AD #4254 – China: Don’t Sell Solid-State Batteries For 2 Years; Iran War: German Chemical Co’s Cut Production; Peugeot’s New 1.2L Turbo w/ 15,500 Mile Maintenance

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

IRAN WAR: GERMAN CHEMICAL CO’S CUT PRODUCTION 
The war in Iran is really starting to have an impact on the auto industry. German chemical companies are cutting production as oil and natural gas prices go up, as shipping costs rise, and as supply chains are starting to choke. Automakers and suppliers rely on those chemical companies for their plastics to make parts for cars. So we could see shortages, which has the potential to cripple automotive production within weeks.

BAHRAIN SMELTER SHUTDOWN SPIKES ALUMINUM PRICES
Meanwhile, Bahrain is shutting down the world’s largest aluminum smelter, which produces 1.6 million tons of aluminum a year. The price of the metal was already rising all last year, but the war has pushed prices up to levels that we haven’t seen since the Covid pandemic.

IRAN WAR FORCES F1 RACE CANCELLATIONS
Even motorsports are being impacted by the war. Formula One announced it’s cancelling races in Bahrain and Saudi Arabia, which were supposed to take place next month. At first F1 thought it would just be able to postpone the races, but the war looks like it could drag on longer than many hoped for, so it decided to cancel them. There are two more F1 races scheduled to take place in Qatar and Abu Dhabi in November and December, but Formula One is hopeful they’ll still take place.

CANADA CONSERVATIVES PROPOSE AUTOMOTIVE TRADE RULE
The Conservative Party in Canada is proposing a different approach to automotive trade with the United States. They call it the “dollar for dollar” rule. Every automaker that manufactures a car in Canada would be able to import a comparable-cost car made in the U.S. or Mexico without paying any tariffs. The Conservative Party also wants cybersecurity regulations for cars to be harmonized across North America, as well as legislation that bans vehicles that use connected car technology from China or Russia. It’s trying to differentiate itself from the Liberal Party that’s currently in power, and says it’s a mistake to shift away from the U.S. as Canada’s main export market.

VINFAST REVENUE SOARS, LOSES $1.4 BILLION
EV startup VinFast experienced big growth in 2025. The automaker sold nearly 197,000 vehicles globally last year, up 102% compared to 2024. It also sold over 400,000 e-bikes and scooters, which was up a whopping 473%. Thanks to that success, VinFast’s revenue skyrocketed 105% in 2025 to $3.6 billion. However, the company lost $1.4 billion last year and doesn’t expect to break even this year because it’s burning through cash to expand and develop new products for global markets. Part of that expansion includes resuming construction of its assembly plant in North Carolina, which it delayed in 2024. The plant is now expected to start operations in 2028.

CHINA: DON’T SELL SOLID-STATE BATTERIES FOR 2 YEARS
There’s a number of automakers developing solid-state batteries who are aiming to offer them before the end of the decade. But a renowned scientist at China’s Academy of Sciences says the technology needs a couple of years to mature, that solid-state batteries shouldn’t be rushed into the market and that development should proceed in a “step by step” manner. While solid state offers higher energy density, faster charging times and lower fire risk, producing the batteries at scale is difficult and expensive. The Chinese scientist says that current battery technology is already very good and that consumers shouldn’t wait around for EVs with solid-state batteries.

MERCEDES AND GEELY NEGOTIATING DEEPER TIES
Mercedes is holding talks with Geely to expand their partnership. Bloomberg reports the discussions involve Mercedes using Geely technology for its next-gen electric vehicles in China, which it would do in an effort to shorten development time and reduce engineering costs. But no formal agreement had been made yet. Geely currently owns a nearly 10% stake in Mercedes. And the two automakers run a 50-50 joint venture of the Smart brand, with Mercedes responsible for the design while Geely handles the engineering and manufacturing.

PEUGEOT’S NEW 1.3 L TURBO W/15,500 MILE MAINTENANCE
With EV growth slower than expected and relaxed emission targets, automakers have more incentive to keep improving their internal combustion engines. Last week we reported how Chinese automaker Changan is coming out with a new hybrid that was developed specifically for low-speed efficiency. And now Peugeot is launching the third-generation of a 3-cylinder engine that will first be used in the 208 and 2008. Most of the main components are new, including the cylinder block, pistons, timing chain, direct injection system and variable-geometry turbocharger. The 1.2L unit makes 100-horsepower or 74-kW and engineers were even able to reduce the maintenance schedule. It surprisingly only needs 1 service every two years or 25,000 kilometers, which is about 15,500 miles. The setup is available now in the 208, while the 2008 gets it in May. 

FTC CRACKS DOWN ON MISLEADING DEALERSHIP ADS
Ever felt duped by a car ad that had a deal you liked, only to find out there’s extra fees, you didn’t qualify or the dealership didn’t have that exact model in inventory? Well, in the U.S., the Federal Trade Commission or FTC is trying to crack down on that. It has warned 97 car dealer groups that their advertised prices need to be more transparent. For example, prices have to feature all required fees, any rebate or discount must be available to all customers, additional down payments need to be listed and a price can’t be featured only if you sign up to use dealer financing. Experts are urging dealers to make sure their ads follow state and federal laws to avoid an FTC investigation, which could result in fines or even being banned from the industry.

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