AD #4010 – Tesla’s U.S. Sales Down 11% In January; Toyota Reveals 3 New EVs; Next-Gen BMW 3 Series Includes ICE Version

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

TRUMP’S 25% STEEL & ALUMINUM TARIFFS TAKE EFFECT
The Trump Administration’s proposed 25% tariffs on U.S. steel and aluminum imports went into effect today. That would be especially impactful because the U.S. imports more steel and aluminum from Canada than any other country in the world. But the tariffs will hit the auto industry as a whole since they apply to any “derivative” product, like bumpers, wheels, door latches and lug nuts. So, prices could go up across the board, which would have a significant impact on automakers and suppliers. That’s why the European Commission says it could respond with its own tariffs on $28 billion worth of U.S. goods next month. But let’s see how this plays out. Trump has used tariffs as bargaining chips in the past. In his first term, he slapped the same tariffs on steel and a 10% tariff on aluminum. That did lower imports of the metals, but also increased prices. However, the tariffs were later dropped as part of the USMCA free trade agreement and the U.S. also came to agreements with the EU and other major countries. So, how impactful this is could all come down to how other countries respond to the tariffs this time around.   

TESLA’S U.S. SALES DOWN 11% IN JANUARY
Backlash against Tesla has been growing since Elon Musk’s high-profile involvement in the Trump Administration. We’ve reported about big drops in sales in Europe and China this year. And now new data shows the same is happening in the U.S. According to S&P Global Mobility, just over 43,000 Teslas were registered in January, a decline of 11% compared to a year ago. Tesla’s market share also fell 12% compared to last January. It’s now down to 42.5%. At the same time, sales of non-Tesla EVs were just under 59,000 units, a 44% increase from last year. Tesla’s stock fell 15% on Monday to its lowest level since October but it gained back 4% yesterday after President Trump held an event at the White House to help counter protests and slumping sales at Tesla. Trump even vowed to buy a Tesla, a red Model S. But do you think this will be enough to help Tesla’s sales? 

VW SLASHES 1,600 CARIAD JOBS
In addition to production worker layoffs, Volkswagen is also making additional cuts at its struggling software unit Cariad. According to reports from Germany, VW plans to lay off 1,600 of the 5,900 workers it employs at Cariad. Last year, it had an operating loss of €2.4 billion and issues developing software were blamed for the delay of Audi and Porsche electric models. 

VW SIGNS SOFTWARE DEAL WITH GEELY’S ECARX UNIT
A major part of the reason VW is making all the cuts at Cariad is because it has since partnered with Rivian and China’s Horizon Robotics to help develop software. And now comes word that VW is going to work with another Chinese company on smart interior technology. The CEO of Geely-backed ECARX says it’s in talks with the automaker about using its proprietary computing system, which can run both digital and safety solutions, on VW brand models in Europe and the U.S. This would expand on a current partnership that VW already has with ECARX, which includes using its tech on cars made in Brazil and India.

 

PORSCHE AXES 3,900 JOBS 
Now back to job cuts at the VW Group. Porsche says it’s planning to cut 3,900 jobs due to lower profits, slumping sales in China and the threat of tariffs on exports to the U.S. Last year, Porsche’s sales in China slid 28%, which contributed to a 23% drop in operating profits.

SUBARU TO ADD ANOTHER TOYOTA-BASED EV TO LINEUP
Subaru is getting another EV in its lineup. Autoforecast Solutions reports an electric 3-row crossover will enter production in May of next year. Again, the model will come from its partnership with Toyota and like the Solterra it’s made on Toyota’s e-TNGA architecture. But it looks like there’s a number of modifications to that platform, which we’ll have more on in a moment. And instead of the new 3-row EV being built in Japan, like the Solterra, it will be made in the U.S. at Toyota’s plant in Kentucky. The Subaru will reportedly have Toyota and Lexus siblings and news dropped about a year ago that the Toyota will use some version of the Highlander name. We’ve also got an update on Rivian. Autoforecast Solutions says that the R2, the EV startup’s new slightly smaller SUV, will go into production in August of next year at its plant in Normal, Illinois and that production of the R2 and R3 at its all-new plant in Georgia won’t start until early 2028.

LEXUS UNVEILS NEW RZ EV
Now back to updates on Toyota’s e-TNGA architecture. Lexus is making a number of improvements to its first EV, called the RZ. More cells have been stuffed into the battery pack, which now has 77 kWh of capacity. It says on front-drive models with 18-inch wheels this contributes to a 20% increase in range. When applied to the EPA-estimated range, the new RZ could potentially drive up to 319 miles or 513 kilometers on a single charge. Other improvements include a new thermal management system, which has a pre-conditioning function that can help reduce charging time, and improved front and rear e-motor output, which provide up to 300 kW or just over 400 horsepower in an all-new F-SPORT version. Lexus says it expects the new RZ to start rolling out this fall. 

TOYOTA REVEALS NEW C-HR+ EV
Similar improvements are being made to the Toyota bZ4X, but it has a little less battery capacity and does not get a version with 300 kW of power. But Toyota is also expanding its BEV lineup with plans to launch 3 new models that are mainly aimed at Europe, but reports say the all-new C-HR+ could come to the U.S. as well. This model gets the new e-TNGA architecture too, so it comes in front- and all-wheel drive. Two battery sizes are available, 57.7 and 77 kWh, with the larger providing up to 600 kilometers or about 370 miles of range. Toyota says the new C-HR+ is scheduled to launch in Europe in the second half of this year. 

NEXT-GEN BMW 3 SERIES INCLUDES ICE VERSION
BMW is planning to introduce a next-gen version of the 3 Series with an IC engine alongside the all-electric version. Automobilewoche reports that the combustion model will have similar styling to the EV and will also feature similar technology. BMW may continue to produce the ICE version at its plant in Mexico where it’s built the 3 Series since 2019. But it stopped building the model at its plant in Munich because it’s being converted to BEV-only models. The next-gen 3 Series is expected to launch in 2027.

MERCEDES CREATES NEW CEO POSITION FOR NORTH AMERICA
Mercedes-Benz announced that it is consolidating its U.S. operations under a newly created CEO position. The automaker announced that its former head of U.S. production Jason Hoff, will be the CEO of Mercedes-Benz North America starting on May 1st. Hoff will be in charge of R&D, manufacturing, sales and marketing in the U.S. and he will report directly to global CEO Ola Kallenius. Hoff, a native of Oregon, began his career at Mercedes in 1993 and he also has experience working at the home office in Germany. Mercedes’ sales in the U.S. were up almost 9% last year to more than 324,000 units but the automaker is losing market share to BMW and Lexus.

Don’t forget that Autoline After Hours goes live at 3PM EST tomorrow. John says he wants to talk about the most reliable cars you can buy because we have Jason Norton from JD Power coming on the show. As you may remember JD Power recently released its annual dependability study and we thought GM did surprisingly well, so no doubt that will be a topic.

But that’s a wrap for this show. Thanks for making Autoline a part of your day.