Hyundai has officially started construction on its first plant in the Middle East.
Located in Saudi Arabia, the plant is expected to open by the end of next year.
The facility will produce up to 50,000 electric and ICE-powered vehicles annually.
Automakers are flocking to setup shop in a new location and it has nothing to do with Trump’s tariffs. in fact, quite the opposite, as Saudi Arabia has emerged as the automotive production capital of the Middle East.
Things kicked into high gear in 2023 when Lucid opened Advanced Manufacturing Plant 2 in the Kingdom. It assembles the Air using semi-knock-down kits that are “pre-manufactured” at the company’s main plant in Casa Grande, Arizona.
However, the plant aims to become a fully fledged production facility later this decade. If everything goes according to plan, it will be able to build up to 150,000 vehicles annually, which will be sold in Saudi Arabia as well as export markets.
While the Lucid plant wasn’t surprising considering Saudi Arabia’s Public Investment Fund owned over 60% of the automaker at the time, Hyundai has now broken ground on a new plant in the King Salman Automotive Cluster within the King Abdullah Economic City. It will become the company’s first “production base” in the Middle East and it lays the “foundation for becoming a leading brand in Saudi Arabia.”
The plant is slated to open in the fourth quarter of 2026 and have an annual production capacity of 50,000 units. The company didn’t say what will be built at the facility, but confirmed it will make vehicles with electric powertrains as well as internal combustion engines.
The Hyundai Motor Manufacturing Middle East (HMMME) facility is a joint venture between the automaker and Saudi Arabia’s Public Investment Fund. The latter will have a 70% stake, while Hyundai controls the remaining 30%.
While Saudi Arabia is an unusual spot for automotive production, their sovereign wealth fund has been enticing automakers to setup shop in the country. The investments are part of a national development project known as Vision 2030, which seeks to diversify the economy. As part of this effort, Saudi Arabia wants to be less reliant on oil production and vehicle manufacturing is part of that.
House Republicans want to end federal tax credits for buying new and used EVs.
If successful, new buyers lose access to a $7,500 credit, and used buyers lose $4,000.
This change could put Tesla in an even stronger position in America’s EV market.
The first-mover advantage is something Tesla continues to capitalize on. It’s been over 20 years since the brand first launched, and no other automaker in the U.S. has even come close to challenging Tesla’s dominance in the EV space. Despite the growing competition, Tesla still holds a commanding market share, which hovers around 45%.
However, if House Republicans succeed in their push, the company’s position could be further strengthened, but at a cost to legacy automakers like Ford and GM. The reason? A looming change to the Federal Tax Credit that currently helps all EV makers sell vehicles.
The Current EV Tax Credit System
At the moment, those who buy a new or used EV in America might qualify for one of two credits. New car buyers can qualify for up to $7,500, and used car buyers can get up to $4,000. These credits are in addition to various state incentives, such as the $5,000 credit in Colorado and $3,500 in Massachusetts.
To be eligible, the vehicle must meet certain requirements, such as North American assembly and specific sourcing of battery materials. SUVs and pickups are eligible for the credit if priced under $80,000, while regular cars must be under $55,000. Income limits also apply: individuals making under $150,000 and couples under $300,000 qualify. For leased vehicles, the credit goes to the leasing company, which often (but not always) passes on the savings to customers, contributing to a rise in EV leases.
That might not seem like a huge chunk of change considering the price of some EVs, but in reality, it plays a huge role in sales. For instance, in 2022, before the introduction of the tax credit, 96,000 EVs were leased. By 2023, that number skyrocketed to nearly 600,000. But a recent budget bill released on Monday proposes ending both the new and used car credits, along with several other non-automotive tax incentives.
A Slower EV Adoption Could Hurt Major Automakers
According to a report from the New York Times, Cox Automotive’s Stephanie Valdez Streaty believes that almost a third of car sales in 2030 will be EVs if the credit stays as it is. However, should the government get rid of it, that figure could drop to just 20 percent. Slowing the adoption of EVs wouldn’t just be a potential backsliding for environmentalists, it could hit big automakers like GM and Ford in a big way.
Those brands are still trying to get to the point where their EV businesses are profitable. And their far from it with their numbers. On the other hand, Tesla hit that mark long ago, so while other players will need to sort out new strategies, it can continue to reap the benefits of being the first to market in the way it was.
Other legacy automakers, such as Toyota, Hyundai, and Kia, have made significant investments in U.S.-based EV production, but they too could face a major setback if the bill passes. The removal of these credits would undermine the financial viability of the incentives that made their business cases profitable.
EV Startups Face Even Greater Financial Pressure
Although Tesla would also be impacted by the removal of the tax credit, it stands to gain in ways its rivals cannot. While Tesla may be able to withstand lower sales, many of its competitors will not have that luxury and could be forced to shut down. Newcomers like Rivian and Lucid, for example, would face immense financial pressure as their sales figures don’t support a profitable business model.
Even smaller, more recent startups like Slate would likely have to review their entire business plan. What, after all, is the point of a tiny EV trucklet with 150 miles of range, no desirable mainstream features, and a price that is as high as a Ford Maverick?
In the grand scheme, while Tesla will undoubtedly be affected, the long-term payoff could be substantial. It may emerge as the dominant force in the EV market with little to no competition to contend with. In other words, instead of having 45% of the EV market’s 33% of car sales, it could end up with double that of the predicted 20%.
In the grand scheme, Tesla will undoubtedly face challenges, but the long-term payoff could be massive. It might emerge as the dominant force in the EV market with little to no competition to contend with in America. Instead of holding 45% of the EV market’s 33% share of total car sales, Tesla might dominate nearly the entire 20% share that EVs are expected to capture in the 2030s if tax credits vanish, while also further extending its technological lead in the field.
“What this does globally to the U.S. auto industry and its ability to compete – I think it’s going to hurt us,” Ms. Valdez Streaty said. “I think it’s going to slow us down, and we are already behind China.”
Stellantis is delaying its electrified trucks due to a market slowdown and to fix quality niggles.
The all-electric 1500 REV will now arrive in 2027 as a 28MY, four years after its debut.
Even the Ramcharger hybrid is pushed back to 2026, having been promised for late ’24.
We’ve got some bad news for Ram fans who were hoping to jump into one of the automaker’s two new electrified trucks. Both have been delayed again, their production debuts having already been pushed back at least once.
The all-electric 1500 REV and hybrid Ramcharger both had their global reveals back in 2023 and were originally slated to enter production in late 2024. That date was then pushed back to 2025, but now truck fans face an additional wait of up to two years to get their hands on one of the hi-tech pickups.
Stellantis has delayed the Ramcharger’s introduction to the first quarter of 2026 and the REV won’t now land in dealerships until the summer of 2027 as a 28MY truck. The delay was first reported by Crain’s Detroit Business, which discovered two different reasons for the hold-ups.
The Ramcharger delay is due to Ram “extending the quality validation period” to get a handle on some quality niggles, a Stellantis spokesperson told CDBvia email. Though the rep didn’t expand on what kinks needed straightening, the powertrain – an electric motor and battery setup charged by a massive combustion V6 – is an entirely new one for the automaker.
Stellantis makes no suggestion that the delay of the 1500 REV is related to quality issues with its fully-electric powertrain. Instead, the spokesperson places the blame squarely on market forces, specifically a “slowing consumer demand” for half-ton BEV pickups.
With technology and customer expectations evolving so quickly these days, let’s just hope the trucks still feel fresh and exciting when they finally start rolling off the line in Sterling Heights, Michigan – several years later than originally planned.
While the delays are disappointing, at least the trucks haven’t been canned altogether like the heavy-duty electric pickup Ram scrapped last year. And there is still plenty of good news coming out of Ram right now. We reported a few weeks back that the brand promised to announce 25 new products over the next 18 months, and the first one is scheduled for June 8.
One of those new models is a smaller truck, though it’s still unclear whether it will go into battle with midsize pickups like the Ford Ranger, or take aim at the small Maverick.
Honda delays its $15 billion investment in Canada due to slowing EV demand.
The postponement affects plans for a 240,000-vehicle EV plant and battery facility.
EV sales continue to rise in Canada and the US, despite lower-than-expected growth.
In April of last year, Honda unveiled plans to invest CA$15 billion (US$11 billion) into a full-fledged electric vehicle supply chain in Canada, which would include an EV plant and a standalone battery facility in Ontario. Fast forward 12 months, and the auto industry is a very different landscape, thanks in part to Donald Trump’s return to the Oval Office. As a result, Honda is now pushing back its Canadian EV investments by “approximately” two years.
In a letter sent to Honda shareholders, the automaker attributed the delay to the current slowdown in EV demand. The company reassured investors that it’s keeping a close eye on market trends but stopped short of providing a specific timeline for when the project will get back on track.
Honda’s CEO, Toshihiro Mibe, explained during a quarterly earnings press conference that the company will need to “observe what is happening” over the next two years before making any final decisions on the timing of the project. Meanwhile, Honda Canada spokesperson Ken Chiu told CTV News that there are no plans to cut production or jobs locally, despite the delays.
EV Sales Still Climbing, Just Not as Fast as Expected
While Honda claims the postponement is due to a slowdown in EV demand, the reality is that EV sales are still rising in both Canada and the US. In fact, battery-electric vehicles accounted for 11.4% of all new car sales in Canada last year, and 8.1% in the US. True, demand hasn’t accelerated as rapidly as many hoped, prompting automakers to reconsider their EV strategies, but it’s not as though EVs are suddenly unpopular.
A Delayed Investment with Major Implications
Honda’s CA$15 billion commitment was previously hailed by former Prime Minister Justin Trudeau as the “largest auto investment in Canada’s history.” The plan called for a battery plant with an annual capacity of 36 GWh and an EV assembly plant capable of producing up to 240,000 vehicles annually starting in 2028.
In light of the delays, Honda also confirmed it would shift some the CR-V production to its plant in Ohio to mitigate the impact of President Trump’s tariffs on the company’s operations.
“There is room to increase the production capacity in the United States, and we are trying to look into what will happen as a result of that,” Toshihiro Mibe added. “In the midterm, if the tariff measures are to be in place for a long time, then we will have to increase our production capacity in the United States.”
Volvo’s Charleston plant cut 125 jobs due to fluctuating trade policies and tariffs.
Tariffs have forced Volvo to rethink its US strategy, including discontinuing the S90 sedan.
The company intends to create 4,000 new jobs in South Carolina, but timing is unclear.
President Donald Trump has long proclaimed that their new tariffs will encourage car manufacturers to build more of their vehicles in the United States. While some brands have indeed strengthened their commitments in the local market, Volvo has gone ahead and unexpectedly announced it will actually cut 5% of the workforce at its factory in Charleston, South Carolina.
The Swedish brand confirmed that these cuts do not form part of the redundancies it announced during the release of its first-quarter earnings last week. In total, the Charleston cuts will impact roughly 125 of the 2,500 employees who work there. It did not say who will lose their jobs or if the firings will impact production.
Volvo’s South Carolina plant has the capacity to build 150,000 vehicles annually. However, it currently only builds the electric EX90 and the Polestar 3 there. It blamed the new job cuts on ever-changing trade policies, tariffs, and changing market conditions.
Despite slashing over 100 jobs, Volvo told Reuters that the US remains an important part of its long-term strategy and it’s still committed to boosting local output in the future. It also said it intends to eventually create 4,000 new jobs in South Carolina, but did not specify when these new jobs could be created.
It seems likely that Volvo is looking to slash any unnecessary expenses while global economies begin to adjust to America’s move away from globalization. As recently as last week, Volvo chief executive Hakan Samuelsson said the brand is already thinking about building an additional model in the US. While he did not specify which model this will be, the XC60 and XC90 are the most likely options.
Trump’s tariffs have also forced Volvo to rethink its local sales strategy. It will reportedly stop selling the S90 sedan in America from next year because it’s imported from China. This will allow Volvo to focus on models including the XC40, XC60, and XC90.
The Q4 e-tron might be built at VW’s plant in Chattanooga, Tennessee.
Audi may also build the Q6 e-tron and Q8 e-tron at other VW Group plants.
The automaker is under pressure to find a solution to Trump’s tariff policies.
While the VW Group produces many vehicles in the United States, every single Audi sold locally is built in either Europe or Mexico and exported to the US, meaning they are subject to President Trump’s 25 percent auto tariffs. The premium brand is working hard to avoid these tariffs and could build several of its vehicles locally.
A recent report out of Germany suggests that Audi may build the existing Q4 e-tron crossover, or its successor, at the Volkswagen plant in Chattanooga, Tennessee. This would be a logical option as the Q4 e-tron shares the same MEB platform as the VW ID.4, which is currently built in Tennessee.
At the same time, it could alter production plans for the Q8 e-tron. This model was originally going to be built in Mexico, but it may now be manufactured in Columbia, South Carolina, which will be home to Scout and handle production of both the EV and EREV versions of the Terra and Traveler. While VW has been eager to distance itself from Scout to allow the new brand to sell direct-to-consumers, it clearly has enough influence over it to also have the site build an unrelated model from Audi.
According to a report from Automobilwoche, the VW Group is also eyeing a third potential location for building the Q6 e-tron, though details are scarce for now.
When asked about these plans, an Audi spokesperson didn’t exactly confirm anything but did admit that the U.S. market is one of their top priorities, sitting alongside Europe and China as a core pillar of their global strategy.
“We want to increase our presence in the U.S.,” they told Auto News. “We are currently examining various scenarios. We are confident that we will be able to decide on the specific details in consultation with the Group before the end of this year.”
Either way, the wheels are in motion for Audi to make a more significant push in the States, as it’s imperative for the company to do whatever it takes to dodge those tariffs, whether by relocating production, shifting models, or just flexing the power of the VW Group.
The EV maker expects to manufacture 40,000-46,000 vehicles until the end of the year.
Rivian produced 14,611 vehicles during the first quarter and delivered 8,640 of them.
Meanwhile, Lucid built 2,212 vehicles in Q1, but expects to end 2025 with 20,000 units.
Rivian has revised its 2025 delivery forecast, blaming a shifting global trade environment that has been heavily influenced by Donald Trump’s second term as U.S. President. In a similar vein, Lucid is acknowledging rising costs due to tariffs but is holding firm on its production targets, expecting to produce 20,000 vehicles this year.
During the announcement of its first-quarter 2025 financial results, Rivian revealed a notable increase in gross profit, at $206 million to be exact. This marks the company’s second consecutive quarter of profitability, a significant milestone for the fledgling American EV manufacturer. It also makes Rivian eligible for a $1 billion investment from the Volkswagen Group, part of a broader partnership between the two companies.
Rivian’s First-Quarter Progress
The EV startup manufactured 14,611 vehicles in the first quarter, delivering 8,640 of them to customers. The company continues to make strides with its small R2 model, now building validation prototypes while expanding its manufacturing facility in Normal, Illinois.
The carmaker pointed out that while all its vehicles are manufactured in the U.S. and most of its materials either come from the US or are USMCA-compliant, the effects of tariffs, “evolving trade regulations,” and other policy changes have forced it to revise its delivery forecast.
Rivian now expects to deliver between 40,000 and 46,000 vehicles this year, down from an earlier projection of 46,000 to 51,000 vehicles. This adjustment means a potential reduction of up to 5,000 vehicles, equating to a 10% drop at the higher end of the original forecast and a 13% decline at the lower end.
On top of that, Rivian estimates that tariffs could add thousands of dollars to the cost of each vehicle. However, the company does appear to have one ace up its sleeve: a stockpile of batteries, which, according to reports, it’s been quietly accumulating since before the election. This stash could serve as a buffer against the pricing pressures triggered by Trump’s auto tariffs.
“This quarter we hit our second consecutive gross profit and our highest gross profit to date at $206 million,” added company founder and chief executive RJ Scaringe. “We have continued to make significant progress on R2, including vehicle validation builds underway and our Normal, Illinois manufacturing facility expansion on track.”
Despite Slow Start, Lucid Aims High
Meanwhile, Lucid wrapped up Q1 by building 2,212 vehicles, excluding 600 currently being shipped to Saudi Arabia. The company also delivered 3,109 vehicles during the quarter, posting $235 million in revenue. Despite the ongoing challenges, Lucid ended the quarter with a healthy liquidity position of $5.76 billion and is still on track to build approximately 20,000 vehicles this year.
Volvo had a bad start to 2025, with sales dropping 7 percent Jan-April.
EV sales were hit hardest, falling an alarming 32 percent in April.
Volvo recently abandoned a commitment to go EV-only by 2030.
Last September, Volvo rowed back from its previous pledge to go all-electric by 2030, and now, eight months later, that looks like a very smart move. The Geely-owned automaker just announced its latest sales figures, and they show registrations of fully electric Volvo vehicles fell by almost one-third.
Volvo’s EV sales fell 32 percent in April versus the same period last year. The company sold 17,090 EVs in April 2024, compared to the 11,697 EVs sold in the month just gone. PHEV sales actually grew fractionally (by 2 percent) to 14,688, but MHEV and ICE registrations also dropped 5 percent to 34,315.
That means Volvo’s combined electric sales were down 16 percent, and total sales for all power types for April stood at 65,838, or 11 percent lower than they were for the corresponding period last year. And April’s terrible performance really dragged down the overall Q1 EV sales figures, which showed a 6 percent sales decline and are down 7 percent Jan-April.
The lacklustre demand for EVs comes despite the EX30 being rolled out to the US and sales of the big EX90 also now having begun. But Volvo is one of the automakers affected by President Trump’s tariffs, albeit not as badly affected as Audi or Porsche. Although it does build the EX90 at its South Carolina plant in the US, other models like the XC90, XC60, XC40, and EX30 are all made overseas and subject to import levies.
Volvo sales April 2025
Apr-25
Apr-24
Change
Jan-Apr 25
Jan-Apr 24
Change
Electrified models
26,385
31,523
-16%
100,868
106,518
-5%
– Fully electric
11,697
17,090
-32%
44,146
55,261
-20%
– Plug-in hybrid
14,688
14,433
2%
56,722
51,257
11%
Mild hybrids/ICE
32,496
34,315
-5%
130,232
142,007
-8%
Total
58,881
65,838
-11%
231,100
248,525
-7%
Data: Volvo
SWIPE
Volvo is looking to address that issue and is planning to build a second model – probably the XC60 or XC90 – at the same site. Volvo recently dropped the S90 from the US market due to tariffs, though the newly facelifted sedan will still be offered in Asia.
The man tasked with managing the turnaround is Hakan Samuelsson, who returned to the CEO role on April 1 on a two-year contract while the company looks for a permanent new boss. He replaces Jim Rowan, who took over from Samulesson in 2022 but was shown the door this spring after three years in the big chair.
Rivian reportedly started buying large quantities of batteries before the election to stockpile.
This battery stockpile provides Rivian with time to manage potential tariff-induced price hikes.
It also plans to shift to 4695-format cells, produced locally in Arizona to comply with regulations.
Automakers across the industry are scrambling to navigate Donald Trump’s tariffs, and some are getting particularly creative in their strategies. Rivian, for example, has apparently taken a refreshingly proactive stance. Sources with knowledge of the situation say the automaker is sitting on a stockpile of batteries that it’s been buying up since before the election even happened.
According to a Bloomberg report, Rivian made a savvy move by locking down a stash of lithium iron phosphate (LFP) cells from China’s Gotion High-Tech Co. well before the election, with the goal of powering its Amazon-bound delivery vans. After the political dust settled, the company then teamed up with Samsung SDI to import a sizable batch of battery cells from South Korea, hoping this would keep production rolling for its R1T pickup and R1S SUV models.
The strategic move serves as a buffer against potential pricing pressures induced by Trump’s new tariffs. While recent revisions to the tariff plan offer some relief, they still pose significant challenges for automakers relying on international supply chains. That can heavily impact companies like Rivian who need to import batteries to make every vehicle in their lineup. Notably, Samsung SDI said a week ago that the tariff war would make it more expensive to build EVs.
For now, Rivian has bought itself a little more breathing room before it has to worry about raising prices. In the meantime, it’s also gearing up for the launch of its smaller R2 SUV. With this new vehicle, the company plans to switch to 4695-format cells from LG Energy Solution. The initial production will take place in Korea, but Rivian has plans to move operations to LG’s new Arizona facility in Queen Creek. Even without the tariff issues, that move helps Rivian better align with the Inflation Reduction Act’s requirements.
Whether this is a stroke of logistics genius or just plain survival instinct depends on how you read the political winds. Either way, Rivian’s battery strategy gives it a short-term cushion while it scrambles to localize its supply chain before the tariffs squeeze even tighter. Of all the different strategies we’ve seen automakers employ, this is the first time one has proactively bought up supplies to this degree.
In the end, Rivian’s proactive approach might just be the thing that keeps it on track, at least until the tariff storm blows over.
Nissan is preparing to announce its largest financial loss in company history this month.
The automaker continues to struggle against fierce competition from Chinese EV rivals.
Last year, it was forced to shut down another underperforming production facility in China.
Nissan is reportedly preparing to shut down production at its plant in Wuhan, China, following dwindling production of the Ariya and X-Trail models built there. It is another blow for the Japanese automaker, coming just days after news broke that Nissan is bracing for the worst financial loss in its history.
News of Nissan’s plans first came from a local Chinese outlet. It’s understood that annual production at the plant has only hit 10,000 units since operations commenced in 2022. That’s pretty terrible, particularly since the plant has the capacity to build as many as 300,000 vehicles annually. Nissan is currently leasing the site from Dongfeng Motor.
Nissan’s Chinese Sales Were Way Off Target
According to Reuters, fierce competition from Chinese automakers has been a major factor behind Nissan’s underwhelming numbers. Domestic brands have surged ahead, leaving foreign companies like Nissan scrambling to keep up.
This isn’t the only Nissan plant in China that’s under serious pressure. In June last year, it closed its plant in Changzhou due to the jump in sales of Chinese EVs and dwindling demand for imported vehicles. This site had been operating alongside Dongfeng Motor since November 2020 and had the capacity to build 130,000 vehicles annually.
Nissan’s Is Between A Rock And A Hard Place
Nissan is in dire straits at the moment. We’re only a few months removed from its planned merger with Honda falling apart, and on May 13, it’s gearing up to release its full earnings report for the fiscal year that ended in March.
The forecast is grim. Last week, Nissan announced it expects to post a net loss of between ¥700 billion and ¥750 billion (roughly $4.91 billion to $5.26 billion), a massive jump from the ¥80 billion ($560 million) it had originally predicted.
Nissan is currently in survival mode and is implementing a massive restructuring. It has confirmed plans to cut 9,000 jobs, is closing plants, and has streamlined model lineups. It is also looking for a new partner, and could even join forces with Taiwanese tech giant Foxconn.
Nissan is currently in survival mode and is implementing a massive restructuring. It has confirmed plans to cut 9,000 jobs, is closing plants, and has streamlined model lineups. It is also looking for a new partner, and could even join forces with Taiwanese giant Foxconn.
Tesla is quietly shifting Cybertruck workers to other model lines amid slow truck sales.
Internal cuts show multiple Cybertruck teams reduced by more than half at Texas.
It has delivered fewer than 50,000 units despite claims of over a 1 million reservations.
The Tesla Cybertruck was designed to turn heads, and it certainly does, but these days, it’s attracting the wrong kind of attention, and that’s showing up in the sales numbers. Blame it on the much higher-than-promised price, the shorter-than-promised range, or the string of vandalism incidents targeting owners. Whatever the cause, Tesla is reportedly adjusting production now that it has too many Cybertrucks and not enough buyers.
While Elon Musk might have once boasted about having over a million Cybertruck reservations, the brand has only sold around 50,000 as of March. That means that not only does it have a lot of them sitting around, but it also needs to reduce its production to control the Cybertruck inventory.
According to Business Insider, Tesla has quietly reduced the Cybertruck production team by more than half. The report, which cites two employees familiar with the situation, says Tesla has been lowering its production targets since December 2024. Some staff have been reassigned to the Model Y line, where demand remains stronger. “It feels a lot like they’re filtering people out,” one worker said. “The parking lot keeps getting emptier.”
All of this seems to corroborate what we’re seeing Tesla do with its bevy of Cybertrucks. Just days ago, Carscoops reported that Tesla was using the pickup to advertise the new Model Y. It’s towing a Model Y behind a Cybertruck and using it as a rolling billboard. Perhaps the automaker is now recognizing the need to shift its focus onto more affordable models.
That could be one reason it recently introduced a new base-model version of the Cybertruck with rear-wheel drive only. Priced at a whopping $70,000, though, it’s far from the originally promised $39,990 price tag of the Cybertruck. Will this shift work out for Tesla? Only time will tell.
Tesla has reportedly dropped plans for American imports of critical parts from China.
The components are required for Tesla’s Cybercab robotaxi and Semi truck models.
Tesla was willing to absorb a 34% tariff, but the new 145% rate forced shipments to be halted.
Tesla has a lot riding on its Cybercab robotaxi, but the program has hit a major snag, and CEO Elon Musk’s sometimes best buddy, President Trump is to blame. The automaker has been forced to drop its plans to ship essential Cybercab components from China as a result of Trump slapping enormous tariffs on Chinese imports, a report claims.
The automaker expected to start sending parts to the US from China in the next few months, necessary to begin trial production of both the Cybercab and the Semi truck, the latter of which has so far only been produced in tiny quantities. The plan was to scale up to full production of both models in 2026.
Tariffs Throw a Wrench in the Works
Trump’s announcement of a 34 percent tariff wasn’t great news, but Reuterssources say Tesla was prepared to absorb the financial pain. But when Trump’s tit-for-tat tariffs battle escalated to the point where import duty on Chinese imports had reached 145 percent, Tesla slammed on the brakes.
Exactly how long Tesla will keep its foot on the brakes is unclear, since no one, perhaps not even Donald Trump himself, knows the duration of the massive tariffs. But the US President revealed earlier this week that he was considering making changes to the 25 percent tariff on imported auto parts built in Canada, Mexico, and other regions, and has recently announced an exemption on electronic devices such as iPhones which are made in China.
Reuters says Tesla has, for the past couple of years, been increasing the amount of parts it gets from within US borders because it sensed that tariffs might one day come into effect. How quickly Tesla can switch suppliers and get Cybercab and Semi components from America isn’t clear – we’ve asked the question, but don’t expect Tesla to reply.
Tesla unveiled its long-awaited Cybercab last fall, a Honda CRX-shaped pod with scissor doors and no steering wheel, and is currently working on getting approvals to begin testing and operating driverless cars in the US and beyond.
GM is temporarily halting BrightDrop 400 and 600 production at CAMI Assembly in Canada.
The slow-selling vans have been piling up, so workers are being laid off starting next week.
Following some off and on again production, the plant will be cut to a single shift in October.
GM had high hopes for their BrightDrop brand, but that enthusiasm waned and the vans were rolled into the Chevrolet lineup. While that move was designed to boost sales and availability, it hasn’t helped much as hundreds of unwanted vans have been piling up.
Given the growing inventories, it’s no surprise that the company is temporarily halting production at CAMI Assembly in Ingersoll, Ontario. The Canadian plant started BrightDrop production in late 2022 and employs more than 1,200 people.
Temporary Layoffs and Production Shifts
According to Unifor, GM will initiate temporary layoffs on April 14 and then bring workers back for limited production in May. Production will then end again to allow for retooling for assembly of the 2026 model.
When production resumes in October, the plant will be dropped down to a single shift for the foreseeable future. The union says this will result in the “indefinite layoff of nearly 500 workers.”
Unifor National President Lana Payne described the moves as a “crushing blow” and called on the automaker to “do everything in its power to mitigate job loss during this downturn.” She also called on the government to step up and support Canadian auto workers as well as Canadian-made products.
Payne was particularly adamant about the latter as she pitched the 400 and 600 vans as a “smart choice for Canadian business, government agencies, and for our economy.” That’s a not so subtle hint that she wants the government to buy some of the electric delivery vans.
While BrightDrop’s struggles are far from new, Payne used the opportunity to attack the Trump administration. She accused the United States of creating “industry turmoil” and said “Trump’s short-sighted tariffs and rejection of EV technology is disrupting investment and freezing future order projections.” She went on to claim this is “creating an opening for China and other foreign automakers to dominate the global EV market.”
Pricing Dilemma
As for the vans themselves, BrightDrop’s offerings start at $77,900, providing up to 614.7 cubic feet (17,406 liters) of cargo space and a combined range of up to 272 miles (438 km).
However, rival electric vans are far cheaper as the Ford E-Transit Cargo starts at $51,000 while the Mercedes eSprinter can be had for $61,180. That’s a bit of an apples to oranges comparison, but it’s not hard to see why hundreds of BrightDrop vans are sitting on dealership lots.
Despite the problems, Unifor noted the company is committed to CAMI Assembly and the 2026 vans will be getting “upgrades.” What those are remain to be seen, but hopefully a smaller battery pack is on the way to reduce pricing.
VW’s global EV sales jumped by 59% to 217,000 in Q1, fueling Tesla’s sales slowdown.
Fully-electric sales climbed 51% in the US, but they skyrocketed 113 percent in Europe.
There was also some bad news for VW as EV sales in China tumbled by 37% Jan-March.
Tesla’s sales sank alarmingly in Q1, falling 13 percent to 337,000, a fact that on its own would be enough to make Volkswagen’s German execs crack a wry smile. But what they’ll really have them bro-hugging in Wolfsburg is knowing that Tesla’s misfortune is almost certainly linked to VW posting record EV sales figures over the same period.
Sales of fully-electric VW Group vehicles jumped 59 percent in the first three months of the year, reaching 216,800 compared with 136,400 in Q1 2024. By comparison, Tesla reported 336,681 deliveries in the same period, down 13 percent from last year. But even that success is dwarfed by what happened in Europe.
EV Momentum in Europe
EV sales there exploded by 113 percent to 158,100, up from just 74,400 a year earlier, no doubt helped by widespread dislike of Tesla CEO Elon Musk, particularly in Germany, where Musk came out in support of the far-right AfD party. A poll last month found 94 percent of Germans wouldn’t buy a Tesla due to the CEO’s antics. That sentiment appears to be hitting where it hurts: in Q1, Tesla’s sales in Germany plummeted 62 percent compared to the same period last year.
Strong Gains in the US, Trouble in China
US sales also grew significantly, Americans taking home 19,900 EVs, representing a 51 percent increase. But there was bad news from China where EV sales plummeted 37 percent to 25,900 units. And although the global EV sales result is definitely worth celebrating, it ought to be viewed in the context of the sales of vehicles of all power types.
VW GROUP EV SALES
Deliveries
Q1-25
Q1-24
Diff.
Europe
158,100
74,400
+112.6%
USA
19,900
13,200
+51.0%
China
25,900
41,000
-36.8%
Rest of the world
12,800
7,800
+63.7%
World
216,800
136,400
+58.9%
Data: VW
SWIPE
That number did improve, but only by 1.4 percent to 2.13 million units, the decline in demand for combustion cars offset by both the surge in demand for EVs and a 15 percent uptick in PHEV sales. Overall sales in China were down 7 percent, the only region to see a fall.
VW’s Top-Selling EVs
VW’s best-selling EV globally was the ID.4/ID.5, which racked up 43,700 sales, followed by the ID.3 hatch with 28,100 deliveries. Audi’s Q4 e-tron – a reskinned ID.4 – placed third with 22,800 sales, the Skoda Enyaq found 20,200 buyers and VW’s ID.7 scored 19,100 sales.
Porsche’s Macan Electric only ranked seventh with 14,200 sales but since it wasn’t on sale in Q1 2024 its appearance in this year’s Q1 helped Porsche’s EV deliveries jump by 326 percent.
Poland was one of the EU countries to support additional tariffs in Chinese EVs.
The Chinese government has told automakers to stop big European investments.
Stellantis commented that it’s currently evaluating different production options.
Eager to avoid falling behind in the global shift to electrification, Stellantis invested $1.6 billion in Leapmotor in 2023, acquiring a 21% stake in the Chinese EV maker. The deal gives Stellantis the right to sell Leapmotor vehicles across Europe. But despite the early promise, the partnership has already hit its first significant roadblock.
A Stellantis plant in Tychy, Poland, had been building the small T03 electric car for the European market, but local production of this model suddenly ended on March 30. Stellantis has not said why this happened, but unnamed sources say there are no plans to resume T03 production in Europe.
That’s bad news for Stellantis, as it was only in November last year that it scrapped its plans to build a second Leapmotor EV at the same Polish factory. Meanwhile, Leapmotor vehicles shipped from China are still facing a 21 percent tariff in the EU.
Politics, Tariffs, and Sudden Shifts
It’s hard not to connect the dots between this decision and China’s response to EU trade policies. Back in October, the Chinese government told its automakers to pause major overseas investments in countries that backed the EU’s new tariffs on Chinese-made EVs. Poland was among the ten countries that voted in favor of those tariffs. Another 12 EU members abstained, and five—Germany included—voted against them, according to Reuters.
Given the timing, it seems plausible that Leapmotor’s retreat from Poland was at least partly driven by political pressure from Beijing. The optics alone suggest as much.
Stellantis Still in the Game
Despite the halted production, Stellantis insists it’s not backing away from its Leapmotorinvestment. Through its joint venture with the Chinese company, Stellantis holds a controlling 51% stake, giving it exclusive rights to manufacture, sell, and export Leapmotor EVs beyond China’s borders.
“While the company remains fully engaged in the launch of Leapmotor vehicles in Europe, at the moment it is evaluating different production options,” Stellantis said in a recent statement.
And those options may now include Spain. According to German outlet Handelsblatt, Spain’s decision to abstain from the EU tariff vote could make it a more politically viable location for future production. The publication reports it may become the new manufacturing home of Leapmotor’s upcoming B10 electric crossover.
Toyota plans to increase EV production to 1 million units by 2027 globally.
EV manufacturing will expand to the US, Thailand, and Argentina by late 2025.
Three-row electric SUVs are coming from Toyota’s Kentucky and Indiana plants.
Toyota helped kick off the electrified era long before it was cool, way back in the late ‘90s with the launch of the Prius. That car didn’t just spark curiosity, it redefined what people expected from hybrids and made Toyota a poster child for practical electrification.
But in recent years, as other automakers raced ahead with battery-electric vehicles (BEVs), Toyota found itself lagging behind, seemingly reluctant to join the full-EV sprint. Now, it’s shifting gears and planning a major EV expansion as it works to close the gap with its faster-moving rivals.
EV Production Plans Are Going Global
By 2027, Toyota reportedly wants to have as many as 15 electric models on sale, including those under the Lexus badge. It also aims to ramp up EV production to about 1 million units per year by that point. For context, that would be roughly seven times the number of EVs it built in 2024, a massive jump, if it can pull it off.
Toyota currently only builds EVs in Japan and China, but Nikkei Asia reports that as more of the upcoming EVs launch in the market, production will expand to the US, Thailand, and Argentina. One of the first to hit the market will be an electric version of the Hilux, set to be built in Thailand from October. This model will also be assembled in Argentina.
Toyota’s urgency makes sense, as it’s facing steep competition from automakers that have already hit their EV stride. Tesla and BYD each moved 1.76 million EVs last year. Volkswagen wasn’t far behind, selling 740,000 EVs globally. Compared to those numbers, Toyota’s electric efforts have been pretty modest so far.
A key piece of Toyota’s upcoming EV puzzle is the new C-HR+ EV, which was revealed about a month ago. This model sits below the larger bZ4X in the Toyota family and will be offered with 57.7 kWh and 77 kWh battery packs. Production of it will start at Toyota’s Takaoka plant in Japan this September, and in addition to being sold throughout Europe, it will be available in the USA and Canada from next year.
Elsewhere, Toyota is planning to build a three-row EV at its Kentucky and Indiana plants from next year, serving as a rival to the Kia EV9 and Hyundai Ioniq 9. Toyota is also continuing its EV partnership with Subaru, and the next result of that collaboration is scheduled to go into production in Japan in February.
The factory is already assembling the Ioniq 5, as well as Kia and Genesis models.
Hyundai has increased the annual production capacity of the facility to 500,000 units.
Pricing details for the Hyundai Ioniq 9 EV in the States have yet to be announced.
After committing a hefty $21 billion investment into its US operations, including the construction of a new $5.8 billion steel plant, Hyundai has officially kicked off production at its Metaplant in Georgia. The site, which began construction over two and a half years ago, will focus on producing a range of electric and hybrid vehicles, boosting Hyundai’s push into the EV market.
The Grand Opening of the site was attended by Hyundai leaders, as well as Governor Brian P. Kemp, US Representative Buddy Carter, and the president and chief executive of the Kia Corporation, Ho Sung Song. The Metaplant has already started building the electric Hyundai Ioniq 5 and, perhaps most importantly, is now also building the Hyundai Ioniq 9.
Hyundai’s Ioniq 9 is its first three-row electric SUV and serves as its alternative to the Kia EV9. Presented last November, the Ioniq 9 is underpinned by the group’s E-GMP architecture and fitted as standard with a 110.3 kWh battery. The brand has yet to announce US pricing for the SUV, but we know it will be offered in several different guises.
The base model has a 214 hp and 258 lb-ft (350 Nm) electric motor driving the rear wheels and a quoted range of 385 miles (620 km). Sitting above this version is the Long Range AWD, which adds a 94 hp motor up front. The flagship Ioniq 9 Performance has 214 hp motors at the front and rear, allowing it to hit 62 mph (100 km/h) in 5.2 seconds.
Initially, the Hyundai Motor Group planned to build 200,000 electric and hybrid vehicles at the Metaplant. However, as part of its increased commitment to the US market, it’s expanded annual production capacity up to 500,000 units.
“Hyundai Motor Group Metaplant America not only represents the Group’s advanced manufacturing capabilities and commitment to innovation, but also our investment in relationships with our partners and communities right here in Georgia,” Hyundai Motor Group executive chair Euisun Chung said. “With the rich history of craftsmanship and manufacturing in this community, together with the talented workforce at HMGMA we are building the future of mobility with America, in America.”
Honda’s new EV factory in China recently began production of the all-electric Ye P7 crossover.
AI optimizes processes like welding to lower fixed costs and improve production efficiency.
Automated guided vehicles transport heavy components like battery packs, replacing manual labor.
Honda is betting on automation and artificial intelligence to transform its EV production process in China, reducing its need for floor staff by a hefty 30%. While robots haven’t yet fully replaced human workers, the tech Honda is rolling out—along with similar efforts from companies like Mercedes-Benz, BMW, and Dongfeng—suggests a future that might not be so bright for blue-collar workers.
The Japanese automaker recently kicked off production of the all-electric Ye P7 with local joint venture partner Guangzhou Automobile Group. The factory in Guangzhou uses automated guided vehicles, or AGVs, to move important car components throughout the factory, including heavy battery packs. Traditionally, human workers are required to transport parts throughout the factory.
In an interview with Nikkei Asia, Honda revealed that it’s also using AI to fine-tune the welding process for the Ye P7. The goal? To “reduce fixed costs as much as possible.” The company sees “electrification as an opportunity to overhaul the way we produce vehicles”—a chance to reimagine everything from the ground up.
The Ye P7 is an important vehicle for Honda. In most Western markets, the Japanese car manufacturer has lagged behind many of its competitors in releasing battery-electric vehicles that appeal to the masses. Given that China has quickly become the world’s single largest EV market, the automaker cannot afford to fall behind the competition, or else it could see its Chinese sales dry up.
Much like the S7 introduced earlier this month and built with Dongfeng, the P7 has an 89.8 kWh battery pack, and base models feature a rear motor with 268 hp. A dual-motor version is also available, boasting a combined 469 hp. Rear-wheel drive models have a quoted range of 404 miles (650 km) while the all-wheel drive version can apparently travel up to 385 miles (620 km) between charges.
Cybertruck owners are reporting panels that are falling off unexpectedly,
Some buyers claim Tesla is delaying deliveries for additional inspections
Though not part of Tesla’s rail trim recall, it might be linked to a similar flaw.
In some ways, The Tesla Cybertruck is a marvel of engineering but in others, it’s also one with quite a few flaws Some owners are now reporting one we’ve not seen before: the front panel of their truck can just, well, fall off. And no, it’s not because some mischievous gremlins decided to make a run for it—it’s because the panels apparently aren’t sticky enough.
This isn’t the first time a panel has decided it wants to make a dramatic exit from the Cybertruck. In fact, the boomerang-shaped panel above the doors has a habit of detaching itself, so Tesla recalled every single Cybertruck to apply a more aggressive adhesive, along with a stud and a nut, to keep things in place. What’s surprising here is that the front panel is also popping off for some owners.
One owner took to TikTok to document the state of their truck. After leaving it for an unspecified amount of time, they returned to find the panel was only held on by the driver’s side. The rest of the panel was bowed out and completely detached from the truck, leaving the front bumper panel nearly fully exposed.
Buy a pack of glue, said the owner in a sarcastic way. Well, we think it was sarcastic. It wouldn’t be the strangest fix for a Tesla we’ve heard of, even from the automaker itself. In fact, it seems as though these panel issues are the reason so many owners are complaining about delivery delays. Tesla just released a full-scale recall of all Cybertrucks for panels that fall off.
After buyer one reported the situation on CybertruckOwners, several others popped in with similar stories. “My message said ‘factory hold that must be addressed with our service team before delivery’,” said one. “I was told “containment does not have a correction at this time (recall),” And that 1-2wks is general time frame,” said another.
Their complaints come from all over the place too. Some are in South Carolina, others are in California, and at least one says he has this issue in Canada.
Clearly, it’s a widespread problem even if it’s not the same exact issue for all trucks. Hopefully, Tesla can get this situation sorted out. It’s tough to call this truck ready for Mars… or even Earth, when the panels just fall off on their own.
Yet another Cybertruck owner joins the Musked Club!
In the 1970s-’90s, GM factory workers loathed assembling their poorly designed cars — and despised their management — so they would leave off vital nuts and bolts and parts — is that what’s happening at Tesla now? 😝 https://t.co/IOZLSSxnl1pic.twitter.com/BaiPmTc8OH
Foxconn expects to ink contracts with two Japanese brands in the coming months.
It is also getting ready to start building its in-house Model B and Model C EVs.
The Taiwanese company has expressed interest in purchasing a stake in Nissan.
Taiwanese contract manufacturer Foxconn has revealed it’s close to inking deals with two Japanese car manufacturers to design and manufacture a pair of EVs. While limited details about these new models are known, they will be brought to life alongside two of Foxconn’s in-house EVs, namely the Model C and Model B.
Foxconn has been ratcheting up its involvement in the car industry for several years now. At one point, it announced it would invest up to $170 million to build Lordstown Motors’ Endurance pickup truck, but that project was later scrapped. It is also said to have expressed keen interest in acquiring Nissan, before the Japanese brand would go on to enter ill-fated negotiations with Honda about a potential merger.
While speaking at an investor conference earlier this month, chairman Young Liu said the company expects to sign agreements with two Japanese firms in the next two months. Foxconn will use its “contract design and manufacturing services (CDMS) business model” in the development of these new EVs.
There’s no word on which two marques Foxconn is talking to. It’s certainly possible that one of them could be Nissan, as a report from early February indicated that after the latter’s merger with Honda fell through, it has expressed its willingness to work with technology companies. Foxconn could be one of them, and teaming up with it would also provide Nissan with a valuable cash infusion.
Foxconn Model C
Foxconn’s Own EVs
While the Taiwanese giant is busy finalizing contract manufacturing deals, at the same time it’s also pushing forward with its own EVs. Focus Taiwan reports that the Model C will enter production in North America during the fourth quarter of this year. The electric crossover was previewed as a concept back in October 2021 and, in concept guise, had a claimed range of 435 miles (700 km). Given it’s been almost three and a have years since the concept’s unveiling, the production model may sport some changes.
Arriving before the Model C will be Foxconn’s Model B, reportedly set to reach the production line in the middle of this year. The Model B was previewed in 2022 and is similar in size to the VW ID.3. It was designed by Pininfarina, is powered by a single electric motor with 230 hp, and has a claimed range of 280 miles (450 km).
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