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Runtime: 10:17
0:00 Trump Tariffs Sink Auto Stocks Globally
0:47 Americans Rush to Buy Cars Before Tariffs Hit
1:20 China Car Market Shows Signs of Weakening
2:12 Volvo Dumps Rowan, Brings Back Samuelsson
3:30 Toyota Can’t Build Hybrids Fast Enough
4:22 Renault-Nissan Alliance Drifts Further Apart
5:42 Aston Martin Sells Shares, F1 Team Stake
6:33 Zeekr & Huawei Top BYD In Fast Charging
7:18 Trump Pardons Nikola Founder Trevor Milton
8:18 Autoline Poll on Trevor Milton Pardon
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
TRUMP TARIFFS SINK AUTO STOCKS GLOBALLY
We start off the week with the stock price of almost every single automotive stock around the world taking a nosedive. And it’s all because of U.S. tariffs. Over the weekend, President Trump said he really didn’t care if tariffs cause imported car prices to go up, because American car buyers would buy more American cars. But the thought of higher prices didn’t sit well with investors. The stock prices of almost every traditional car company, every EV startup, every supplier, and every retailer were down. And this was true in the U.S., in Europe, in Japan and even in China.
AMERICANS RUSH TO BUY CARS BEFORE TARIFFS HIT
But the threat of tariffs is pushing more Americans to buy a new car now, before prices go up. Automakers will report their first quarter sales this week, and auto analysts say the early signs show that sales are running strong. But they’re also revising their outlooks, pushing them down more for the rest of the year. Cox Automotive was forecasting that U.S. sales would hit 16.3 million vehicles this year. Now, because of the tariffs, it’s shaving half a million off that forecast.
CHINA CAR MARKET SHOWS SIGNS OF WEAKENING
Meanwhile, things don’t look that rosy for the Chinese car market either. We now have the total sales numbers for both January and February. They just topped 3 million units and were down 4.4% compared to last year. It’s important to combine the sales of both those months because the Chinese New Year holiday can fall in either, depending on the lunar calendar. And car sales plummet when the country is on its New Year’s break. Combining car sales for both those months eliminates any confusion. And the numbers show that the market is weakening. Another important development is that sales of New Energy Vehicles lost market share. They hit 44% of the market. And though there’s always a seasonal dip in NEV sales during the winter, this is something we will keep an eye on.
VOLVO DUMPS ROWAN, BRINGS BACK SAMUELSSON
Out with the new, in with the old. Volvo is bringing back former CEO Hakan Samuelsson to once again lead the company. Samuelsson was replaced as CEO in 2022 by Jim Rowan, who officially steps down today. Rowan, who is also leaving the board, was seen more as a tech guy, previously holding positions at Dyson vacuums and BlackBerry. But Samuelsson will only serve as president and CEO for two years while the company searches for a long-term successor. It’s surprising that Volvo did not let Rowan finish out the transition to a new CEO. But here’s a clue why. Volvo said that “the company is best served by leadership with deep industrial experience, deep knowledge of our group, and a proven ability to execute in challenging environments.” Apparently, the board decided that Rowan was not that person.
TOYOTA CAN’T BUILD HYBRIDS FAST ENOUGH
Toyota got ripped by environmental groups for sticking with hybrids and being slow to introduce pure-electric vehicles. But now the automaker, especially Chairman Akio Toyoda, must feel vindicated. Reuters reports that the company can’t keep up with demand for its hybrids. Suppliers are struggling to keep pace, which is causing parts shortages and leading some customers to wait months for their vehicle. The automaker is dealing with low hybrid inventory in major markets including the U.S., Japan, China and Europe. The global market for hybrids has grown significantly, according to LMC Automotive automakers sold 16.1 million hybrids, including plug-ins, around the world last year up from 5.7 million five years ago.
RENAULT-NISSAN ALLIANCE DRIFTS FURTHER APART
Renault and Nissan are shaking up their partnership. They’re both planning to reduce their stake in the alliance while at the same time increasing product sharing. Each company currently holds 15% of the other’s shares, but they plan to cut that to 10%. However, we would also note that a French trust, which Renault is a part of, holds a little over 18.5% in Nissan. Beyond the reduced stakes in each other, Nissan wants to sell its share of their joint Indian operations to Renault. That means Renault would own 100% of the business, but they will still collaborate on production, sales and service. And as part of the new strategy, Nissan would no longer be required to invest in Ampere, Renault’s EV and software division. But the two companies will continue to collaborate on new projects. As Nissan revealed last week, it’s bringing the Micra back to Europe as a rebadged version of the Renault 5. And now it says it will get its own version of the Renault Twingo for Europe sometime in 2026. Renault will develop and build the model, while Nissan takes care of the design. The companies say they both benefit from a more agile alliance, expanded scale and reduced costs.
ASTON MARTIN SELLS SHARES, F1 TEAM STAKE
Aston Martin needs cash, so it’s selling shares and a stake in its F1 team and expects to raise around $162 million. Chairman Lawrence Stroll’s investment firm, Yew Tree, is paying about $68 million to raise its stake in Aston to 33%. Stroll’s consortium has now invested $775 million in the automaker since it acquired it in 2020. Aston also plans to sell its stake in Formula 1, which is controlled separately by Stroll, and hopes to raise around $95 million. Aston has struggled the last several years due to supply chain issues, delivery delays and slumping sales in China. And the company also recently lowered its guidance for this year because of President Trump’s tariffs.
ZEEKR & HUAWEI TOP BYD IN FAST CHARGING
BYD’s 1,000 kW EV fast charger, which can add 400 kilometers or about 250 miles of range in just 5 minutes, is already being trumped by Zeekr and Huawei. Zeekr revealed a 1,200-kW charger, while Huawei showed off one that can charge at 1,500 kW. That last one is capable of adding 20 kWh per minute of charging and fully charging a battery in 15 minutes. The key will be how many models offer this capability and how many chargers are actually available to customers, but it looks like the charging industry could be going towards ultra-fast charging.
TRUMP PARDONS NIKOLA FOUNDER TREVOR MILTON
Here’s something we were surprised to see. President Trump pardoned former Nikola Motors founder and CEO Trevor Milton. Milton was sentenced to four years in prison in 2023 after being found guilty of lying to investors about the company’s technology. But Milton revealed in a social media post that Trump issued him a full and unconditional pardon. However, he wasn’t in prison at the time because he was appealing his case. It’s not exactly clear why Trump pardoned Milton. When asked by reporters why he did so, Trump responded that it was “highly recommended by many people.” But we think it should be noted that Milton and his wife donated $1.8 million to Trump’s re-election campaign and two lawyers who defended Milton during his fraud case have ties to Trump. Adding another wrinkle to this story, Nikola’s stock shot up 80% after Milton’s pardon.
AUTOLINE POLL ON TREVOR MILTON PARDON
And this got us thinking for our next Autoline Poll. What do you think about President Trump pardoning Trevor Milton? Do you think it’s 1. Another disgusting example of corruption in the Trump White House. 2. Completely justified, Trevor didn’t do anything seriously wrong. 3. I don’t care one way or the other. 4. None of the above, see my comments below.
Remember, you can find the poll on our YouTube home page. Look for the tab that says “Posts.”
And that’s a wrap for today. Thanks for tuning in.
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Where to start….
1. Forecasts are NOT Facts. So chill out.
2. Those who gaze in crystal balls, Sean, still eat broken glass. You need to appreciate that, and try to eliminate forecasts completely from your ‘news’ videos. They do not even qualify as “AL Insights”.
3. Common sense is not common, so here goes:
4. Automaker stocks fell not because of tariffs, but because of the threat of tariffs, which are due two days from today.
5. Even so, Tesla stock, which has fallen far more than the others recently, did NOT fall due to the tariff threat. Many other reasons, and on the serious side, lack of new product.
6. IF the other nations foolishly retaliate instead of negotiating and offering to drop THEIR tariffs to zero and ask the US to do the same, Makers will NOT dare slap prices with the full 25% increase, bUT will EAT much of the increase, if not all. Investors expect this, so this is why their stocks fell.
7. Buyers, especially intelligent, money savvy buyers of flagship luxury imports, the six digit price flagships, will never buy them if they have a hefty increase. Very few will, the rest will keep what they have and fix it if needed, AND will look just in case there is a Caddy or Lincoln they could live with ( I bet there is not).
8. Knowledge of markets and economics and using your common sense should tell you that IF the other nations, which had far higher tariffs than the US to begin with, choose to INCREASE their already high tariffs, they are shooting themselves in the foot and this will lead to a world-wide recession, with the side benefit of much lower interest rates and inflation. The US may get a cold (if it foolishly refuses a flu vaccine) but the rest of the world will get a well deserved pneumonia until they get a brain and negotiate.
I am a #3 on the Trevor Milton poll. I don’t care and it does not matter what happens to Trevor Milton. His CEO career is done for as nobody in their right mind would ever hire him. The end game with or without jail time was Trevor living off his investments and retiring on a beach somewhere. This way tax payers won’t be paying the cost of feeding and housing Trevor Milton for 4 years(roughly $200K in cost) during his adult time out. We can use that money instead for getting threats off the streets like MS13 or TDA. Those are far more dangerous to Americans nationally then Trevor Milton was and will ever be. At the ATM at night I am not looking over my shoulder for Trevor Milton. Trevor should have been given a stiff fine and made penniless for his actions, but Jail…Nah. I prefer MS13 and TDA to take that spot in Jail.
woaa…….83% in the survey are stinky democraps.
#3 for me as I really don’t care because I don’t know if Milton over estimated the potential of the technology or if he truly knew he was exaggerating in order to scam investors.
I will say that the 1.8 million dollar donation certainly isn’t a good look and makes our judicial system appear to be a joke and affirm that the ones with the money make the rules. Stuff that doesn’t apply to us working folks.
I love to see how Toyota is flourishing in the hybrid market. Never faltered or caved to the pressure to build pure EVs. They didn’t run around like most others wasting millions on partners and JVs that have failed. Everyone thought they needed to jockey for position and foolishly wasted money on any start up that they thought might have a slight advantage. Good solid management Toyota and is why they will continue to be a leader in the auto industry.
Poll – Vote for #1. Another disgusting example of corruption in the Trump White House.
#4 for me. I can’t understand why a system of government would give a leader the ability to pardon.
Seems to me to undermine the concept of personal responsibility. I prefer limiting the power of even supreme beings.
Lambo, Toyota has three decades of refinement and recalls so they should be at the top of their game. Except electric motors are similarly used in EV’s which are plenty. So I don’t believe them and they just needed a fluff piece for PR and lacking new products.
I enjoy listening to the daily auto news video but was very disappointed in the Nikola pardon question. While I do not think the CEO deserves a pardon the first answer option on your poll suggests a scary level of bias on Autoline’s part. The first rule of journalism of any kind should be acting in an unbiased manner and leave your personal feelings at the door. Giving option choices that are blatantly bias is a great way to get a bias survey. I would expect much more from this outlet given your typically excellent automotive news reporting.
IMHO, the leaders at Volvo see hard winds coming in the car industry and while Rowan did great things during the company’s transition, a more experienced auto executive, who is deeply familiar with the abs and flow of the ever changing market place. Choosing someone familiar with the brand and helped build the automaker into what it was before Rowan took over was a nice place to start for them! I wonder, though, if they are expecting their search for a replacement might take some time, with them giving Rowan’s ‘temporary’ stand-in two years for the company to do it!
Regulus —
For someone who doesn’t seem to put much stock in ‘crystal ball’ forecasts, your last post appears to do a lot of ‘speculating’ on how you think things will go! Everyone has an opinion and you may be correct at the end of the day, but what makes your automotive insights any better the hosts of ALD, Sean and John?! At least they have inside connections and the ability to monitor the industry and ‘read to tea lives’ full time, unlike most of the viewers of THEIR SHOW! That is, unless YOU have some bona fide automotive credentials and awareness you have yet to disclose??? You did say a few weeks ago that Elon Musk was ‘the smartest man you knew’, so maybe you do keep company with leaders of the automotive industry?! So…come on…I’m sitting a little closer to my tablet…give us a few more pearls of wis…uh-oh, hold that thought…my tablets all most out of power….let me charge it and illl be right back!
#1 Regulus, Tesla stock also gets impacted by import tariffs but at lesser extent vs others but still. And i think this perspective of old products impacting share price or sales is not accurate, M3 and MY are both new. CT is also new. The big, difficult to solve problem is their brand equity and perception, which have been completely destroyed to the eyes of people who actually buy their products.
I’ll go with I don’t really care one way or another on Trevor Milton…………………………..and where was Autoline Daily when the Biden government was in ‘full’ corruption for not only the auto industry but quite a lot more. A couple of notable boondoggles would be the push for an electric Postal Trucks (less than 100 delivered so far), and another notable would be the billions spent on charging stations with nary of any of those being built either.
Trevor Milton is now free to plan and produce Fyre Festival 3.0. Look for a major supporting sponsorship from X.
It just goes to show once again, in the Trump Administration, money talks.
I don’t much care about the Milton pardon. Maybe it’s payment for the campaign donations, but the donations were trivial compared to those from Elon, and probably others. The Trump pardons that are, by far, most disgusting are those of the violennt Jan 6 thugs.
Negotiating with pathological liar Trump is a joke. USMCA is an example of something he negotiated, but is not paying much attention to.
Hey GM Vet, remember when I, from day One, told you Milton was a crook and you defended him as just a businessman exaggerating his sales pitch? Who was the retired GM VP that supported Milton back then?
Seriously now, the suggestion that a LOUSY $1.8 M campaign contribution, made by Milton’s wife, got him the pardon, is utterly laughable.
Trump came to Washington on Jan 20, 2017 a Billionaire. He DONATED ALL HIS FOUR $440,000 a year salaries to chrities of his choice. ADD THEM UP (you probably will need to use your phone, if you are a proud US public school product) and they alone are much higher than the $1.8 m.
Senile Idiot Joe Biden came to Washington barefoot and left a multimillionaire, due to his family’s corrupt dealings after his term as VP ended in 2016. He probably had figured out that he could not be elected president, so he thought to make ‘the most of it’ while he was in power.
Cackling Kamala got 2 BILLION to (mis) spend in her 2024 campaign
Trump had less than HALF of her funds.
Musk gave the Trump Campaign $100 mill or so, still a far cry compared to the $1 bill shortfall above.
And that’s the way it is.
#1 Trevor Milton poll. Payola! A solid win for corruption!
RR… More Regulus Rubbish parroted from infotainment sources.
If RR believes $1.8 million is peanuts, how about donating a similar amount to Autoline to keep it going? At least it would be put to good use.