+++ AUDI could keep its venerable 5-cylinder turbo engine alive for another generation despite forthcoming emissions regulations threatening the existence of the unique motor configuration, which has featured in the brand’s portfolio for 50 years. Audi introduced its first in-line-5 in 1976 for its flagship 100. It has kept a 5-pot in its line-up ever since, deploying the arrangement in sporting legends including the Quattro and RS2. Today it only uses the engine in the RS3 now the TT RS and RS Q3 have been retired, but it also supplies the ‘EA855′ 2.5-litre lump to sibling firm Cupra for the Formentor VZ5. Audi recently launched the RS3 Competition Limited as a swansong for its hardcore hot hatch, and there were suggestions it could serve as the final outing for the engine that powers it. CEO Gernot Döllner said at the time that he was unsure the firm would be “able to refinance the investment in EU7 regulations”, which come into effect from November. As previously reported, the engine would need substantial modifications to its filters, emissions sensors, injection system and catalysts to remain compliant, which would be especially costly given that the engine is used by just 2 low-volume cars. Now, however, Audi Sport boss Rolf Michl has suggested the 5-pot could remain in Audi’s future range as the firm commits to maintaining a broad line-up of performance models and seeks to double down on its strong sporting heritage. “We’re well aware about the historical meaning of the 5-cylinder”, he told. “Evaluations are still running, and people who know me know that I also have a personal relationship to the five-cylinder engine. It’s so characteristic and also deeply rooted in history, so let’s see”. Michl has been responsible for all 3 generations of the RS3 so far (all 5-cylinder powered) in his various positions within Audi’s sports car division. He said the model plays an important role as the most affordable car in the RS line-up, and that could strengthen the business case for renewing both it and its engine. “The entrance into the RS world is important because having a brand statement like that is amazing”, Michl said. “Emotion starts in the compact segment”. No decision has yet been made on what a successor might look like, he added: “Negotiations are ongoing, so we’re not at the decision point yet. Everybody really knows about the meaning, and therefore we’re still evaluating with our colleagues from Audi”. Hybridisation could be one means of reducing the 5-cylinder’s emissions output and keeping it compliant, as Audi has done with the RS5’s V6, but doing so also comes with significant cost and weight implications. Whichever path it chooses, Audi is likely to chase higher volumes from any future five-cylinder-powered cars in a bid to recoup the necessary investment on the engine. The firm does not break out individual sales figures in its annual reports, but Audi Sport shifted 36.000 cars globally last year, and the RS3 will have accounted for only a small percentage of that. Making the powerplant more widely available across the Volkswagen Group portfolio would help to generate a higher return on investment. The RS3 and Formentor are the only cars to employ the engine currently, but they each use the MQB platform that underpins every mid-sized Volkswagen Group model. Autocar has previously reported that an extreme special edition of the Golf R could use the motor next year, potentially creating the most powerful iteration yet of the hatchback. +++
+++ CITROEN is reviving one of its most iconic nameplates for the modern age. After lying dormant for more than 35 years, the 2 CV returns as a small EV, set to premiere at the Paris Auto Show in October. To stir up interest ahead of that debut, Citroën has kicked off an interactive social media campaign complete with prizes. The new 2 CV campaign is inspired by a French board game and 5 challenges will be launched on Instagram in the lead-up to the new car’s unveiling. The first of these games was shared a couple of weeks ago, simply asking followers how much horsepower the first 2 CV had. There were 7 winners, each receiving a Citroën-branded version of Monopoly. The second game was a little more challenging than the first, though it still seemed pretty easy for 2 CV enthusiasts. This time, Citroën played the sounds of four different vehicles online, and players had to guess which sound was the 2 CV. Once again, the French brand is selecting seven winners, each of whom will receive a 2 CV cap. Among the other prizes previewed for future games are a carry-on suitcase, a portable Bluetooth speaker, and a bright red Citroën drink bottle. As for the new 2 CV itself, a single teaser image has revealed it will have a small footprint just like the original, complete with a bulbous-looking roofline and pronounced front and rear fenders. It will also include LED headlights perched above the bumper and is shaping up to have quite a spacious cabin. Technical specifications remain a mystery. It’s understood the car premiering at the Paris Auto Show will be a concept and that the production model will go on sale in 2028, priced at €15,000. +++
+++ News of a third DEFENDER is already running about, and Jaguar Land Rover is still working on getting production sorted stateside. The bigger question is: “Why?” Considering the strength of the Land Rover brand in off-road circles, this new model could create a stir, especially since the Defender is now more upmarket than before. JLR’s still stuck paying tariffs for its models to get into the U.S., and recent developments have proven difficult for the brand to regain its footing amidst newer competition. Now, Stellantis has opened the doors to the British brands to produce cars in the United States, which opens up an opportunity for the company to rebound. The import tariffs imposed by President Donald Trump haven’t made it easy for European manufacturers, JLR included. Both Jaguar and Land Rover suffer 10% import duties for U.K.-built cars and 15% import duties for E.U.-built cars. One model in particular is the Land Rover Defender, which is made in Slovakia and is 15% more costly to import because of those tariffs. Richard Molyneux, JLR’s CEO, confirmed that the company will be working with Stellantis soon, once a memorandum of understanding has been formalized at the end of this year. What JLR and Stellantis are planning is a new Defender-based model built in collaboration with Stellantis, which will go into “new segments” of the market. The “why” of it all is to follow what other European brands are doing. By moving production across the Atlantic, JLR can save millions in tariffs and make its vehicles more profitable in the long term. Other rivals like BMW, Mercedes-Benz, and Volvo are already on the other side of the fence, churning out fast-moving large SUVs for American car buyers. Apart from that, this investment also insulates JLR against U.S. Dollar and British Pound fluctuations. “We end up with much more of a natural hedge to what is at the moment an extremely large, long-dollar position”, said Molyneux. So, “why not the current Defender?” According to Molyneux, “At JLR’s scale, it doesn’t make sense for us to localize production of existing vehicles into North America. We sell circa 30.000 Defenders in the U.S. each year. We can never localize efficiency at 30.000 units, or even at 50.000 units”, he said. “New segments” will be entered with new Defender-branded vehicles, which will be built in collaboration with Stellantis. That could mean new crossovers that wear Defender duds and badges, but it could also mean a new dedicated off-roader. JLR could make a move and use the body-on-frame platform of the Jeep Wrangler to build a Defender, thus putting Stellantis and Land Rover back into the fight against the hot-selling newcomer: The Ford Bronco. The U.S. expansion of JLR is also a reaction to the declining interest in the company’s products in China. Competition in the East is getting serious and is foreseen to decline further. JLR was down 26% in the second quarter of this year and only accounted for 11 percent of total sales. It’s not alone, however, because other European brands are getting similarly hosed by other Chinese automakers that are now preferring electric/electrified mobility over internal combustion. With China being “unlikely to get any easier for JLR”, according to Molyneux, the U.S. is looking like a more viable option for the company to bunker down in. Because the company’s portfolio focuses on high-end and high-profit models, it could get a better result establishing itself in the United States rather than throwing more money into the Chinese market. JLR’s moving to increase its revenue by 10% annually and boost its selling price. The opportunity is there, and Molyneux believes that the U.S. could hold the key to success, citing that the country generates the highest profits per car for the brand. +++
+++ BYD design chief Wolfgang Egger (previously of Alfa Romeo, Audi and Lamborghini) is going after his previous employers on their home soil with a new Europe-centric design approach for the DENZA premium marque. The Chinese giant is ramping up operations at its new European headquarters in Milan, where a dedicated design facility will aim to bring all BYD cars into line with local tastes and expectations. In an exclusive interview, Egger said the new facility will be “the dedicated place for design research, mainly to capture European tastes and trends and translate them into design ideas for Denza and BYD”. The move has particularly significant implications for Denza, which is the first volume Chinese premium brand to launch in Europe. Its first car, the Z9 GT, is a €117.300 (Dutch pricing) Porsche Panamera rival and it has recently been joined by the Z, an electric 911 Turbo chaser priced at more than €175.000. Denza faces a fierce challenge to convince European premium buyers to switch from local marques like Mercedes-Benz, Porsche, BMW and Audi to an unfamiliar alternative. But Egger said designing Denza models in the market they are meant to disrupt will be vital to the brand’s competitiveness. He said BYD is “confident” about breaking down long-standing brand loyalty ties in Europe and getting Denza a foothold, adding: “We can compete with traditional brands with innovation and new designs”. Denza’s technological prowess has been cited as a point of differentiation from legacy rivals. The Z9 GT’s ’tank-turning’ functionality and the tri-motor U9’s trick magnetorheological suspension are among the most obvious examples. But Egger said the new Europe-centric approach means Denza can boost its competitiveness in terms of design, material appeal, personalisation and brand familiarity as well. He said Milan is the natural home of BYD’s European design operation because it will allow his team to “create contacts at the most important fashion houses” with the aim of exchanging ideas on “trends and materials”. Indeed, Denza’s European launch took place at last year’s Milan Design Week, exhibitors at which included Prada, Gucci and Fendi. Setting up in Italy was also important because the country is a “tier-one” supplier for premium and luxury materials (including leather, for example), but also new, innovative materials and recycled materials”, said Egger. He pointed to the Z9’s bamboo door cards as an example of how repurposed materials can be deployed in premium interiors and suggested the new studio will investigate further ideas in this vein. The Milan base will also play a significant role in bolstering Denza’s credentials as an upmarket brand by providing a base for an atelier-style “customising boutique”, where potential customers can “see and touch these materials and ideas”, as they might when specifying an Aston Martin or Bentley. Egger headed Audi Group design (a role that included responsibility for Lamborghini) for 6 years, having previously been design chief at Alfa and Seat, so he is well versed in the trials of Europe’s competitive premium segment. But he said the new hub provides a platform from which to promote Denza’s unique attributes. “We have the best technology for the new era”, he claimed. “We can compete with traditional brands on innovation and new designs”. Denza’s next European model will be the Bao 5, a Land Rover Defender rival that’s already on sale as the Fangchengbao 5 in China. Future candidates for export to Europe include the large N8 and N9 SUVs, the D8 4×4 and the Z9S saloon; each of which could be in line for adaptations in Milan. Wolfgang Egger doesn’t often speak to European media, so his recent visit to the UK was a rare opportunity to ask him what it was like to go from designing some of Europe’s most aspirational cars (such as the Alfa Romeo 8C) to managing a 1200-strong global team designing some of the world’s most affordable and popular cars, like the Seal U DM-i crossover. “The best advice I had in my life was from Walter de Silva”, he said, referencing the former Alfa, Fiat and Volkswagen Group designer. De Silva told him: “Don’t fall in love with your designs, because then you get too involved and you don’t have any distance”. Egger said: “You need to take the distance and then come back every day. Then you learn to appreciate everything from a city car to an off-roader to a sports car”. +++
+++ It’s been less than a year since JEEP unveiled the 6th-generation Cherokee for 2026, but it will not be around for long. Stellantis has just confirmed that it plans to begin building the next-gen version of the SUV, on an all-new platform, by the end of the decade. The automaker plans to start production of the 7th-generation Cherokee in the second half of 2029. The SUV will ride on Stellantis’ new STLA One platform, and it will be the first US-assembled vehicle on the new architecture. Stellantis announced the STLA One in May as part of its FaSTLAne 2030 strategy, which is designed to simplify vehicle complexity and improve cost efficiency. The automaker wants the new platform to underpin more than 30 models by 2035. According to Jeep, pilot production of the new Cherokee will begin in the first half of 2028 at its Belvidere Assembly Plant outside Chicago. Stellantis CEO Antonio Filosa, said: “Launching the next-generation Cherokee on STLA One allows us to deliver a more competitive product while leveraging the strength of our U.S. manufacturing operations”. Jeep also announced it will invest an additional $200 million in the factory to produce the new Cherokee, after announcing a $600 million investment in the facility in late 2025. The factory will run 2 shifts capable of producing all powertrain types. Stellantis initially idled the factory in February 2023 as demand for the previous-generation Cherokee slipped. By the end of that year, the automaker had signed a new contract with the United Auto Workers union promising to restart production at the facility. It wasn’t until October 2025 that Stellantis provided details about the plant’s future. That’s when it announced a $600 million investment to produce the Cherokee and Compass. The automaker plans to reopen the factory next year. Until then, it will continue offering (and increase) supplemental unemployment benefits and offer temporary relocation opportunities. Jeep introduced the 6th-generation 2026 Cherokee a year ago. It’s larger than the model it replaces and rides on the STLA large platform that also underpins several other Stellantis models, like the new Dodge Charger. It features a new 350-volt hybrid powertrain, the only one available. It pairs a 1.6-liter 4-cylinder engine with a 2-motor electronically controlled continuously variable transmission. The plug-less hybrid produces a combined 210 horsepower and 300 Nm. +++
+++ The all-electric LOTUS Eletre and Lotus Emeya are getting a new performance-inspired soundtrack, autonomous driving capabilities and other additional functions thanks to an over-the-air update. These have been developed based on owners’ feedback and the ongoing development of the two luxury electric cars, with the British brand saying it’s part of a commitment to “continuously enhancing its products throughout their lifecycle in line with customer demand”. Probably the most noticeable addition to the Lotus EVs is the new Active Sound Design; a synthesised “performance-inspired organic” vehicle sound to complement the driving experience. We haven’t had a chance to hear what this immersive sound is, but it probably won’t sound like a Lotus Emira V6. Lotus has also added a customisable ‘Drive Setup’ function that allows drivers to quickly activate their preferences for the car and its driver-assistance functions with a single tap. Plus, there’s an improved insulation-fault monitoring system, enabling earlier detection of potential issues, earlier warnings and automatic system protection. The Eletre specifically has also benefited from an updated driver fatigue and distraction alert system that’s meant to emit fewer false alerts now. Meanwhile, in the Emeya, the auto-hold status is now visible to make it easier to see when it’s working in traffic. As part of the update, Eletre customers in Germany are also gaining access to the ‘Lotus Hyper Pilot’; a semi-automous driving system that combines lane centring, adaptive speed control and supervised overtaking assistance to help make long journeys easier. It’s currently only designed for approved motorway routes on the Frankfurt–Stuttgart–Munich corridor, including sections of the A3, A5, A8 and A99 autobahns. I don’t yet know if or when it’ll be approved for Dutch roads. +++
+++ MERCEDES-BENZ once owned Germany’s taxi trade, serving as the default supplier for the country’s nearly 17.000 operators before walking away over thin margins. Now it has changed its mind again, reopening the door to the cab business as it rethinks strategy and tries to slow BYD’s push into the sector. Through the first half of 2025, Mercedes-Benz models accounted for just 8 percent of newly registered taxis in the country, down significantly from the 45 percent in 2022. Mercedes-Benz’s renewed focus on cabs has resulted in its vehicles accounting for 18 percent of new taxi registrations over the same period in 2026. Between 4.000 and 6.000 new taxis are registered annually in Germany and for years, the Mercedes-Benz E-Class has been the go-to choice for many. Last year, just 72 new E-Class taxis were registered, but from January to June this year, that number had climbed to 126. This rise comes in part thanks to Mercedes-Benz offering a 24 percent discount to taxi operators for two popular E-Class diesel models, cutting their prices to under €40.000. This offer was initially going to expire in July but has been extended until the end of the year. The Vito is also available with an 18 percent discount and a €6.000 rebate, while the V-Class is offered with a 3 percent discount and a €5.000 one-time payment. The V-Class is on its way out, replaced by the electric VLE, which Mercedes also wants in taxi fleets. That plan has a snag, though. Specified with the roomiest configuration, the VLE can tip past 3.5 tons, which puts it outside what a standard Class B license allows. According to automotive analyst Frank Schwope, “giving up on taxis was a fatal mistake by Mercedes CEO Ola Källenius”, adding, “a taxi fleet sends a very strong signal”. Schwope argues that every fare doubles as a test drive, exposing passengers to models they might otherwise never consider. As Mercedes-Benz’s interest in the taxi sector has changed, BYD has stepped up. Carsten Schopf, the company’s local manager and head of business customer sales, says “taxis are an important part of our growth strategy”, and expects roughly 500 taxi sales by year-end. That is a stretch, given BYD registered all of 10 new taxis in Germany during the first half, though Schopf says orders have already passed 100 units. The goal for 2027 is 4-digits. “Next year, the number in Germany absolutely has to be in the 4 figures”, he said. The BYD Seal 6 wagon is available to operators for less than €30.000, or 37 percent off the car’s standard list price. The Seal 6 is a hybrid, but BYD also plans to put the fully electric Atto 3 and Sealion 7 in front of taxi buyers. Its case against Mercedes-Benz and segment leader VW is helped by a growing list of cities, Hamburg among them, that now license only zero-emission taxis. BYD has also hired away taxi specialists from rival firms in Germany and stepped up its advertising in the trade press. The establishment is still firmly in place, with Volkswagen Toyota, and Mercedes-Benz together taking 90 percent of new taxi registrations. VW alone holds more than half the market, and its discontinued Touran has been the country’s most frequently registered taxi model for years. +++