+++ The most affordable AUDI in the electric era will be a new entry SUV, which will be revealed next year. Slotting in below the Q4 e-Tron, the new model will potentially be badged Q2 e-Tron and would give the premium manufacturer a €40.000 starting point for its EV offering, taking on the likes of Volvo’s EX30 and the Mini Aceman. It also means a future for small Audis is back on the cards, after the firm announced that the petrol-powered A1 and Q2 would end production this year. Audi chief executive Gernot Döllner told: “We won’t step out of these segments; we will end production of the A1 and Q2, and there will be no successor to the A1, but we will see a car that will enter production next year that is our entry BEV model”, confirming plans for the new baby electric SUV. Due to be revealed in the second half of next year with sales starting in early 2027, the new Q2 e-Tron will arrive too soon to take advantage of the Volkswagen Group’s advanced new EV platform, called SSP (Scalable Systems Platform). Instead, it will use the same MEB underpinnings as a current broad range of EVs across Volkswagen, Cupra and Skoda, most recently deployed on the Czech firm’s Elroq. It’s also the base for Audi’s larger Q4 e-Tron and is used by Ford on the Capri and Explorer, too. The new model is likely to stick closely to the recognizable Audi family face, although insiders say the firm’s new design boss Massimo Frascella has joined early enough to influence the looks, following his switch from Jaguar Land Rover last year. Frascella’s first big statement about Audi’s design future will be revealed in September at the IAA München with a concept set to hint at a future new TT. The new Q2 e-Tron is likely to be around 200 mm shorter and a little bit lower than its Q4 e-Tron. Boot space will also be down on the bigger car’s 520-litre maximum capacity. Reflecting the Q4 e-Tron’s powertrain line-up, the entry cars are likely to get a 204 hp motor and smaller 63 kWh battery, although the newest addition to the line-up is likely to launch with a 286 hp motor and larger 82 kWh battery, which should see it offer an official range figure in excess of 560 km. The Q2 e-Tron is also set to come with Quattro four-wheel drive and a higher level of tech than its family peers. Audi is trying to shift its brand upmarket, and chase profit and quality of business over outright quantity, which has led to the demise of the A1 and Q2 models. However, smaller cars don’t sell well in the USA or China, 2 major Audi markets. Globally, the Q7 outsells the A1, and Audi makes significantly more money per vehicle on the big SUV. But that means Europe will have a key role to play in ensuring the new smaller model’s success. +++
+++ BMW earnings often bring mixed results, but not this year. In the first 3 months of 2025, BMW reports that sales of electric vehicles in the United States are up 26.4 percent, and overall sales are up 3.7 percent. Mini is up 9.5 percent. These numbers are for Q1 2025, and the percentage gains are calculated by comparing sales to the first quarter of 2024. The numbers are striking for a few reasons, not least that the first quarter is often a slow time for the auto industry and the economy in general. As people recover from holiday shopping, large purchases often take a backseat. Maybe people didn’t get the BMW i4 M50 they expected to see under the tree last Christmas. Buoyed by i4 sales, BMW sold 13.538 electrified cars in the first quarter of 2025 compared to 9.713 sold in the first quarter of last year. The i5, a recent addition to BMW’s stable of EVs, sold 1.899 units this year. The i4 sold 7.125 units, leading all EV sales for BMW by a wide margin. The iX, BMW’s first foray into electrified SUVs, sold 3.626 units, while the luxurious and stately i7 found 888 new owners. Though BMW sold more EVs this year, not all vehicles sold better. i5 sales dipped 15.2 percent (BMW sold 239 i5s in Q1 2024) and the i7 fell 10.4 percent (991 sold in Q1 2024). For the i7, this isn’t alarming, as the current version is a bit long in the tooth, and the market for a 6-figure electrified sedan is small anyway. The fact that i5 sales are down may hint at waning interest, though. The iX sold 23.1 percent better in 2025, and the i4 is selling 57 percent better this year. The 4 Series has always been a sleeper hit for BMW, and the i4 suggests buyers are interested in smaller, sportier EVs. Last year, the i4 accounted for half of all 4 Series sales in the US. +++
+++ The new CUPRA RAVAL small electric car has been confirmed for a September unveiling ahead of its arrival on European roads in the first half of 2026. The model, a sister car to the forthcoming Volkswagen ID.2, will be shown at Munich’s IAA Mobility Show, and former Cupra boss Wayne Griffiths described the car as a “game changer” for both Cupra and the Volkswagen Group. Griffiths, speaking about the car shortly before his sudden departure as CEO late last month, said the Raval, along with the launch of the Cupra brand as a separate entity, were the “2 big bets” the firm has made in recent years. Cupra will also build the ID.2 and its higher-riding ID.2 All sibling, at its Martorell plant near Barcelona alongside the Raval, with the Cupra expected to cost from around €24.500 in the Netherlands. Skoda’s Epiq, due later in 2026, will share the same underpinnings, but won’t be built in Spain. Unlike the Volkswagen ID.3 and Cupra Born, the brands’ smaller EVs will be front-wheel drive. Top-spec models are expected to boast 230 hp and 440 km of range, although more modest power and range figures will also be available to give the car its entry pricing point. The Raval will be pitched as a sportier alternative to the more mainstream ID.2, with sports suspension, different steering feel and a selection of software settings to emphasise the positioning. The Cupra will stay true to the design of the 2021 UrbanRebel concept, with the Raval name taken from a district of Barcelona. There is also a hot Raval VZ in the pipeline, following on from the Born VZ launched last year, as Cupra builds towards having a performance version of each of its models, although the performance version of the newcomer is not likely to be with us until 2028. +++
+++ A close-to-production-ready version of the striking HONDA 0 SUV has made its public debut in Japan. And none other than Formula One world champion Max Verstappen was at the wheel of the future Tesla Model Y rival, which is set to launch in 2026. Honda is the engine supplier for Red Bull’s F1 cars, and has been since 2019, which explains why Verstappen was driving the futuristic family SUV at a fan event ahead of the Japanese Grand Prix at the Suzuka Circuit. The car was shown at the 2025 Consumer Electronics Show alongside the outrageous 0 Saloon, and the pair will be the first models in Honda’s pivotal new 0 Series sub-brand of electric cars. The name is a nod to how the company is developing the range entirely from scratch (or “zero”; 0), under the approach of “Thin, Light, and Wise”. The first of those 3 words refers to the use of a new bespoke EV platform, ultra-thin battery pack and compact e-Axle drive unit that supposedly allow the 0 Series models to feature “unprecedented styling” with low vehicle heights and short overhangs. The design of the 0 SUV features a distinctive sleek front end mated to a bulky square rear, designed with maximum interior space as the priority. Interior visibility and flexibility are further key strengths, according to Honda, plus the screens blanketing the dashboard will offer a new digital user experience thanks to the firm’s latest software. Named after Honda’s famous robot first seen in 2000, the new Asimo OS operating system will manage driving assistance, automated driving and entertainment systems, using over-the-air updates to, according to the brand, “ensure functions and services are continuously advanced in accordance with the preferences and needs of each user”. The 0 SUV will feature Honda’s latest development in chassis control, using 3D gyro sensors to “enable dynamics at the will of the driver on various road surfaces”. A new range of rear and four-wheel-drive powertrains is also being developed that’ll produce from 245 hp up to around 490 hp, with all likely to be made available on the 0 Saloon too. Production of the Honda 0 SUV is slated to begin next year, and the car will be introduced first in North America. It will then make its way into global markets, including Europe and Japan. The wedge-shaped yet sleek Honda 0 Saloon with its sloping nose and bold front end is a development of the concept car revealed at the 2024 CES event. Some of the less production-feasible elements, including the infinity mirror-style lighting across the front end, have been toned down, and the headlights are smoother and more integrated. The concept’s huge single door evolved into a more regular pair on each side, while on the inside the minimalist steering wheel is replaced by a half-wheel. This has its upper section chopped off to enable a clear view of the full-width set of three screens, flanked by a pair of angled screens that replace traditional wing mirrors, as first seen on the Honda E supermini. What does remain is the hulking angled rear overhang that now houses a pair of diffusers. Provided it carries over into the production version in a form close to the prototype, the design will make for one of the most distinctive rear ends on the road. The interior is heavily tech-focused, as it is in the SUV, although details like boot access and size are yet to be revealed. The full line-up of 0 Series models will eventually include an entry-level SUV below the 0 SUV, as well as a larger seven-seat SUV, a further compact SUV and a smaller saloon to sit below the 0 Saloon, all of which are expected to have arrived by 2030. +++
+++ American motorists with their eyes on a new Range Rover or Land Rover Defender may have a long wait on their hands as Jaguar Land Rover ( JLR ) has announced a temporary stop on all car shipments to the US. The move comes in the wake of the 25% tariffs on all car imports announced by president Donald Trump. The Trump tariffs have triggered turmoil in global stock markets and caused the biggest slump in share values since the Covid pandemic. The automotive industry is just one of those hit but the 25% blanket tariffs on all car imports to America will have major impacts for manufacturers around the world. After the European Union, the US is the second biggest export market for the UK car industry and, in value terms, the UK exports more cars to the US than any other kind of goods. The trade is worth approximately €10 billion per year and representative body, the Society of Motor Manufacturers and Traders (SMMT) has already indicated that the increased costs cannot be absorbed by car companies and prices will inevitably have to rise. JLR is apparently opting to take stock of the situation with a “pause” on exports to the US market in April. It sent around 38.000 cars across the Atlantic in the third quarter of 2024, close to the total it sold in the UK and the European Union combined. A statement from JLR released on Saturday said: “The USA is an important market for JLR’s luxury brands. As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans. Our priorities now are delivering for our clients around the world and addressing these new US trading terms”, the statement continued. Coventry-based Jaguar Land Rover has factories in Solihull, Castle Bromwich, Wolverhampton and Halewood building Jaguar, Range Rover and Land Rover models. +++
+++ Multinational automaker STELLANTIS is making drastic moves that will affect its North American workforce as president Donald Trump Administration’s landmark trade levies become a new reality for the American car industry. The parent company of American car brands like Chrysler, Dodge, Jeep and Ram is imposing temporary layoffs affecting nearly 1.000 U.S.-based workers at 5 plants in Michigan and Indiana. This setback comes at the same time it pauses production at some of its plants in Canada and Mexico in response to the 25% tariffs tacked onto imported cars and car parts. A Stellantis spokesperson told that the layoffs would impact workers at 5 Midwest plants, specifically the stamping plants in Sterling Heights and Warren, as well as three plants in Kokomo, that make transmissions and metal castings. According to Stellantis, the affected stamping plants make hoods, roofs, liftgates, side apertures, fenders and floor pans for a wide variety of vehicles, including the Dodge Durango, the Chrysler Pacifica, several Jeep models (Gladiator, Grand Cherokee, Wagoneer, Grand Wagoneer, Wrangler) and Ram trucks. The automaker emailed employees about the production cuts. In the message, Stellantis North America COO Antonio Filosa said that the setbacks are due to production halts at its plant in Windsor, Ontario, Canada, and its assembly plant in Toluca, Mexico. Stellantis’s Windsor Assembly Plant near Toronto, which makes the Chrysler Pacifica and Voyager minivans and the Dodge Charger Daytona EV, will halt production for 2 weeks starting on April 7. Also, the Toluca Assembly Plant will halt production from April 7 through the end of the month, which will affect the Jeep Compass and the electric Wagoneer S. In his email to employees, Filosa says that Stellantis is actively accessing how to navigate the new tariff-heavy environment while staying competitive among its rival, adding that the company needs “collective resilience and discipline to push through this challenging time”. Trump’s 25% tariffs currently apply to vehicles imported into the United States, however, tariffs on major components like engines and transmissions have a May 3 deadline. “We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants”, Filosa wrote. “Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations. These are actions that we do not take lightly, but they are necessary given the current market dynamics”. CTV News reports that the leader of the Unifor Local 444, which represents the Windsor Union, warned that Trump’s trade decisions have ripple effects beyond the northern and southern U.S. borders. “This has and continues to create uncertainty across the entire auto industry. This is not just affecting our plant. It’s impacting facilities in the U.S. and Mexico as well”, he said in a social media post. The fine text of the tariff proclamation Trump signed on March 26 states that parts that comply with tariff-free trade rules written into the United States-Mexico-Canada Agreement will not be subject to the new tariffs until the Commerce Department and U.S. Customs and Border Patrol find a way to tax their non-U.S. content. Stellantis’ latest moves indicate that the automaker is in a precarious position due to the fact that it makes major car parts all over North America. Trade agreements, specifically the USMCA, allowed the automaker to make important parts from body panels to the twin-turbo Hurricane inline-6 and 6.4-liter Hemi V8 engines in different parts of the continent to be installed in cars that would be imported and sold in the U.S. Despite this, Filosa reiterates that the company is doing all that it can to navigate its path. “Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada and Mexico, as we work to manage and adapt to these changes”, he wrote. “We are focused on taking responsible actions that are in the best interests of our customers, our business partners and you, our employees, wherever you work. Together, I know we will rise to these new challenges, just as we have always done in the past and we will emerge even stronger”. +++
+++ In the UNITED KINGDOM , uptake of electric cars massively increased in March, a bumper month for new car sales, but the industry has warned the growth is unsustainable without proper support for consumers to make the switch. Figures released by the Society of Motor Manufacturers and Traders (SMMT) reveal that new car sales were up 12.4% year on year to 357.103, following a 10.4% uptick in the same period last year, making it the best March for registrations since 2019. A significant 14.5% increase in retail sales (to around 147.000) was a primary factor in the overall growth, compensating for a “lacklustre performance” in March 2024, but fleet sales were up, too, by a healthy 11.5% to account for just over 200,000 registrations. Meanwhile, there was substantial growth in sales of all types of electrified models, with hybrids posting a 27.7% uptick, plug-in hybrids growing by 37.9% and electric cars clocking a 43.2% boost to give them a market share of 19.4%. The SMMT attributed this increase in EV popularity to manufacturers’ “significant discounting” of EVs (which cost the industry around €5.5 billion in 2024) in a bid to meet the terms of the UK’s zero-emission vehicle mandate, under which they must achieve a 28% EV sales mix this year. Currently, the EV sales mix is running well behind that; it even still lags the 22% figure that was mandated last year. But the SMMT said EVs have traditionally accounted for only around 16% of March registrations, so this is a “strong indicator of likely overall annual performance”. The organisation also noted that strong EV sales in March “will have been boosted by shrewd buyers” looking to get ahead of the VED Expensive Car Supplement which came into effect on 1 April, imposing a £195 yearly fee for 5 years on cars costing more than £40.000. EVs were previously exempt from this. Vauxhall earlier this week announced that it was cutting the list price of its range-topping Grandland and Astra EVs to below £40.000 to swerve the ‘luxury car tax’. Meanwhile, sales of petrol cars were down 0.4%; just enough to drop the fuel down to a 49.5% market share from 55.9% last year. And just under 21.000 diesel cars were registered last month; a 10.1% drop that gives oil-burners just a 5.9% share of the market. SMMT chief Mike Hawes hailed the “welcome return to growth” as an optimism-boosting “fillip for the industry” but said work must be done to ensure it’s sustained in the years to come. “Manufacturers remain committed to the market decarbonisation the country and the environment demands, but we need sustained growth, not a short-term bubble driven by unsustainable manufacturer discounting and drivers rushing to beat a tax hike. Without substantive government support for consumers, the current regulatory regime is undeliverable. A rapid response to the government consultation is therefore needed; one that adds flexibilities that reflect the natural level of demand and supports the industry to deliver growth in the face of a tough set of global challenges”. 2024 was quite the year for the car industry in the United Kingdom. New car registrations increased by 2.6% compared with the year before, while the Ford Puma was crowned the best-seller. The Blue Oval’s small SUV topped the charts for the second consecutive year, and it’s back at the top once again, 3 months into 2025. Figures released by the Society of Motor Manufacturers and Traders (SMMT) show that cars sales improved year on year in March, rising 12.4% to 357.103. It was the best March since 2019. EV sales also increased by a healthy 43.2%. The most popular new cars of 2025 so far are: 1. Ford Puma – 14.930 units; 2. Kia Sportage – 12.886 units; 3. Nissan Qashqai – 11.792 units; 4. Vauxhall Corsa – 11.476 units; 5. Volkswagen Golf – 10.749 units; 6. Nissan Juke – 10.414 units; 7. MG HS – 9.738 units; 8. Volkswagen Tiguan – 9.140 units, 9. MG ZS – 9.041 units and 10. Hyundai Tucson – 8.715 units. +++
+++ It’s official. Tariffs are here, heavily taxing automakers seeking to import products into the United States and forcing customers looking to reconsider vehicles made domestically. VOLKSWAGEN appears to be one of the first major car companies to react meaningfully to these sweeping changes, and as many predicted, it seems the customer is going to feel just as much pain as the manufacturer. The real-life ramifications of the tariffs are already unfolding. In a memo the automaker distributed to US dealerships, it was revealed that all rail shipments from Mexico would be temporarily halted. Furthermore, cars arriving by ship would be held at the port indefinitely. Although the automaker did call the measures temporary, there doesn’t seem to be any firm date or timeline in place. Instead, according to the Wall Street Journal, the company has simply informed dealers that details will follow “by mid-April”. Another measure I don’t yet have a full scope of is an “import fee” the automaker will add to the price of all imported vehicles. Almost everything in the current VW line-up is imported, with only the Atlas and all-electric ID.4 being assembled stateside, in VW’s Chattanooga, Tennessee plant. All other models will receive a yet undisclosed fee that will cover, either in part or full, the 25% tariff Trump has instituted on vehicles imported from outside the United States. Volkswagen’s official stance on the subject of tariffs and charging more leaves a little bit to be desired. “We want to be very transparent about navigating through this time of uncertainty”, the automaker told the Wall Street Journal. As news has trickled out since the tariffs officially went into effect, it seems most automakers are on the same page: Pricing changes, layoffs, and idling factories are just some of the ways OEMs like Ford and Stellantis have reacted. Others, like Volvo, have committed to producing more cars stateside. When you consider that over $460 billion worth of vehicles and parts are imported annually, though, one begins to wonder how feasible any of these solutions are in the grand scheme of things. +++