirm the model will continue under its “multi-pathway” strategy, supporting multiple types of propulsion.

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The lineup will offer both hybrid and fully electric powertrains to suit a wide range of global markets. Likely options for the hybrid system include new 1.5-liter and 2.0-liter four-cylinder gasoline engines currently in development, aimed at delivering more power with improved efficiency.

Designers have also stated that interior space will remain consistent across all variants, regardless of the drivetrain.

Given the driver-oriented nature of the current TNGA platform and Toyota’s steady evolution in chassis tuning, the next Corolla could offer a more rewarding experience behind the wheel. Comfort and usability remain priorities, but added sharpness wouldn’t come as a surprise.

A performance version from Gazoo Racing is also a strong possibility, serving as a spiritual successor to the rally-ready GR Corolla.

When Are We Going To See It?

The current 12th-generation Toyota Corolla debuted in 2018, with a mild mid-cycle update arriving in 2022. That timeline suggests the next generation could appear in 2026 or 2027, though Toyota has not yet confirmed a launch date.

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.

After bombarding us with EV news earlier this month, including the reveal of the new EV2 and several GT performance models, Kia is showing us that it hasn’t forgotten about its combustion and hybrid models. It’s dropped three images of a compact 2027 Niro crossover fresh from a mid-life makeover.

Related: Kia Might Offer A Manual K4 Hatch In America, But The Wagon’s Another Story

But there’s still an EV connection to this news, and not just because Kia still sells the Niro with an optional pure electric powertrain. Kia’s designers clearly had the automaker’s sharper-suited electric SUVs in mind when they picked up the scalpel for the Niro update. The front end of the updated Niro borrows heavily from models like the EV2, 3, 5 and 9.

The new nose is squarer and more upright, and it adopts the wishbone-shaped DRLs of its electric brothers. Kia has even managed to draw attention away from the air intakes the combustion car’s radiator needs by giving the Niro an EV-style body-color band between the headlights.

There are no major changes to the central body structure and doors, but  the designers have definitely been busy at the rear end. The Niro doesn’t take on the EV models’ Y-shaped taillights, but it does get an entirely new hatch that looks far cleaner and more modern.

Review: Before You Buy A Small SUV, Look At Kia’s 2026 K4 Turbo Hatch First

It’s similar to the one on the ICE-powered Sportage SUV, and that means the license plate has been moved down to the rear bumper. We can also see a new black panel that echoes the boomerang shape of the rear lights, and the whole shebang rides on new 18-inch wheels, Kia says.

Screen Refresh

The updates aren’t restricted to the Niro’s exterior. Inside, it gets a redesigned upper half of the dash featuring same conjoined, twin-12.3-inch digital displays you’ll find on the numbered EV models and also the latest Sportage, plus a new-look two-spoke steering wheel.

Hybrid or EV?

Kia revealed the Niro’s new look in Korea, adding that we’ll find out more about the MY27 crossover in March. So we might have to wait until then to learn whether there are any changes to the drivetrain.

The current Niro comes with a choice of 139 hp (141 PS) 1.6-liter hybrid and 180 hp (183 PS) 1.6 plug-in hybrid petrol engines, though it’s also available in some markets as a 201 hp (204 PS / 150 kW) EV with a 253-mile (407 km) EPA range.

A Kia official said, “The New Niro, which has maintained its heritage as the first eco-friendly SUV, will provide high customer satisfaction with excellent usability based on practical value as well as a high-quality design that reflects the latest trends.”

It appears you can add Mazda to the growing list of automakers that have delayed electric vehicles in the wake of lower than expected demand. According to reports out of Japan, the company’s first dedicated EV has been pushed back until at least 2029.

Details are still murky, but Autonews cites Nikkei and Nikkan Jidosha as saying that production has been delayed by at least two years. Instead, the company will reportedly turn its attention to more popular hybrids.

More: Mazda’s New EV Caught Testing In America

While a spokesperson said Mazda hasn’t officially announced anything, they didn’t exactly deny the reports either. Quite the opposite, as in a statement to Autonews, they said, “We continue to advance the technological development of our proprietary BEVs based on our multi-solution strategy, and will determine the timing of their introduction while carefully assessing regulatory trends in each country and changes in customer needs.”

This suggests launch plans are still up in the air and could slip beyond 2027.

Test Mule Raises Questions

Baldauf

This is an interesting development as spy photographers snapped a mule undergoing testing in California late last year. The model wore a heavily modified CX-70 or CX-90 body and featured a fully enclosed grille as well as blocked off air curtains. The vehicle was said to be roughly the same size as the CX-50, but narrower than the body suggested.

Little is known about the EV at this point, but it’s slated to ride on the Skyactiv EV Scalable Architecture. The platform was originally announced in 2021 and was supposed to be introduced last year.

That obviously didn’t happen and it appears plans to introduce several vehicles on the architecture between 2025 and 2030 are also in jeopardy. These were set to include “various vehicle sizes and body types.”

However, the situation has changed significantly in the past few years. In the United States alone, the Trump administration has enacted steep new tariffs and eliminated the clean vehicle tax credit. The latter has caused a significant drop in EV sales and a rethink by many automakers.

Nevertheless, Mazda isn’t giving up on electric vehicles as the company recently introduced the CX-6e in Europe. It’s a Chinese collaboration with joint-venture partner Changan, and the model has a lot in common with the Deepal S07.

The hugely important Chinese car market is continuing to prove challenging for foreign automakers. Chinese manufacturers are maintaining their dominance on the home front, as the world’s largest car market continues to move towards electric and plug-in hybrid vehicles.

Domestic demand for these so-called New Energy Vehicles rose by 18 percent in 2025. This contrasts with the situation in Europe and the US, where the slowdown in EV adoption steals the headlines.

Tech Wars

One reason why imported cars are falling out of favor is the ability of local carmakers to adapt and update to changing technologies on the ground at a much faster pace. As brands such as BYD, Geely, and Changan continue to battle each other on tech features, they’re leaving Western manufacturers in the dust.

Read: EV Makers Just Got A New Problem In China, And It Starts In 2026

The ability for Chinese automakers to not only develop and implement new tech, but also integrate seamlessly with other existing Chinese tech (such as the WeChat and AliPay “super apps”) is something that consumers value highly.

According to Xiao Feng, speaking to the Wall Street Journal, this could mean that foreign car makers could mostly be pushed out of the Chinese car market by 2030. Save for some big players, such as Tesla, Toyota, and VW, it’ll be hard for imports to compete on both features and EV tech.

Passenger Car Slowdown

Although the adoption of EVs and plug-in hybrids is moving forward rapidly, last year China’s passenger car market grew at its slowest pace in three years, scoring a 4 percent increase and a total of 23.7 million vehicles.

Meanwhile, EV sales have been bolstered by local subsidies, with 2025 incentives being up to $2,900 when consumers traded in their old car for an EV or plug-in hybrid. Some 11.5 million car sales were made through the trade-in incentive, although in December, new car sales reportedly fell by 14%, due to some localities “running out” of their budgets for the incentives.

See Also: BMW And Porsche Just Lost China’s Luxury Market To A $100,000 Newcomer

It’s reported that Beijing will be looking at curtailing subsidies in 2026. Meanwhile, fierce local competition continues to affect both local and foreign brands, with many competitors seemingly locked into a price war.

One study, conducted by the China Automobile Dealers Association, claims that only 30 percent of dealers remained profitable in the first half of 2025, with 75 percent of those surveyed admitting they sold at least a few cars below cost.

Foreign Car Makers Restructure

Last year saw the departure of Mitsubishi from the Chinese market, as the company opted to end all manufacturing and sales, while JLR also underwent a significant scaleback in its product offerings. VW stopped making cars at its Nanjing plant.

Even Tesla, arguably the strongest non-local player, saw sales drop by around 5 percent while it lost the world’s best-selling EV tag to BYD.

However, with China being the largest market, many others are choosing to restructure rather than abandon ship completely. Toyota is building a new Lexus EV plant in Shanghai, VW is ready to launch a whole range of China-specific models, and GM will offer all its products with either an EV or a plug-in hybrid option.

Saying the automotive world is in a bit of limbo may be an understatement. On one hand, you have the world’s largest market, China, accepting EVs and plug-in hybrids in even greater numbers than ever before. Meanwhile, in Europe, manufacturers are pulling back on their EV manifestos as the European Union provides some respite in the face of slower-than-predicted adoption.

Toyota, by contrast, has always been pro-ICE. For years, the company has questioned its competitors and governments, who have been advocating exclusively for electric vehicles. And while the company has shown off various plans for EVs, they’ve maintained a more balanced approach.

Read: Toyota GR GT Looks Like A Batmobile And Hits Like A Supercar

Now, it may be clear that Toyota wasn’t going to say goodbye to combustion without a fight, but we imagine not many would have predicted the unveiling of the GR GT: a production-slated halo supercar with a ferocious twin-turbocharged 4.0-liter hybridized V8 engine.

The Fight for Identity

In an era of tightening emissions regulations and downsized powertrains, the decision to green-light a V8 may seem almost rebellious. But for Toyota, the GR GT isn’t about volume or compliance alone. It’s about identity.

Nikkei Asia notes that the GR GT has been built without the assistance of Yamaha, unlike its spiritual forefathers, the 2000GT and Lexus LFA. “Automobiles, as an industrial product, are in danger of becoming commoditized,” says Toyota Chairman Akio Toyoda. “The engine still has a role to play,” underscoring the importance of the in-house powerplant.

The reality is that Toyota’s focus on keeping engines around will permeate throughout its lineup for the foreseeable future. In June 2025, Toyota convened suppliers at an internal combustion engine rally, where executives outlined plans to develop new engines, including high-output units, while maintaining overall engine production volumes through 2030.

It was a clear signal that Toyota sees a long runway for combustion, even as the market fragments.

Satisfying the Giants: US vs China

However, Toyota is still hedging its bets with EVs, especially when it comes to China. Over there, the car-buying population continues to march towards an all-electric future.

Toyota, like all foreign manufacturers, is feeling the pinch against local rivals. At a supplier event in Shanghai last summer, a Toyota executive drew rare applause by declaring, “In China, we will focus not on cars for the global market, but on cars made specifically for China.”

More: Toyota’s New Flagship bZ7 Sedan Is Here But Not For Us

He added pointedly that if Japan’s headquarters hesitated on investment, he would “explain things to them directly.”

That shift is already visible in the product lineup. The bZ3X electric SUV, launched in March 2025 through GAC Toyota, was co-developed with Guangzhou Automobile Group and uses cost-effective lithium iron phosphate batteries. Priced from 109,800 yuan or about $15,300, it surpassed 10,000 units in monthly sales by November. A bZ7 electric sedan is set to follow.

Hybrid Momentum in America

Back in the US, where EV adoption is not as clear-cut, Toyota is investing in hybrid production. The move is driven by strong demand as hybrids accounted for roughly 13 percent of new-vehicle sales in the U.S. during the third quarter of 2025.

Toyota opened its new battery plant in North Carolina on November 12. Toyota Motor North America President Tetsuo Ogawa called it “a pivotal moment in our company’s history.”

On the same day, Toyota announced plans to invest up to $10 billion over five years to expand U.S. production of hybrids and related components, boosting output at five American plants and reducing reliance on Japanese imports.

Is Betting on Everything the Smartest Bet?

Of course, building cars powered by everything from V8 hybrids to LFP-battery EVs is expensive. Toyota spent ¥1.3 trillion on R&D in the year ending March 2025, which is roughly on par with BYD, and well ahead of many rivals.

To manage the burden, Toyota has begun leaning more openly into partnerships, including work with NTT on AI-based crash prevention and a collaboration with Waymo on autonomous driving.

In a market increasingly obsessed with picking a single technological winner, Toyota’s refusal to do so may look risky. But if the global auto future really is plural rather than uniform, betting on engines, rather than shunning them, may yet prove to be the company’s most calculated move of all.

Ford may be pulling back on its EV spending, but it isn’t walking away from electrification. Instead, the company may be taking a different approach, and that path could lead through China. Specifically, Ford is reportedly in early talks with BYD, the Chinese automaker that recently overtook Tesla as the world’s top EV producer, to source batteries for its next hybrid models.

According to a report from the Wall Street Journal citing sources familiar with the discussions, nothing is finalized, and a deal may not materialize. But if it does, one idea under consideration is for Ford to begin importing BYD batteries for use in its factories outside the United States.

Read: Hold Your Horses, Ford Might Be Working On A Hybrid Pony Car

In response to the report, Ford didn’t confirm or deny the potential partnership. “We talk to lots of companies about many things,” the company told the newspaper. That kind of non-denial tends to say a lot without saying much at all.

BYD, while primarily known for its battery manufacturing in China, has been expanding its footprint globally, building production capacity in Brazil, Europe, and Southeast Asia.

Why BYD Might Be the Answer

The timing of these talks aligns with a major pivot inside Ford. The company recently took a $19.5 billion write-down after scaling back several electric vehicle initiatives, including high-profile battery joint ventures with South Korean firms SK On and LG Energy Solution. Alongside a renewed emphasis on internal combustion models, Ford plans to grow its hybrid lineup, an area where BYD already excels.

The Chinese company is one of the world’s largest producers of hybrid vehicles and battery packs for cars. Instead of launching new factories or reviving shelved partnerships, Ford might simply buy batteries directly, streamlining its supply chain as it targets a goal of having hybrids, plug-in hybrids, and EVs make up half of its global sales by 2030.

Will Washington Push Back on a BYD Deal?

Any such deal is unlikely to go over well with the Trump administration. Shortly after reports surfaced that Ford was speaking with BYD, top Trump trade advisor Peter Navarro hit out at the plan.

“So Ford wants to simultaneously prop up a Chinese competitor’s supply chain and make it more vulnerable to that same supply chain extortion?,” he wrote on X. “What could go wrong here?”

Meanwhile, Donald Trump took a different tack. Speaking to reporters in Detroit, the president said he welcomed foreign firms, including those from China and Japan, setting up shop in the States, as long as they employed American workers.

“You know, those tariffs are keeping the foreign autoworkers. Now, if they want to come in and build the plant and hire you and hire your friends and your neighbors, that’s great. I love that,” said Trump. ” Let China come in. Let Japan come in. They are. And they’ll be building plants, but they’re using our labor.

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