Agreements forged between automakers and suppliers aren’t etched in stone, and shaky financial ground has a way of altering how and when those suppliers are paid. Look back to the recession for prime examples of that.

However, a memo sent from Tesla to a supplier shows the electric automaker wants to recoup a portion of its previously spent cash — a request designed to help Tesla finally turn a profit. Read More >

The thought of the U.S. imposing an import tax on Canadian vehicles and auto parts was once unthinkable, but the possibility now exists. Unable to ignore it any longer, Canada now says it will impose tariffs on American-built vehicles should the U.S. act first.

Canada’s contribution to the continent’s automotive landscape isn’t what it once was, but it’s still formidable when viewed in isolation. The Great White North, which continued building Studebakers for two models years after South Bend went dark, houses assembly plants operated by the Detroit Three, Honda, and Toyota.

With the glaring exception of pickup trucks, Canada would find itself with a (limited) crop of remarkably practical tariff-free vehicles if the taxes went into effect. Read More >

Unlike Volvo’s S90 sedan, which is built half a world away from its V90 wagon stablemate, the Chinese-owned Swedish automaker has some flexibility in where it sources its XC60 crossover. Two plants — one in China, one in Torslanda, Sweden — crank out the second-generation utility vehicle, but the U.S. market gets its full share from the Orient.

After the Trump administration imposed a tariff of 25 percent on Chinese-built vehicles, Volvo’s XC60 suddenly found itself dragging a financial anchor. Hardly a great situation for a model that outsold all other Volvos in the U.S. last month. To side-step the tariff, Volvo’s already making changes.

Say goodbye to the Chinese XC60. Read More >

In the wake of Volkswagen Group’s diesel emissions scandal, VW turned its attention to electric vehicles. Yup, EVs, and many, many crossovers. Can’t forget those.

At the time, building the brand’s future EVs in America seemed like the right thing to do — good PR, and good penance for its dirty crimes. The plan’s still a go, as VW’s Chattanooga assembly plant has plenty of excess capacity, but it’s now focused on two particular models. Read More >

Think back to the very early days of the previous decade and memories of awful mainstream rock compete with visions of the first-generation Ford Focus sedan. It was everywhere, and quite a few people has quite a few problems with theirs. By the end of the decade, however, those issues were mainly in the rear-view, as Ford was busy preparing to heap dual-clutch transmission woes onto its customers.

Now, the Focus sedan’s officially dead as the Blue Oval embarks on a nearly car-free voyage to the future. Only the faux crossover “Active” version of the next-gen 2019 Focus stands to see any customers in North America, but it’s a privilege reserved only for citizens of the United States. Canucks need not apply.

Too bad, as the next-gen Focus sedan’s a looker. Its designers aren’t exactly thrilled that so many countries have taken a pass. Read More >

We told you yesterday of the hurdles facing the fledgling Genesis brand, a standalone luxury marque launched two years ago under the umbrella of Hyundai Motor Group. Currently, just two models reside in the Genesis stable —  the midsize G80 and full-size G90, with the 3 Series-fighting G70 bowing later this year.

It’s been a slow, measured start for the brand, but a shifting strategy for its U.S. dealer network means these early days haven’t been easy ones. A Genesis spokesman tells us that the brand’s inventory is being whittled down ahead of the launch of the revamped network alongside fresh, 2019 model year vehicles. Just how many Genesis dealers will exist at that time is unknown. Read More >

Tesla’s sole assembly plant in Fremont, California won’t be lonely for long. A preliminary deal reached between the automaker and the government of Shanghai could see a new assembly plant start production in about three years’ time. The Chinese plant would most likely build Model 3s and upcoming Model Y crossovers, Bloomberg reports.

Assuming Tesla can scrounge up the $4 to $5 billion needed to complete construction of the facility (a Goldman Sachs estimate), the plant could produce up to 500,000 vehicles per year. And it just so happens that Shanghai has a free trade zone. Read More >

A report in a Japanese business publication claims the partnership that gave us the Infiniti QX30 crossover — built on the same MFA platform as the Mercedes-Benz GLA — won’t yield a compact Infiniti luxury car, as was planned.

This isn’t a case of bad blood between the two automakers, however. The United States just isn’t a ripe target for such a vehicle anymore, apparently, and the vastly uncertain trade situation doesn’t help. Read More >

Chevrolet’s little Sonic hatchback and sedan, built alongside the electric Bolt at General Motors’ Orion Assembly Plant, will return for the 2019 model year with a notable powertrain change. We already knew a 2019 version of the Sonic — rumored to be on the chopping block — was a go (thanks to California Air Resources Board certification docs), but the contents of an order guide now show greater standard torque than the 2018 model.

Notice we said torque, not horsepower.  Read More >

As promised by General Motors CEO Mary Barra in March, GM plans to crank out additional Chevrolet Bolts at its Orion Assembly Plant in Michigan later this year. The need for extra output isn’t because of rising sales in the United States, however.

In GM’s second-quarter 2018 sales report, the Bolt’s U.S. tally fell to 3,483 vehicles, down from Q1’s 4,375 deliveries, as well as Q2 2017’s 4,500 units. Last year’s Q2 sales came when the Bolt hadn’t even reached all U.S. markets. No, GM needs more Bolts because other countries want them. Read More >

For two brands steeped in Americana, Chrysler and Dodge sure seem to love Canada. Two Ontario plants continue cranking out Grand Caravans, Challengers, Chargers, 300s, and Pacificas, even as the 9,600-strong workforce in Windsor and Brampton grow leery of the future.

It’s not just the complete lack of interest Fiat Chrysler displayed in those particular brands during last month’s five-year plan unveiling; it’s also the threat of import tariffs on foreign-made vehicles that could very well sink across-the-border manufacturing.

Nah, it’s all good, says Jerry Diaz, president of the union representing Detroit Three autoworkers in the Great White North. Read More >

A report in Reuters Tuesday sheds light on the frenzied final weeks of Tesla’s all-out push to reach a production target of 5,000 Model 3s per week by the end of June.

Workers claim CEO Elon Musk became agitated whenever the company’s Fremont, California production lines slowed or stopped due to robot issues, employees were pulled off the Model S line to cover Model 3 workers’ breaks, and longer hours with little advance notice became the norm.

Ultimately, Tesla was able to boast of building 5,031 Model 3s in the last seven days of June. But another report raises the question of whether Tesla skipped an important step in the production process in order to reach its goal. Read More >

It’s gotten to the point where those seen buying a traditional sedan or hatchback are viewed as being unlikely candidates for procreation. After all, you can’t raise a kid in the absence of a vehicle belonging to a segment where “rows” matters more than horsepower or fuel economy. I blame Lee Iacocca for sparking the non-car trend.

Anyway, with Fiat Chrysler out of the small and medium-sized car game, and Ford eager to follow, General Motors feels this new automotive landscape could work to its advantage. Never mind all that doom and gloom (and some very GM-centric rumors). Read More >

The numbers are out for Tesla’s second-quarter production and deliveries. If you didn’t spend the weekend lying on a block of ice with a fan taped to your chest, you probably heard the faint sound of Tesla aficionados celebrating the automaker’s 5,000-Model 3s-per-week production goal, which was met with few vehicles to spare.

CEO Elon Musk took to Twitter on Sunday to announce the production of 7,000 vehicles during the last seven days of June, some 5,000 of them being Model 3 sedans. Steven Armstrong, CEO of Ford of Europe, shot back a reply stating his company builds that much in about four hours. (There seems to be a lot of bad blood between Ford and Tesla.)

So, how do the numbers break down for the entire second quarter? Read on. Read More >

Last March, Volkswagen confirmed that once the current-generation Beetle runs its course, there won’t be another. It was thought — and hoped, for some VW execs — that the automaker would switch the iconic model to electric drive, thus keeping the brand’s heritage alive while at the same time fulfilling its promise to unleash scores of EVs into the marketplace.

Not so, it seems. “Two or three generations [of Beetle] is enough now,” said VW R&D chief Frank Welsch in an interview with Autocar. “You can’t do it five times and have a ‘New New New Beetle.’”

Well, that was spring, and this is summer. Apparently, VW hasn’t completely ruled out the return of the people’s car. Should the model stage a reappearance, however, prepare yourself for some sacrilegious changes. Read More >