AD #4049 – Tariffs Force Audi to Consider U.S. Production; Alfa Reports Best Sales Since 2019; Waymo Partners to Build AVs in Arizona

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

TARIFFS FORCE AUDI TO CONSIDER U.S. PRODUCTION
As a result of Trump’s tariffs, Audi is looking at building cars in the U.S. at three different assembly plants, according to a report from the German publication Automobilwoche. It’s considering making the Q4 E-tron at VW’s plant in Chattanooga, Tennessee because it’s pretty much the Audi version of the ID.4, which is already made at that plant. The Q8 E-tron could end up getting made at the new Scout plant in Columbia, South Carolina. And Audi is reportedly looking for yet another facility, but there isn’t much else out there. It could try to get into Rivian’s new plant that’s being built near Atlanta, Georgia. But that’s not scheduled to open until 2028. Or maybe it could even turn to Foxconn’s plant in Lordstown, Ohio?

FORD HAS WEAK Q1
Ford reported its first quarter earnings and the numbers were weak all across the board. It sold 971,000 vehicles, down 7%. That brought in $40.7 billion in revenue, down 5%. Operating income was $319 million, almost a billion dollars less than last year. And net income was $471 million, down 65%. Ford barely made any money on its ICE vehicles, only $100 million. And it lost $800 million on its EVs, which was one of the few areas of improvement considering that a year ago Ford lost $1.6 billion on its EVs. Virtually all the profit came from the company’s commercial vehicle unit, Ford Pro, and from Ford Credit, which is its finance arm. Ford says that President Tump’s tariffs will add $2.5 billion to its costs this year and will shave $1.5 billion off its EBIT. Investors didn’t like the news and the company stock was 2% lower in early market trading.

Ford Earnings Q1, 2025
Sales	971,000	-7%
Revenue	$40.7 Billion	-5%
Operating Profit	$319 Million	-74%
Net Profit	$471 Million	-65%

FERRARI HAS STRONG Q1
Meanwhile, Ferrari had a strong quarter. It sold 3,593 cars, up only 1%, but revenue was up 13% to almost €1.8 billion. Its operating profit shot up 23% to €542 million, and its net profit grew 17% to €412 million. In other words, Ferrari posted a higher operating profit than Ford and almost caught it in net profits, even though it sold 967,407 fewer vehicles.

Ferrari Earnings Q1, 2025
Sales	3,593	+1%
Revenue	€1.79 Billion	+13%
Operating Profit	€542 Million	+23%
Net Profit	€412 Million	+17%

RENAULT & STELLANTIS WANT CHANGES TO SMALL CAR REGS
Stellantis and Renault are warning that they’ll have to close plants if the European Union doesn’t change regulations for small cars. In a joint interview with a French newspaper, Stellantis Chairman John Elkann and Renault CEO Luca de Meo said they can’t produce smaller, more affordable vehicles profitably because regulations are designed for bigger, more expensive cars. And if the rules don’t change, Elkann and de Meo say they’ll be forced to close plants. However, they didn’t provide details about what regulations for small cars need to be updated.

 

GM ANNOUNCES NEW HEAD OF NORTH AMERICA
GM announced a big promotion for Duncan Aldred. He’s now the head of GM’s North American operations. He joins GM’s senior management ranks and reports to Rory Harvey who is the President of GM’s Global Markets. Before this promotion, Aldred ran Buick and GMC and more recently was in charge of GM’s commercial operations, including OnStar, and GM Energy, the company’s home charging and energy storage business.

WAYMO & MAGNA BUILDING AVs IN ARIZONA
Waymo currently gives more than a quarter of a million paid robotaxi rides a week in the four cities that it operates in and it plans to add three more by next year. So, in order to service those markets it’s going to need to expand its fleet. That’s why Waymo partnered with the supplier Magna to build a multi-million dollar plant in Arizona to upfit vehicles with its autonomous hardware and software system or what it calls Waymo Driver. As these pictures show, the first vehicles coming out of the facility will be Jaguar I-PACEs. Waymo says it took its final I-PACE deliveries from Jaguar earlier this year and will be able to add 2,000 more to its fleet, which currently stands at about 1,500 vehicles. But it also says it will start upfitting the Zeekr RT at the plant this year and at full capacity it can make ten of thousands of robotaxis a year. Waymo previously announced a partnership with Hyundai to convert IONIQ 5s into robotaxis as well but no word yet if they’ll be made at this new Arizona facility. And one thing we find especially interesting about the new facility is the end-of-line validation process, which allows I-PACEs assigned to its Arizona fleet to drive right out of the plant and directly into service. But we also wonder if tariffs could impact Waymo’s plans? It likely didn’t pay any import tariffs on the I-PACEs because it took its final delivery earlier this year, but the Zeekr RT is made in China, so bringing them to the U.S. will cost more money.

RIVIAN INVESTING IN SUPPLIER PARK
Rivian is investing $120 million to open a supplier park near its plant in Illinois to help support production of its upcoming R2 model that starts rolling down the line next year. Rivian says several key suppliers will locate to the park, which will create several hundred additional supplier jobs and nearly 100 new positions at Rivian. It will also help reduce shipping, logistics and warehousing costs. Construction of the park has already started and it’s expected to be completed next year. Some of those supplier parts and components are likely featured in this picture that RJ Scaringe shared of the R2’s new EV drive unit that Rivian calls Maximus.

ALFA HAS BEST SALES MONTH SINCE 2019
Stellantis needs to cut costs and there’s speculation it could axe some of its 14 brands. One of those on the hot seat is Alfa Romeo since it doesn’t have much of a presence outside Europe. But maybe this will help save it from the chopping block. Alfa says its first quarter global deliveries were up 29% compared to a year ago and that it sold 8,700 vehicles in March, which was its best month since June 2019. That growth is being fueled by its new Junior model. Since its launch, Alfa has received 35,000 orders, with the fully-electric version accounting for 18% of those sales.

JEEP REVEALS ALL-NEW COMPASS
Speaking of Stellantis, Jeep revealed the all-new Compass. It now rides on the STLA Medium platform and that has bumped its size up over the previous model but it also allows for mild hybrid, plug-in hybrid and pure electric powertrains. The 48-volt mild hybrid setup produces 145 horsepower, while the plug-in makes 195 horsepower and there’s three BEV versions that range from 213 horsepower up to 375 horsepower. No battery size was given but EVs will have up to 650 kilometers or just over 400 miles of range and can charge from 20-80% in 30 minutes at a peak rate of 160 kW. Base versions of the new Compass are front-wheel drive, but there will be the option for all-wheel drive as well. Other highlights include a 16-inch center, floating display screen, OTA updates and Level 2 hands-free driving capability. Jeep says orders are open now in Europe and deliveries start in the fourth quarter of this year. But no word when it will launch in other markets yet.

But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.