+++ The next-generation AUDI Q3 SPORTBACK has been spotted flaunting its sleek new design ahead of an official reveal later this year. The popular compact premium SUV has typically offered all the qualities that customers seem to be looking for, and this new model will bring big upgrades in design, technology and powertrain options that should only add to its appeal. Just like the standard Q3 that’ll see similar major updates, the sleek new Sportback version will run on a heavily updated ‘Evo’ version of the MQB platform that’s already in use under the new Cupra Terramar. This will support the new generation of plug-in hybrid powertrain options that’ll be capable of more than 80 km of EV range. In the Terramar, these are available with 204 hp and 272 hp, and I suspect the same options will be available in the new Q3. These will join a range of electrified mild-hybrid and pure-petrol options powering either the front wheels, or all four wheels on higher-powered models. Despite this being an Audi, the all-wheel drive system will remain the Haldex-style system found in MQB models with a front-bias, rather than the Quattro system found in the Q3’s larger siblings. However, for most customers, the changes under the skin will likely be outweighed by improvements to the cabin and design. The exterior will be all-new and feature Audi’s latest design language, including split headlights, a massive upright grille and aggressively accentuated wheelarches. What makes the Sportback different to the standard SUV is its roofline, which more aggressively slopes towards the back to create a coupe-like shape. As is the case with the current Q3, Audi has done this at the same time as slimming the windows to give the car a sleeker silhouette than the more upright SUV. Inside, meanwhile, the updated cabin will feature a brand-new dashboard and digital interface. Inspiration will come from the new Q5, although the Q3’s lower price could see some of the screens downsized and simplified. We don’t yet know whether Audi Sport will develop an RS Q3 variant of the new model, but the brand has maintained that it will continue to offer its iconic 5-cylinder turbocharged petrol engine for as long as it can. +++
+++ CO2 limits has a major impact on the electric car market, as strict CO2 regulations can lead to lower prices for electric cars. I try to summarise the most important facts. The European Union has decided on lower CO2 emission limits for 2025. They relate to the entire fleet of a manufacturer, i.e. the emissions are averaged across all new vehicles sold by a manufacturer, weighted according to sales figures. If the targets are not met, huge fines are imposed. In autumn, Renault boss Luca de Meo spoke of fines of €15 billion for the manufacturers. According to EU regulations, CO2 emissions must fall from 116 grams per kilometre in 2024 to below 93.6 grams. However, each make has to achieve a different target, which depends on the weight of the vehicles sold. If the target is missed, the manufacturer pays a fine of €95 per gram above the limit value. And this is per vehicle sold. An analysis by the bank UBS shows how big the gap is between previous emissions and the EU targets. According to this analysis, the Volkswagen Group would have to increase the share of electric cars in sales from 13 to 25 percent, and Mercedes it would have to rise from 18 to 24. BMW, Renault and Stellantis would not have to make such large increases. The difference here is only a few percentage points: Renault 11 to 18, Stellantis 12 to 15 and BMW 20 tot 22. The data above are for 2023; more recent data do not appear to be available for the EU. The calculations also differ, depending on the analysis. According to an analysis by Dataforce, Stellantis is missing about 7 percentage points. UBS, on the other hand, only comes up with 3 points because it already takes into account the CO2 pooling with the electric car provider Leapmotor. According to the Dataforce analysis, Ford would also need to significantly increase its Europe-wide share of electric cars from just under 5 percent to 23 percent. However, this does not include best-selling internal combustion engines such as the Focus and Fiesta, but rather electric cars such as the Capri and Explorer. Although Toyota hardly sells any electric cars, it benefits from the fact that three quarters of its sales are accounted for by full hybrids, which also emit significantly less CO2 than pure combustion engines. Other manufacturers such as BMW or Mercedes have relatively low CO2 fleet emissions thanks to strong plug-in hybrid sales, because PHEVs also formally emit very little of the greenhouse gas according to the WLTP standard. Volkswagen apparently wants to achieve its targets primarily through sales promotion. This includes discounts such as the purchase price and other special offers. Mercedes could achieve its goal through pooling with Smart. Pooling means that manufacturers get together and average their fleet emissions. Of course, the manufacturers with low emissions get paid a lot of money for this from the ‘dirty’ manufacturers. 2 major pools have already been announced: Stellantis, Toyota, Ford, Subaru and Mazda want to form a pool with Tesla, while Mercedes wants to team up with Volvo, Polestar and Smart. But no manufacturer wants to pay money to the competition. Whether sales promotion measures, pooling or fines: It will be expensive for manufacturers with high CO2 emissions in 2025. Most brands are also reluctant to reduce their range of combustion engines and cross-subsidise their range of electric vehicles. The VW Group is reportedly facing costs of around one and a half billion euros. Manufacturers with low emissions, such as Tesla, Smart or Volvo, on the other hand, benefit because they can pay for the pooling. Volvo, for example, is said to be expecting a windfall of €300 million. Manufacturers still seem to be hoping that the EU will be lenient and water down the CO2 targets for 2025, however. A free way out for manufacturers would be new subsidies at national level or even an EU-wide subsidy, as recently suggested by Chancellor Olaf Scholz. However, this would mean that we as taxpayers would ultimately have to pay for the fact that some manufacturers have not done their homework. +++
+++ FIAT plans to launch a 4×4 version of its new Grande Panda, CEO Olivier François has revealed. François said the exact technical solution for the 4×4 was still being decided, along with whether it would be offered on the hybrid or electric version, or indeed both. But the intent is there to launch such a car to further link the new Grande Panda to its 1980s namesake, he confirmed. “Yes, we are committed to doing something and are studying it”, François said when asked as to his plans for a Panda with 2 driven axles. “We’re trying to find the solution and a way. The question is whether it should be a petrol 4×4 or an electric 4×4. We’re looking at solutions and how and when, but we get the point and would like to do something like it soon”. François ruled out a 7-seat version of the Grande Panda and said the intent for larger models instead lies in productionising the 2 concepts shown last year, as part of a new range of models based on the same Smart Car platform as the Grande Panda. A pure-combustion model will also be launched with a manual gearbox, but this is mainly focused on emerging markets as part of the Grande Panda’s global footprint. François said he “expects this to come at Europe at some point” but is in no rush to bring it here, as his focus is on electrified versions, of which he is confident he can sell as many as Fiat can make, at least initially. François added that Fiat’s return to the sub-4 meter part of the B-segment with a ‘utility vehicle’ like the Grande Panda, rather than a supermini like the old Punto, was because it had to have global appeal. The Grande Panda has that, whereas superminis are Europe-focused. +++
+++ JLR has reported a year-on-year drop in profits for the third quarter of its 2025 fiscal year, despite bringing in record revenue and its best profit margin for the quarter in a decade. The British manufacturer reported £523 million in profit before tax (PBT) and exceptional items and £375 million in profit after tax (PAT) between October and the end of December. That was down compared with the £627m PBT and £592m PAT in the same period last year. This was despite a record revenue for the quarter of £7.5 billion, up by £100m year on year, and a 10-year-high earnings (before interest and tax) margin of 9.0%. A spokesperson for JLR told that the drop was due to foreign exchange revaluations, after a reduction in the value of the pound. Warranty costs and discounting were also key factors. However, JLR owner Tata expects that a weaker pound could actually benefit the company, should US president Donald Trump impose tariffs on foreign automotive exports. JLR’s profit for the full year to date (from the start of May 2024 to the end of December) stands at £1.6 billion; the best it has been by this point in the year for a decade. JLR attributed its otherwise successful quarter to an increase in volumes (wholesales were up 3% year on year to 104.427, while retail sales were down 3% to 106.334) and an improved product mix. Its most profitable models (the Range Rover, Range Rover Sport and Land Rover Defender) now comprise 70% of its wholesales. JLR also benefited from a reduction in depreciation and amortisation from the end of production at its Castle Bromwich plant and from extending the life of its combustion-engined models. The firm said it was “on track” to achieve its profitability and cash flow targets for its full 2025 fiscal year: a margin more than or equal to 8.5% and positive cash flow. CEO Adrian Mardell said: “JLR has delivered a robust performance in the third quarter of our financial year and reached further milestones in our Reimagine strategy. Thanks to our people and partners, we achieved record revenue and our best margin in a decade in the third quarter, and our electrification plans are progressing. We revealed the beautiful, reimagined Jaguar design vision, Type 00, in Miami and later this year we will launch Range Rover Electric”. +++
+++ Writing anything about Tesla is always a bit of a step into the unknown, because it has such a loyal and vociferous fanbase. But that status prompted a chat about when the actions of a leader start hurting sales, even for the brand that had the UK’s top-selling EV last year. There’s no question that Elon MUSK ’s high profile and combative, disruptive nature have played a huge part in making Tesla the most impressive start-up car company in history. But if aligning himself with Donald Trump, the most divisive leader of any nation in recent Western political history, wasn’t enough, last week’s storm over his ‘Nazi salute’ (whether it was an awkward mistake or a deliberate and incredibly awful attempt to be controversial) must surely have people debating whether they really want to be associated with the company. With Musk subsequently being both unrepentant and publicly critical of those who labelled it a Nazi gesture, we may never know what his thinking was. In the early days of Tesla, Musk had an almost unquestioning following, but his EVs are now being bought in huge numbers by people all over the world who just want a good car, and don’t necessarily want to be seen to endorse the choices made by its owner, especially with him being so close to Trump. Tesla’s win at an industry awards event last week provoked a chorus of boos, which I’d never witnessed before, and public opinion may not be far behind. It’s a brand that has always rewritten the rules and succeeded when it looked like it shouldn’t, but it’s now entering a critical period. The Tesla Model 3 was updated in late 2023, and the facelifted Model Y follows this year. But from a European perspective, there’s little else new on the horizon. As mainstream car makers get better and better at electric cars, Tesla’s advantage is being eroded. And with a limited and ageing model range of 2 mainstream models, it may find it increasingly difficult to stay competitive. But a potential demise for the brand has been forecast for years, and in sales terms, things look healthier than ever. Yet, as always, with the world’s most radical and controversial car company, absolutely anything could happen next. +++
+++ STELLANTIS has announced that it has acquired all the shares in the joint venture created in 2018 with the Belgian multinational Punch Powertrain, an OEM specialized in the production of transmission and propulsion systems in the automotive sector. The decision directly affects the plants in Metz, France, and at the Mirafiori complex in Turin, Italy, where the joint venture’s activities are ongoing with the production of eDCT transmissions, an advanced hybrid technology that integrates a 21 kW electric motor into a dual‑clutch. The motor provides electric propulsion when less torque is needed, such as when driving in the city or at constant speeds, allowing the petrol engine to remain off for 50% of the time in urban cycles. Consequently, the eDCT transmission (structurally characterized by significant weight reduction and production cost optimization) also stands out for its positive effects on fuel savings and reductions in harmful emissions. +++
+++ The new Model Y has a difficult task: to revive the sales of the world’s best-selling car in 2023, and therefore those of TESLA as a whole. The car has only just made the list in the West, but in China it went on sale a few days earlier and now the first figures are coming in. Well, in 5 days, the electric SUV has received more than 70.000 orders. Tesla began selling the facelifted Model Y in China on 10 January. Initially, the RWD and AWD Long Range versions with a 5-seat configuration entered the list. The first deliveries are expected to take place in March. The new Model Y, which is the result of a joint China-US effort with the Chinese engineering team working on the exterior and interior design and the American team working on the software, went on sale here. For now, it is only available in Europe in a Long Range version with all-wheel drive in Launch Series trim. But while the car is selling very well in China, it has been attacked on social media in America, largely because of Elon Musk’s recent public behaviour and support for Donald Trump’s election campaign. There is evidence that some motorists looking for an electric car have chosen to buy a ‘non-Tesla’ model precisely in protest at the comments made by the CEO. There are 2 main types of comments. There are those who criticise the car’s appearance, which is seen as unattractive (but everyone can have their say on aesthetics) and, most notably, there are those who do not accept Musk’s recent rhetoric, which is seen as too close to the far right and white supremacist movements. In short, is Musk hurting Tesla? Maybe. But the real question is: how much? In other words, are the boycotts and social media attacks mostly outbursts that will blow over, or will they have real consequences? Certainly, the other manufacturers are riding the momentum and trying to change the balance. +++
+++ February is just around the corner, and with it comes the potential tariffs that American president Donald TRUMP wants to impose on cars exported to the US from Mexico, Canada and Europe. A report by Moody’s and rival ratings agency S&P predicts that cars exported from Europe to the US could face additional tariffs of 10%, up from 2.5%. According to industry association ACEA and other experts, the US is the main destination for European car exports, worth €40.3 billion in 2023 (+12% year-on-year), while car imports from the US to the EU are worth around $9 billion. An increase in tariffs to the expected levels would ‘significantly reduce European carmakers’ profits’, Moody’s senior analyst Ruosha Li wrote in a note. At greatest risk would be Stellantis, the Volkswagen Group and Volvo. According to Moody’s, if Trump confirms the 10% tariffs, Stellantis’ profits would be reduced by ‘well over 15%’, because 40% of its vehicles sold in the US come from Canada and Mexico. The Volkswagen Group’s profits, on the other hand, could be reduced by between 5% and 10% if there were a 10% tariff on imports from Europe and 15% from Mexico. Specifically, most Audi models sold in the US are imported from Europe, but the Q5, one of the best-selling Audis in North America, is assembled in Mexico. All Porsches destined for the US are built in Europe, while Volkswagen’s Puebla plant in Mexico produces around 350.000 cars a year, including the Jetta, Tiguan and Taos, which are mainly exported to the US. Volvo, again according to the same report, could suffer a 15% drop in profits in the event of a 10% tariff on European car imports. In fact, apart from the EX90, which is manufactured in South Carolina, the Swedish company makes its cars for the US in Europe. In this scenario, the European manufacturers that would be least affected by a 10% European tariff would be BMW and Mercedes-Benz, as they have large factories in the US that build mainly SUVs. The largest BMW factory in the world is in South Carolina. +++
+++ There will soon be a new addition to the VOLVO EX30 range. After a number of images unveiled by the Swedish manufacturer during 2023, the brand will finally unveil the Cross Country variant in the coming weeks. The presentation will be live-streamed on Monday 10 February at 13:00 and will be available in full on a dedicated event website. The EX30 Cross Country is just the first of several new Volvo vehicles planned for 2025. In all likelihood, the production model will be similar to the one expected in 2023, with a rougher, off-road-inspired look. I expect to see a number of specific details such as black grille and tailgate inserts, larger wheel arches and off-road tyres, the latter perhaps available as part of a special package. The Cross Country could also have a slightly raised stance and some unique driving modes across the range. There should be no changes in the powertrain, with the EX30 still available with 51 and 69 kWh batteries and 272 hp and 428 hp engines. The EX30 Cross Country is not the only new model from Volvo. The Swedish manufacturer has planned a series of updates for several models, including the XC40, EX40, EC40, S60, V60, V60 Cross Country, V90 and V90 Cross Country. The updates focus on 2 key areas: a faster infotainment system and a simplified charging experience for electric models. The new generation of Volvo Car UX infotainment is designed to offer more intuitive and personalised interaction. Based on real data and customer feedback, the platform features a revamped design and integrated functionality with Google services. Maps, media and phone are now accessible from the home screen, while a context bar adapts to the driver’s needs. The instrument cluster display has also been updated for clearer and more detailed navigation. This system will be available on all listed models, as well as on existing Volvo cars via over-the-air updates. In addition, the new Snapdragon Cockpit platform (developed in collaboration with Qualcomm Technologies) will make the infotainment system (including that fitted to the EX90) faster and more responsive, improving fluidity and reducing distractions. Perhaps the most significant change, however, is the introduction of Plug & Charge for the EX30, EX40 and EC40. To start charging, simply plug in the cable and the system automatically identifies the car and handles authentication and payment without any further intervention. +++