+++ The new AUDI RS5 is set to replace the old RS4 and the new car has been caught testing once again in Limousine and Avant guise ahead of a seemingly imminent reveal. The RS5 will rival the BMW M3 and the Mercedes-AMG C 63. A new feature of this car is the massive twin-exit exhaust system, which sits more centrally than on earlier generation RS4 and RS5 cars. It gets an e-Tron GT-like grille, positioned low down to give the RS5’s front end an aggressive, squat stance. The grille has a rather complex mesh pattern within it and is flanked by 2 big openings hiding at least 1, but most likely 2, symmetrical charge coolers behind. The rear light bar could get a bespoke light signature. As you’d expect from a hot Audi, the RS5 has big, boxy arches housing larger wheels, not to mention massive brake discs and calipers. The front wheel arch also has an air vent sitting behind it; in a similar fashion to the new RS6 Avant GT. The new RS5 is due to be revealed later in 2025 and will feature a plug-in hybrid powertrain. Given that the new car sits on Audi’s PPC platform (a variation of the old A4’s chassis), I expect the new Audi will add a high-performance PHEV module to the existing car’s 2.9-litre twin-turbocharged V6 engine. This will be paired to an automatic transmission and Quattro all-wheel drive. We can only speculate about power and torque, but we expect a big increase over the current RS4, getting closer to AMG’s 68- hp C 63 S E-Performance. But because of the extra weight of its plug-in powertrain, it will need that extra grunt if it’s to outperform the existing pure-combustion model. Inside we’ll see the same basic layout as on the recently revealed S5. That means an 11.9-inch Virtual Cockpit and 14.5-inch Oled central touchscreen dominating the dash. If previous models are anything to go by, the RS5 should also gain some bespoke tweaks such as sportier bucket seats, RS trim and special driving modes. +++
+++ The Dacia Sandero was the best-selling car in EUROPE by a significant margin last year, according to figures released by industry analyst Jato Dynamics. A total of 268.101 examples of the value-focused supermini were registered last year, beating the second-placed Renault Clio by more than 50.000 units. The Volkswagen Golf rounded out the podium with 215.715 sales. Sales of 2023’s most popular car, the Tesla Model Y, dropped by 17% to 209.214. That was still enough to secure its place as Europe’s most popular electric car, however. SUVs remained the most popular type of car in Europe last year, accounting for a record 54% of all sales (so 6.92 million cars); up 4% compared with 2023. Indeed, of the 50 best-selling models, 27 were SUVs. Supermini sales grew by 1.3% to 2.0 million (or 15.5% of the market), while the traditional C-segment (hatchbacks) and D-segment (saloons) dropped by 1.3% and 3.3% respectively. EVs’ share of the market shrunk from 15.7% in 2023 to 15.4% last year, while petrol models rose from 47.9% to 48.4%. Jato attributed EVs’ slump to the withdrawal of incentives, as well as their high average price. It expects EV sales to rebound in 2025, though, as new, more affordable models (such as the Renault 5 E-Tech and Fiat Grande Panda Elettrica) come to market. Diesel cars’ protracted slump in share continued, dropping 1.7% year on year to 14.3%. Meanwhile, plug-in hybrids dropped from 7.7% of the market to 7.3% and hybrids grew from 9.9% of the market to 11.8%. +++
+++ FERRARI said its revenues and core earnings would rise at least 5 percent this year, supported by strong product delivery and demand for personal touches to vehicles, having met targets for 2024. The company said it saw its adjusted earnings before interest, depreciation, tax and amortization growing this year to at least $2.77 billion, versus a $2.65 billion result in full-year 2024. Last year’s result compares with Ferrari’s forecast of at least $2.59 billion. Ferrari is set to reveal its long-awaited debut electric car on 9 October. In an announcement accompanying the Italian firm’s 2024 financial figures, CEO Benedetto Vigna said Ferrari will “reveal more of our future on 9 October at our Capital Markets Day”. He stopped short of confirming any more details, but said it would be presented “in a unique and innovative way”. That will be a year since Ferrari revealed its new F80 halo hyper car, which is due to begin deliveries around autumn 2025, so it promises to be a particularly busy period in Maranello. Ferrari is also expected to reveal follow-ups to the Roma and SF90 Stradale this year, though has not said whether these will form part of the Capital Markets Day announcements. Overall, Vigna said the firm will roll out 6 new cars in 2025. Vigna said the firm expects “further robust growth” this year in the run-up to that date, following a year in which Ferrari significantly increased revenues and profits. Although car deliveries were up just 0.7% year-on-year in 2024, at 13.752 units, Ferrari posted a revenue uptick of 12% to 6.7 billion euro, of which 1.53 billion euro was profit; a 21% increase. Vigna attributed the hike to “quality of revenues over volumes”, highlighting the impact of a “strong product mix and a growing demand for personalisations”. Production of the Portofino M, SF90 Stradale, 812 and Roma was phased out during 2024, to allow Ferrari to ramp up output of the Purosangue, 296 GTS, SF90 XX, Roma Spider and 12Cilindri. The 296 and SF90 hybrid model lines accounted for 51% of Ferrari’s total shipments. Deliveries of the ultra-exclusive Daytona SP3 and 499P Modificata specials helped to “enrich” the product mix, Ferrari said, along with customers more extensively personalising their cars. Vigna recently told that Ferrari’s first electric car has already completed several thousand kilometres of on-road testing and promised it will be made “in the right way” to ensure buyers can “have a lot of fun”. The Italian firm has yet to give any details about what form its first battery-electric vehicle will take, but recent spy shots show what are understood to be test mules using modified Maserati Levante bodywork. Whether it will be obviously comparable with the Levante in silhouette remains to be seen. Notably, though, Ferrari used Maserati’s SUV as the basis for the first Purosangue prototypes and that car is radically different from its Italian contemporary; while still sitting high off the ground and having rear seats. It is possible Ferrari could seek to emulate the characteristic dynamic qualities of its combustion cars by centralising the mass of the batteries in the chassis, much in the way that its current cars are either front-mid-engined or rear-mid-engined. Vigna said he expects the new EV to appeal to both existing Ferrari customers and tech-savvy newcomers to the brand. He added: “There is not a pattern really. People buy a Ferrari because when they buy a Ferrari, they have a lot of fun. They don’t buy a Ferrari because A, B, C, D or a single element. It’s a combination of things. When we do electric cars, we will produce them in the right way. “Consider that we have prototypes already on the road that have done several thousand kilometres, and we have in our company very qualified clients: test drivers. The first clients of our cars are the test drivers. They drive a lot of cars, and they can easily make a comparison between one and another, so for us this is an important metric that we are making a reference to”. Reports from Reuters have suggested that the new EV will be priced from 450.000 euro in the Netherlands and claimed that a second electric model is already under development. Vigna called those reports “a surprise” and declined to confirm any of those details. He added: “The way we define the price of a car is one month before we launch it”. The Ferrari EV will be produced in the firm’s new E-building, which has recently been opened on its Maranello campus. The facility contains an advanced new production line, which is likely to start operations with the Purosangue and SF90 before the EV joins in 2026. The new production line will not replace either of Ferrari’s 2 existing lines, but the firm refused to be drawn on whether it will increase capacity. Vigna said Ferrari will offer internal combustion, hybrid and electric models in the future but insisted that the sales split between those models will not be set by sales or production targets but by customer demand. “We always refer to what is our offer, not ‘what are the sales?’” said Vigna. “Forecasting the sales by the kind of propulsion is an act of arrogance, a lack of respect to the client. We will never talk about sales splits. How can we understand what the client wants? We’re not talking about computers selecting a car. We’re talking about human beings with emotion”. The E-building will help Ferrari reduce development times and increase the level of personalisation that it can offer, which is key to the company’s goal of increasing “revenue quality over quantity”. It will also eventually house production of all of Ferrari’s powertrains, including high-voltage batteries, electric motors and axles that will be used for its future electric models. Bringing production of those key electric components in-house is vital to the firm’s ambitions to ensure that its electric models have points of difference from rivals and that it can continue to service all its models in the future. Ferrari will buy its battery cells from a number of unspecified providers. Vigna declined to give any information about which firms it will use but did drop a hint about battery technology. He said: “You hear people in the market going for LFP [lithiumiron-phosphate] batteries. Well, LFP batteries are not for Ferrari. It’s not good for us”. +++
+++ FORD has a plan to catch up to rivals by rolling out high-performing, affordable electric vehicles. But first, it has to survive Trump tariff threats and its own version of EV hell. While the global slowdown hit every automaker, it left Ford especially vulnerable because it has no new EV models coming for more than 2 years. Rivals have begun selling their own electric models and it will take years to execute on a strategy that could make Ford more competitive. But chief executive officer Jim Farley has the company’s electric ambitions riding on 2 key plays: to better compete on price and to fix the range problem. +++
+++ We’ve seen the BMW 3 Series get a facelift and a new Audi A5 launched in the past few months, but trailing not too far behind is their MERCEDES C-CLASS rival, which is almost due a mid-life refresh. The current C-Class went on sale in 2021 and since then we’ve seen a new E-Class enter the market which could preview some design changes for its little brother. Up front, the C-Class’ Panamerica grille will be turned upside down and become taller, in effect taking up more space. This will no doubt have a knock-on effect for the side air vents and indeed the whole front bumper. The redesigned headlight set-up incorporates a three-pointed star light (as on the Concept CLA Class) which is a feature we’ll also see as part of the upcoming facelift for the S-Class. Expect a similar rear light signature to the CLE and a reshaped rear bumper. The overall design changes should also mirror those on the upcoming entry-level Mercedes electric car, the CLA. Expect a new choice of alloy wheels to arrive as well. The interior of the current C-Class is pretty much identical to the CLE’s, which launched earlier this year. As a result, I don’t expect Mercedes to overhaul the C-Class’ cabin design, and a 11.9-inch central touchscreen and 12.3-inch digital display will take up much of the dashboard space, joined by a head-up display on higher-spec models. A range of four-cylinder engines make up the C-Class’ petrol, diesel and plug-in hybrid powertrain offerings, and I’ve had no indication that this will change with the 2025 model, although the C 300 will feature a more powerful mild-hybrid engine. There are no details so far on what form a hot version of the C-Class could take. The upcoming CLE 63 was initially set to use the same 4-cylinder petrol plug-in hybrid set-up as the current C 63. However, because sales of the C 63 PHEV have been so poor, Mercedes extended the development time of the hottest CLE to give it V8 power. There’s no word yet on whether this change of tack will apply to the facelifted C 63, though. I don’t expect a full reveal until later in 2025. +++
+++ NISSAN is prepared to reject an acquisition offer that would make it a subsidiary of Honda , according to a person familiar with the matter, a move that could jeopardize talks between the 2 carmakers to join forces. Earlier, Honda and Nissan said they will unveil the details of their merger plan in mid-February. The two carmakers said at a press conference last month that they had agreed to begin talks on merging under a holding company in 2026 and that each company would operate under its own brand within the holding company. Honda chief executive Toshihiro Mibe said that Honda wanted struggling Nissan to make steady progress in restructuring as a precondition for the merger. Honda has been urging Nissan to strengthen its restructuring efforts, according to sources close to the matter. In November, Nissan said it would cut 9.000 jobs worldwide and reduce its global production capacity by 20 percent after it reported a more than 90 percent drop in net profit in the April-September period. As part of the overhaul measures, Nissan planned to offer early retirement programs to employees at its 3 U.S. plants while reducing its workforce in Thailand, the sources said. But Honda remains unconvinced, calling for more drastic measures to ensure its successful turnaround, they said. Mitsubishi, a partner of Nissan, had been considering joining the merger but is now leaning toward not participating in the holding company, according to other sources. The automaker hopes to maintain its status as a listed company while exploring collaboration with Honda and Nissan without joining the merger, the sources said, adding that Mitsubishi is expected to make a final decision in mid-February or later. +++
+++ The popularity of SUV cars is continuing globally and especially in Europe, despite legislation aimed at restricting the popularity of the biggest versions. The broad category encompassing SUVs from the Renault Captur all the way up to the BMW XM is expected to have accounted for more than half of all cars sold globally in 2024. +++
+++ Things aren’t going all that good for Musk. TESLA registered fewer cars in blue state California in all four quarters of 2024 as sales of its second-most important model plunged 36% for the year. The electric-vehicle maker’s sales in by far the biggest EV market in the US fell almost 8% in the fourth quarter and 12% for the year, according to data sourced by the California New Car Dealers Association. Annual registrations of the Model 3 dropped by more than a third. The carmaker has encountered increasingly rough waters with consumers of late, in part due to Musk’s leap to the far right and his association with Trump. While it remains one of the most popular EV manufacturers in the world, Tesla’s sales fell by 4 percent last year from 1.81 million in 2023 to 1.79 million. The Model 3 and Model Y accounted for 95 percent of those deliveries in 2024, but there could soon be more offerings to bolster sales. At January’s 2025 investor update, Tesla hinted at further models being added to the line-up, stating, “Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025”. We haven’t seen any of these new vehicles testing, but the new cars will have a massive role to play in expanding Tesla’s sales (the company said they’ll enable “more than 60 percent growth over 2024 production) and that’s based on Tesla existing production capabilities. A target of producing nearly three million vehicles each year has been proposed by the American company. There are no technical details on the new Tesla vehicles, despite their supposedly imminent arrival, but the firm did say, “These vehicles will utilize aspects of the next-generation platform, as well as aspects of our current platforms, and will be produced on the same manufacturing lines as our current vehicle line-up”. This could mean we’ll see electric motors and the general underpinnings from Tesla’s newest cars (the Model 3 and Model Y) used for the new cars. Where they will sit in the market remains to be seen, but Tesla has previously expressed a desire to introduce a car sitting beneath the Model 3 that would cost from around the €34.500 mark in the Netherlands. I expected this to be a compact hatchback called the ‘Model Q’, although plans for such a car took a back seat as Tesla revealed its 2-door, 2-seat ‘Cybercab’ last year. Tesla’s plans for a ‘more affordable’ model, particularly one significantly undercutting the Model 3 don’t appear to be shared by the firm’s CEO Elon Musk. He spoke at the Q3 earnings call in 2023, declaring the “future is autonomous” and that having a “regular cheap model is pointless”. During the 2025 update, Tesla told investors that the Robotaxi will “continue to pursue a revolutionary ‘unboxed’ manufacturing strategy” and is scheduled for volume production starting in 2026. +++
