AGP Executive Report

Safety: GM recalled six 2026 Chevrolet Traverse and GMC Acadia crossovers in the U.S. and Canada over potentially faulty front-seat welds; dealers will replace the affected frames free of charge. Product Strategy: Nissan’s new Navara shares its platform with the Mitsubishi Triton, but adds local tuning and rear leaf springs to address payload concerns. Trade Pressure: Germany’s trade deficit with Asia-Pacific is forecast to reach nearly €146 billion in 2026, as automotive exports to China fell 30% in the first seven months. EV Shift: Gas-only cars slipped below half of global sales for the first time, while Europe edges toward easing its 2035 petrol and diesel phaseout. Manufacturing: Stellantis has begun building Leapmotor vehicles in Europe, and Volkswagen is weighing Chinese software for European models as automakers seek to compete on cost.

Emissions Policy: Canada is delaying tougher passenger-vehicle tailpipe standards until 2029, keeping rules at 2026 levels as Ottawa weighs U.S. policy and tariff pressures. Production Shifts: Volkswagen and Turkish distributor Doğuş Otomotiv are studying car production in Türkiye, potentially using partly assembled vehicles; no investment decision has been made. Stellantis, meanwhile, has begun building Leapmotor cars in Europe, a sign of Chinese brands’ growing role in regional manufacturing. Software and Supply Chains: Volkswagen is also considering Chinese-developed software for European models to cut costs, while Canada and Ontario announced an $8.7 billion plan to support steel and automotive sectors. Electrification: Gasoline-only vehicles have fallen below half of global car sales for the first time in a century. India has also cleared E100 ethanol fuel for all cars, though how many vehicles can use it remains an open question.

EV Manufacturing: Foxconn unveiled three electric models, including a compact commercial van, as it pursues contract-manufacturing work; Stellantis has begun building Leapmotor cars in Europe. Automaker Results: Rivian raised its full-year outlook after third-quarter revenue rose 38% to $2.16 billion. Magna’s earnings climbed despite lower sales, with its cash-flow outlook improving. Production Plans: GM confirmed its Lansing Delta Township plant will build hybrids, while Chery is targeting overseas production for 70% of its exports by 2030. Market Shift: Gasoline-only cars fell below half of global sales for the first time in a century. India’s automotive industry is valued at ₹22 lakh crore, making it the world’s third largest. Supply Chain: AkzoNobel is investing $60 million to expand North American powder-coatings production, and a Polish auto supplier picked South Carolina for its first U.S. factory. Policy: Europe is considering changes to its 2035 phaseout of new petrol and diesel cars.

Rally Move: The 2027 Dakar Rally will start in Portugal and run mainly through Morocco after security concerns prompted organisers to leave Saudi Arabia. Industry Results: Kia’s third-quarter profit rose 24.3%, Magna reported strong results, and UK vehicle production climbed 36% in September. China’s Push: Chinese EV makers are gaining ground in South Korea, while Japan remains tougher to crack; in Indonesia, BYD ranked third in September as small electric models gained buyers. Investment: Hyundai is advancing a $6.3 billion AI hub in South Korea and plans a $450 million investment at its Alabama plant; seat supplier Brose Sitech also chose South Carolina for its first U.S. factory. Policy & Technology: Europe is edging toward a softer 2035 petrol-car ban, while India has cleared E100 fuel for compatible cars. Toyota and Waymo plan to trial autonomous taxis in Japan in 2027.

EV Results: Rivian’s third-quarter revenue rose 38% to nearly $2.2 billion, with the R2 its best-selling model. The company raised the low end of its 2026 delivery forecast to 67,000 vehicles. Manufacturing Investment: Linamar plans $25 million in new equipment at its Albion plants, expected to add 33 jobs. Nissin will invest $14.3 million in a Kentucky distribution center serving Toyota-affiliated suppliers, creating 30 jobs. New Models: Mercedes-Benz launched its electric CLA in South Korea, where it has already drawn about 1,000 preorders. Trade and Technology: A U.S. Air Force base in Okinawa barred BYD vehicles, citing security risks without specifying them. Ford is also pushing utilities to help lower the cost of bidirectional EV charging. Market Shift: Chinese automakers are counting on overseas growth as their domestic market weakens, while gasoline-only cars have fallen below half of global sales for the first time, according to a new report.

India Demand: Domestic auto sales rose about 25% year on year in July–September, supporting India’s estimated 7.35% GDP growth. Bajaj Auto also posted a strong quarter, with volumes up 20% and revenue up 34%, led by exports and EVs. Supply Chains: Polish seat maker Brose Sitech will invest $29.5 million in its first US factory, creating 330 jobs at Scout Motors’ South Carolina supplier park; production is due in 2027. Global Competition: Türkiye is targeting $45.5 billion in auto exports in 2027. Chinese automakers are gaining ground as Toyota’s China sales hit a nine-year low and Volkswagen’s quarterly loss deepened. Market Shift: Gasoline-only vehicles fell below half of global sales for the first time in a century. Hyundai’s operating profit rose 5.5% despite lower sales, underscoring the pressure on legacy makers to adapt. Cost Pressures: Automakers face rising costs for tariffs, diesel and chips, while Honda warned a planned tariff increase on January 1 could be “catastrophic.”

Market Shift: Gasoline-only cars fell below half of global sales in the first half of 2026 for the first time in a century, as hybrids and EVs gain ground. Investment: Hyundai plans nearly $450 million in Alabama to expand engine production for hybrid and extended-range EVs and prepare for updated Santa Fe and Tucson models. Regulation: Suzuki’s small-car strategy in India faces tougher emissions rules, while Alberta is proposing lemon-law protections and right-to-repair rules for vehicles. Earnings: Ford beat third-quarter profit expectations and raised the low end of its annual outlook. Maruti Suzuki’s profit fell 26% despite record sales as material costs squeezed margins. Industry Pressure: Volvo plans 2,500 job cuts after a quarterly loss, while Chinese EV overcapacity intensifies competition and Europe weighs changes to its 2035 combustion-car phaseout.

Trade & Manufacturing: India and Mexico launched Preferential Trade Agreement talks, with automotive among the sectors targeted for deeper cooperation. Great Wall Motor plans to begin assembling its Ora 5 electric SUV in Bulgaria in early 2027, with planned annual capacity of 50,000 vehicles. Policy & Demand: Indonesia is developing incentives for hybrid vehicles to boost new-car sales and local manufacturing, with a proposal expected later this year. Company Results: Porsche’s operating profit reached €1.74 billion in the first nine months, despite deliveries falling 16%; higher-margin models helped offset the decline. Supply Chain: NXP reported 19% year-on-year revenue growth in Q3, citing stronger automotive and industrial demand. EV Safety: A Tesla Semi battery fire on Interstate 880 prompted a lengthy closure; the cause is under investigation. Market Shifts: Malaysia’s light-vehicle registrations rose 18.6% in September, as Chinese brands gained ground and Jetour surged.

Emissions Policy: European lawmakers are edging toward easing the bloc’s 2035 combustion-car phaseout, with a proposed 87.5% emissions cut and green-steel offsets. The plan still needs approval from EU institutions and member states. Motorsport: The FIA has proposed simpler V8 turbo-hybrid engines for Formula 1 from 2030 or 2031, following criticism of the current power units. Automotive Chips: NXP reported third-quarter revenue of $3.79 billion, up 19% year over year, citing growth in automotive and industrial demand and rising needs from software-defined vehicles. Supplier Support: Indiana launched a $10.79 million grant program to help small and midsize automotive suppliers invest in equipment, software and workforce training for hybrid, electric and hydrogen vehicles. China Partnerships: Volkswagen is deepening work on locally developed vehicle software and intelligent-driving systems in China, while BYD is opening test tracks to let drivers experience its cars. U.S. Production: Isuzu’s first shipment of production equipment has reached South Carolina’s Inland Port Greer, advancing plans for a new U.S. manufacturing base. EV Incentives: Australia’s opposition says it would scrap $2.1 billion in electric-vehicle subsidies, setting up a policy fight as EV sales grow.

U.S. Manufacturing: Audi plans to invest about $4 billion in its first U.S. plant, in rural Georgia, targeting up to 200,000 SUVs a year and 4,500 jobs by 2031. Vehicle Technology: Volkswagen selected NXP microcontrollers for its next-generation zonal architecture, set to debut in a 2027 vehicle, as automakers simplify hardware for software-defined cars. China’s Push: Chinese automakers are expanding European production and development despite EU tariffs, adding pressure on local manufacturers. Volvo’s Turnaround: After a steep quarterly loss and a slump in China, Volvo plans 2,500 job cuts and says its South Carolina plant is key to building closer to customers. Market Expansion: Vietnam’s Kim Long Motor signed a Costa Rica partnership to pursue Central American commercial-vehicle sales; Indonesia’s industry minister urged Toyota to increase exports and battery-EV production. EV Infrastructure: ChargePoint launched a European reseller program with incentives, training and sales support to speed charging deployments.

Manufacturing Investment: Audi plans a $4 billion U.S. auto plant, while South Korea’s carmakers are pressing for EVs to qualify for domestic production tax credits as Chinese brands gain ground. China’s Competitive Push: Chinese automakers outsold Japanese rivals in Europe for the first time, and Beijing is tightening rules on high-tech vehicle features, adding pressure on global manufacturers to compete on price and safety. Industry Finances: Volvo Cars swung to a third-quarter loss and plans to cut 2,500 jobs amid falling China revenue. Tesla lowered its 2026 capital-spending forecast by more than $5 billion, but says investment in AI, robotaxis and robotics is set to grow over time. Trade and Supply Chains: Canada-U.S. trade talks are back on, though the auto parts industry says the outcome remains uncertain.

Software-Defined Vehicles: Volkswagen Group has chosen NXP as a strategic chip partner for its next-generation vehicle architecture, with the first models planned for 2027. The move aims to simplify electronics across the group’s brands. Europe’s EV Shift: Subaru plans to stop selling petrol-powered cars in Europe as early as 2028, becoming the first Japanese automaker to make the regional switch to EV-only sales. Chinese carmakers are also gaining ground in Europe, expanding local production to navigate tariffs and surpassing Japanese rivals in sales. Industry Pressure: Volvo Cars reported a third-quarter loss and plans to cut 2,500 jobs as weak China sales and other challenges weigh on its turnaround. Market Outlook: US new-vehicle sales are forecast to be nearly flat in October, with affordability pressures holding back demand. Workforce: Japan’s auto union group says it will seek pay rises beyond inflation compensation in 2027 wage talks, citing the need to compete with China. Industry Development: Johannesburg has opened an automotive hub in Alexandra to support local workshops, training and small businesses. Motorsport: Malaysia’s Sepang circuit is preparing a feasibility study on a Formula One return, with a proposal due to Cabinet in November.

U.S. Manufacturing: Audi plans a $4 billion Georgia SUV plant, targeting annual output of 200,000 vehicles and about 4,500 jobs. The move would shift some production from Slovakia and reduce tariff exposure, but Volkswagen’s board must still approve the investment as the group restructures in Germany. Industry Pressures: Volvo Cars reported a third-quarter loss and plans to cut 2,500 jobs worldwide as weak China sales and competition weigh on results; its shares fell sharply. Policy and Safety: Pakistan’s draft auto policy aims to build an export-focused industry, targeting $6 billion in exports over five years while gradually lowering vehicle tariffs. India is also proposing mandatory advanced emergency braking for passenger cars, with implementation targeted by 2032.

Product Race: Japanese automakers are shortening development cycles to catch Chinese rivals. Nissan aims to launch a new North American SUV in just over three years, then use its platform to speed up follow-on models. US Investment: Audi plans to invest $4.2 billion in its first US factory, in Georgia, with capacity for 200,000 vehicles a year and about 4,500 jobs; production is expected in the early 2030s. EV Push: FAW-Volkswagen’s first electric Jetta drew 10,000 orders in 19 hours, targeting China’s fiercely competitive sub-100,000-yuan market. Industry Strains: Volvo Cars will cut 2,500 jobs after swinging to a third-quarter loss, as falling China revenue and wider market pressures weigh on the automaker. Safety Rules: India is proposing mandatory advanced emergency braking for passenger cars, with implementation planned by 2032.

Connected-Car Security: Norway’s military says Chinese rental cars recorded activity near bases, intensifying concerns about vehicle data collection and remote access. Market Expansion: Geely has entered Pakistan through Bestway, which is preparing local assembly in Karachi; Kyrgyzstan expects its EV plant, with capacity for 10,000 vehicles a year, to open by early 2027. Policy Shift: France and Germany are pushing to soften the EU’s 2035 combustion-car phaseout, proposing a 90% emissions cut rather than zero tailpipe emissions. India is weighing mandatory emergency braking for new cars by 2032. Technology Race: GM outlined plans for a next-generation EV platform and Level 4 autonomous cars, while CATL and BAIC aim to serve one million vehicles through a battery-swap network. Industry Pressure: Volvo Cars swung to a third-quarter loss and plans 2,500 job cuts as China sales slump.

Factory Disruption: Workers were reportedly evacuated from Russia’s AvtoVAZ plant after a drone strike sparked a fire at a nearby petrochemical facility in Tolyatti. Volvo’s Downturn: Volvo Cars plans to cut 2,500 jobs after posting a third-quarter loss, as falling China revenue adds to pressure on the automaker. Autonomous Driving: U.S. safety regulators proposed optional cyan lights to help identify self-driving vehicles, while Volvo and Nvidia expanded work on automated driving. EV Market: Used electric cars in South Korea sold 19% faster than gasoline models in the first nine months of the year, a sign of firmer secondhand demand. Kyrgyzstan also plans to launch an EV factory with capacity for about 10,000 vehicles a year. Safety Rules: India is considering making automatic emergency braking mandatory on new passenger cars, with implementation proposals pointing to 2030–32. Trade: Washington says talks with Mexico and Canada are advancing, with auto tariffs among the issues under negotiation.