AD #4298 – U.S. EV Sales Show Signs of Recovery; Toyota Plans New $2B Plant in Texas; VW Debuts Sporty New Electric ID. Polo GTI

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

TOYOTA PLANS NEW $2B PLANT IN TEXAS
Toyota is looking to expand in Texas. The automaker filed for state and local tax incentives for a $2 billion assembly plant located next to its current truck plant near San Antonio. If Toyota gets approval, construction of the facility could start as soon as this year with the first vehicles rolling down the line in 2030. It’s not known what models the new plant will build, but Toyota needs the extra capacity. The automaker’s North American executives say its U.S. manufacturing network is operating at record efficiency levels and aren’t able to accommodate any extra output, regardless of demand.

STELLANTIS & DONGFENG EXPAND PARTNERSHIP FOR NEW NEVS
Stellantis is expanding its partnership with Chinese automaker Dongfeng. They’re going to build two all-new Peugeot-branded vehicles based on the Concept 6 and Concept 8 that were revealed recently at the Beijing auto show. These will be NEVs, so some form of PHEV, BEV or EREV, and production starts at their joint venture plant in China in 2027. There’s no official word on which automaker is providing the platform for these vehicles, they’re intended for China and export to other global markets. Around the same time two Jeep-branded off-road NEVs for global markets will be built at the same plant in China, but no details on what those will be yet. Stellantis and Dongfeng also signed a non-binding understanding to leverage their scale, expertise, and R&D capabilities, which we think could include sharing more of Stellantis’ unused manufacturing in Europe. The two automakers are investing just over 1 billion euros to expand their partnership, but Stellantis is only expected to contribute 130 million euros of that total.

STELLANTIS USES AI TO SIMPLIFY USED CAR SEARCHES
Speaking of Stellantis, it’s using AI to make searching for used cars within its European dealer network easier. Even if you have a lot of automotive knowledge, you might have to look through pages and pages of listings just to find a few vehicles that might fit what you’re looking for. Search filters do help, but Stellantis partnered to develop its own AI-based search engine that allows more natural language when looking on its used car platform, called SPOTiCAR. You can type something like “I want a hatchback under 15,000 euros” or “Do you have any cars from Maserati?” Stellantis thinks users can discover a wider selection of vehicles and retailers will see an increase in higher-quality leads. The company launched the feature, called SPOT.i last year and says it’s already logged more than 3 million searches across Europe.

STELLANTIS RECEIVES APPROVAL TO LAUNCH INDUSTRIAL BANK
And in one last bit of Stellantis news, the automaker is getting into banking. It just received approval from the Federal Deposit Insurance Corporation or FDIC and the Utah Department of Financial Institutions, to create its own industrial bank. The bank is governed and regulated like any other bank but it’s more limited. However, an industrial bank allows the company to accept deposits insured by the FDIC into savings accounts, which Stellantis couldn’t do before. Those deposits can then generate earnings and greater savings opportunities for consumers. And if those people do their banking with an automaker, they’re probably a lot more likely to buy their cars. At the beginning of the year, General Motors and Ford also received federal approval to create their own industrial banks.

U.S. ELECTRIC VEHICLE SALES SHOW SIGNS OF RECOVERY
EV sales took a significant tumble in the U.S. after the Trump Administration eliminated the federal tax credit last year but it looks like the segment is showing signs of recovery. According to S&P Global Mobility, registrations of new BEVs in March fell 25% compared to a year ago to 87,800 units. While that’s still a big drop, that’s the highest number of EV registrations since the tax credit was repealed. It’s also significantly higher than February’s 56,700 registrations. March’s EV market share was 6.2%, up from 4.8% in February. But a lot of that growth was thanks to generous automaker incentives which averaged $8,000 in March according to Cox Automotive. While most automakers saw a drop in EV sales, Toyota did especially well. Its EV registrations skyrocketed 140% in March, Lexus was up 183% and Subaru, which shares Toyota’s EV platform, was up 50%.

           

SUBARU DELAYS NEW ELECTRIC VEHICLE TO CUT COSTS 
And speaking of Subaru’s electric vehicles, the automaker is going to share a platform with Toyota longer than expected. Subaru had planned to start building a new independently developed EV at a new plant in Japan which is scheduled to open in 2028. But now Subaru is delaying production of that model and is taking a $362 million charge to do so. The plant will focus on producing gas-powered and hybrid vehicles instead and will add EVs later, depending on demand. Subaru needs to cut costs in order to offset the effect of U.S. tariffs, which wiped out $1.4 billion in earnings last year. The U.S. accounts for 70% of Subaru’s sales globally and about half of those vehicles are imported from Japan which get slapped with a 15% tariff.

VOLKSWAGEN DEBUTS SPORTY NEW ELECTRIC ID. POLO GTI
Volkswagen is coming out with a sportier GTI version of the ID. Polo that it recently revealed. At its heart is a more powerful 166 kW or roughly 225 horsepower electric motor, which drives the front wheels, but it also comes with an electric limited slip diff, adaptive chassis, 19-inch wheels and sport seats. Along with a new GTI driving mode, the setup will do 0-100 km/h in 6.8 seconds. Cupra actually uses the same package on the new Raval with a trim it calls VZ. Pre-sales of the ID. Polo GTI starts in Germany as early as September and prices will start at about 39,000 euros.

VOLKSWAGEN UPDATES ID. BUZZ
And in one more bit of VW news, it skipped a 2026 model year for the ID.BUZZ in the U.S. because 2025 versions arrived late. So it basically has enough inventory of ‘25s to cover the ‘26 model year since the EV doesn’t sell in big numbers in the U.S. However, VW is coming out with a 2027 version, which will include upgrades like the company’s newest software system, one-pedal driving and a camper van that has a fold-out mattress, window blinds, ventilation and a special battery mode to use power even when the car is off. 

But that brings us to the end of today’s show. Thanks for tuning in and I hope that you have a great weekend.