+++ AUDI is considering plans to build a new factory in the United States. The move is a clear attempt to ease trade tensions with the U.S. government, as tensions continued to escalate, with President Donald Trump threatening tariffs on European automakers, prompting concerns about factory closures. The company has several options, including building its production plant in the southern US. It is, however, the costliest of the options reviewed, with the facility proposed costing as much as 4 billion euros; a considerable investment for the German automaker. An Audi spokeswoman stated that the company is currently reviewing its strategy for the American market. “We are actively looking into several scenarios for this. We are sure that we will make a definite choice this year after consulting with the Volkswagen Group”, the source added in a written statement. Unlike some of its German competition, Audi doesn’t have one of its plants in America. Volkswagen currently operates a plant in Chattanooga, Tennessee, and has a site under construction just outside of Columbia, South Carolina. Those pre-existing properties might be models for logistical or strategic arguments for an Audi expansion. Then there are tariffs which have been putting a financial pinch on European automakers looking to export to the US and all major companies are starting to consider a local manufacturing presence to better weather such changes to the trade landscape. Tariff increases by president Trump will mean German carmakers are already facing more than half a billion euros in costs, the auto industry lobby group said. The protectionist trading policies of the president have created a strain on a number of dominant European car manufacturers such as BMW, Mercedes-Benz and Volkswagen. These firms are currently in negotiations with the US government to secure a more favourable import tariff arrangement. Carmakers are leveraging their investments and exports from US plants to seek better deals with their home markets. The strategy reflects a broader trend among automakers to localize production and reduce vulnerability to trade disputes. In this context, Audi’s potential plant serves both as a move toward sustainable manufacturing and as a diplomatic gesture aimed at easing geopolitical tensions. While no final decision has been taken, Audi’s internal schedule indicates that clarity may arrive within a year. The company’s statement highlighted that any decision will be made in consultation with Volkswagen Group leadership. The assessment process demonstrates the complexities of balancing economic, political and logistical issues in an increasingly unstable global trading landscape. If permitted, the new facility would be a significant step for Audi’s presence in the United States, potentially changing the competitive environment among German premium automakers in the region. More importantly, it may represent a broader trend of European manufacturers responding to geopolitical challenges by strengthening their physical and economic linkages to the US market. +++
+++ While a number of automakers overestimated demand for electric vehicles, BMW seems to have gotten things mostly right as they offer a mix of gasoline, diesel, plug-in hybrid and electric vehicles. Chairman Oliver Zipse recently acknowledged this as he said the company has “the right products on the market at the right time”. This has worked out for the luxury brand as nearly 1 in 5 vehicles sold by the company is fully electric. However, they also have countless other options for customers who don’t want an electric vehicle. Even more options are coming as BMW has confirmed plans to offer a production model with a hydrogen fuel cell in 2028. However, that might not be the only powertrain on the horizon. Quite the opposite as a new report suggests a range-extended EV could arrive as early as 2026. The powertrain will be offered on a version of the iX5, known as the iX5 REx and could have a combined range of around 1.000 km. Little else is known about the powertrain at this point, but it’s said to be under consideration for multiple markets including China, Europe and North America. BMW was tight-lipped when asked about the news, but the company didn’t deny it as a spokesperson said “We continuously analyse usage patterns, customer needs and market developments and review the market potential of various technologies”. While range-extended powertrains fell out of favor with many automakers in the push to go fully electric, they’ve been experiencing a bit of a resurgence. Ram introduced the 1500 Ramcharger in 2023 and CEO Tim Kuniskis recently said he expects other brands to “chase it”. That already seems to be playing out as Scout will offer a range-extended powertrain and Ford CEO Jim Farley recently came out praising range-extended models. Jeep is also said to be cooking up a range-extended version of the Wagoneer, although we haven’t heard much about it in the wake of Ramcharger delays. +++
+++ It’s been over 3 years since Toyota unveiled the GR GT3 concept to preview a future race car. Since then, a street-legal version with a LEXUS badge is in the works. Fast-forward to mid-2025, and the production model is still a no-show. That said, we still get giddy with excitement whenever a prototype is spotted testing on public roads. A new spy video shows the road-going model out and about in California. Shared on Instagram by veteran journalist Jonny Lieberman, the footage, which was recorded from inside a BMW M5 Touring on Angeles Crest, shows what reports suggest will be called the Lexus LFR. The low-slung performance machine was in good company, as it appears Lexus was benchmarking the prototype against a previous-generation Mercedes-AMG GT. The 2 coupes were accompanied by a current-generation Toyota Sequoia equipped with power-extending tow mirrors. The SUV in the front of the fleet was also a Sequoia. You know the LFR is going to look great when even the camouflaged prototype turns heads. Notably, it’s missing the large rear wing previously seen on other test cars. That aero element might be reserved for a hardcore, track-focused version or it could be part of an optional pack. You can tell the suspension is stiff from how the car bounces over even slight road imperfections, but that’s how the cookie crumbles with dedicated sports cars. So, why is Lexus testing the AMG GT? The new LFR is also expected to feature a front-mounted twin-turbo V8, albeit with a hybrid twist. Affalterbach’s second-generation model is electrified as well, but the AMG GT seen in the footage was the original, purely combustion-powered version. The upcoming Japanese rival boasts sexy proportions with a wide body, lending it an exotic presence to match the Mercedes. The fact that Lexus is benchmarking the AMG GT suggests it’s setting the bar high for the LFR. However, don’t expect it to be a direct successor to the LFA, as the new model is likely to slot lower in the line-up. As a result, it should significantly undercut the LFA’s price tag. A well-informed guess would place it above €300.000. For reference, the least expensive AMG GT with a V8 is the GT 55 4Matic+ at $280.952 in the Netherlands. However, Lexus might be targeting the GT 63 4Matic+, which begins at €304.657 euro. Mercedes also offers 2 flavours at $195.900: the hybrid GT 63 S E Performance and the track-ready GT 63 Pro. Since Toyota and Lexus have been testing their new cars for years, we’re hopeful they’ll be revealed sooner rather than later. The race car is expected to compete in WEC in 2026, so the wait should be nearly over. +++
+++ RENAULT is giving the Megane E-Tech a much-needed refresh in 2026, 5 years after it first hit the streets. This mid-lifecycle update is set to bring the electric crossover, which is really more of a hatchback, up to date with sleeker styling and updated battery packs, so it can stay competitive with newer rivals on the market. The French brand has already made a few incremental updates to the Megane E-Tech, including adding one-pedal driving, Vehicle-to-Grid functions, and introducing an Esprit Alpine trim. However, these minor changes were just a warm-up for the upcoming actual facelift. The front end will receive a major overhaul, adopting the latest styling from Renault’s other models, including the Scenic E-Tech and the Clio plus Captur. Expect slimmer LED headlights, a new grille, and a more minimalist bumper design. The profile will be largely left untouched, but Renault designers could add new alloy wheels and more options in the colour palette. The rear will also see modest updates, with refreshed LED taillight graphics and a tweaked bumper. Inside, the Megane E-Tech will probably stay the same. After all, it was the first model to feature the new digital cockpit and the Google-powered OpenR infotainment system, which has since been rolled out to other models in the line-up. Setting aside the cosmetic changes, the new Megane E-Tech will bring important upgrades under the skin. Renault is expected to replace the current 40 kW and 60 kW LG battery packs that are being imported with new ones from AESC. These will be produced in Douai, France, and could extend the driving range of the EV over the 470 km offered by the current version. Judging from the new generation of the Nissan Leaf that also rides on the same CMF-EV architecture, the facelifted Renault Megane E-Tech could gain 150 kW DC fast charging capabilities. At the moment, it is not clear whether Renault will upgrade the electric powertrain of the Megane E-Tech. The outgoing model is available with single electric motors producing either 131 hp or 218 hp. What we know for sure is that the Renault won’t get the tri-motor powertrain of the more upmarket Alpine A390 that generates up to 469 hp. The facelifted Megane E-Tech is expected to be unveiled toward the end of 2025, with a market launch in 2026. Meanwhile, reports suggest that Renault is already working on a completely new generation of the model, which could arrive around 2029. +++
+++ In 2026, SKODA will present the Epiq, a baby electric SUV designed to sit underneath the larger Elroq and Enyaq (and later the 7-seat Eviatiq). We’ve known the car is coming for some time, having seen it previewed by a concept last year, but this is the first time the model has been caught testing on public roads. Although the Epiq is still wearing extensive cladding and heavy disguise, we can see from these first images that the new SUV will inherit a family look and further progress Skoda’s Modern Solid design language with stacked headlights and daytime running lights. As on the brand’s other electric cars, those lights will be connected via the now-familiar ‘Tech Deck’ face: a gloss-black panel housing many of the car’s sensors and radars for its suite of Advanced Driver Assistance Systems (ADAS). When the Epiq was announced last year, Skoda boss Klaus Zellmer said: “We have listened to our customers and understand they are looking for attractive options, which is why we are expanding our e-mobility portfolio into this popular segment”. The slashes and vents in the mule’s bodywork and the Jeep-style slotted section in the lower part of the bumper will make it into the production phase and set the Epiq apart from its larger siblings. Like the Elroq and Enyaq, the smaller Epiq will feature a clamshell bonnet that wraps around the side of the car to the A-pillars. From the side, we can see the Epiq will have a shorter wheelbase than Skoda’s other SUVs, plus cut-down front and rear overhangs. Its stubbier overall proportions should allow it to slip into the segment currently occupied by budget alternatives such as the Citroen ë-C3 and BYD Atto 2, as well as more premium offerings like the Mini Aceman and Volvo EX30. The Epiq concept measured 4.1 metres long; significantly shorter than the 4.5-metre Elroq. At the rear, the upright tailgate should help preserve bootspace: Skoda doesn’t want to sacrifice its reputation for offering clever, practical cars. Indeed, the maker mooted a 490-litre boot when it revealed the concept last year; significantly more than in those aforementioned rivals and bigger even than the Elroq it’s designed to sit beneath. Whether the designers can make this a reality for the production car remains to be seen, but fitting the car’s electric motor to the front axle may help; the Epiq will share the VW Group’s MEB-Small platform and electrical architecture with the forthcoming Volkswagen ID.2 and Cupra Raval. Design-wise, there’s a good chance we’ll see the Epiq concept’s T-shaped rear light clusters make the cut, alongside the usual Skoda lettering and a number plate fixed to the bootlid rather than the bumper. The prototype’s overall proportions, plus its roof rails and sill cladding, lend it that baby-SUV look, although the ride height doesn’t look much taller than your average supermini’s, allowing minimal structural changes from its VW and Cupra stablemates. While it’s not clear how quickly the car is travelling, it looks to be cornering relatively flat; standing it in good stead for any future RS version. While we’ve not yet been given a look inside the production car, Skoda has hinted that much of what was shown on the concept would be carried over. If this is true, we can expect a large central display with a row of shortcut buttons for things like the ADAS features and drive modes, plus a smaller digital instrument cluster directly ahead of the driver. The steering wheel should get physical switches too, in response to industry-wide negative feedback for capacitive touch-sensitive controls. This being a Skoda, there should be plenty of storage dotted around the cabin and neat features that align with the brand’s ‘Simply Clever’ marketing message. Skoda may also choose to use flashes of colour inside (just as it did on the Epiq concept) to mark this out as the smallest and most youthful of its SUV line-up. As well as its MEB-Small platform, the Epiq will utilise the same choice of 38 and 56 kWh batteries as the equivalent Volkswagen and Cupra, with the larger of the 2 units promising up to 450 km of range. VW claims the ID.2 will charge from 10-80 percent in around 20 minutes thanks to a peak charge rate of 125 kW and I expect similar numbers for the Skoda. A variety of motors will be offered, the most powerful of which will be offered with a RS badge on the wings. Volkswagen has confirmed a 225 bhp unit for the ID.2, capable of accelerating from 0-100 kph in under 7 seconds. More sedate models will make up the majority of the range, however 150-180 hp seems sensible for a car of this type, and should allow for a decent balance of performance and efficiency. At the time of Epiq concept’s unveiling, Zellmer described it as “offering a spacious interior within a compact exterior, all at an attractive price”. I previously suggested a starting price of around €25.000. The Epiq will likely join its Volkswagen and Cupra counterparts on the production line at the company’s Pamplona site in Spain; the factory is currently being developed to help assemble the Group’s next-generation EVs. The Epiq is set to be revealed towards the second half of 2026, with the brand currently preparing to pull the covers off its new, Octavia-sized EV at the Munich Motor Show in a few months’ time. However, Dutch sales for the small SUV should still commence before the end of next year, slightly behind the ID.2. +++
+++ Antonio Filosa today takes up the role as Chief Executive Officer of STELLANTIS and announces his new Stellantis Leadership Team, effective immediately, drawing on the deep bench of industry expertise from Stellantis’ teams around the world. “It is my great privilege to take the lead of Stellantis, a global company with deep regional roots,” said CEO Antonio Filosa. “We have unique strengths in our great people, our iconic brands and our millions of customers, whose loyalty to our Company, its fantastic products and its unique stories can only inspire us to new achievements”. The new appointments, which build on the organizational changes announced in February 2025, underline Stellantis’ breadth and depth of talent. The team structure emphasizes the choice of locating product decision-making close to the regions where Stellantis’ cumulative knowledge is second to none, harnessing the power and emotion of its brands to meet and exceed the needs and desires of its customers worldwide. Antonio Filosa added: “The team I’m announcing today draws on all that is best in Stellantis, leaders from within who bring a people-first mindset, a profound understanding of our brands, our products and our customers, best-in-class expertise and an entrepreneurial spirit that will be vital to our success. We all share an immense pride in our history and a constant dedication to building our future together, and in close collaboration with our dealers, suppliers, partners and communities. With the talent and passion of this team, we will harness our multiple strengths to make Stellantis one of the winners in this next era for our Company and our industry”. Within the Stellantis Leadership Team announced today, Antonio Filosa, CEO, retains his role as head of North America and American Brands. Jean-Philippe Imparato continues in his role as head of Enlarged Europe & European Brands, which will now also include Maserati. The following 4 executives will also report directly to the CEO: Ralph Gilles as head of Design, Olivier Francois as head of Marketing, Alison Jones now leads Parts & Services and Circular Economy and Giorgio Fossati as General Counsel. Antonio Filosa concluded: “As we move into this next chapter of our Stellantis history, I would like to take this opportunity to express my sincere thanks to Maxime Picat and to Béatrice Foucher for their notable contributions to Stellantis during their many years of dedicated service. We all wish them the best in their future endeavors”. +++
+++ TESLA deployed a small group 0f self-driving taxis picking up paying passengers in Austin, Texas, with CEO Elon Musk announcing the “robotaxi launch” and social-media influencers posting videos of their first rides. The first trips were limited to a narrow portion of Tesla’s hometown, with riders also including investors. Some of them are counting on new markets to revive Tesla following a sales slump and consumer backlash against Elon Musk. +++
+++ VOLKSWAGEN is developing a hardcore Clubsport version of the upcoming ID 2 GTI, according to insiders. The front-wheeldrive ID 2 GTI, revealed in near-ready concept form, is due on sale towards the end of 2026 with around 225 hp from VW’s new-generation APP550 electric motor. But engineers at VW’s research and development centre in Braunschweig, Germany, are also working on a more potent and focused range-topper, targeting a peak output of 286 hp. Alongside the additional power, this flagship is being conceived with a series of mechanical and electronic upgrades. Chief among them is a fully mechanical limited-slip differential, which offers torque-vectoring capability between the front wheels. “We’re not working with brake intervention”, said one source. “It’s a fully mechanical system”. Further upgrades under consideration include variable torque delivery and a virtual gearchange function. Together, these systems modulate how quickly torque builds with speed and throttle input to reduce jerkiness under hard acceleration while replicating the stepped response of a traditional manual gearbox. Both ID.2 GTI variants will be based on the MEB Entry platform (internally known as MEB-21) and are expected to use the APP550 motor also used in other recently unveiled or upgraded Volkswagen EVs. “We’re arriving late, but with force”, said one Volkswagen insider. Although a launch date has yet to be confirmed, the ID.2 GTI Clubsport is expected to follow the template set by previous Golf GTI Clubsport models, which have historically offered more power, sharper chassis tuning and limited-edition status over their standard GTI counterparts. The iconic hot hatch took on a harder edge with its 8th generation, at the expense of its intoxicating blend of everyday performance. Can this facelift make it a better GTI? The first Golf GTI Clubsport was launched in 2016 to mark the GTI’s 40th anniversary and was followed by the Clubsport S, then a Nürburgring record holder with a stripped-out interior and manual gearbox. The current Golf GTI Clubsport is powered by a 300 hp 2.0-litre 4-cylinder turbo petrol engine and features bespoke ECU mapping, chassis upgrades and adaptive suspension tuning. It is positioned as Volkswagen’s fastest and most advanced front-wheel-drive hot hatchback to date. +++