Volvo weighs increasing US production, domestic sourcing to offset tariffs
Volvo Cars could increase U.S. production and seek out more domestic suppliers to offset higher import duties, especially on batteries for electric vehicles, President and CEO Jim Rowan said on a call with analysts on Feb. 6. Rowan told analysts that Volvo has the capacity to expand domestic production at its plant in Ridgeland, South Carolina, which can manufacture up to 150,000 vehicles annually. At the time of the call, vehicles manufactured in Europe and exported to the U.S. were subject to a 2.5% tariff, he said. However, if that changed, the automaker would deal with the issue at the appropriate time.
Canada and Mexico tariffs will take effect March 4, Trump confirms
President Donald Trump said tariffs on Canada and Mexico that have been on pause for nearly a month will go into effect March 4, according to a Truth Social post Thursday. The president also said the U.S. will impose an additional 10% tariff on China the same day. The announcement comes a day after Trump indicated in a press briefing that he would soon announce 25% tariffs on imports of cars and other goods from the European Union. He also reiterated that April 2 would be the implementation date for his reciprocal tariff policy, a vow he repeated again Thursday. Trump originally ordered 25% import taxes on Canada and Mexico to go into effect Feb. 4 but delayed implementation following agreements by both countries to address fentanyl trafficking.
Stellantis reports 70% decline in net profits in 2024
Stellantis reported a 70% drop in net profits in 2024 to 5.5 billion euro ($5.76 billion), as well as a 64% decline in adjusted operating income, the automaker announced in its 2024 financial results Feb. 26. The automaker’s year-over-year net revenue fell 17% to 156.9 billion euro ($164.5 billion), with consolidated shipment volumes falling 12% due to temporary gaps in product offerings and inventory reduction initiatives to clear dealer lots. Stellantis is now focused on improving its performance in 2025, which includes the launch of new electrified models and production of batteries. “While 2024 was a year of stark contrasts for the company, with results falling short of our potential, we achieved important strategic milestones,” said Chairman John Elkann in the release.
Safety benefits diminish in larger vehicles: IIHS
While the perception among American drivers is that bigger vehicles are safer, that may not necessarily be the case, a new study found. The Insurance Institute for Highway Safety reported that the safety advantage of larger cars has its limits. Safety benefits decline as a vehicle increases in weight past the fleet average, per the study, while safety risks grow for occupants of nearby vehicles, especially in crash situations. “For American drivers, the conventional wisdom is that if bigger is safer, even bigger must be safer still,” IIHS President David Harkey said in a statement. “These results show that isn’t true today.”
Uber, Lyft riders choose ride-hailing over transit to save time: study
Riders choose ride-hailing services like Uber and Lyft over public transit to save time, a University of Michigan study found. Using data from the city of Chicago, the researchers found that comparable trips by transit take substantially longer than ride-hailing due to waiting time and longer walks to a transit stop. However, the convenience of ride-hailing comes with greater greenhouse gas emissions, air pollution, traffic congestion, crashes and noise, the researchers note. The growth of ride-hailing has contributed to a decline in public transit ridership over the past decade, according to research the University of Michigan study cites.
Musk has lost more than $100B since December as Tesla gives up trillion-dollar company status amid sell-off
Elon Musk's status as the world's wealthiest person is in no danger of changing. But since mid-December, the tech titan's net worth has declined by more than $100 billion, or approximately 25%, as a sell-off in shares of Tesla, his electric car maker, has accelerated in recent weeks.
Ford recalls 240K SUVs for loose seat belt bolts
Ford Motor Co. has recalled up to 240,510 model year 2020-2021 Explorer SUV and Lincoln Aviator models for improperly secured front seat belt buckle anchor bolts and second row seat retractor bolts, which may not properly restrain an occupant in a crash, according to the National Highway Traffic Safety Administration. Ford discovered the problem on Nov. 5, 2024, after Transport Canada contacted the company following a customer complaint alleging the presence of a loose or uninstalled second-row center seat belt anchor bolt on a 2020 model year Explorer. Owners are being notified to schedule a service appointment at a dealer for an inspection of the affected components, which Ford will replace at no cost. Notification letters are expected to be mailed March 31.
Lucid CEO resigns, company seeking permanent successor
Lucid Group co-founder and CEO Peter Rawlinson has resigned from his role, the company announced Tuesday. Lucid named COO Marc Winteroff as interim CEO as it begins its search for a permanent replacement. Rawlinson will transition to strategic technical advisor to board Chairman Turqi Alnowaiser though Feb. 21, 2027, according to a regulatory filing. With the automaker opening orders of its luxury Gravity SUV in November, Rawlinson said the time was right to step down.
Nissan focused on finding new partnerships
Nissan Motor Corp. will focus on finding new partnerships to offset costs of developing new automotive technology while bringing new vehicles to market faster as it works to return to profitability, according to President and CEO Makoto Uchida. Uchida outlined the automaker’s strategy during the company’s Q3 earnings call on Feb. 13. It was the same day that Nissan and Honda Motor Co. disclosed merger discussions had ended after the companies were unable to find common ground on a new corporate structure.
Rivian reports record-high gross profit of $170M in Q4
Electric vehicle maker Rivian reported gross revenue of $170 million in Q4 2024, which was largely due to reductions in fixed and variable costs and sales of more expensive models, the company announced in its earnings report on Feb 20. Cost cutting led to reducing expenses by $31,000 per vehicle, bringing it closer to achieving its goal of a ‘modest’ net profit for the first time ever in 2025, the company said. However, Rivian warned of external factors that could impact its 2025 financial outlook, including regulatory and policy changes that could reduce demand, including the elimination of federal incentives that bolstered EV sales over the past several years.