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VW has overtaken Tesla as Europe's top EV seller

By: Pete Syme
24 April 2025 at 05:32
Female employees check an ID.4 in the light tunnel at Volkswagen's plant in Zwickau.
The Volkswagen ID.4 still sits third behind the Model Y and Model 3 in European EV sales.

Jan Woitas/picture alliance via Getty Images

  • Volkswagen beat Tesla in European EV sales across the first three months of 2025, data shows.
  • Registrations for VW EVs are up more than 150%, while Tesla lost huge ground.
  • However, the Model Y and Model 3 remain Europe's top two most-registered EVs.

Tesla has lost its crown as the top EV seller in Europe.

Volkswagen's EVs outsold Elon Musk's car company across the first three months of the year, according to data from JATO Dynamics, an automotive analysis firm.

65,679 Volkswagen battery EVs were registered in the first quarter, compared to 53,237 Teslas.

The German carmaker saw its registrations more than double year-over-year, rising 157% since the first quarter of 2024.

Tesla registrations dropped 38% over the same period. According to JATO's data, this was the biggest decline among the top 30 most-registered brands.

It's a bad time for Tesla to be losing ground. JATO found that the year's first three months were the strongest quarter for battery EVs on record. Battery EVs accounted for 16.9% of all total car registrations in March β€” an increase of 2.7 percentage points year-over-year.

The UK was the main driver of growth, with volumes up by 13%.

Despite the company losing the top spot overall, Tesla's Model Y and Model 3 remain the top two most-registered battery EVs.

In March, registrations of the former dropped 43%, but the Model 3 increased 1%. The Volkswagen ID.4 ranked third but remained 2,000 units short of the Model 3 across the quarter.

image of Tesla model s sportscar in showroom
Volkswagen overtook Tesla in the first quarter of 2025 on EV sales in Europe.

Daniel Pier/NurPhoto via Getty Images

"As the brand continues to deal with a host of PR issues in addition to the changeover of the Model Y, Tesla is now relying on the Model 3 to offset its loses," said Felipe Munoz, a global analyst at JATO Dynamics.

"Despite the controversy surrounding the brand's CEO and the limited availability of the new Model Y, Tesla continues to perform well," he added.

Tesla reported first-quarter earnings on Tuesday, with revenue down 9% while net income plunged 64%, well below analyst expectations.

However, the stock still rose, as Musk said he would spend less time working with the government and focus more on his car company.

Read the original article on Business Insider

Uber, Volkswagen pair up to launch robotaxi service in US with self-driving, electric microbuses

24 April 2025 at 05:00
Volkswagen of America and Uber on Thursday unveiled an ambitious plan to launch a commercial robotaxi service β€” using autonomous electric VW ID. BUZZ vehicles β€” in multiple U.S. cities over the next decade. The companies expect to launch a commercial service in Los Angeles, the first city on the list, by late 2026. VW […]

VW will deploy β€˜thousands’ of robotaxis on Uber’s platform in the US

24 April 2025 at 05:00
photo of self-driving VW ID Buzz

Volkswagen isn’t typically mentioned in conversations about robotaxis, but the German auto giant has been quietly working on its own self-driving technology for over a decade. And now the company is ready to deploy its first autonomous vehicles on Uber’s ridehailing platform, starting with a commercial robotaxi service in Los Angeles in 2026.

The vehicles will be VW’s ID Buzz electric minivans equipped with self-driving sensors and software developed by subsidiary Moia. The long-wheel base version of the Buzz can seat at least seven passengers, so VW is clearly trying to maximize its ridehailing potential. The goal is to ultimately have β€œthousands” of vehicles operating in multiple US cities over the next decade, the automaker says.

VW will begin testing the service later this year, using vehicles with safety drivers behind the wheel. The company says it will only proceed with fully driverless operations after receiving the necessary permits and clearance from regulatory agencies.

VW will begin testing the service later this year, using vehicles with safety drivers behind the wheel

VW has been testing its self-driving technology in the US for a number of years. It deployed autonomous Buzz vehicles in Austin, Texas, in 2023, after a number of years testing them in Germany. The vehicles it tested in Austin use technology developed by Mobileye, the driver-assist sensor and software company owned by Intel, as well as sensors like cameras, radar, and lidar.Β 

VW has said that it will put the vans in service as a ridesharing fleet under itsΒ subsidiary Moia, which has been operating a fleet of electric vehicles as part of its β€œride-pooling” service in Hamburg since 2017. VW’s autonomous driving software is developed by another subsidiary, Cariad, which hasΒ gone through numerous leadership shake-upsΒ in the past year.

VW has dabbled in autonomous driving for years β€” but not without setbacks. VW has in the past partnered with self-driving startups like Aurora and Argo, the latter of which was forced to shut down after the automaker, along with Ford, pulled its funding.

β€œVolkswagen is not just a car manufacturerβ€”we are shaping the future of mobility, and our collaboration with Uber accelerates that vision,” said Christian Senger, CEO of Volkswagen Autonomous Mobility, in a statement. β€œWhat really sets us apart is our ability to combine the best of both worlds β€” high-volume manufacturing expertise with cutting-edge technology and a deep understanding of urban mobility needs.”

Meanwhile, Uber has been on a streak of striking deals with AV operators as it seeks to become a one-stop shop for robotaxis and autonomous delivery vehicles of all brands. In addition to VW, Uber has partnerships withΒ Waymo,Β Motional, Avride, andΒ WeRideΒ for self-driving cars, andΒ Serve,Β Cartken, andΒ NuroΒ for delivery robots.

Price hikes, idled factories, layoffs: how car companies are responding to Trump’s tariffs

4 April 2025 at 14:13
From Audi to Volvo

President Donald TrumpҀ™s 25 percent tariffs on all auto-related imports have been called Γ’Β€Βœa debacle of epic proportionsҀ and a sure-fire way to tank the auto market by crushing demand. Analysts have been predicting everything from $12,000 per vehicle price hikes to the possible Γ’Β€ΒœCubanizationҀ of the US car fleet.

Now that theyҀ™ve had a few days to process the news, the automakers are starting to get their ducks in a row and make some moves.

HereҀ™s how each company is responding:

Audi

Now that the tariffs are in effect, the German automaker is holding all vehicles assembled in Mexico and overseas at US ports until further notice, according to Automotive News. Audi currently has 37,000 units in dealer stock and at port Ҁ” which remain unaffected by the new import fees and are ready to sell.Β Audi reportedly said it would be marking unaffected units with a $0 Γ’Β€ΒœNo Added Import FeeҀ option code for easy tracking.

Γ’Β€ΒœWe are evaluating how to best proceed for our customers and our dealers,Ҁ Audi spokesperson Mark Dahncke said.

BMW

BMW hasnҀ™t announced any specific response yet, but the company said last month that it expected a ҂¬1 billion hit to its 2025 …

Read the full story at The Verge.

Meet the new VC firm secretly backed by Volkswagen

11 March 2025 at 07:15

A new venture firm called Leitmotif has been on a quiet blitz for the last 16 months, funding around 20 startups broadly focused on decarbonization. Its portfolio includes EV companies, space and battery plays, and four nuclear fusion startups. But the firm has only said its funding is from β€œEuropean industrial interests.” Now, Leitmotif has […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Volkswagen is bringing back physical buttons

7 March 2025 at 13:46
interior of VW ID. Every1
The interior of the recently revealed Volkswagen ID. EVERY1 seems spartan but still has buttons. | Image: VW

Volkswagen is planning a return to physical buttons in its future vehicles over haptic sliders and touchscreen toggles for vital functions such as climate controls. The automaker’s design head Andreas Mindt told Autocar that the company β€œwill never, ever make this mistake again” and promises to bring together physical controls for volume, heating controls, fan speed, and hazard light activation below the touchscreen for all cars starting with next year’s ID 2all.

Mindt also says the decision to bring back physical buttons was based on customer feedback. β€œHonestly, it’s a car. It’s not a phone: it’s a car,” said Mindt. β€œWe understood this.”

Volkswagen isn’t the only automaker to have a physical-over-digital epiphany as of late. Last year, Hyundai said focus groups were β€œstressed, annoyed, and steamed” when they couldn’t control something in a pinch. Hyundai and Kia took a touchscreen-heavy approach in their EVs, such as the Hyundai Ioniq 6 and Kia EV6. Meanwhile in China, Xiaomi has accessory options for customers to add their own physical controls.

The trend toward digital interfaces was kicked off more than a decade ago by the Tesla Model S with its impressively big central touchscreen. Slowly, the company removed other physical controls, including transmission and turn signal stalks. The latter was resurrected in the new Model Y and may return to the Model 3.

Volkswagen’s change comes at an interesting time as the EU’s New Car Assessment Program (NCAP) is set to introduce new rules next year that require cars to have certain physical controls to achieve a full five-star safety rating.Β 

And it conflicts with the sentiment of some auto executives, including Rivian software chief Wassy Bensaid, who called in-car buttons β€œan anomaly” and predicted that soon everything will be controlled digitally through voice.

Why VW and Rivian are teaming up to launch a $21,500 EV

6 March 2025 at 04:45
Volkswagen new EV
Volkswagen unveiled its ID.EVERY1 concept car on Wednesday.

Volkswagen

  • VW unveiled a $21,500 EV on Wednesday, but don't expect it to come to the US anytime soon.
  • The compact ID.EVERY1 will be the first car to incorporate software from EV startup Rivian.
  • The two companies struck a $5 billion partnership last year, and both face their own looming challenges.

Volkswagen and Rivian are teaming up on an ultra-cheap EV, and once again, Americans can only stare across the Atlantic in envy.

After several months of teasing, Volkswagen unveiled the ID.EVERY1 on Wednesday, with a version of the compact electric car set to go on sale for 20,000 euros ($21,500) in Europe by 2027.

The 13-foot long, four-seater EV packs a lot into a small package, including 155 miles of range and a customizable dashboard β€” but the most interesting thing about it is what's going on behind the scenes.

The production version of the ID.EVERY1 will be the first vehicle to include software developed with EV startup Rivian, a Volkswagen spokesperson confirmed to Business Insider.

The two companies announced a deal last year that would see the German car giant invest over $5 billion in Rivian and form a joint venture to develop next-generation software and EV technology.

Volkswagen new EV
The production version of the ID.EVERY1 will go on sale for 20,000 euros ($21,500) in Europe by 2027.

Volkswagen

That deal has quickly become a vital part of Volkswagen's strategy to turn its crisis-stricken car business around.

The nearly century-old automaker has seen sales collapse in Europe and China, its two most important markets, thanks to weaker-than-expected demand for EVs in the former and brutal competition from local rivals in the latter.

VW also weathered a bruising fight with worker's unions over restructuring plans last year and has vowed to cut 35,000 jobs by 2030.

The company now faces the prospect of its Chinese competitors selling their affordable EVs in its backyard, with the likes of BYD and Xpeng eyeing ambitious expansion plans in Europe.

Just as VW faces many of the same problems as other legacy automakers, Rivian's challenges have the same flavor as those of other fledgling EV firms.

The startup, known for its sporty electric trucks and SUVs, plans to release cheaper EVs in the coming years but is still losing nearly $40,000 on every vehicle it sells.

Rivian also faces the looming disruption of Trump ending federal support for EVs, and is battling a slowdown in electric vehicle sales growth which has seen several electric vehicle startups that went public around the same time file for bankruptcy in recent months.

The deal with VW gives Rivian a crucial financial lifeline as it scales up production.

Volkswagen EV
The EV will be the first VW vehicle to feature software developed with Rivian.

Volkswagen

For VW, it allows the German automaker to incorporate Rivian's electric vehicle and software know-how into its lineup of affordable EVs, starting with the ID.EVERY1, which will compete against the coming wave of affordable Chinese EVs packed with advanced technology in Europe.

Other European automakers such as Renault and Stellantis are also rolling out their own affordable electric vehicles β€” but there is no sign of the wave of cheap EVs reaching the US just yet.

While a production version of the ID.EVERY1 is set to launch in Europe in 2027, VW did not provide any details about a US launch.

That means the ID.EVERY1 is likely to join the growing number of affordable EVs that are available in Europe but not the US. With the prospect of tariffs on European cars and the end of government subsidies for EVs being floated by the Trump administration, that is unlikely to change anytime soon.

Read the original article on Business Insider

Volkswagen’s cheapest EV ever is the first to use Rivian software

Volkswagen’s ultra-cheap EV called the ID EVERY1 β€” a small four-door hatchback revealed Wednesday β€” will be the first to roll out with software and architecture from Rivian, according to a source familiar with the new model. The EV is expected to go into production in 2027 with a starting price of 20,000 euros ($21,500). […]

Β© 2024 TechCrunch. All rights reserved. For personal use only.

Volkswagen gets the message: Cheap, stylish EVs coming from 2026

A surprise find in my inbox this morning: news from Volkswagen about a pair of new electric vehicles it has in the works. Even better, they're both small and affordable, bucking the supersized, overpriced trend of the past few years. But before we get too excited, there's currently no guarantee either will go on sale in North America.

Next year sees the European debut of the ID. 2all, a small electric hatchback that VW wants to sell for less than 25,000 euros ($26,671). But the ID. 2all isn't really news: VW showed off the concept, as well as a GTI version, back in September 2023.

What is new is the ID. EVERY1, an all-electric entry-level car that, if the concept is anything to go by, is high on style and charm. It does not have a retro shape like a Mini or Fiat 500β€”VW could easily have succumbed to a retread of the Giugiaro-styled Golf from 1976 but opted for something new instead. The design language involves three pillars: stability, likability, and surprise elements, or "secret sauce," according to VW's description.

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The Volkswagen ID. EVERY1 is an affordable EV for the masses

5 March 2025 at 10:00
Photo of VW ID. EVERY1 show car
The affordable EV won’t go into production until 2027. | Image: VW

Volkswagen is bringing up the lights on the ID. EVERY1 show car that it says will become the promised €20,000 (about $20,800 USD) affordable EV that will hopefully turn around the automaker’s struggling business.Β 

As market leaders like Tesla continue to promise β€” but not deliver β€” the elusive entry-level EV, VW is hoping to shake things up with the unveiling of plans for a whole lineup of mass-market vehicles. The car will also be a crucial competitor as VW hopes to fend off a tidal wave of affordable Chinese EVs. But whether it makes it to North America, with all the uncertainty around EV policy right now, remains unknown.Β 

The car will be a crucial competitor as VW hopes to fend off a tidal wave of affordable Chinese EVs

The ID. EVERY1 will slot below the ID. 2all, which was first unveiled in 2023 with the promised price of €25,000. Both vehicles are only slated for Europe for now, with production expected to begin in 2026 for the ID. 2all and 2027 for the ID. EVERY1. (It seems likely those names could change, too, when we actually get closer to production.)

The ID. EVERY1 is a small hatchback with new software and some neat tricks like a modular center console β€” characteristics it will share with the ID. 2all. Both models are part of the new β€œElectric Urban Car Family” based on front-wheel drive versions of VW’s modular electric platform. These new EVs are being developed under the umbrella of the Core brand group within the Volkswagen Group, the company said. In total, the automaker expects to unveil nine new models by 2027.

The production versions of the ID. EVERY1 and ID. 2all will be built on the second-generation version of VW’s modular β€œMEB” platform. The current version of MEB powers the ID.4 crossover SUV, the ID Buzz minivan, and a dozen other vehicles from Audi, Skoda, and others.Β 

Of course, for that price, you can’t expect much in the realm of performance or range. VW says the concept ID. EVERY1 tops out at 81mph and is powered by a newly developed electric motor with 94 horsepower (70kW). VW didn’t disclose the battery size, but based on the estimated 155 miles (250km) of range, we can assume it’s somewhere around 35kWh.Β 

The ID. EVERY1 won’t take up much room, at 152.8 inches in length, or around 27 inches shorter than the VW ID.4. Still, the hatchback can fit up to four passengers, with 10.8 cubic feet of storage in the trunk.Β 

VW says the production version of the ID. EVERY1 will be the company’s first vehicle to feature a new β€œpowerful” software architecture that promises over-the-air updates. (Software has proven to be a bit of a pain for VW, with bugs and infrequent updates plaguing its ID family of vehicles for years.)Β 

Design-wise, the ID. EVERY1 looks chunky and fairly adorable, with cues from small SUVs as well as VW’s discontinued Up and Polo minicars, while also retaining stylings from the ID. Life concept from 2021. VW says the new design language that infuses the ID. EVERY1 and ID. 2all emphasizes minimalism, likability, and a β€œsecret sauce” like the β€œflying roof concept,” in which the roof surface is lower in the middle without restricting headroom on the inside.Β 

VW is also bringing some of the modular designs from the ID Buzz to the low-cost segment. The center console can be transferred to the rear of the vehicle, and the dash features a rail on which various accessories can be affixed, including a tablet, shelf, or table.Β There’s also a small illuminated and removable Bluetooth speaker between the driver and front passenger, reminiscent of Rivian’s R1 vehicles.

EV prices aren’t the only place Volkswagen is trying to cut costs. Following a labor strike in Germany, it reached a union deal that will mean 35,000 fewer workers and billions per year in cost cutting.

Other automakers are increasingly piling into the affordable EV space. As competition from China heats up, Hyundai and Kia are both promising more low-cost models. Tesla swears it will have a lower-priced EV to reveal sometime this year. And even Ford says it plans on releasing its own entry-level EVs β€” just as soon as it figures out how to make them profitable.

As a family of 5, I thought we needed a car with 3 rows. Test-driving the Volkswagen Atlas proved me wrong.

13 February 2025 at 13:29
Image of a blue VW and a gray Subaru
The author test-drove the Volkswagen Atlas Cross Sport and really liked it.

Courtesy of the author

  • We bought our Subaru Outback in 2018 after having our first child.
  • When I found out I was pregnant with twins, I panicked, thinking about needing a bigger car.
  • We made it work, but now that our kids are older, we are trying to figure out which car we need.

In 2019, while living in New York City, I found out I was pregnant with twins. My first concern was how much money we would need to spend on new things β€” including a bigger car.

We bought a used 2017 Subaru Outback for $27,000 when our first child was just months old. We figured that having a baby and two dogs required us to have a durable car but also not super fancy since there would be plenty of baby and dog accidents of all kinds in the future.

But now, staring at an ultrasound marked with Baby A and Baby B, I worried that our Outback could not handle three car seats in one row.

After testing a 2024 Volkswagen Atlas Cross Sport, I've realized the heralded third row may not be an absolute necessity for my family, and that it's possible to get more room than in our aging Outback for way less than the cost of a full-size SUV.

We made the Outback work for a few years

We decided to move to Maine, knowing that having three young kids in a tiny apartment in Brooklyn would be tough. With the cost of moving, we didn't have money to spend on a new car, so we invested in slim car seats instead.

The Subaru Outback was exactly what we needed for the first few years with three kids. The slim car seats fit in one row, and the trunk was perfect for a double stroller, beach bags, or even tiny skis.

It became "the family" car, where kids can eat snacks and make a mess of them. It's also the car we take when we go on road trips because it doesn't stand out and fits almost in any parking spot.

We want an upgrade to a bigger SUV

But now that the kids are almost 7, 5, and 5, we want an upgrade. This is mostly because sitting next to each other has triggered many fights between my kids. My husband is convinced a third row would solve this problem since our oldest could have the whole row for himself.

I worry that he'll complain about being far away from everyone and unable to reach snacks and toys. Also, when we've ridden in other three-row midsize SUVs, it was an absolute slog to get kids in and out of the far back, and the trunk space leaves a lot to desire.

VW Atlas Cross Sport 2024
The 2024 VW Atlas Cross Sport is slightly bigger than the author's 2017 Subaru Outback.

Courtesy of the author

In our process of deciding what car we need, we decided to try the 2024 Volkswagen Atlas Cross Sport. We have lots of friends who have the Atlas with three rows and they talk wonders about the car.

We decided to test the Cross Sport because, while it only has two rows, it's bigger than the Outback, which made me wonder if that would be enough for our kids.

I was very impressed at first with the two-row Atlas

Immediately after getting into the Volkswagen Atlas Cross Sport, I felt like I was in a luxury car compared to our Outback. Obviously, a 2024 car, compared to a 2017 one, is going to have more gadgets, but I was incredibly impressed at first.

Volkswagen Atlas front panel
The Volkswagen Atlas Cross Sport front panel is an upgrade for the author compared to her Subaru Outback.

Courtesy of the author

Small things like how easy it was to connect my phone to the console to have my maps or my music ready to go, having cameras both in the front and back of the car to guide you while parking, and the speedometer reflected on the windshield to keep me under the speed limit.

I also liked the automatic LED headlights, especially for driving at night on Maine's very dark and quiet winding roads. They automatically turned to high beams in low light and turned off when there was incoming traffic. I also liked how long and wide the sunroof was, a feature my kids also noticed immediately from the back seat.

I realized we don't really need a third row

Another thing I noticed when we took the Atlas Cross Sport for a long drive was how much more comfortable I was in the passenger seat compared to the Outback. My footwell is often packed with water bottles, snacks, tissues, and whatever else kids might need.

In the Atlas, despite having all that, I didn't feel overwhelmed by all the stuff the way I do in our Outback.

Kids in car
The authors' kids had plenty of space in the Atlas Cross Sport.

Courtesy of the author

Even more impressive was that our kids' car seats all fit in the second row as expected, but they also had more space to walk past each other when getting in and out of the car. This made for fewer fights and more pleasant driving for my husband and me.

So, while we started looking into new cars, thinking we needed a third row, the Volkswagen Atlas Cross Sport proved that we didn't necessarily need that, but rather a slightly bigger car.

We also wanted a car that was not incredibly expensive. The starting selling price for a 2025 Volkswagen Atlas Cross Sport is $37,190, which sounds much better than the parent-popular choices like a Suburban, starting at $63,495, a Ford Expedition, starting at $61,700, or a Chevrolet Tahoe, which starts at $60,495 and can go up to $80,195.

Read the original article on Business Insider

Volkswagen claims it’s actually making that $20,000 EV and will show it next month

By: Wes Davis
5 February 2025 at 17:16
Volkswagen teased this concept image of its forthcoming entry-level EV.

Volkswagen has announced that next month, it will show off a new low-cost, entry-level EV that could cost just €20,000 (about $20,800 USD), the price it suggested it would hit back when it announced the ID. Life concept in 2021. That’s a steal compared to current low-end US EVs like the over-$28,000 Nissan Leaf. Meanwhile, Volkswagen’s most affordable American-sold electric car is the roughly $40,000 ID.4, despite having promised a more affordable car for so long.

The company didn’t say what the cheaper follow-up model will be called, but adjusting the concept image VW included with its announcement exposes the name β€œID.One,” as one Bluesky user found. That tracks: Volkswagen previously namedropped an β€œID.1” that would be based on the ID. Life concept. In 2022, VW shared a sketch of that car and pegged it for a 2027 release. This new car will hit in 2027, says VW, so they’re likely one and the same.

β€œLow-cost entry-level mobility in the electric era will be one of the cornerstones of the brand’s future plan,” Volkswagen writes, adding that it’s not planning to just produce one low-cost car β€” it reiterated today that it will ship another cheap EV called the ID. 2all that it announced almost two years ago. That car is expected to go for €25,000 (or about $26,000 USD). Both it and the ID.1 (or ID.One, if you like) will use a new version of its modular battery platform that the ID.4 and ID Buzz are based on.

EV prices aren’t the only place Volkswagen is trying to cut costs. Following a labor strike in Germany, it reached a union deal that will mean 35,000 fewer workers and billions per year in cost-cutting, The Wall Street Journal notes.

VW and Audi dealers are suing Scout over its no-dealers plan

5 February 2025 at 09:17

A coterie of Florida car dealers filed a lawsuit this week against Scout Motors over its direct-to-consumer sales model. The complaint alleges that Scout, which operates under the Volkswagen Group, is in violation of Florida law which blocks automakers from trying to bypass dealers by selling directly to consumers.

The suit, which was filed by nearly two dozen Audi and VW dealers, asserts that Scout’s plan to sell its vehicles in Florida is β€œunlawful” since it has yet to secure a license from the state’s Department of Highway Safety and Motor Vehicles. The dealers are seeking a court injunction blocking Scout from selling directly to Florida residents.

Scout hasn’t sold a single vehicle yet β€” its first vehicles, an electric truck and SUV, were revealed last October and won’t go into production until 2027 β€”Β but the dealers claim the company is violating the law by accepting $100 deposits from interested customers.

Dealers claim Scout is violating the law by accepting $100 deposits

β€œFlorida has a clear definition of the word β€˜sell’ and Scout Motors is actively selling in violation of state law,” said John Forehand, an attorney representing the dealers, in an email. β€œIf you take a buyer deposit in Florida, it’s the same as making a sale, and that’s simply not allowed.”

Almost as soon as Scout’s EVs were announced, dealers were grumbling about the possible illegalities of its sales model. Dealers have an iron grip on car sales in most states, having lobbied over the decades to enshrine their business model in law. Some companies like Tesla, Rivian, and Polestar have found workarounds. But dealers have sought to snuff out most direct-to-consumer attempts, filing lawsuits and lobbying heavily through their trade group, the National Automobile Dealers Association.

But Scout wasn’t shy about bucking the norms. And the fact that it was doing so under the umbrella of the Volkswagen Group made it all the more ripe for conflict. Tellingly, the Florida dealers who filed the complaint all sell VW and Audi (another VW Group company) vehicles.

A spokesperson for Scout declined to comment on the lawsuit, instead pointing to comments made by Cody Thacker, VP for Growth, last October: β€œJust as utilizing franchised dealers may be appropriate for some brands and their customers, utilizing a direct sales model best supports our customers and our strategic customer-first vision as we launch a new vehicle platform, a new production center, and a new retail network to bring the Scout Traveler SUV and Terra truck to market.”

All the news about Scout Motors, a classic SUV brand gone electric

5 February 2025 at 09:17

Scout Motors, the classic off-road brand from the sixties, has been reborn as an electric vehicle company and is building a new SUV and pickup truck. The pioneering Jeep rival was brought back to life by Volkswagen in 2022 after the German automaker acquired Scout in 2020 (when it merged its commercial trucking company Traton with Navistar). VW made former Volkswagen Group America CEO Scott Keogh head of the new Scout, and said it would pump $1 billion into the company.

Two years later, Volkswagen’s new Scout has revealed two vehicles: the Traveler SUV and Terra pickup truck, which are advertised as affordable electric off-road vehicles built in the USA. One of the big selling points: more chunky mechanical buttons and fewer software controls. Oh, and an expected starting price under $60,000 before incentives.

Scout says it will start building the Traveler and Terra in late 2026, with a full production ramp in 2027. Can Scout pull off the modernized resurrection of a classic SUV and deliver it at a competitive price point compared to other electric off-roaders like Rivian’s R1S and the upcoming $45,000 R2? Does it help Scout that VW is now a significant investor in Rivian? Follow along below to find out where Scout is heading.

A rising EV startup star snags $100M and Tesla’s win-lose federal funding moment

16 January 2025 at 10:05

Welcome back to TechCrunch Mobility β€” your central hub for news and insights on the future of transportation. Sign up here for free β€” just click TechCrunch Mobility! Before we move into the news of this week, we have one more roundup of transportation tech at CES 2025. As I noted last week, autonomous vehicle […]

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BMW and Porsche have a China problem. They're not the only ones.

13 January 2025 at 04:27
Porsche Taycan
Porsche on Monday said its deliveries in China fell by 28% in 2024.

John Keeble/Getty Images

  • Porsche and BMW are the latest automakers to report sliding sales in China.
  • The rapid rise of domestic EV makers such as BYD has put the squeeze on foreign competitors.
  • Volkswagen, Toyota, and Honda have suffered, and GM took a $5 billion hit on its Chinese business.

Porsche and BMW have become the latest European carmakers to report sliding sales in China.

The two German automakers on Monday said their respective sales in the world's largest auto market fell by 28% and 13.4% in 2024 compared with the previous year, with Porsche blaming a "continuing challenging economic situation" in China for the slump.

The hit in China was so large that it caused Porsche's global deliveries to fall by 3% despite growth in every other market.

Porsche and BMW aren't the only automakers that have witnessed alarming plunges in their Chinese sales in recent months.

Volkswagen, Porsche's parent company, posted an 8.3% decline in sales in China, its largest market, in 2024. Mercedes reported a 7% annual decline, while their Japanese rivals Toyota and Honda also suffered sizable declines in deliveries.

Once dominant in China, foreign automakers are being increasingly squeezed by local competitors, with the likes of BYD and Xiaomi offering high-tech electric options at low prices.

Known for affordable EVs such as the $10,000 BYD Seagull and the $30,000 Xiaomi SU7, many of these companies are now expanding into the luxury market, putting them in direct competition with European manufacturers such as Porsche and BMW.

BYD has released several luxury models under its Yangwang line, including the pothole-hopping U9 sports car and the drone-carrying U8 SUV, while Xiaomi launched a $114,000 luxury version of its best-selling SU7 sedan in October.

BYD Yangwang U8
The BYD U8 SUV in display in China.

John Keeble/Getty Images

That has put foreign manufacturers like Porsche and BMW, each of which counted China as its second-largest market in 2023, in a bind. Many are now rolling back their investments in the country and tearing up their strategies as a result.

General Motors said in December it would take a hit of more than $5 billion on its business in China, with the Detroit automaker closing factories and cutting costs at its joint venture with China's SAIC Motor after it lost $347 million in the first nine months of 2024.

Other brands have fostered closer ties with Chinese companies. Volkswagen announced last week it would partner with the electric-vehicle maker Xpeng to build a network of superfast charging stations in China.

Porsche and BMW did not immediately respond to requests for comment.

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