Subaru was at the forefront, debuting the seventh-generation Outback for the 2026 model year. The new Outback features a boxier design, a wider stance, and a roofline that stands two inches taller than before, maximizing both utility and style. The popular midsize crossover also now offers 34.6 cubic feet of cargo space, adding two more cubic feet for greater practicality.

Subaru also introduced its second U.S. electric vehicle, the 2026 Trailseeker, a two-row crossover designed to go up to 260 miles on a single charge. Meanwhile, the Solterra Subaru’s inaugural EV will receive significant upgrades to powertrain, performance, interior technology, and design to stay competitive in the compact crossover segment.

Hyundai made its own headlines with the reveal of the 2026 three-row Palisade, which will boast extra space, enhanced range, and two new powertrain options, including a hybrid variant. The new Palisade marks another step in Hyundai’s push for more family-friendly, versatile SUVs and continues the sportier design direction launched at the 2022 show.

Kia also used the New York stage to launch two new compact models: the all-electric EV4 sedan and a hatchback version of the K4. These models strengthen Kia’s position in the small car segment, offering fresh options for both electric and gasoline-powered vehicles.

On the retail side, consumer confidence and pricing were key topics. A new survey from Santander Holdings USA Inc. found that many middle-income Americans remain concerned about rising car prices amid tariff uncertainty. Over half of the surveyed consumers planning to buy a vehicle said they are more likely to make a purchase soon to avoid anticipated price increases.

Dealers are also feeling the impact of fast-changing tariff policies. The LaFontaine Automotive Group in Michigan has created a special task force to monitor developments from Washington, noting that the landscape can shift significantly in just a few hours. Despite these uncertainties, the dealership said it is holding firm on current pricing and not passing potential cost increases on to customers.

This year’s New York auto show demonstrated that, even in an era of digital debuts and changing consumer habits, live events still matter delivering both surprise and substance to the industry and its followers.

The post New York Auto Show Surprises with Major Reveals and Industry Insights first appeared on Car Zura – Latest Automotive News.

Three Steps to Ferrari’s Electric Future

The journey to Ferrari’s debut EV is mapped out in three significant phases:

• On October 9, Ferrari will reveal the “technological heart” of the electric model during its capital markets day, offering a preview of the innovation powering the new vehicle.
• The world premiere of the full car is scheduled for spring 2025, marking the first public unveiling of Ferrari’s inaugural battery-powered supercar.
• Sales are set to begin in October 2026, bringing Ferrari’s storied badge to the electric vehicle segment for the first time.

This is the first official timeline Ferrari has provided for its EV launch. While some analysts had anticipated seeing the entire car this October, Vigna’s announcement confirmed a staggered approach, reflecting Ferrari’s focus on precision and anticipation.

EV Launch Amidst Record Earnings and Market Challenges

Ferrari’s announcement came as it reported a 15 percent increase in first-quarter core earnings, reaching €693 million, and confirmed its full-year forecasts despite fresh tariffs and an uncertain global market. Revenue rose 13 percent to €1.79 billion, powered by higher shipments to Europe and the Americas, a premium product lineup, and personalized orders.

The company kept its EBITDA guidance for 2024 at €2.68 billion and a margin of at least 38.3 percent, even as U.S. tariffs threaten to trim 50 basis points off profit margins next year. Analysts at Bernstein noted Ferrari’s confidence and stability, contrasting it with peers like Mercedes, Ford, and Stellantis, which have all suspended financial guidance in the current climate.

Mixed Global Performance: U.S. Grows, China Slumps

Ferrari sells about a quarter of its cars in the U.S. its largest market. In March, the company announced price increases of up to 10 percent on some models in the U.S. to offset tariffs. The Americas and Europe drove growth, while sales in Greater China fell by 25 percent in the first quarter, compounding a 21 percent decline in the prior quarter. Ferrari, however, remains less exposed to China than other luxury brands, limiting its shipments there to just 10 percent of total sales to safeguard margins.

New Models and Hybrid Momentum

While all eyes are on Ferrari’s first electric car, the automaker continues to diversify. Last week, Ferrari unveiled the 296 Speciale plug-in hybrid and its convertible version, pushing its hybrid technology further. Hybrid models made up more than half of Ferrari’s sales in 2023, and the company has promised six new models this year, including the highly anticipated EV.

Ferrari’s approach signals that it will continue to offer gasoline and hybrid models alongside electric cars for the foreseeable future, giving buyers a range of performance options.

As the countdown begins for Ferrari’s electric debut, the company remains committed to growth, innovation, and exclusivity—even in the face of shifting markets and regulatory hurdles. With its signature flair, Ferrari is betting that the EV era can be as thrilling as its storied past.

The post Ferrari’s First Electric Car to Debut in Three Acts as Profits Surge first appeared on Car Zura – Latest Automotive News.

Sales Decline Hits Legacy Automakers and Traditional Models

According to the ACEA, new-car registrations across Europe fell 0.3 percent to 1.08 million units in April. Major markets including Germany, France, and the U.K. all reported falling numbers. Soft demand at home comes as European carmakers face tough export conditions, with U.S. tariffs and fierce competition in China compounding their challenges.

Gasoline and diesel vehicles posted the steepest drops, outpacing gains seen in electric and hybrid models. Volkswagen, Volvo, and Mercedes-Benz Group are already cutting costs in response to the tougher market.

EV and Hybrid Growth: Winners and Losers

Fully electric vehicle (BEV) sales surged 28 percent compared to a year earlier. However, they still represent only 17 percent of the market well below earlier forecasts that projected over 30 percent by 2025.

Tesla’s troubles are stark: Its European sales were nearly halved in April to 7,261 units. Market share continues to erode, with analysts pointing to CEO Elon Musk’s polarizing politics and ties to Donald Trump as contributing factors. China’s BYD outpaced Tesla in European EV sales for the first time, according to JATO Dynamics.

“The share of battery-electric vehicles is slowly gaining momentum, but growth remains incremental and uneven across EU countries,” said Sigrid de Vries, ACEA’s director general.

Plug-in hybrid sales jumped 31 percent, with nearly 100,000 new registrations in April. Delayed implementation of stricter emissions rules by both the EU and UK has eased the pressure on carmakers to accelerate full EV adoption, at least temporarily.

Chinese Brands Make Big Gains, Stellantis Loses Ground

While some European brands falter, Chinese manufacturers are gaining traction. MG owner SAIC’s European sales soared 25 percent in April, with registrations for the year up 31 percent to 100,011 units mostly MG models like the ZS, as well as some Maxus vans. BYD also reported significant progress.

Meanwhile, Stellantis continues to lose market share in the region and is still searching for a new CEO.

Outlook: Volatility Persists Amid Changing Tastes

Despite incremental growth in electrified models, the European market remains volatile. Demand for BEVs and plug-in hybrids is rising, but not fast enough to offset declines in traditional combustion models. With tariffs, cost pressures, and global uncertainty still in play, automakers are bracing for more turbulence as consumer preferences evolve and new competitors enter the field.

The post Europe’s Car Sales Dip in April as EVs Rise and Tesla Stumbles first appeared on Car Zura – Latest Automotive News.

According to the House Ways and Means Committee, “The average American family will be able to fully deduct auto loan interest for American-made cars.” The measure passed on May 21 by a narrow 215-214 margin, largely along party lines, with a handful of exceptions on both sides.

Under the proposed law, consumers would be able to deduct interest on qualifying auto loans for the 2025 through 2028 tax years. The deduction would apply to new and used vehicles, including RVs, motorcycles, trailers, and all-terrain vehicles, as long as they are assembled in the U.S. Loans for leased vehicles, commercial and fleet vehicles, salvage-titled cars, and those purchased for parts are excluded.

High-income households would face a gradual reduction in their deductible amount. For single filers earning over $100,000 and joint filers over $200,000, the deduction would be reduced by $200 for every $1,000 or $2,000 in income above those thresholds, respectively.

The bill also eliminates federal tax credits for electric vehicles that were established under the Inflation Reduction Act, making the deduction the primary new tax benefit for vehicle buyers. Elements of the 2017 Tax Cuts and Jobs Act would also become permanent, including individual tax rates and a higher standard deduction.

For taxpayers, the auto loan interest deduction is designed as an “above-the-line” adjustment to gross income. This means the deduction is available to anyone, regardless of whether they itemize deductions or take the standard deduction a shift that could allow millions more Americans to benefit. Previously, such a deduction required itemizing, which only a minority of households do today.

Edmunds estimates that the average new-vehicle loan in April financed over $41,000, with the average borrower paying nearly $2,750 in interest in the first year alone. Depending on the taxpayer’s bracket, the deduction could mean annual tax savings ranging from $200 to over $600 for many families.

The Congressional Budget Office projects that the auto loan interest deduction will cost the government $57.8 billion in lost revenue between 2025 and 2029. To help enforce the new deduction, lenders collecting at least $600 in interest must file paperwork detailing the interest paid and remaining loan balance.

Republican lawmakers, including President Donald Trump, have praised the bill as a way to boost American manufacturing and provide meaningful tax relief. Supporters argue that it will make U.S.-built vehicles more affordable and competitive, especially as other provisions seek to roll back some recent incentives for electric vehicles. The legislation now heads to the Senate for further consideration.

The post House Approves Bill Allowing Tax Deductions on Auto Loan Interest for U.S.-Built Vehicles first appeared on Car Zura – Latest Automotive News.

This article outlines the status of negotiations with America’s largest trading partners, the details of Trump’s proposed tariffs, and the specific issues at stake in each case.

The Countdown: High Stakes and High Pressure

President Trump’s reciprocal tariff strategy offers every country the chance to negotiate new trade terms. But officials, including Treasury Secretary Scott Bessent, warn that those who fail to reach an agreement by July 9 will be presented with a take-it-or-leave-it tariff assignment. This has created a rush of last-minute diplomacy and significant tension in global markets, with central bankers citing tariffs as a major source of economic risk and inflation.

Status of Major Trade Negotiations

Here’s where the U.S. stands with its key trading partners:

• United Kingdom – 10% tariff: The U.S. and U.K. recently announced a “full and comprehensive” deal, but the pact maintains a 10% baseline tariff on British goods. Sector-specific carve-outs for autos and steel are included, but many key details including quota sizes and security rules remain unresolved.
• China – 34% tariff: The U.S. has paused its 145% cumulative tariffs, now leaving a 30% duty in place for 90 days, while China lowers its tariffs on American imports to 10%. Negotiations are ongoing, modeled after the “phase one deal” of 2020, but both sides acknowledge shifting product mixes and market realities.
• European Union – 20% tariff: U.S.–EU talks have stalled. The European Commission responded to a U.S. proposal described by one official as a “wish list of unrealistic demands” but hopes for a breakthrough remain low.
• India – 26% tariff: Following recent talks in Washington, India and the U.S. aim to reach a phased agreement before July. The first step would address industrial goods, some agricultural products, and non-tariff barriers, with subsequent stages expected to broaden the scope and require congressional approval.
• Japan – 24% tariff: Japanese negotiators are working toward a deal, but refuse to rush into concessions. Key issues include the 25% U.S. tariff on auto imports and Japan’s interest in seeing all tariffs removed.
• South Korea – 25% tariff: Working-level discussions continue in Washington. Focus areas include trade balance, non-tariff measures, digital trade, and rules of origin.
• Vietnam – 46% tariff: After several days of negotiations, both sides have made progress on some issues, with technical teams assigned to close remaining gaps in the coming weeks.
• Thailand – 36% tariff: Thailand is preparing for upcoming negotiations, with a focus on tightening export rules and reducing the U.S. trade deficit by as much as $15 billion a year.
• Canada: While exempt from Trump’s reciprocal tariffs due to the USMCA, Canada faces other trade pressures, including a 25% tariff on many goods and ongoing disputes over autos, steel, and aluminum. Canada seeks a comprehensive update to the USMCA but has no formal talks scheduled.
• Mexico: Also protected by the USMCA, Mexico’s critical auto sector still faces a 15% duty on non-U.S. content. Mexico continues to seek exemptions and address security and tariff concerns in ongoing talks with the U.S.

Economic and Political Ramifications

The tariff uncertainty is weighing on markets and policymaking. Central banks, including the Federal Reserve, say unresolved trade disputes and the possibility of higher tariffs are holding back growth and may delay interest rate changes. Many trading partners are bracing for last-minute “take it or leave it” deals, while others may face unilaterally assigned tariff rates, upending long-standing trading relationships.

“Ninety days is an incredibly ambitious period of time. After July 9th, countries left on the cutting room floor will be handed a document with commitments that they can either take or leave in exchange for a new tariff rate.” — Kelly Ann Shaw, former Trump trade adviser

What Happens Next?

With the July 9 deadline looming, many nations will spend the coming weeks in high-stakes talks, racing to avoid steep U.S. tariffs and safeguard their economies. For those unable to secure a deal, the coming months could mean major adjustments to global trade, supply chains, and domestic policy.

The post Global Scramble as Trump’s Tariff Deadline Triggers Race for Trade Deals first appeared on Car Zura – Latest Automotive News.

A Modern Homage to Coachbuilding and Shooting Brakes

The Speedtop reimagines the classic shooting brake with modern proportions and luxury. Drawing inspiration from the earlier Skytop concept, also limited to 50 units the Speedtop shares its platform and 625-horsepower, twin-turbo 4.4-liter V8 engine with the BMW M8 Competition. The result: 750 Nm of torque, a striking roofline, and a design intended to turn heads while respecting BMW’s long-standing traditions of elegance and dynamism.

At 5,000 mm long and 2,000 mm wide, the Speedtop echoes the dimensions of BMW’s 5 Series, but sits a dramatic 150 mm lower at 1,360 mm. The elongated roof and signature rear tailgate reminiscent of BMW Touring wagons deliver unmistakable style, while the luggage compartment features a two-level design extending between the seats for optimal cargo flexibility.

Craftsmanship, Exclusivity, and Signature Details

Each Speedtop will be fitted with custom leather luggage, crafted by Italian luxury specialists Schedoni to fit perfectly into the car’s dedicated compartments. The interior features two-tone leather inspired by the production 8 Series, preserving luxury while accommodating unique Speedtop proportions.

Exterior highlights include BMW’s signature double kidney grille outlined in white LEDs, and a showstopping gradient roof paint finish that shifts color as light hits it. “A true BMW exudes dynamism and elegance even when it’s standing still,” said BMW Group design chief Adrian van Hooydonk, emphasizing the model’s “exotic, quite extreme” presence.

Production Challenges and Collectibility

Limiting production to 70 units allows BMW to offer an ultra-exclusive experience while keeping costs and complexity in check critical for a car with unique design elements and coachbuilt details. “If you change just the position of one of the car’s 12 airbags, this will create the need for significant re-engineering and the costs will grow substantially, something you cannot afford for a limited-production run,” van Hooydonk noted.

Following strong demand for the Skytop, BMW expanded the Speedtop’s run, making this car available for collectors and enthusiasts willing to move quickly. “We will make 70 units of this extraordinary vehicle, which is now available for order,” announced Bernd Körber, head of brand and product management at BMW.

With its blend of heritage, bespoke details, and supercar performance, the BMW Speedtop stands as a modern icon for collectors—combining rarity, craftsmanship, and a striking new silhouette in the world of high-end automotive design.

The post BMW Unveils €500,000 Speedtop: A 625-HP Shooting Brake for 70 Lucky Owners first appeared on Car Zura – Latest Automotive News.

“Despite our best efforts to secure our business and an extensive ongoing search for a suitable new technology partner, the current economic challenges and market conditions have made it impossible to maintain our operations at the current scale,” Novo Energy CEO Adrian Clarke said in a statement on May 5.

Novo Energy was established in 2021 with the goal of building a large-scale battery factory in Gothenburg, on Sweden’s west coast. Cost-cutting measures began in January, when the company dismissed 30 percent of its staff. The latest announcement includes an additional 150 jobs to be eliminated, cutting the workforce in half. A Novo spokesperson confirmed the details to Reuters.

Despite the setbacks, Novo Energy maintains that its main long-term objective remains to produce batteries with a new technology partner in the Gothenburg region. A spokesperson for Volvo Cars confirmed that the automaker shares this objective, but declined to provide more specifics about the company’s future plans.

The company said it will continue limited operations while it completes the first phase of factory construction. Novo will also continue to explore potential future scenarios that could allow it to resume full-scale operations.

Earlier this year, Volvo Cars agreed to buy Northvolt’s 50 percent stake in Novo for a nominal sum, a transaction still awaiting final approval. If completed, this would give Volvo full ownership of the battery company.

Northvolt, once hailed as Europe’s most promising battery manufacturer, filed for bankruptcy in March, adding further uncertainty to the sector.

Volvo Cars has also been facing financial headwinds. During the company’s recent quarterly earnings call, its CFO said that no major investments were expected in the near future. According to Volvo’s new CEO Hakan Samuelsson, while construction of the Gothenburg battery plant is nearly finished, no battery manufacturing equipment has been installed yet. Samuelsson also stressed the ongoing need for a technology partner, adding that it may be necessary to share the plant with other brands owned by Volvo’s parent company, Geely.

The post Novo Energy, Volvo’s Battery Venture, to Cut Half Its Workforce Amid Search for New Partner first appeared on Car Zura – Latest Automotive News.

UK finance minister Rachel Reeves emphasized the importance of the investment, stating, “We are going further and faster to boost our industries’ resilience and encourage their growth. This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs.”

Sunderland is already home to the UK’s largest car manufacturing facility, operated by Nissan. In 2023, Nissan announced a major commitment to producing electric versions of two of its models at the site, further solidifying the region’s role in the future of clean mobility.

To finance the new plant, the British government will offer guarantees via the National Wealth Fund and UK Export Finance, unlocking £680 million in financing from a consortium of major banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA. An additional £320 million has been secured from private investors and new equity from AESC, according to the government’s official statement.

AESC’s CEO Shoichi Matsumoto called the announcement a major milestone, saying, “This investment marks a key milestone in AESC’s ongoing efforts to support the UK’s path towards decarbonization and the expansion of its EV market.”

The funding will support both the construction and future operation of the new gigafactory, a project expected to play a critical role in driving the UK’s transition toward electric vehicles and greener transportation solutions.

The post UK Secures $1.3 Billion Deal for New AESC EV Battery Gigafactory in Sunderland first appeared on Car Zura – Latest Automotive News.

The staff of approximately 900 workers at the facility are set to attend a virtual meeting hosted by Chief Operating Officer Matthias Arleth on May 22. While details remain under wraps, the meeting is described as a regular update by company spokesperson Matti Kataja.

Northvolt’s rapid expansion and ambitious plans for new factories worldwide contributed to mounting costs and operational hurdles, especially at its flagship Swedish site. Once regarded as Europe’s great hope for a homegrown battery industry, the company accumulated around $10 billion in debt and equity since its inception in 2016, ultimately leading to its bankruptcy filing.

Scania, a major Northvolt supporter and one of its largest customers, previously relied on the company for batteries for electric trucks. In April, Scania agreed to purchase Northvolt’s heavy-industry battery unit, acquiring its production assets, R&D center, and a team of about 260 employees. However, Scania’s CEO Christian Levin recently stated that the company has no intention of acquiring the main Skelleftea plant.

Northvolt has reportedly been in talks with Asian competitors regarding potential partnerships. Despite speculation, no rescue deal has been secured, with China’s CATL and South Korean firms showing limited interest. CATL’s founder, Robin Zeng, noted ongoing discussions with creditors but emphasized there are no guarantees and that resources are limited.

The bankruptcy of Northvolt follows a pattern of setbacks for Europe’s battery ambitions. Britishvolt, another high-profile startup, collapsed last year before its planned gigafactory in Blyth could begin operations. Meanwhile, Asian battery giants continue to expand their presence in Europe.

Northvolt filed for Chapter 11 bankruptcy in the U.S. in November, citing $5.84 billion in debt. A temporary $245 million funding injection from Scania bought the company some time, but a long-term solution has remained elusive. Major shareholders such as Volkswagen Group, Goldman Sachs Asset Management, and Vargas Holding have already written down their investments in the troubled firm.

The potential closure of the Skelleftea factory threatens to leave lasting consequences for the local community, which has invested heavily in developing the site and its surrounding industrial ecosystem. City Director Kristina Sundin Jonsson warned that the loss of production would have a significant short-term impact on Skelleftea, which had become a magnet for new residents and related industries in recent years.

The post Northvolt Faces Shutdown of Swedish Factory Amid Bankruptcy and Lack of Buyers first appeared on Car Zura – Latest Automotive News.

From the start, Lucid positioned itself as a disruptor, promising a level of luxury and innovation designed to rival industry icons. When Lucid began rolling out pop-up showrooms in select markets, their focus was squarely on the direct model. Sleek stores, knowledgeable Gen Z staff, and a hands-on product experience all seemed in line with what the modern EV shopper might expect. Yet, beneath the surface, a different path beckoned one not taken by any other new electric automaker: embracing established luxury car dealers.

Dealerships in the U.S. are often misunderstood but are run by experienced entrepreneurs who have built their businesses on the challenges and intricacies of automotive retail. Despite the industry’s habit of seeing dealers as middlemen, the best of them bring an unmatched level of sales skill, local market knowledge, and customer care. The complexity of operating physical locations, training teams, and resolving issues can be formidable, but it’s exactly what keeps brands like Mercedes, Lexus, and BMW at the top of the luxury segment.

During a pivotal interview with Peter Rawlinson Lucid’s visionary founder and the engineer behind Tesla’s early triumphs the possibility of moving away from the direct-sales model was raised. The suggestion was clear: forget going direct and instead form exclusive partnerships with the nation’s top 25 luxury dealers. This, the argument went, would not only boost sales but also truly disrupt the now-conventional wisdom of how electric startups should operate.

The idea wasn’t warmly received. For Rawlinson, steeped in Silicon Valley’s culture of innovation and Tesla’s playbook, the direct model seemed sacred. But as time has shown, Lucid’s strong product alone hasn’t translated into market dominance. With its founder’s recent departure and sales that haven’t met early ambitions, it’s worth revisiting whether a network of professional dealers could have accelerated the brand’s rise and brought its luxury EVs to a broader audience.

History offers a compelling precedent. When Lexus entered the U.S. market in 1989, it didn’t try to go direct or reinvent the sales wheel. Instead, it handpicked top-tier luxury dealers, and in doing so, established itself as perhaps the most successful new automotive brand of the last three decades.

True disruption in the automotive space doesn’t always mean following the newest trend. For Lucid, the most radical move now could be the one thing every other startup has tried to avoid partnering with established dealerships. This shift would not only challenge convention but also might provide the crucial sales lift and customer trust that’s difficult to achieve through direct sales alone.

As the luxury EV market grows more crowded and competitive, Lucid’s willingness to break with the startup orthodoxy may determine whether it becomes a niche innovator or a genuine industry leader.

The post Could Embracing Dealerships Be Lucid’s Game-Changer in the Electric Luxury Market? first appeared on Car Zura – Latest Automotive News.