Latest news with #PaulWaatti
Newsweek
a day ago
- Automotive
- Newsweek
Which Automaker Startups Will Be a Success? Analysts Weigh In
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The road to automaker profitability is littered with names that are both familiar and long since forgotten. Even in today's business climate, where vast amounts of data are available at the fingertips, creating a car that people are willing to pay for is a moonshot. Henrik Fisker tried twice. VinFast has already pulled out of the U.S. Peugeot promised to come to America and is now firmly against it. "Ultimately, surviving in the automotive industry isn't just about vision—it's about endurance. The startups that win will be the ones that don't just launch well, but scale wisely, deliver consistently, and adapt faster than the giants they're trying to disrupt," Paul Waatti, director of industry analysis at AutoPacific, told Newsweek. Newsweek asked some of the world's top auto industry analysts to weigh in on the potential future of six companies, all of which fit into the category of startup, even if they have been around for a while: Rivian, Lucid Motors, Tesla, Slate, Dacora and Scout Motors. Rivian Rivian is the standout in this group, turning a profit where others have struggled. In the fourth quarter of 2024, the automaker had a gross profit of $170 million. In the first quarter of 2025, a gross profit of $206 million was achieved. Rivian R3 front three quarter view. The Rivian R3 will be smaller and less expensive than the R2. Rivian R3 front three quarter view. The Rivian R3 will be smaller and less expensive than the R2. Rivian "Rivian, despite still experiencing financial growing pains, is on a good path. The recent mid-cycle actions on the R1 models have resulted in truly world class software that actually rivals Chinese efforts," Ed Kim, president and chief analyst at AutoPacific, told Newsweek. Rivian's future was more securely put in place when its joint venture with Volkswagen was announced. VW invested $5.8 billion in Rivian VW Group Technology, LLC to develop an electric vehicle platform and software based on current and future Rivian technologies. "With Amazon as a flagship customer, and a Volkswagen partnership, Rivian is aggressively scaling its EV footprint across delivery fleets and consumer vehicles. But this transition year brings production costs and margin pressure into focus, as competition from legacy automakers intensifies. If successful, Rivian's strategic partnerships and expanding charger network could secure its place as a dominant player — but sustainable profitability remains the most important objective," Tony Salerno, vice president at J.D. Power, told Newsweek. The next major hurdle Rivian looks to clear is the production of its R2 SUV, which is smaller than the established R1 model. With a lower price point and larger market appeal, it could be the home run that the company needs to find even firmer footing. A woman walks on the sidewalk at the Rivian Charging Outpost in Joshua Tree, California. A woman walks on the sidewalk at the Rivian Charging Outpost in Joshua Tree, California. Rivian "Now, Rivian faces its biggest make-or-break moment yet, the introduction of its R2 electric SUV. The R2 will be Rivian's first volume model with pricing expected to start below $50,000, and it's conceived to take Rivian into the mainstream. Plenty of consumers seem to be excited as it will offer all the style and capability of the R1S with a smaller and more manageable size and price tag. The success or failure of R2 will largely determine Rivian's fortunes going forward," Kim said. What Rivian's CEO RJ Scaringe told Newsweek: "As we head into the second half of 2025, there's tremendous amount of momentum as we work towards the launch of R2. I couldn't be more excited for what's ahead, and can't wait for R2 deliveries to start next year." Lucid Motors Lucid Motors started its work on its first car in 2014 and debuted the Lucid Air sedan in 2016. Production of the model commenced in 2021. A year prior, the company showed off an SUV concept that would evolve into the Gravity production model. Deliveries of Gravity began late last year. "Launching a luxury car might be seen as misreading the market, but the Air's lower profile and lighter weight compared to an SUV allowed them to hit that magic 500-mile mark for EV range, which established their technological capabilities. Early reviews on the Gravity are positive, but, like Rivian, they are waiting for their 'Model 3' moment to scale up with their new affordable SUV (and face the same challenges as Rivian in that regard). Their chances of survival are not quite as strong as Rivian but still good," Adam Bernard, founder and principal at AutoPerspectives, told Newsweek. 2025 Lucid Motors Gravity 2025 Lucid Motors Gravity Courtesy of Lucid Motors "Backed by the deep pockets of Saudi Arabia's sovereign wealth fund, Lucid has built some of the most technically advanced luxury EVs on the road. Yet it continues to struggle with sales and profitability targets, putting pressure on execution. The Gravity SUV may offer a much-needed volume boost, but the company's success hinges on continued foreign backing and its ability to navigate current EV market headwinds," Salerno added. The California-based automaker is looking ahead to its next model, Earth, a smaller crossover. "As it prepares to launch its more attainable sub-$50K electric crossover by the end of this year, it - like Rivian - aims to enter the mainstream auto market and utilize its signature Lucid strengths detailed above to make its mark among regular, non-luxury customers," Kim said. Lucid Motors did not reply to a request for comment from Newsweek. Tesla Tesla was early to the electric vehicles (EVs) game and continues to make models that buyers want. The company has struggled as of late between political controversies surrounding the business and its leaders, and the Cybertruck not reaching its perceived potential with customers. But, with its Cybercab robotaxi fleet aimed to come to fruition soon, there's fresh meat on the horizon. "Tesla remains the undisputed heavyweight of the EV industry, with unmatched scale, brand awareness, and a vertically integrated model few can replicate. However, regulatory pressures, intensifying competition, political climate, and a maturing EV market are beginning to challenge its long-held dominance. That being said, Elon is a fierce competitor that should not be underestimated," Salerno said. A rendering of a Tesla Cybercab robotaxi. A rendering of a Tesla Cybercab robotaxi. Tesla Is Tesla a startup? Is it one of America's new legacy automakers (a grouping that usually includes General Motors, Ford Motor Company and Stellantis)? At two decades old, it fits somewhere in between. If it's going to stick around, it needs to weather the current storm and continue to evolve. "This company is no longer a startup. They have plants in three countries and sold more than 1.8 million units last year—twice Subaru's global sales and more than Mazda," Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility, told Newsweek. "Tesla's opportunity is still in its EV accomplishments, even with consumer concerns over the CEO's affiliation with U.S. politics, and his other controversial statements. Tesla's sales challenges in the past year or so are more deeply rooted in the impact of inconsistent pricing strategies and aging models than the headlines. "The updates to Model 3 and Y are not enough to get loyal buyers to upgrade or buy for a third time. For new EV buyers, there is much more competition, and most of it looks fresh compared with the older Tesla designs. Delayed products and minimal updates for existing models are fundamental car company problems, and Tesla has them. "The Cybertruck has been polarizing and not met the sales targets Tesla wanted. Even if it turns out to be a miss, a single product miss isn't enough to end most car companies, and it won't end this one," she said. Tesla did not reply to a request for comment from Newsweek. Slate Slate made big headlines this year when it first debuted a peek at its upcoming model in the pages of Newsweek, then again a few weeks later at its formal brand and company launch event. The company plans an American-made truck that converts into a number of other body-style configurations, including an SUV. Slate intends to begin selling the vehicle by the end of next year. Renderings of Slate vehicles modified for perspective consumers. Renderings of Slate vehicles modified for perspective consumers. Slate Kim calls the company's offering, "a true countercultural proposition." He also said: "Many car enthusiasts like to wax poetic about bare bones vehicles of the past, but the reality is that most of today's new vehicle shoppers want amenities. Are there enough people who want a bare-bones DIY electric trucklet to the tune of 150,000 units a year? Slate thinks so and is betting its future on it." Salerno warns that Slate, "...faces some vulnerability if one of the established automakers like Ford shifts the playing field." Brinley sees vulnerabilities elsewhere as well saying, "The Slate also underscores that to get something affordable or inexpensive means giving up features and technology – though there are some buyers who will appreciate that it isn't connected. A two-door pickup formula is easier to engineer and cheaper to build, but U.S. consumers shun two-door pickup trucks for almost anything but work trucks. The two-door configuration will limit sales. Slate is intriguing and will be a great formula for some buyers. But will it be enough buyers for a sustainable business? We'll see." What Slate told Newsweek: "Slate is revolutionizing the build process by simplifying it, allowing us to get to high quality volume production and pass the savings on to our customers. Having a reliable, affordable vehicle may be a life-changing opportunity for those who thought it was impossible." Dacora Dacora is hoping to break into the super high-end market with an electric vehicle that is designed and engineered in the U.S. The company is just beginning to talk about its business and take reservations. "Dacora is still largely unproven publicly, but like any stealth startup, it will need to prove that its idea translates not just to a cool prototype but to a business with staying power. As with many mobility upstarts, the runway is short, and expectations are high," Waatti said. Bernard is equally skeptical: "With Bentley and Ferrari boasting about the profit-generating capabilities of their bespoke services, Dacora is going after a relatively small but valid niche (where Rolls-Royce and Cadillac's Celestiq already play). However, information on the business plan is difficult (or impossible) to find. The website is sparsely populated; buyers interested in dropping $50,000 will have to dig through LinkedIn to find who will be spending their money. They will soon discover many functions aren't represented (yet) and there's not a lot of automotive experience in the existing team. Right now, this seems like a fascinating idea that hasn't been fleshed out enough to know if it will work." Once up and producing, scaling production is key to Dacora's success, even with few orders to execute per year, Salerno said. "Dacora is entering the EV market with a uniquely American, ultra-luxury offering — handcrafted and priced north of $300,000. Its exclusive, retro-inspired design targets an elite clientele, but scaling sustainable profitable production with heavyweight rivals like Rolls-Royce and Bentley presents obstacles." What Dacora told Newsweek: "Dacora truly stands apart. We've fused the rich culture and heritage of ultra-luxury automotive with a powerhouse team — deep technical talent alongside seasoned industry veterans who know what it takes to scale and succeed," said Kristie D'Ambrosio-Correll, co-founder and CEO of Dacora Motors. "The ultra-luxury segment is vastly underserved and offers exceptional unit economics. Our coachbuilding approach reduces upfront capital needs and allows us to rewrite the traditional EV go-to-market playbook. And it's working — pre-orders already represent nearly $40 million in first-year revenue." Scout Motors Last year, Scout publicly revealed plans to bring a Terra truck and Traveler SUV to market in two years. Building on the roots of decades of branding from the mid-1900s, Scout Motors, though a thoroughly American company in terms of product and engineering, is financed under the Volkswagen Group umbrella. The company plans a direct-to-consumer sales model but has been challenged in court by new car dealers over the legality of those plans, something that Salerno notes adds complications to its launch. In the pros column, Kim lists the company's plug-in hybrid powertrain variant as being on track to appeal to customers in ways a fully-electric vehicle does not. And, Scout's manufacturing plant near Columbia, South Carolina, is poised to benefit Volkswagen Group brands in the future as the company looks to regionalize production, he explained. "Having VW support will be critical, in terms of funding but also in terms of expertise and talent. Scout has drawn heavily from Volkswagen Group ranks and been able to poach respected industry veterans from other companies. Scout's plans to use the Rivian architecture via a Rivian-VW joint venture is an illustration of the importance of having a strong parent," Brinley said. "At first blush and on paper, the Scout products look terrific. They are attractive, have plenty of technology delivered in a more familiar setting, and the mix of range-extended electric and battery electric powertrains provide choice." Bernard sees parallels between the history of General Motors and today's Volkswagen Group business plan. "In many ways, Scout is intending to do for SUVs and VW Group what Saturn did for small cars and General Motors; for VW Group, it's a new brand, a new architecture, a new plant, and a new way of selling vehicles. America's continued interest in SUVs may offset lower-than-expected demand for the pickup, and the range extender (which uses a configuration that no other automaker has yet tried) should address concerns over EV demand," Bernard said. There are additional concerns. "Expectations are high, and success hinges on the flawless execution of both product and manufacturing in the U.S.—something VW hasn't always nailed in the past," Waatti said. What Scout Motors told Newsweek: "A storied legacy and a running start combine to create an enduring brand and business built for success. Scout Motors meets the American market by entering the core of the U.S. automotive segments – rugged SUVs and full-size pickup trucks. The Scout Traveler SUV and Terra truck will address roughly 40 percent of the U.S. auto market and will be built in America in a way that combines American entrepreneurship with the backing, scale, and manufacturing know-how of the Volkswagen Group. This enables Scout Motors to deliver upon a competitive cost base and move with speed. Scout Motors meets the American moment by supporting the revitalization of American manufacturing through its multibillion-dollar investment into its Production Center in Blythewood, South Carolina. Spanning 1,100 acres and creating more than 4,000 good-paying jobs, Scout Motors' Production Center will have the capacity to build more than 200,000 Scout vehicles per year when fully ramped up. Construction is on track, and factory hiring will start soon. Across categories, the most successful American brands and products have always had a bit of magic. Scout Motors combines highly credible vehicles with a beloved brand and a passionate community that has kept the scout spirit alive for decades. By combining its product heritage with modern ingenuity while leaning in and listening to the existing Scout community and fans, Scout Motors is unlike any other new automotive entrant. Consumer response to the reveal of the Scout Traveler and Terra is extremely positive. The Harvester range-extender option, connection-focused features like the bench seat, and a return to tactility and utility are resonating with consumers. That enthusiasm is reflected in reservation counts. There's plenty of road ahead as Scout Motors works to bring these incredible vehicles to life and invest in communities and people."
USA Today
5 days ago
- Automotive
- USA Today
General Motors' 2026 Chevrolet Corvette ZR1X is the automaker's most powerful
General Motors is rolling out the world's most powerful Corvette near the end of 2025 – and it's a hybrid. The 2026 Chevrolet Corvette ZR1X, the sister to the ZR1, boasts 1,250 horsepower, a record for the automaker, and comes with a button to release the entire stable at once. The driving force behind the vehicle's propulsion stems from the decision in 2020 to move the engine to the center of the vehicle. 'From day one, we designed the midengine Corvette architecture with ZR1X in mind,' General Motors Senior Vice President Ken Morris said in a statement. 'This is the most revolutionary platform in Corvette history.' The Detroit automaker said June 17 that the ZR1X also borrows features launched in previous models, such as all-wheel drive and a dual powertrain first seen on the 2024 Chevrolet Corvette E-Ray. GM calculates the neck-breaking power through combining the two propulsion methods. A battery pack and electric motor drives the front axle and a V8 engine propels the rear, the company said, but there is no physical connection between the two power sources on the ZR1X. The ZR1X credits 1,064 horsepower from the LT7 5.5L V8 engine and 186 horsepower from the electric unit ― making it the most powerful, fastest Corvette ever. The battery capacity, 1.9 kWh, is the same as the E-Ray, but GM said the ZR1X has more usable energy to provide greater lapping capability. This higher peak operating voltage increases the power output from the front drive unit. The electrified propulsion system also does not require a plug – regenerative energy from the front drive unit charges the vehicle as it goes. In case you missed it: Iconic Corvette faces changes ahead, but enthusiasts are confident GM previously confirmed an all-electric Corvette is in the works, but did not provide an update about a potential time frame on a recent media call. The ZR1X will be built at the Bowling Green Assembly Plant in Kentucky. The company said prospective buyers can expect pricing details later this year. Paul Waatti, director of industry analysis for AutoPacific, said it's likely the ZR1X will be the brand's most expensive. Hypercar territory 'The ZR1X launches Corvette into true hypercar territory and sets a new benchmark for full-line automakers,' he said. 'What's striking is the range it crowns: From the attainable Stingray to the electrified E-Ray, and now the ZR1X, the C8 lineup spans a remarkable spectrum of performance.' Notably, the 2025 ZR1 started at $174,995, the most expensive Corvette for the market and a steep jump from the 2019 Corvette ZR1, which started at $121,000. Rick Hendrick, a Chevrolet dealer and NASCAR Hall of Fame team owner, broke records this January when he purchased the 2025 ZR1 for $3.7 million. Stephanie Brinley, associate director of Auto Intelligence at S&P Global Mobility, said in the scope of ultra sports car development, Corvette's advancements tend to offer good value. 'If you're doing product progression correctly, every new Corvette is the most advanced Corvette yet,' she said. 'This is power beyond what most vehicles can do.'
Newsweek
02-05-2025
- Automotive
- Newsweek
Automakers Change Production, Sales Plans Based on Trump Tariffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The global automotive industry has responded in a variety of ways to tariffs imposed by the Trump administration. Some companies ceased imports while others have announced price freezes. Automakers have even gone so far as to announce production shifts. Under current rules, vehicles imported to the U.S. are subject to a 25 percent tariff. This week, President Trump signed an executive order modifying the tariff action on vehicles and car parts. The higher the percentage of a vehicle that is made in the U.S. or falls under USMCA (United States-Mexico-Canada Agreement) regulation, the less tariffs will have to be paid on it. "Tariff uncertainty is forcing automakers into a reactive tailspin. In an industry that thrives on stability and long lead times, shifting policies upend both short-term production planning and long-term investment strategy—driving up costs, undercutting margins and destabilizing global supply chains," Paul Waatti, director of industry analysis at AutoPacific, told Newsweek. Newsweek asked every major automaker how they're adjusting to the tariffs. Here's what they said. Aston Martin In its first-quarter earnings call, the automaker announced that it has paused all imports to the U.S. A company spokesperson offered no comment to Newsweek on other speculative press reports regarding inventory sales. Doors-up view of the 2026 Aston Martin Valhalla. Doors-up view of the 2026 Aston Martin Valhalla. Aston Martin Audi "We look to price our vehicles to be competitive in the market and attractive for U.S. consumers. Audi will maintain current pricing on new and existing models through the end of May while continuing to evaluate the impact of the changing tariff landscape long-term. We have no further information to share at this time," a company spokesperson told Newsweek. Bentley Motors A spokesperson told Newsweek, "Bentley is monitoring the U.S. tariff situation closely. At this time pricing remains unchanged, and all customer orders are being price protected." BMW Group Automotive News reported that an internal memo shared with dealers stated that BMW will not raise prices on most of its new models until the end of June. The company's 2-Series and 3-Series cars are built in Mexico and will have a 4 percent price increase in May. A spokesperson for BMW told Newsweek, "We are evaluating these latest announcements in detail and will not comment further at this time." Ferrari Some Ferrari models, the Purosangue SUV, 12Cilindri and F80 cars, received a 10 percent price increase in response to the Trump administration's tariff news a few weeks ago. Newsweek has reached out to Ferrari for an update. Ford Motor Company In April, Ford kicked off a sales promotion in reaction to the Trump tariffs announcement. From April 3 to June 2, the company is offering select 2024 and 2025 Ford and Lincoln brand vehicles at the discounted price it offers its employees. The promotion covers gasoline, battery-electric and hybrid powertrain models. Some vehicles are not covered in the promotion: Ford Bronco Stroppe and Raptor SUVs, Ford F-150 Raptor trucks, Ford Mustang Dark Horse and GTD cars, all Ford chassis cab models, 2025 Ford Expedition, 2025 Lincoln Navigator, 2025 Ford Explorer and 2025 Lincoln Aviator. When contacted for comment, the company directed Newsweek to CEO Jim Farley's quotes from earlier this week at the Ford Expedition launch event in Kentucky: "Imagine if the companies importing 8 million vehicles a year into America invested in this country like Ford does, instead of putting out ads that cherry-pick data to 'prove' how American they supposedly are. Some people call this 'America-washing'—and that's not what we need right now. We need real commitment." Jim Farley, President and Chief Executive Officer of Ford, speaks at the Ford Motor Company Kentucky Truck Plant to launch the 2025 Ford Expedition, Wednesday, April 30, 2025, in Louisville, Ky. Jim Farley, President and Chief Executive Officer of Ford, speaks at the Ford Motor Company Kentucky Truck Plant to launch the 2025 Ford Expedition, Wednesday, April 30, 2025, in Louisville, Ky. associated press "More than 80 percent of the vehicles Ford sells in America are assembled in America – plus we export significantly. If each of our competitors matched that commitment, it would mean 4 million more vehicles assembled in America every single year. Think about that. What a job stimulus that would be for our country," he said. General Motors In a letter to shareholders this week, General Motors CEO Mary Barra made the case that the automaker is authentically invested in America. "Almost one million people in this country depend on GM for their livelihoods, including our employees, suppliers and dealers. We have a network of 50 U.S. manufacturing plants and parts facilities in 19 states, which includes 11 vehicle assembly plants. And we have invested $60 billion here over the last five years," she wrote. She also explained that GM faces, "a current tariff exposure of $4 billion - $5 billion." On a call with analysts, Barra said that the company's Fort Wayne, Indiana, truck plant, where the Chevrolet Silverado 1500 and GMC Sierra 1500 are built, has increased production by 50,000 units. Overtime days may be added to the work schedules of workers to support the change. Reuters reported that a letter sent to United Auto Workers Local 2209 members told employees that 225 to 250 jobs will be added as a result of the increase. Newsweek has reached out to General Motors for additional comment but did not hear back by the deadline. 2025 Honda Civic hybrid front view while being driven. 2025 Honda Civic hybrid front view while being driven. American Honda Motor Co., Inc. Honda In April, Honda confirmed that it would move production of its Civic hybrid sedan to the U.S. from Japan in response to tariffs. The Civic hybrid is projected to make up about 40 percent of all American Civic sales. Production of Acura models is currently unchanged. A request to Honda for comment went unanswered by Newsweek's deadline. Hyundai Motor Group All Kia, Genesis and Hyundai branded models have their prices frozen until at least June. The opening of the company's Hyundai Motor Group Metaplant America, and promises of new and expanded production capacity for supplies and final assembly products, were touted by the Trump administration weeks ago as an example of making America great again. When contacted for comment, the company pointed Newsweek to this statement, released earlier this week: "Hyundai Motor Company President and CEO Jose Muñoz was honored to join President Trump and fellow business leaders at the White House to recognize the vital role private investment plays in strengthening America's economy. Hyundai Motor Group recently announced a $21 billion commitment to the United States to expand manufacturing capacity, strengthen supply chains, and support future technologies such as advanced mobility, robotics, artificial intelligence, and EV charging infrastructure. These investments are expected to create more than 100,000 direct and indirect jobs across the country, including 14,000 new full-time positions at Hyundai. "Hyundai's commitment to the United States spans nearly four decades and supports over 570,000 American jobs across our operations and supply chain. The newly opened Hyundai Motor Group Metaplant America in Georgia—the largest economic development project in the state's history—underscores our long-term investment in U.S. manufacturing, innovation, and workforce development. This year, we are also celebrating the 20th anniversary of Hyundai Motor Manufacturing Alabama, which laid the foundation for the growth of our U.S. production footprint. We remain deeply committed to expanding our presence and contributing to the country's economic success." Ineos An Ineos spokesperson told Newsweek that the company has raised the price of its Grenedier SUV five percent to $78,900 and Quartermaster pickup to $92,900, a 10 percent increase, in response to the tariffs. Any inventory that existed on dealer lots prior to April 3 and is still there is not subject to the price increase. JLR The flow of shipped vehicles from the U.K. to the U.S. is ongoing with new inventory arriving at dealerships. "The USA is an important market for JLR's luxury brands and incremental 25 percent tariffs on autos remain in place. As we work to address the new U.S. trading terms with our business partners, we are enacting our planned short-term actions, as we develop our mid- to long-term plans. We will give a further update at our full year results in May," a company spokesperson told Newsweek. Lucid Motors Lucid responded to a comment request from Newsweek by directing attention to the April interview its interim CEO Marc Winterhoff did with Fox Business anchor Liz Claman on "The Claman Countdown" where Winteroff breaks down where various components of Lucid's vehicles are made and assembled. Mazda Mazda Toyota Manufacturing (MTM) will suspend production of the CX-50 for the Canadian market starting May 12. The temporary pause, a spokesperson for Mazda North American Operations told Newsweek, will not result in any changes to overall production volume as the company will increase production for the U.S. market at during the pause. 2025 Mazda CX-50 front view while parked. 2025 Mazda CX-50 front view while parked. Mazda North American Operations MTM is Mazda's only vehicle assembly plant in the U.S. "We intend to utilize MTM to the fullest to support the growth of our business," the spokesperson said. "We will continue to monitor the situation, including government negotiations, market trends and policy developments, and will consider flexible and appropriate responses accordingly." Mercedes-Benz Weeks ago, the German automaker confirmed media reports that prices will not rise on 2025 model year vehicles at this time. Mercedes-Benz announced this week that it intends to produce a new vehicle at its Tuscaloosa, Alabama plant beginning in 2027. The automakers said in a press release that the model will be "tailored to U.S. customer preferences." Vehicles are routinely tuned for the market where they are sold to meet customer expectations. Mercedes-Benz already makes the GLE, GLS, GLE Coupe and Mercedes-Maybach GLS as well as the EQE SUV, EQS SUV and Mercedes-Maybach EQS SUV for all global markets at its Alabama facility. Mitsubishi On Thursday, the automaker confirmed to Newsweek that it's still shipping vehicles from Japan to the U.S. However, those vehicles are being held at the port once they arrive as the company evaluates the longevity and impact of the tariffs on their business. Mitsubishi plans to release the vehicles to be shipped within the country at what it says is, "the appropriate time." Nissan Motor Corporation A spokesperson told Newsweek that the Nissan's brand stance as not changed following the latest tariff news, pointing out that in the U.S. Nissan sells six vehicles priced under $30,000. "Nissan holds a unique position in the industry. Not only do we offer six vehicles at a starting price of under $30k—spanning sedans, SUVs and EVs—but, in a market where vehicle prices have increased, we've recently further reduced the price of our best-selling model, Rogue. Whether a first-time buyer or someone simply seeking greater affordability, we can meet consumer needs without compromising on quality, safety, advanced technology or value," Vinay Shahani, senior vice president of U.S. marketing and sales for Nissan Americas, told Newsweek. A report by Nikkei said that the company plans to shift some Rogue SUV production to the Nissan plant in Smyrna, Tennessee. The company also makes the Rogue at its facility in Kanda, Fukuoka, Japan. Side and rear view of the 2025 Nissan Rogue Rock Creek SUV. Side and rear view of the 2025 Nissan Rogue Rock Creek SUV. Nissan Tiago Castro, vice president of INFINITI Americas, told Newsweek, "As the tariff situation evolves, we've taken proactive steps to minimize disruption for both our clients and retail network. That includes guaranteeing MSRP through June 2 to provide continued stability and value." "On the production side, we are accelerating our focus on U.S. manufacturing. Infiniti will continue assembling Infiniti QX60 at our Smyrna, Tennessee, plant, increasing volume to meet growing demand. Infiniti QX65, an all-new nameplate for the brand, will also be built in Tennessee, reinforcing our commitment to localized manufacturing. We currently have ample U.S. inventory that remains unaffected by the new tariffs," he said. Castro added: "We're continuing to monitor the situation closely and will make further adjustments as needed to ensure our clients receive strong value, exceptional service and uninterrupted access to our award-winning lineup." Rivian Like Lucid, much of Rivian's product is sourced from, built in and assembled in the U.S. The company told Newsweek that it did not have a comment for this story at this time. Stellantis The parent company of the Jeep, Chrysler, Dodge, Ram, Fiat and Alfa Romeo brands has paused European vehicle imports and scaled back other shipments in response to the tariffs. In April, the company announced a production pause at its factories in Canada and Mexico, a move that trickles down to result in an expected 900 layoffs at temporary layoffs at the automaker's American powertrain and stamping plants. When contacted for comment, the company pointed Newsweek to information from their Q1 shipments and revenues call. Stellantis' Chrysler, Dodge, Jeep, Ram and Fiat brands will offer the Employee Pricing Plu$ program through May on select 2024 and 2025. The difference between the Employee Pricing Plu$ program and the America's Freedom of Choice program that was previously offered is that the new program allows buyers to take advantage of employee pricing and incentives. Subaru Some speculative media reports indicated that Subaru was moving production of its Outback model out of Indiana, to Japan, in reaction to the Trump tariffs. The change was planned before the 2024 election, as the plant is switching to produce the Forester hybrid SUV instead. When contacted by Newsweek, Subaru had no comment for this story. Toyota Motor Corporation The company told Newsweek that everything for Toyota and Lexus is "business as usual" right now, with no adjustments to sales objectives or manufacturing. Volkswagen Thursday, a Volkswagen representative told Newsweek: "We appreciate the Trump Administration's decision to ease some automotive tariffs. We're assessing the impact of this recent move and how we'll adjust the business. No final decisions have been made. We are committed to our customers, our dealers and our employees in North America." Volvo The Swedish automaker told Newsweek: "Volvo Cars follows government rules and pays all required duties on all imported vehicles and on all parts as required by law. This is standard practice and what we do in all markets where we operate. We are looking into the effects of the recent changes in tariffs as announced by the U.S. government though it is too soon to comment further at this stage."
Newsweek
25-04-2025
- Automotive
- Newsweek
New Slate Electric Truck Debuts With Sub-$20k Price Tag (After Rebates)
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Slate aims to disrupt the automotive industry with a new vehicle and way of doing business that focuses on the necessary and gives buyers the power of choice at a budget-conscious price. The company revealed its Slate Truck on Thursday in Long Beach, California. "The definition of what's affordable is broken," said Slate CEO Chris Barman. "Slate exists to put the power back in the hands of customers who have been ignored by the auto industry." Paul Waatti, director of industry analysis at AutoPacific, told Newsweek he believes "Slate is poised to challenge entrenched norms in the auto industry by profoundly rethinking how vehicles are designed, built, personalized, and sold. At a time when EV startups often chase high-end buyers with complex tech and escalating price points, Slate takes a distilled, contrarian approach—simplification, modularity, and a focused affordability strategy." Slate's truck is 20 inches shorter in length than the Ford Maverick and one foot narrower (nearly the same width as a Toyota Corolla), cementing it in the small truck category. The unique truck is a two-seat pickup that will be sold in a single configuration - one bed size and one cab style. Simplicity is key to the design team's approach to the model; its windows crank and there are climate control knobs. There is no infotainment system nor a touchscreen. It wears steel wheels on each corner. According to Waatti, the company is "tapping into a growing fatigue with over-digitization in vehicles. By inviting customers to "bring your own tech" and focus on tactile, analog controls, Slate speaks to a growing audience alienated by bloated infotainment stacks and touch-heavy interfaces." From that baseline, buyers can build up their model which has a 1,400-pound payload capacity and a large front trunk (frunk). When deliveries begin, over 100 accessories for the model will be available individually or bundled. Owners can purchase the accessories at initial purchase or over the vehicle's lifetime, as their budget allows. Though initially sold as a truck, the model can be transformed into an SUV through an accessories package. "Slate is a radical truck platform so customizable that it can transform from a two-seat pickup to a five-seat SUV," Barman said. Those who purchase the SUV kit get a roll cage, airbags, a rear seat and body panels. Owners can complete the installation themselves or have it done for them. A universal phone mount and USB outlets allow a person's smartphone to serve as the infotainment hub. Owners can also install a mount for the tablet of their choice and connect any device to a self-installed speaker system or a portable speaker. Slate owners also have the option of wrapping their vehicle or having it wrapped by a pro. Customers can choose from three levels of wrap, which is designed to make the vehicle especially personal. The automaker will host SlateU tutorial videos on its website to instruct owners on how to enhance their model whether through accessory additions or wrapped elements. Buyers can choose between two battery packs for the mode, a 52.7-kilowatt-hour (kWh) pack or an 84.3-kWh one. The rear-wheel drive truck's smaller battery delivers a targeted 150 miles of all-electric range. The larger is expected to offer up to 240. Slate's model is charged via a NACS (North American Charging Standard) port, the same as a Tesla and the type of port many mainstream automakers are transitioning to. Using that port, the truck can charge to full overnight on a household outlet or fast-charge to 80 percent when attached to a 120-kilowatt charger, in under 30 minutes. The American company will purchase American-made batteries for its electric truck and assemble the model in the U.S. "Made in America is very important to us. We have a passion, we want to re-industrialize America, and in doing that, we're targeting where our location will be in the heart of the Midwest. We want to go into a brownfield [site]. We want to take that and make it over into something that's going to bring a new technology to a community that may have had what for many years a thriving business that over time, for whatever reason, unfortunately, had a shutter. What we want to do is go back in and use that facility and revitalize that community," Barman told Newsweek. Waatti says "Slate's re-industrialization narrative—building in the U.S., with a transparent pricing model and service infrastructure—is well-timed to resonate in a post-COVID, tariff-conscious economy where domestic manufacturing and affordability are back in focus." Slate intends for the vehicle to achieve high safety ratings. It will equip the model with automatic emergency braking and forward collision warning technology and have up to eight airbags. "The vehicle will be an IIHS Top Safety Pick, as well as an NCAP (National Highway Traffic Safety Administration's New Car Assessment Program) 5-Star. Often people get concerned when they hear affordable that they may think, 'where have corners been cut?' There's been no compromises here. It will meet the highest safety standards within the industry," Barman said. "I think next that comes to mind with people is, 'If it's affordable, does it mean that there's going to be some compromise on quality or the reliability of the vehicle?' [Addressing that has] been paramount for us. We [are working to ensure that we] meet the highest quality levels as well as [being] a very reliable vehicle, so that people can depend on it day in and day out for many years, to be able to service them in the way that they need to," she said. The company plans a direct-to-consumer sales model that allows purchasers to order their new Slate online, take delivery near their home and find a service location in their neighborhood. "For us, what was really important is we want to own the relationship with the customer. We want to connect with them. We want to service them. We want to make sure that they are satisfied as they're going through the purchase process, be it for the vehicle or be it for the accessorization, and even later, if it may be with service. It's important to us that we have that connection to the customer and that we are the ones that are able to keep them satisfied," Barman said. Slate announced that the price for its new electric truck would be less than $20,000 when federal rebates are applied to the purchase. The continuation of those rebates is not guaranteed. "We're just very focused on our primary customer - it's that wage earner. It's that hard-working American. And, regardless of other dynamics that may be happening, we know that we want to serve those hard working people and provide them with safe, reliable, affordable transportation. That's been our focus and our mission since we've started. We also want to provide a vehicle that is desirably designed that those individuals are going to be very proud of, proud to own, proud to drive, and proud to put their own personality with into the vehicle, to have it be an expression of themselves," Barman said. And Waatti adds that if successful, Slate "could shift expectations not just for what a vehicle is but also for how it's configured, purchased, and owned. It's not just a vehicle—it's a modular mobility platform built for people who want control, simplicity, and value. That's a potent combination in today's market." Interested buyers can reserve their vehicle with a $50 deposit today at the company's website. The deposit is fully refundable.
