🚗 Policy Shifts Dealers Need on Their Radar

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THE UNION

Will the EU Allow Biofuels in Cars After 2035?

A new report from Transport & Environment (T&E) urges the European Commission not to grant automakers the biofuel exemption they’re lobbying for. OEMs hope to keep internal combustion engines alive with “carbon-neutral” fuels once the 2035 zero-tailpipe-emissions rule arrives.

T&E’s data pushes back:

• Supply is limited—advanced waste-based fuels are already in short supply and largely reserved for aviation and shipping.

• Imports dominate—60% of all biofuels and 80% of used cooking oil come from Asia, where fraud cases (like palm oil passed off as waste) are increasing.

• Climate impact is weaker than advertised—food-crop biofuels average only ~60% CO₂ reduction after accounting for farming, processing, and transportation.

• Road transport would overwhelm supply—demand could exceed sustainable fuel availability by 2–9x by 2050.

• T&E warns that allowing broad biofuel use could increase transport-sector CO₂ by up to 23%.

Their recommendation: keep road biofuels out of the post-2035 strategy or cap them at 5% tied strictly to verified e-fuels.

Why Does This Matter?

European policy has a long history of influencing global powertrain development and future product planning—even beyond EU borders.

Are Automakers Seeing Real Quality Improvements From AI Manufacturing?

Ford, Hyundai, and others are investing billions in AI-driven manufacturing systems meant to reduce defects and recalls. Early results show potential, but not yet a measurable transformation.

Ford’s AiTriz vision system now operates at 900 stations across 35 plants, while Hyundai’s Georgia “Metaplant” integrates AI robotics, digital twins, and Nvidia-powered factory intelligence.

But the industry is still waiting for clear outcomes:

• Ford has issued 134 recalls this year—a record—despite AI deployment.

• Vehicles built after the AiTriz rollout have shown smaller average recall sizes but still saw 22 manufacturing-defect recalls, including issues AI is designed to catch.

• Analysts stress that AI needs more time, more data, and stronger workforce training to make consistent quality gains.

For dealership teams, this means quality improvements will likely arrive gradually rather than appearing as sudden drops in warranty work or recall volume.

Are Federal Safety Mandates Increasing Vehicle Prices?

Congress is split over whether emerging safety technologies justify their cost amid widespread affordability concerns.

• Democrats are pushing NHTSA to accelerate overdue mandates—child-detection systems, stronger seat backs, alcohol-detection tech.

• Republicans have scheduled hearings with automakers to examine rising vehicle prices and whether features like automatic emergency braking add too much cost.

• Some advanced driver-assistance technologies still struggle at night or high speeds, and OEMs warn some standards may unintentionally increase specific crash types.

This debate affects what features become standard, what costs get passed to consumers, and how quickly manufacturers must reengineer models.

Why Are Tesla’s China Sales at a Three-Year Low?

Tesla’s October sales in China fell to 26,006 units, dropping its EV market share from 8.7% to 3.2%—its weakest month in three years.

Analysts cite intense competition from every direction:

• Xiaomi posted 109,000 Q3 sales with its EV unit turning profitable.

• Leapmotor’s in-house production is driving costs down.

• Geely and Huawei-backed brands continue gaining share with strong value offerings, including sub-$10K models.

• Tesla’s aging lineup is now a visible disadvantage; analysts say 2026 will be a pivotal year requiring refreshed models.

Because China sets global expectations for EV value, pricing, and technology, Tesla’s performance there influences competitive pressure in every major market.

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AROUND THE ASOTU-VERSE

Coming Soon

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Today in History

• 1878 – President Rutherford B. Hayes gets the first telephone installed in the White House. ☎️ 

• 1928 – Duesenberg Model J debut 🆕 

• 1955 – American Civil Rights Movement: In Montgomery, Alabama, seamstress Rosa Parks refuses to give up her bus seat to a white man and is arrested for violating the city's racial segregation laws, an incident which leads to that city's bus boycott. 🇺🇸