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European automakers are reducing prices on EVs while raising prices on their ICE models, all in hopes of avoiding hefty fines as the European Union’s new emissions rules tighten at the beginning of 2025.

On January 1, the EU will drastically lower its cap on automotive CO2 emissions, meaning at least 20% of all sales from most car companies must be electric models to avoid heavy fines, Reuters reports. This year, 13% of all new cars sold in the region have been electric, according to the ACEA.

“The gap is really big,” Marc Mortureux, the director of French car lobby PFA, told Reuters. He added that companies are now tasked with selling more EVs “at a time when political and economic uncertainties and declining EV subsidies are deterring sales.”  

The fact of the matter is that automakers could be potentially forced to pay billions in fines – as much as $16.4 billion – if emission limits aren’t reached. BMW and Mercedes are on track to meet those targets this year, but Volkswagen, Stellantis, and Renault are at risk of coming up short, according to Bloomberg analysis. Of course, Tesla has its emissions credits up for grabs to help work around those fines.

In 2023, EU countries approved a landmark law that requires all new cars to have zero CO2 emissions from 2035. As of April 2023, new car fleets sold in the EU have a CO2 emission limit of 95 grams, while vans must not exceed 147 grams CO2/km. Rules will tighten again in 2025, as new cars are limited to 93.5 g CO2/km and vans at 153.9 g CO2/km. In 2030, limits will get stricter, leading to a ban on CO2 emissions on new cars and vans sold in the EU from 2035. Hence, as we get closer to that date, panic among legacy automakers is setting in.

Meanwhile, VW, Stellantis, and Renault Group have bumped prices of ICE models by a few hundred euros in the last two months, according to Reuters, in an effort to make the pricier EV models that much more appealing.

Last month, Stellantis’s Peugeot brand also increased prices of its ICE model by as much as €500, and Renault is tacking on €300 to the gas-powered Clio SCE 65, but kept prices of hybrid versions unchanged. VW slashed the price of its ID3 in several markets, dropping the price to below €30,000 in Germany.

Still, a source told Reuters that this approach could backfire. Increasing ICE prices could close the gap with pricier EVs, but may not generate enough EV sales overall. “In reality, increasing the price of thermal engine cars means cutting production,” the source said, “and all the value chain and suppliers will suffer from this.”

European automakers are also dealing with excess capacity due to slower sales and pressure from Chinese automakers launching low-priced models in the region. In a sign of just how bad things are, Stellantis’s CEO Carlos Tavares abruptly stepped down this month, and Volkswagen is plowing ahead with budget cuts as it faces worker strikes in Germany. Still, it’s estimated that VW will have to pay the biggest fines, but advocacy group Transport & Environment has stated that overall the fines are likely to be much lower than the feared €15-plus billion and closer to €1 billion.

Photo credit: Volkswagen Group


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Tesla Shanghai starts mass production of Model Y refresh in Jan, says local media

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Tesla Shanghai starts mass production of Model Y refresh in Jan, says local media

The refreshed Model Y, codenamed Juniper, expected to have similar features as the refreshed “Highland” Model 3, is will start mass production in China next month, according to local media.

The news was reported by local news site LatePost, and brought to the English world by CnEVPost.

The original report mostly discussed the departure of Song Gang, the former director of Tesla’s Shanghai factory, which we reported on earlier today.

But in addition to that, it said that mass production will begin on the new Model Y in January.

The refreshed Model Y has been expected for some time, and is expected to include many of the improvements of the 2023 Model 3 refresh. The headline features of that vehicle are a new front-end, more efficiency, and a quieter cabin. But there were a lot of other interior improvements as well (and one big de-provement, the deletion of steering column stalks).

And we know that it’s coming soon, because there have been plenty of sightings and leaks lately (including a 2-second video taken last week in San Jose). In October, Chinese social media said the refresh was about to enter trial production, and just days later we saw a photo of the refreshed Model Y outside the Shanghai factory.

Tesla Model Y refresh china

So it’s not surprising that more information would leak about upcoming production again.

The report also suggests that the rumored 6-seat Model Y will start production in Shanghai in the fourth quarter of 2025 – so it’s still quite a ways out.

As for delivery times, the report doesn’t specify when that might happen. But there may be some time to wait, especially here in the US.

When the Model 3 refresh first came out, it started deliveries overseas and then took about 5 months for deliveries to start in the US. If the Model Y is on the same schedule, it might not be seen in the US until halfway through the year.

In terms of official comment from Tesla, all we’ve heard is that there will be no Model Y refresh “this year” – but that’s over in two weeks, so the doors are wide open for the Model Y to enter the market any time now.

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Honda teases two 0 Series EV prototypes to be unveiled at CES and hit the global market in 2026

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Honda teases two 0 Series EV prototypes to be unveiled at CES and hit the global market in 2026

Honda announced it will be back at CES this year, unveiling the next phase of its new 0 Series line of EVs. At this year’s event in Las Vegas, Honda intends to unveil two prototype EVs based on the concepts that debuted a year prior. This will be our next look at Honda’s 0 Series progress as it looks to bring these two initial models to market in 2026.

While Honda is a household name in automotive and other motor-powered vehicles, its presence in the EV space has been limited but growing. The company currently sells the Prologue EV, built atop GM’s Ultium Platform, but it has yet to deliver US consumers an entirely bespoke model.

That era will begin with Honda’s upcoming 0 Series line of all-electric vehicles. We got our first public view of Honda’s new 0 Series design language during CES 2024 this past January when the Japanese automaker unveiled two EV concepts called “Saloon” and “Space-Hub.”

At the time, Honda said the two concepts represented a design precursor to Honda’s next-generation EVs. This past October, I visited Honda’s design center in Japan, where I saw the Saloon concept inside and out. I even got to test drive the automaker’s new 0 Series EV platform. However, it was implemented on an Accord body, so it was difficult to get a feel for how its upcoming bespoke models, like the Saloon, will drive.

Honda has previously stated that the Saloon will be one of two passenger EVs to hit the market in the 0 Series, and the automaker has taken the next step in that process, moving from concepts to prototypes, which it is now teasing ahead of their reveal at CES 2025.

  • Honda 0 Series

Honda to unveil two 0 Series prototypes, new tech at CES

Honda posted the two teaser images above today, along with the date and location of their official reveal at CES at the Las Vegas Convention Center on January 7. According to Honda, these prototypes represent the next models in the Honda 0 Series, which are slotted to hit global market in 2026.

Honda has yet to share many more details about the EV prototypes, but they are clearly evolutions of the Saloon and Space-Hub concepts that debuted at least one year ago. It seems these two bespoke BEVs will be the first in Honda’s 0 Series lineup to hit the market and offer very different designs for consumers. Per the release:

In January at CES 2024, Honda premiered the Honda 0 Series and its ‘Thin, Light and Wise’ development approach. At CES 2025, Honda will provide further details on this approach with a focus on the ‘Wise’ value.

The “Thin, Light, and Wise” approach was at the core of all of Honda’s presentations and demonstrations during my five days in Japan earlier this year, and I learned a lot about the company’s goals and philosophy as it looks to catch up in a an exciting and ever-evolving global EV market.

That being said, the Honda team kept most of its cards to its chest and was extremely vague about what technologies that we were shown would actually make their way into bonafide production EVs. I found Honda’s unique production and assembly techniques most fascinating, especially since it was some of the only concrete tactics we could confirm.

Equipment like 6,000-ton megacasting machines—six of which will go into operation at Honda’s US production facility in Ohio—and Honda’s proprietary Constant DC Chopping (CDC) welding technology will help the automaker reduce the number of individual parts and overall vehicle weight while increasing passive safety performance.

In terms of the specs of Honda’s 0 Series EVs, however, we are still very much in the dark. In addition to unveiling its two EV prototypes, Honda said it would introduce a new vehicle OS and automated driving technologies that will be implemented in the 0 Series models. So, we will get more insight into what these future BEVs can do (finally).

At CES 2025, Honda will also provide an overview of the System on Chip (SoC) that will support the Honda 0 Series models and the Software-Defined Vehicles (SDV), which is “at the core of the ‘Wise’ value.” All eyes will be on the Honda booth on January 7, 2025, when we will follow up with a full recap.

Honda CES 2025 press conference details:
Date/Time: 
Tuesday, January 7, 2025, 10:30 – 11:00 AM (local time)
Venue: Honda booth (West Hall, booth #4640) at Las Vegas Convention Center
Livestreaming URL:
 https://youtube.com/live/3M87dqNbY3U                   

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Jaguar’s controversial $200,000 ultra-luxury EV spotted out in public [Video]

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Jaguar's controversial $200,000 ultra-luxury EV spotted out in public [Video]

Jaguar’s radical new EV has been the center of attention over the past few weeks. For better or worse, the British automaker is plowing ahead with plans to turn sales around with a new lineup of ultra-luxury electric models. As it prepares for a new era, Jaguar’s first EV, an electric 4-door GT, was just spotted in public. Check out the video of the controversial model below.

After unveiling its new Type 00 EV concept, Jaguar has seen more attention over the past month than it has in the past 20 years.

The company claimed the concept was “Jaguar at its best,” showing “an unmistakable, unexpected and dramatic physical manifestation” of the brand. It was unmistakable and unexpected to see the least.

Some loved Jaguar’s bold new design, while many teased the company. Even Tesla’s CEO Elon Musk and Lucid Motors had something to say. Musk wrote on X, “Do you sell cars?” while Lucid responded with a photo of its souped-up Air Sapphire luxury sedan.

Jaguar will stop building most models by the end of the year as it preps for a new all-electric luxury lineup. Although Jaguar Land Rover said the new EVs would cost over £100,000 ($130,000), prices will be even higher.

In an interview with The Sunday Times (Via EuroNews) earlier this month, CEO Adrian Mardell said that the new lineup will likely be priced around £150,000, or nearly $200,000.

With its official debut coming up, Jaguar’s first EV from the new lineup was spotted testing in public. The new video from KindelAuto reveals the 4-door test vehicle near JLR’s engineering center.

Jaguar’s new luxury EV spotted testing (Source: KindelAuto)

Despite the camouflage, you can see the prototype stays close to the Type 00 concept design with a fastback profile and “exuberant proportions.”

Jaguar will reveal its new 4-door EV GT in late 2025, with sales expected to follow in mid-2026. Based on its new JEA (Jaguar Electric Architecture), the company expects an EPA driving range of 430 miles (692 km) and up to 478 miles (770 km) on the WLTP cycle.

What do you think of Jaguar’s controversial new luxury EV? Can it survive the transition? Let us know your thoughts in the comments below.

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