AD #4202 - Tariffs Take Bite Out of Car Sales; China Setting Standards for By-Wire Tech; Honda Still Fighting Chip Shortage
Autoline Daily
AD #4202 - Tariffs Take Bite Out of Car Sales; China Setting Standards for By-Wire Tech; Honda Still Fighting Chip ShortageAutoline Daily · Dec 18, 2025
Speaker 1: This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry. When President Trump announced a wave
of tariffs on imported cars components, steel, and aluminum, we were sure that automakers would have to raise prices, which would trigger a downturn in sales.
Speaker 2: For the first three quarters of this year, that.
Speaker 1: Didn't happen, but Cox Automotive reports that in the fourth quarter things really started to slow down. Last December, the
Star was running at sixteen point eight million units. This December,
it's running at fifteen point nine million, a drop of almost a million cars and trucks. Next year, Cock's forecast
that sales will drop another four hundred thousand units to fifteen point eight million vehicles. It's also predicting almost a
one percent drop and use cars and trucks as tight inventory pushes those prices even higher.
Speaker 2: Apparently, the chip shore isn't over yet.
Speaker 1: Honda announced its idling production at plants in Japan and China in the coming weeks because of a lack of chips.
It will halt production at three of its joint venture plants in China from December twenty ninth to January second, and it will suspend production in Japan on January fifth and sixth. Honda is still dealing with the chip shortage
from a few months back when China block chip maker next Peria from exporting chips out of the country. At
the time, Honda halted production at some plants in North America and it lowered its production forecast for the year by three hundred thousand units. The company expected to be
back to normal at the end of November, but obviously it's still having issues getting supplies. Tesla has some of
the most connected vehicles in the market, but it wants to make sure its cars are always online. The ev
maker has filed a patent to integrate satellite receivers into its vehicles, which could come from Starlink space Ax's satellite network, which is owned by Elon Musk. Since automotive glass and
metal roofs can block satellite signals, Tesla has come up with a solution to use specific polymers that are radio frequency transparent and the receivers would be installed directly into the roof structure.
Speaker 2: Who knows if this will actually make.
Speaker 1: It into production vehicles, but it would allow Tesla cars to switch between five G networks and the satellite.
Speaker 3: At CSP, we work with OEM engineers across the country on their journeys to lighter, safer, and more eco friendly vehicles.
Learn more at VCSP dot com.
Speaker 1: Just when the EU is backing off its twenty thirty five ICE band, Toyota is hitting the market with its latest EV. We reported on the Urban Cruiser EVA exactly
a year ago, but now it's finally going into show rooms.
One of the most interesting points to us is that Toyota co developed this compact CUV with Suzuki, which is a master of making small cars. There are essentially two
versions of the Urban Cruiser. One is a front drive
model with a forty nine kilowad hour battery pack with a WLTP range of three hundred and forty kilometers, and the other is an all wheel drive version with the sixty one kilowat hour battery and four hundred and twenty six kilometers of range that would be about two hundred and ninety and three hundred and sixty five miles respectively.
On the EPA test cycle, the front drive version starts at about thirty two thousand euros, while the all wheel drive version starts around thirty seven thousand, it will be interesting to see.
Speaker 2: How well it does.
Speaker 1: Electric reports that the European B segment for EVS is already getting crowded with the Kia EV three Jeep Avenger Pujo E two thousand and eight and soon the Ford Puma and Volkswagen ID Polo. China is taking a big
regulatory step that could reshape the future of vehicle chassis systems.
The government released a new national standard that eliminates the requirement for a mechanical link between the steering wheel and the road wheels. So now automakers are allowed to fully
decouple the steering as long as they meet strict requirements for safety.
Speaker 2: Just as important as who helped.
Speaker 1: Write the standard Neo Liatto, Chipong BYD and gly but so did Toyota and Mercedes Benz, so it wasn't just Chinese input. The next step in chassis control is with
software to find vehicles that integrate steering, braking, and active suspension control using by wire technology, and China is positioning itself to set the global standards on how this will be done. Ford has really ramped up its racing efforts
under CEO Jim Farley, including the development of a Mustang GT three that certified for sportscar competitions around the world.
The first version entered race events in twenty twenty four, so now Ford is taking what it's learned in the last two years to make improvements for the twenty twenty six car. One thing it's doing is making aerodynamic changes
so that the car is less sensitive to adjustments in the ride height. That includes adding dive planes as well
as tweaks to the splitter in rear diffuser. Ford also
tried to address vehicle dynamics like controlling dive underbreaking, which along with the arrow changes, will make the overall package more stable. Lastly, it attacked the brakes with the help
of Brembo. Ford says it's been able to make gains
in breaking efficiency and peak deceleration. In May, Dodge announced
that the HEMIV eight was making a comeback to the Durango. However,
the foremance versions weren't compliant in several states, including California, Massachusetts, New York, Oregon, Pennsylvania, Vermont, and Washington. But Dodge just
announced that all Durango models, even the SRT Hellcat, are now available across.
Speaker 2: All fifty states.
Speaker 1: It didn't provide any details on how it was able to do that, so it's unclear if it was good old fashioned engineering or if Dodge is just taking advantage of the fact that it won't face emission fines for now.
Detroit automakers used to dominate the global auto industry.
Speaker 2: Not anymore.
Speaker 1: Slowly but surely. They've pulled out of markets around the world.
They've largely abandoned the passenger car market, and most of their cars and trucks are priced beyond the reach of the average household. We say it's time to stop retreating.
Now's the time to go on the offense, and that's going to be the main topic on today's Auto Line after hours. It's time to start formulating a plan of
how to go on the offense. So we've got Glenn
Stevens from Mishato and two Lee from Sino Auto Insights coming on the show, joined John and Gary when the action gets going at three pm Eastern Time today on the Autoline website or our YouTube channel.
Speaker 2: That's a rap for this show. Thanks for tuning in.
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About this episode
Automotive sales are slowing down due to tariffs and chip shortages, with Honda halting production in Japan and China. Tesla is exploring satellite connectivity for its vehicles via Starlink. Toyota launches the Urban Cruiser EV, co-developed with Suzuki, entering a crowded European EV market. China sets new standards for by-wire steering technology, involving global automakers. Ford enhances its Mustang GT3 race car for 2026 with aerodynamic and brake improvements. Dodge expands Durango availability nationwide despite previous emissions issues. The episode also previews a discussion on Detroit automakers' global retreat and strategies to regain market presence.
- Tariffs Take Bite Out of Car Sales - Honda Still Fighting Chip Shortage - Tesla Wants Satellite Receiver in Cars - Toyota Compact EV Hits EU Showrooms - China Setting Standards for By-Wire Tech - Ford Improves Mustang GT3 - V8 Durango Now Available in All States
