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đź’¶ Tariffs, Tech, and Tough Calls
The Gist
Today, we cover articles claiming Trump’s tariffs promise higher prices and supply chain headaches for automakers and consumers alike, with EV incentives also on the chopping block. Ford is shedding jobs in Germany while BYD doubles down on aggressive price cuts, reshaping the global EV landscape. VW’s exit from Xinjiang hints at larger adjustments ahead, and Porsche is keeping combustion engines in the mix as EV sales slow.
GM’s CarPlay drama has customers turning to aftermarket fixes, and Honda might step in to keep Nissan afloat. For dealers, it’s a time to stay sharp as market shifts, tech upgrades, and policy changes continue to reshape the landscape. No panic, just focus.
Fuel for Thought
⚙️ Trump’s Tariffs: Speed Bump or Roadblock?
President-elect Donald Trump’s proposed tariffs—25% on imports from Mexico and Canada and 10% on Chinese goods—threaten to shake up the global auto industry. With 26% of U.S. car imports from Mexico, automakers like GM and Ford brace for higher costs, while Europe’s auto hubs watch anxiously.
Economists predict ripple effects across supply chains, from steel to EVs. Losing the $7,500 EV tax credit could stall affordable options like GM’s Mexico-made Equinox EV, raising prices for consumers. Meanwhile, Slovakia, Europe’s auto powerhouse, could face destabilization.
The big question: Will tariffs slow the industry or cause a full stop? Experts point to long-term uncertainty, higher car prices, and supply chain chaos. For dealers and automakers, this could be a bumpy ride. Yet, the industry’s resilience promises that, one way or another, this challenge will soon be just another mile marker in the rearview mirror.
đźš— Ford's German Exodus: Too Little, Too Late?
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Ford's downsizing in Germany marks a critical moment for the automaker in Europe, facing intense competition and sluggish EV adoption. Here's a detailed look at what led to this shift and its implications:
Job Cuts and the Fallout: Ford will eliminate 4,000 jobs in Europe by 2027, with 2,900 in Germany. This marks a halving of its Cologne workforce over ten years.
Breached Agreements: German labor unions and parliament members accuse Ford of breaking prior agreements, citing a lack of transparency and breach of trust.
EV Production Challenges: Low demand has forced Ford to slow production of the Explorer and Capri EVs in Cologne, which only began production this year.
China’s EV Invasion: Chinese automakers like BYD and NIO are flooding the European market with affordable, high-tech EVs, intensifying competition.
Future Strategies: Ford is pivoting to smaller, more profitable EVs, with a new midsize truck on a low-cost platform expected in 2027—but will it be too late?
Ford’s struggles are emblematic of legacy automakers caught between rising competition and a rapidly evolving EV market.
📱 GM’s EVs: The Case of the Missing CarPlay
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General Motors ditched Apple CarPlay and Android Auto in its EVs, leaving customers and critics scratching their heads. Thankfully, one company has a fix. Let’s unpack this:
Why would GM drop something customers actually like?
Oh, because they thought their Google-based Ultifi software was better—despite it bricking vehicles during the rollout. Bold move, GM. Very bold.
So, what’s this fix?
An aftermarket kit from WAMS brings CarPlay and Android Auto back to life. It’s only available through one dealership in Michigan, though, because who wouldn’t want to drive halfway across the country for functionality that used to be standard?
How does it work?
The kit offers seamless integration, even displaying Apple Maps in the instrument cluster. A true “Why did GM take this away in the first place?” moment.
Is this a sign that GM will bring CarPlay back officially?
Not likely. They seem committed to their Ultifi ecosystem. But hey, competition keeps reminding GM why people liked CarPlay in the first place.
🏎️ Porsche Pumps the Brakes on EVs
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Gas Engines Aren’t Dead Yet
Porsche’s CFO declared that internal combustion engines are sticking around for the foreseeable future. EV sales have slowed, and the “premium luxury segment” still favors gas engines.
Hybrid Strategy Takes the Wheel
Porsche plans to offer hybrid versions of upcoming EV models. The move acknowledges a preference for transitional tech as customers warm up to full electrification.
Why This Matters for Dealerships
With Porsche delaying an all-electric future, dealers can expect a steady mix of gas, hybrid, and EV offerings—catering to diverse customer preferences.
🌏 Volkswagen’s China Shuffle
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Selling Xinjiang Plant Amid Human Rights Controversy
VW’s decision to sell its Xinjiang facility comes after years of pressure surrounding alleged forced labor in the region. Though Beijing denies abuses, VW’s exit avoids further reputational damage.
Expanding Partnerships Despite Closures
While shedding its Xinjiang operations, VW is doubling down on partnerships with Chinese automakers. Plans include introducing 18 new models by 2030, cementing a long-term presence in the market.
Germany's Factories Under Threat
Closer to home, VW’s CEO hinted at potential factory closures in Germany, signaling broader restructuring amid global financial challenges. Dealers may face disruptions as the automaker recalibrates.
đź’Ą BYD's EV Price War Heats Up
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BYD’s leaked email hints at a brutal price war in the EV market, with massive implications for global automakers:
Supplier Price Cuts: BYD is negotiating 10% price reductions from suppliers, signaling aggressive cost-cutting measures to stay competitive.
Production Ramp-Up: The automaker plans to increase production by 200,000 units and has hired nearly 200,000 workers in just three months.
Market Domination: BYD’s EVs and plug-in hybrids account for over one-third of China’s sales, with plans to double exports to Europe and other markets.
Tesla Rivalry: BYD surpassed Tesla’s revenue for Q3 2024, marking a significant milestone in the EV arms race.
Impact on US Auto Dealers: BYD’s moves could set pricing expectations that ripple into the U.S. market, creating both opportunities and challenges for dealers.
BYD’s dominance in China and expansion efforts highlight the intense competition reshaping the global EV market.
🔧 Honda + Nissan: Match Made in (Car) Heaven?
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As Honda eyes a stake in Nissan, could this potential merger reshape the Japanese auto landscape? Let’s dive in:
Wait, Nissan is up for grabs?
Pretty much. One Nissan exec even admitted they’ve got 12 to 14 months to survive. Talk about motivation to find a partner!
Why would Honda want in on this?
Honda could gain access to Nissan’s truck and SUV expertise while sharing its hybrid tech. Imagine a V6 Honda Accord Coupe with Nissan's rugged DNA—drool-worthy.
What’s the catch?
Well, mergers aren’t always smooth. But with Nissan floundering, this might be a win-win. Or, it could be a glorious disaster. Either way, it’ll be fun to watch.
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