AD #4245 – U.S. Production Up, But Sales & Jobs Down; Kia Sales Surge Past Hyundai; VW Brand Goes Premium in China

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

KIA OUTPACES HYUNDAI IN EARLY 2026 U.S. SALES
Well, here’s a significant shift in the American market that’s been building for some time. Kia surpassed Hyundai in sales for the first two months of the year. Hyundai sold 121,000 vehicles in the U.S. so far while Kia sold over 130,000. Both brands set record sales in February, so it’s not as if Hyundai is falling way behind, it’s just that Kia is surging ahead.

      

U.S. AUTO PRODUCTION RISES AS SECTOR CUTS JOBS
Warren Browne, one of our favorite auto analysts, took a look at the impact of President Trump’s policies on the auto industry and it’s a bit of a mixed bag. Automotive production in the U.S. increased by 98,000 vehicles last year, but the industry lost 34,000 manufacturing jobs. Browne is forecasting that U.S. production will climb by another 118,000 vehicles this year, but employment will drop by another 4,000 jobs. Last year automakers sold 16.3 million vehicles in the U.S., but Browne expects sales to come in at 15.8 million this year, or about 483,000 units lower. So here’s the bottom line: U.S. production is up, but sales are down and so is manufacturing employment.

VINFAST LAUNCHES LAC HONG LUXURY BRAND AND 616-HP EVS
Vietnamese EV startup VinFast announced it restructured its business into three automotive brand lines. VinFast is the mass-market brand, Lac Hong is its luxury brand and Green is its commercial brand. In addition to announcing its new structure, VinFast revealed two new models for Lac Hong, the 800S and 900S. Those models join the flagship 900LX, which was introduced last year. Not many details about the new models were shared but they do feature a tri-motor powertrain, with one front and two rear motors that combine for 460-kw or 616-horsepower. The 800S and 900S are expected to launch next year.

OIL HITS $79 AMID IRAN CONFLICT THREATENING SUV PRODUCTION
Yesterday we reported that the war in Iran pushed the price of oil up by $10 a barrel, hitting $72. This morning it’s up to $79. That’s the price on the global market, called Brent Crude. In the U.S., West Texas Intermediary is about $5 a barrel lower than the Brent price. And we’re keeping a close eye on this because if oil prices keep going up, it could have a significant impact on the mix of vehicles that the car companies planned to make this year, and that would ripple all the way down the supply chain. In the U.S., automakers planned to sell a lot more full-size pickups and SUVs after the Trump Administration eased off fuel efficiency and emissions regulations this year. But higher prices at the pump could push consumers into smaller vehicles, especially hybrids. A rule of thumb amongst refiners is that for every dollar a barrel of oil goes up, a gallon of gasoline goes up 2.5 cents. Oil experts say the key thing to watch is whether Iran is able to keep the Straits of Hormuz closed and prevent oil tankers from getting through. Right now nothing is getting through and the experts say if that lasts a few more days, oil prices will go higher. And that could send the auto industry scrambling to change its production plans.

  

VW DEBUTS PREMIUM ID. ERA 9X EREV FOR CHINA
The Volkswagen Group saw its sales fall 8% in China last year, but it hopes that developing vehicles specifically for Chinese consumers will help turn that around. One strategy it’s trying is to push the VW brand into a more premium space and along with joint venture partner SIAC, it’s launching a new flagship 3-row SUV, called the ID. Era 9X. The model features an EREV powertrain, using a turbocharged 1.5L engine to generate electricity to send to either a single- or dual-motor setup and one of two battery sizes; roughly 51- and 65-kWh. A range of up to 400 kilometers or nearly 250 miles is expected with the bigger pack on the Chinese test cycle. The single-motor variants are RWD and make just under 300 horsepower, while the AWD version produces 510 horsepower. The ID. Era 9X is expected to launch in China sometime this month, but no word on pricing for VW’s new premium SUV.

AUDI STRUGGLES IN CHINA DESPITE “IN CHINA, FOR CHINA” REBRAND
While this seems like an impressive vehicle, it still might not appeal to Chinese buyers. Last year, Audi also went through a bit of a makeover in China in an effort to regain customers and boost sales. It ditched its four-ring logo and changed the AUDI name to all caps. It also launched a new affordable electric model called the E5 Sportback, which was developed with SAIC specifically for the Chinese market. And while the vehicle won the “China Car of the Year” award last year, consumers haven’t warmed up to it yet. Between its launch in September and the end of December, only 6,650 E5 Sportbacks were sold. And sales didn’t improve in January with just 605 units sold. A buggy infotainment system and slower charging times compared to competitors are turning away some buyers. But the automaker is going to stick with its new approach for now. Volkswagen Group CEO Oliver Blume says the E5 Sportback, which starts at $34,000, is profitable and “attracts precisely the young and tech-savvy customers we want.” And in April Audi will launch its second “in China, for China” model at the Beijing auto show, the E7X.

AGIBOT TO BRING HUMANOID ROBOTS TO EUROPEAN AUTO PLANTS
The auto industry is going gaga over humanoid robots and now Chinese robotics startup Agibot, is planning to produce humanoids in Europe for automotive production. The company partnered with auto supplier Minth Group, to produce its X2 robot as well as train them for industrial applications for European automakers and suppliers. Agibot was founded just three years ago but it has already entered mass-production and delivered 5,000 humanoid robots. Agibot expects shipments of humanoids to ramp up in Europe within two years as more automakers and suppliers test them for their operations.

FORD REVEALS 800-HP SUPERCHARGER KITS FOR MUSTANG & F-150
Ford is selling new supercharger kits for the 5.0L V8 F-150 and Mustang that add an astonishing amount of horsepower and torque. The core of the kit includes a 3.0L Whipple Supercharger, intercooler and all the calibration equipment to make it work. It takes 2021-2026 F-150s from just over 400 horsepower up to 700 horsepower and torque goes from about 400 lb-ft to nearly 600 lb-ft. While 2024-2026 Mustangs go from 480 horsepower to 800 horsepower and from 415 lb-ft of torque to 615 lb-ft. The kit itself costs about $10,500, but in order to qualify for the 3-year/36,000 mile warranty, it has to be installed by a Ford dealer or ASE certified technician. While no word on how long installation takes, the instruction manual is 55 pages long. Plus, customers have to use special 5w-50 full synthetic oil, which there can be up to 8 quarts of, and the system will only run on 91+ octane fuel, including draining the entire fuel system. So there’s going to be a number of extra costs.

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