Autoline Daily Feb 12, 2026

AD #4232 - Model Y Sales Crash in China While ICE VWs Do Well; Mercedes in Dangerous Downward Slide; Nissan Braces for $4 Billion Loss

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Brand

Nissan

Nissan is a car company from Japan that makes many types of vehicles, including electric ones.

Car

The Mercedes-Benz A-Class is a small luxury car that looks and feels very upscale. It's designed to be stylish and packed with cool technology, making it a great option for those who want a nice car without needing a lot of space.

Car

Mercedes-Benz GLB

The Mercedes-Benz GLB is a small SUV that has a lot of room inside, making it great for families or anyone who needs extra space. It offers a comfortable ride and many high-end features, so it's a good choice if you want a nice car that can carry more people or stuff.

Car

Infiniti QX55

The Infiniti QX55 is a stylish small SUV that has a sporty look and is designed to be fun to drive. It comes with a lot of modern features and is a good choice for people who want a nice car that stands out.

Car

Infiniti QX50

The Infiniti QX50 is a fancy small SUV that offers a smooth ride and lots of high-tech features. It's designed to be comfortable and stylish, making it a popular choice for people who want a nice vehicle without going too big.

Company

VinFast

VinFast is a car company from Vietnam that makes electric vehicles. They are trying to grow their business in North America and have some interesting car designs.

Company

Geely

Geely is a car company from China that makes different types of vehicles, including electric cars. They have been growing by buying other car companies and working with them.

Company

BYD

BYD is another Chinese car company that focuses on making electric vehicles and batteries. They are one of the biggest companies in the electric car market.

Term

EV battery makers

EV battery makers are companies that create batteries for electric cars. These batteries help the cars run and determine how far they can go on a single charge.

Company

BorgWarner

BorgWarner is a company that makes parts for cars, especially those that help engines run better. They are involved in both traditional and electric vehicles.

Company

TurboCell

TurboCell is a company that works on energy solutions, like generators that help store and manage energy. They are involved in making technology for power systems.

Term

new energy vehicle (NEV)

NEVs are cars that use different types of energy instead of just gas. This includes electric cars and hybrids that help reduce pollution.

Term

PHEV

A PHEV is a car that can use both electricity and gas. You can charge it like an electric car, but it also has a regular engine to help it go further if needed.

Term

EREV

An EREV is a type of electric car that can go a long distance on electricity, but it also has a small gas engine to help it keep going when the battery runs out.

Term

BEV

A BEV is a car that runs only on electricity and doesn't use gas at all. It has batteries instead of a regular engine, making it better for the environment.

Brand

Volkswagen

Volkswagen is a well-known car brand from Germany that makes many types of vehicles, including cars and SUVs.

Term

ICE-based vehicles

ICE-based vehicles are cars that use traditional engines that run on gasoline or diesel fuel, unlike electric cars that use batteries.

Term

EV sales subsidies

EV sales subsidies are discounts or financial help from the government to make electric cars cheaper for people to buy.

Car

Tesla Model Y

The Tesla Model Y is an electric SUV that is popular for being eco-friendly and having high-tech features. It's made by Tesla, a company known for its electric cars.

Brand

BMW

BMW is a car company from Germany that makes fancy and fast cars. They also support sports teams and events.

Brand

Honda

Honda is a car company from Japan that makes reliable vehicles. They also work with sports teams to help them perform better.

Concept

wind tunnel testing

Wind tunnel testing is when things like cars or sports gear are tested in a big room where air blows on them. This helps make them faster and better.

LIVE

This is AutoLine Daily, the show dedicated to enthusiasts of the global automotive industry.

Well more bad news on the earnings front.

Both Mercedes and Nissan posted their latest financial numbers and they don't look good.

Let's start with Mercedes.

It sold 1.8 million cars and vans last year, down 9%.

Revenue also dropped 9%.

Worse, its EBIT earnings and net profit fell off a cliff.

EBIT was down 57% and net profits dropped almost 49%.

Mercedes is in a dangerous downward slide.

Reuters reports that the profit margin for its automotive group has fallen from 13% in 2021 to 5% last year

and it could drop to only 3% this year.

Now let's move over to Nissan.

It posted extremely weak numbers for the last three quarters, including a loss of $1.6 billion.

And the current quarter is going to be a bloodbath.

Nissan is projecting full year losses of over $4 billion,

which means it's getting ready to announce billions in write-offs when its fiscal year ends on March 31st.

And here's where the Nissan and Mercedes stories blend together.

Seven years ago, they formed a joint venture to make cars in Mexico.

They shared a plant that made the Mercedes A-Class and GLB and the Infiniti QX-50 and QX-55.

But with both companies struggling, they shut down their joint venture

and started looking for someone to buy the plant in Aguas Calientes.

Reuters reports that Chinese automakers Geely and BYD are two of the finalists while Vinfast is the third.

And that plant is huge.

It has over 2 million square feet and is capable of making 230,000 cars a year.

That could give a Chinese automaker a major foothold in the North American market.

We've seen several EV battery makers pivot to making energy storage systems,

a lot of which are going to data centers.

But the supplier Borg Warner just landed a contract to supply TurboCell

with a turbine generator to powered status centers.

Borg has worked with TurboCell for the past three years to bring the generator to market.

It's expected to meet future carb emission standards and allow for multiple fuel types,

including natural gas, propane, diesel and hydrogen.

Production of the generator is expected to kick off next year.

At CSP, we work with OEM engineers across the country on their journeys to lighter,

safer and more eco-friendly vehicles.

Learn more at thecsp.com.

Car sales took a big tumble in China last month.

According to the China Passenger Car Association,

retail sales of China-made vehicles hit 1.54 million units in January,

down 14% from a year ago.

Local brands contributed to that loss with sales slipping 18%,

which led to a 3.5% decline in market share.

Geely was number one in sales in January, despite a 12% drop.

It was followed by FAWVW and BYD tumbled to third thanks to a 53% plunge in sales.

New energy vehicle sales also played a part in that drop.

Sales of BEVs, Phevs and EREVs fell 20% to 596,000 units,

while gas-powered cars were down 10% to 948,000 vehicles.

NEVs likely slipped because sales subsidies were reduced at the beginning of the year,

and automakers aren't expected to get any relief this month either.

Due to the Chinese New Year holiday, analysts expect February to have the lowest sales volumes of the year.

And there's some interesting results when we look at the top models in China.

The Xiaomi U7 was number one in January,

selling nearly 38,000 units followed by a couple of Geely vehicles.

But our first surprise is Volkswagen, which has five models in the top 12.

And what's more, all of those are ICE-based vehicles.

With those EV sales subsidies getting reduced,

it will be interesting to watch the sales battle between ICE and electric in China this year.

Tesla likely benefited from an EV pull ahead at the end of last year,

and delivered nearly 66,000 Model Ys in China in December,

making it the number one vehicle for the month.

But in January, the Y slipped to 20th place, delivering a little under 17,000 units,

a staggering drop in just one month.

However, we will note that Tesla's China production volume was at a pretty normal level for January,

so it relied more heavily on exports.

And this likely won't help car sales either.

Earlier today, the Chinese government issued new rules banning automakers from selling vehicles

below cost as part of its crackdown on the price war.

That includes the vehicle's total cost of production,

as well as administrative, financial, and sales expenses.

The new rules also ban price fixing between automakers and suppliers,

and companies are now prevented from forcing dealers

into money losing sales through punitive rebate programs.

While China has tried stamping out the price war over the past year,

automakers continue to cut prices.

BMW isn't the only automaker trying to help Olympic athletes win gold.

Honda partnered up with U.S. Bobsled and Skeleton,

and allowed the team to test at its wind tunnel in Ohio.

While it's typically used for cars, trucks, SUVs, and the occasional race car,

coaches and athletes were able to make tweaks to their equipment,

as well as seating and head position.

And thanks to the precision equipment at Honda's wind tunnel,

they were able to see if their tweaks had a positive impact or not.

Some of the events for Bobsledding and Skeleton have already started

with the metal rounds right around the corner,

so we'll know soon if the U.S. can make the podium.

Over anything else related to driving,

headlight glare is now the number one complaint from drivers worldwide.

And not only is it bad, it's getting worse.

But Gen-Tex has a solution, and we've got Craig Piersma from Gen-Tex

coming on Auto Line After Hours this afternoon to tell us all about it.

Christy Schweinsberg will also be joining John and Gary

when the show goes live at 3 p.m. Eastern Time today.

But that's a wrap for this show.

Thanks for tuning in, and I hope to see you later.

Without the data to solve them.

Allowing your executives oversight throughout the process.

Wireless nearby cloud, your vehicle update solution

in production and on the road.

Intrepid control systems driven by your data.

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AD #4232 - Model Y Sales Crash in China While ICE VWs Do Well; Mercedes in Dangerous Downward Slide; Nissan Braces for $4 Billion Loss

Nissan

Mercedes-Benz Aclass

Mercedes-Benz GLB

Infiniti QX55

Infiniti QX50

VinFast

Geely

BYD

EV battery makers

BorgWarner

TurboCell

new energy vehicle (NEV)

PHEV

EREV

BEV

Volkswagen

ICE-based vehicles

EV sales subsidies

Tesla Model Y

BMW

Honda

wind tunnel testing

About this episode

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