AD # 4193 – Lucid Avoids U.S. Tariffs in Saudi Arabia; Canada Sends Stellantis Default Notice; VW Converting Car Plant Into Tech Center

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

LUCID AVOIDS U.S. TARIFFS IN SAUDI ARABIA
It’s possible that Lucid will be able to make its upcoming mid-size SUV at its new plant in Saudi Arabia for less than it could in the U.S. The vehicle should start running down that new production line late next year or early in 2027 and the plant’s location allows Lucid to import critical components without getting hit with significant tariffs. The company plans to source the vehicle’s battery pack, its most expensive part, as well as some other equipment from China. Normally, those components would be hit with a 25% import tariff going into the U.S., but Saudi Arabia is part of a group of countries that only pays a 10% rate to the U.S. So, as long as current policy stays the same, Lucid should be able to save a good chunk of money. The company says the new mid-size SUV will be priced around $50,000 and its success could be what makes or breaks Lucid.

CANADA SENDS STELLANTIS DEFAULT NOTICE
Canada isn’t happy with Stellantis. Back in October, the country’s Industry Minister threatened to take legal action against the automaker for moving Jeep Compass production out of its Brampton, Ontario plant and into Illinois. The Canadian government had previously provided Stellantis with C$500 million in aid to pay for capital costs at two plants in the country, including the Brampton factory. So, now the Industry Minister is serving the automaker with a notice of default on its financial aid for relocating production. Currently, there are 3,000 workers on furlough at the Brampton plant because production was paused back in February to retool the facility to make the new Jeep.

  

STELLANTIS PUTS MORE FOCUS ON HYBRIDS FOR U.S.
And speaking of Stellantis, we’ve seen its powertrain strategy shift significantly under new CEO Antonio Filosa. The HEMI V8 is back, the all-electric Ram pickup is dead and it announced an all-new 2.0L turbo 4. Now Filosa says it’s going to focus on hybrids for the U.S. While the company does pretty well selling plug-in hybrids already, it’s going after more traditional hybrid setups or in other words, hybrids with no plug. He says there’s faster growth opportunity with traditional hybrids and Jeep will help lead the charge. The 2026 Cherokee is available with a 1.6L 4-cylinder engine that’s paired with two electric motors.

VW CONVERTING CAR PLANT INTO TECH CENTER
Volkswagen is planning to keep its Dresden production site open but instead of building cars, it’s going to be converted into an AI and chip tech center. The site was one of three factories VW planned to close in Germany because of falling sales and to help reduce costs. But after pushback from unions, VW agreed to keep the site open. However, the plant only builds 6,000 vehicles a year, so now it’s phasing out car production at the end of the month and will offer workers transfers or early retirement packages. But instead of shuttering the site completely, VW has signed a deal with the Dresden University of Technology to develop a startup and research center for AI, robotics and chips. Here’s our Autoline Insight. That plant was constructed at enormous cost to build the VW Phaeton, which was a sales dud because it was too expensive as a VW. The facility was meant to be a showcase for east Germany, so it’s a shock to see it become a tech center.

     

NISSAN WANTS TO WORK WITH OTHERS
Nissan is open for business with other automakers. That’s according to the brand’s head of product planning in North America. He says the company is seeking out partnerships with other automakers to share technology or vehicle platforms. But the partnership must be reciprocal instead of just a transaction. Nissan, which posted its largest annual loss in a quarter century last year, says forming partnerships will help strengthen the company long-term, as opposed to going at it alone. Honda and Mitsubishi have expressed interest in jointly developing models with Nissan. And in October, Automotive News reported that it was in talks with Ford and Stellantis to supply an EV based on the Rogue. While Nissan would only say it’s in “conversations” with multiple automakers, it did say a deal could be announced in the next year.

CHANGAN PLANS EUROPEAN EXPANSION
Earlier this week we ran a report about how Chinese tech company Huawei is now developing its technology for international markets. While it doesn’t build cars, its user experience and infotainment systems are featured in many models. And the Avatr brand is a joint venture between Huawei, Changan and CATL. Now Changan says it will bring Avatr vehicles to Europe over the next two years. On top of the Depal brand that it already offers in Europe, Changan will also start selling its Nevo brand in the region, which makes smaller cars and SUVs, and is considering adding light commercial vehicles as well.

TOYOTA REVEALS 3 NEW SPORTS CARS
Here’s those Toyota sports cars we said it would be revealing today. Let’s start with the GR GT. In my opinion, this is kind of like Toyota’s version of a C7 Corvette. It’s a front-engine, rear-drive vehicle that is built on an all-aluminum frame with a torque tube down the middle and a transaxle layout. However, unlike the ‘Vette, the GR GT is powered by a dry-sump 4.0L twin-turbo V8 that’s paired to an 8-speed automatic trans, an electric motor and a limited-slip diff. Total output is expected to be over 640 horsepower and around 625 lb-ft of torque. The third vehicle with the louvered fenders that we weren’t sure what it was, is actually a GT3 version of this car that customers can purchase. Both are expected to launch around 2027. The other sports car is an all-new LFA concept that’s fully electric. It will share core technologies with the GR GT, but says it plans to explore the performance potential that is unique to EVs. However, there was no timetable given for when a model like this might launch.

KIA CONCEPT PAYS HOMAGE TO 1960’S MOTORING
Kia is celebrating the brand’s 80th anniversary today. As part of the festivities, the automaker revealed a sleek new concept car called the Vision Meta Turismo. Kia says it pays homage to the speed and elegance of 1960s long-distance driving. One interesting feature is its AR head-up display which integrates smart glasses into the vehicle. This allows drivers to view virtual graphics that appear to be floating above the road in three dimensions. Kia says it will reveal more about the concept in the near future. But circling back to Kia’s history, the company was actually founded in 1944, so we’re not sure why it didn’t celebrate the 80th anniversary last year. But anyway, the company started out making bicycle parts and introduced its first bike in 1952. Kia launched its first car in 1974 and it was acquired by the Hyundai Group in 1997.

But that wraps up today’s report, thanks for watching and have a great weekend.