AD #4122 – Mercedes Pension Dumps Nissan Stock; Why Global Auto Regs Have Never Happened; Ram Returns To NASCAR Truck Series, Can Cup Be Far Behind?

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

U.S. & EU COULD SHARE AUTO REGS
For nearly half a century the auto industry dreamed of a day when the world would adopt common safety and emission standards because it would eliminate a ton of regulatory costs. It could simplify manufacturing operations in plants that ship cars to different global markets. And it would also allow automakers to offer low-volume models in markets where the cost of compliance would otherwise make them money losers. Well, maybe that day is at hand, at least between the U.S. and the EU. Automotive News reports that the latest trade agreement between the two has a sentence that would “provide mutual recognition to each other’s standards,” for automobiles. So while they would not commonize their standards, they would accept any imported car that met its own country’s regulations. 

WHY GLOBAL AUTO REGS HAVE NEVER HAPPENED
Here’s our Autoline Insight. There’s a lot of details to be worked out before this happens, and you can expect a lot of blowback from regulators on both sides. Whenever the idea of commonizing regulations was raised in the past, everyone would agree that it was a good idea. The Europeans would say, everyone should adopt our regulations. The Americans would say no, no no, you should adopt ours. And the Japanese would say we don’t want either of yours, ours are the best. So nothing ever got done. But let’s hope this time is different.

 

PORSCHE DUMPS PLANS TO MAKE BATTERIES
Porsche is scraping plans to build its own high-performance EV batteries. The automaker created a subsidiary called Cellforce to produce batteries but the business will now become an independent R&D unit. Porsche is cutting about 200 of the nearly 300 employees at Cellforce however Volkswagen’s battery subsidiary PowerCo, will offer positions to some of the laid off workers. Porsche is blaming the decision on slower than expected demand for EVs and changing market conditions in the U.S. and China.

MERCEDES PENSION DUMPS NISSAN STOCK
The bad news keeps piling up at Nissan. Now comes word that the pension trust fund that Mercedes-Benz runs for its retirees is dumping all the shares that it holds in Nissan, which are worth about $346 million. Those shares go on sale tomorrow and the Wall Street Journal says Nissan’s stock price will likely start dropping once the trading starts.

    

TESLA GOES WITH DEEPSEEK IN CHINA, NOT GROK
Looks like Elon Musk won’t be bringing Grok to China. According to Tesla’s website, it’s going to start integrating two competing AI systems into its vehicles in the country. The company will use DeepSeek as a chatbot or voice assistant, similar to Grok, but another, called DouBao, is also able to control certain vehicle functions, which Grok currently can’t do. It’s unclear if they’re available right now, but they should be soon and will first be offered in the new long-wheelbase version of the Model Y. Tesla launched Grok in newer U.S. vehicles recently as well, so it’s clearly making a push to bring AI into its lineup, but most automakers in China already have AI in their vehicles, so Tesla is actually playing a little bit of catch-up.

RENAULT REFRESH OF THE KIGER
Renault is following a more traditional path for model updates in India. Four years ago it launched a brand-new compact crossover, called the Kiger, that is specifically designed for the market. And now that vehicle is getting its first update. However, other than a new front end, it’s a pretty mild refresh. The rest of the body panels, interior and 3-cylinder engine choices are mostly the same. Renault’s relatively slow model refresh rate in India could be impacting its sales there. Last month it only sold 323 Kigers.

 

RAM RETURNS TO NASCAR TRUCK SERIES, CAN CUP BE FAR BEHIND?
Ram says getting into racing is both a natural and strategic move for the brand because over 40% of NASCAR fans are truck owners. In June Ram announced a move to join the NASCAR CRAFTSMAN Truck Series next season and now it has its first racing partner. Kaulig Racing, which already competes in the Cup and Xfinity series’, is now going to the truck series for the first time and will field up to 5 Ram trucks. Their first race will be in February of next year at Daytona. And don’t be surprised to see Stellantis move into the NASCAR Cup and/or Xfinity series as well, most likely with Dodge. We think there’s a good chance it sticks with Kaulig, which currently races Chevy Camaros. And rumors have it that Honda could get into NASCAR too, and possibly even drop out of IndyCar.

WAYMO STARTS TESTING IN NYC
We keep saying that 2025 is the year of the autonomous car because we believe we’re at the beginning of that hockey stick inflection point. Now comes word that Waymo just got permission to start testing autonomous cars in New York City, specifically in Manhattan and Brooklyn. Only 8 AVs will be part of the test, and they’ll have a human on board behind the wheel in case anything goes wrong. But Waymo is already operating in at least 5 other cities, with another 2 more on the way, and it looks like it’s probably only a matter of time before New York joins the list.

AUDI REFRESH OF THE Q3
Audi is launching the updated version of the Q3. Like the previous generation, the model is available in two body styles, a traditional SUV and a Sportback, which has a roofline that is 29 mm lower than the SUV. The base Q3 is powered by a 1.5L four-cylinder engine with mild hybrid technology, while a 2.0L diesel is also available. Both produce 110-kW of power or 147 horsepower. There’s also a plug-in hybrid which delivers 200-kW or 268 horsepower. It features a nearly 26-kWh battery that provides 119 kilometers or 74 miles of electric range for the Q3 SUV and 1-km less for the Sportback. The SUV starts at 44,600 euros or about $52,000, while the Sportback starts at 46,450 euros or about $54,000. And both launch first in Germany in October.

 

AUDI DROPS LOWER TRIMS OF A7 
And speaking of Audi, it’s dropping the standard A7 sedan and sportier S7 variant from its lineup in the U.S. and will only offer the high-performance RS 7 for the 2026 model year. Audi says the new A6, which launches in the U.S. at the end of the year or early next year, will represent the brand in the midsize sedan segment.

AUTOLINE POLL ON FUTURE OF EV STARTUPS
Ok, let’s go over the results of our latest poll, which was open to our YouTube and Patreon members. EV startups were counting on ZEV credits and $7,500 rebates for their business plan. But now that the Trump Administration has axed all of that, we wanted to know what your outlook for the EV startups is? Close to a third (31%) of you said “Don’t worry, they’ll survive.” But more than half (53%) were pessimistic and said “This is going to cripple their operations.” And 16% said none of the above.
 
Here’s some of the feedback we got. TXCraig believes the startups will be ok. “The idea with a credit was to try to bring the cost of EVs down to the price of ICE. It’s sad, it’s gone, but I don’t think it’s going to slow anything down much.”

Thomas Bowen had this to say “History is littered with the wreckage of failed auto startups, and this will add to the pile. The EV sector is facing stiff headwinds from an oversaturated market, and long-established players can’t turn a profit.”
 
Steven Relyea says “There are so many indirect ways fossil fuel companies have been subsidized, the U.S. should reconsider its support of EV startups. The automobile industry is strategically important to the long-term health of the U.S. economy.”
 
But not everyone is on board with EV subsidies. Kelly Spronberg says “If your business model is sound, you don’t need government handouts. The product should stand on its merits, not just the price.”
 
And Keith Mensing echoed that thought, “We never should have subsidized expensive cars for the upper / luxury car segment, and that’s what most of the EV’s are. If you have a good product and business, you will probably find success. It won’t be because the government subsidized your business.”
 
Thanks to everyone that voted and took a moment to leave a comment, we love getting your feedback.

But that wraps up today’s report thanks for watching.