✂️ Volkswagen Cuts, EV Boom, and Tesla Drama

The Gist

Volkswagen is breaking its 87-year streak by closing German plants, sparking union strikes and boardroom pay cuts. Meanwhile, EV sales are hitting record highs—new and used—with prices creeping closer to gas models. Incentives are practically begging buyers to make the switch.

Over in China, GAC’s AI-driven SUVs with massage chairs and 1,200 km ranges are making the rest of us look bad, while Baidu’s robotaxis roll into Hong Kong, showing off 8 million rides’ worth of autonomous swagger. Napping in one isn’t an option yet, but they’re working on it.

Closer to home, Rivian snagged $6.6 billion to build a Georgia plant, as long as they don’t fight unionizing efforts. Meanwhile, California is reviving EV rebates to counter Trump’s tax credit rollback, though Tesla might not make the cut. Oh, and Hyundai’s cars are rolling away on their own. Parking brake, people—always use the parking brake.

Fuel for Thought

• 🚧 Volkswagen’s Hard Hat Moment

  • Restructuring Reality

  • The Plant Problem

  • Implications for the US Market

• 🔋 EV Market Goes Full Charge

• 🌏 GAC’s EVs Take the Global Stage

• 🤖 Baidu’s Robotaxi Revolution

  • What’s with the robotaxis? Can they parallel park …

  • Wait, can I nap on my way to work now?

  • So, is this China showing off again?

• 🛠 Rivian’s $6.6 Billion Gamble

  • Big Bucks, Bigger Stipulations

  • Why Dealers Should Care

• 💡 Battery Prices: A Bright Future

• ⚠️ Hyundai’s Rolling Recall

  • My car just rolled away—should I chase it?

  • Can’t they just, you know, fix it already?

  • Should I ditch my Tucson for something else?

• ⚡ California’s EV Clash: Newsom vs. Trump

  • Tesla Caught in the Crossfire

  • A Battle Beyond Borders

  • Check out more on this story on The Automotive Tro …

🚧 Volkswagen’s Hard Hat Moment

Restructuring Reality

Volkswagen faces an unprecedented challenge: closing German plants for the first time in its 87-year history. CEO Thomas Schaefer declared that layoffs and closures are unavoidable as VW adapts to new market demands. Union leaders and workers are ready to strike, underscoring the gravity of these decisions.

The Plant Problem

The Osnabruck and Dresden plants are in the crosshairs. Osnabruck builds Porsche's 718 Cayman and T-Roc Cabriolet—models nearing their production end. Dresden’s low-volume ID.3 assembly isn’t enough to justify its cost. With early retirement packages falling short, even executives face salary cuts as VW tightens its belt.

Implications for the US Market

While these changes directly impact Germany, the ripple effects could influence VW’s global strategy. Striking a balance between cutting costs and maintaining production might shape the availability and pricing of their EV models, including those destined for U.S. dealerships.

🔋 EV Market Goes Full Charge

The EV market continues to break records, with October delivering notable trends in sales, supply, and pricing. Here's a closer look at the numbers driving the industry's growth:

• New EV Sales:

  • 106,155 units sold in October, up 2.3% from September.

  • Over 1 million EVs sold year-to-date, a 6.8% increase.

  • Incentives account for 13.7% of transaction prices, fueling this growth.

• Used EV Sales:

  • 23,788 units sold in October, marking a 63.5% year-over-year increase.

  • Used EV prices nearing parity with traditional vehicles.

• Inventory and Pricing:

  • New EV days’ supply at 101, up 6.3% from September but down 9.4% YoY.

  • Used EV supply tighter, down 22.1% YoY.

  • Average new EV price: $56,902 (-1.2% MoM). Used EV price: $37,912 (+MoM).

These figures illustrate a market balancing growth and affordability, signaling opportunities for dealerships to meet rising EV demand.

🌏 GAC’s EVs Take the Global Stage

Chinese automaker GAC showcased its S7, AION UT, and HYPTEC HL models at the Guangzhou Auto Show, combining futuristic design with practicality and luxury. With features like AI-driven ambient lighting, 1,200 km ranges, and second-row massage chairs, these vehicles highlight China’s growing dominance in EV innovation. GAC aims to appeal to U.S. buyers by aligning with the country’s SUV preferences, blending advanced tech with thoughtful touches. As GAC targets the global market, American dealerships may soon feel the impact of these ambitious entrants.

🤖 Baidu’s Robotaxi Revolution

What’s with the robotaxis? Can they parallel park better than us?

Baidu’s Apollo Go robotaxi service is expanding to Hong Kong, promising Level 4 autonomy. While we struggle with reverse parking, these rides are set to dominate airports and busy streets. They’ve already completed 8 million driverless rides in China.

Wait, can I nap on my way to work now?

Not quite. Hong Kong trials will require a backup driver with 10+ years of experience, at least during off-peak hours. You might get your nap someday—but not before these cars pass rigorous safety tests.

So, is this China showing off again?

Maybe a little, but it’s also a taste of what’s to come. With partnerships across the automotive world, Baidu’s tech isn’t just for bragging rights—it’s setting a global standard for autonomous transport.

🛠 Rivian’s $6.6 Billion Gamble

Big Bucks, Bigger Stipulations

Rivian’s secured a $6.6 billion loan from the Department of Energy to build its Georgia plant—but there’s a catch. The company must not oppose unionization efforts. For a company with safety violations and a mixed union track record, this condition adds layers of complexity.

Why Dealers Should Care

The Georgia facility could pump out 400,000 EVs annually, doubling Rivian’s production capacity. As Rivian competes with traditional automakers, its success could shift market dynamics, impacting vehicle availability and pricing across the EV segment.

💡 Battery Prices: A Bright Future

Falling lithium prices and evolving tech are reshaping EV battery costs. Here’s what it means for consumers and dealerships:

• Battery Longevity:

  • Modern EV batteries last 200,000+ miles; replacements are rare.

• Cost Trends:

  • By 2030, battery replacements could cost $4,500–$5,000, rivaling engine replacement costs.

• Secondary Market:

  • Used batteries find second lives in energy storage, offsetting replacement costs.

• Lithium Prices:

  • Projected to drop 50% by 2026, driving EV price parity with gas cars.

For dealerships, these changes mean a growing market for used EVs and an opportunity to educate consumers on long-term ownership savings.

⚠️ Hyundai’s Rolling Recall

My car just rolled away—should I chase it?

If you’re driving a 2025 Hyundai Tucson or Santa Cruz, maybe. Hyundai’s recalling 42,000 vehicles for a wiring issue that lets transmissions shift out of “park” without touching the brake.

Can’t they just, you know, fix it already?

They’re on it. Hyundai dealers will reroute the wiring for free. Until then, just use the parking brake and pray your driveway’s flat.

Should I ditch my Tucson for something else?

Not yet. Hyundai hasn’t reported injuries or crashes, but this recall might make you reconsider the next time you’re shopping.

⚡ California’s EV Clash: Newsom vs. Trump

Tesla Caught in the Crossfire

California Governor Gavin Newsom is reviving state EV rebates to counter Trump’s potential elimination of the federal tax credit. But Tesla, the state’s EV champion, may be excluded under proposed market-share limitations. Newsom frames this as fostering competition, but critics, including Elon Musk, call it “insane.” As Tesla’s market dominance wanes, this move could intensify competition among automakers.

A Battle Beyond Borders

This clash reflects larger tensions between California’s green policies and federal rollbacks. Newsom’s proposal, funded by the state’s Greenhouse Gas Reduction Fund, positions California as a clean tech leader. For U.S. dealerships, the policy shifts could mean new dynamics in pricing, consumer incentives, and the EV market landscape.

Check out more on this story on The Automotive Troublemaker

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