Autoline Daily May 4, 2026

AD #4289 - Trump Threatens 25% Tariff on European Cars; VW EV Profit Parity Delayed Until 2030; Rivian R2 Production Costs Slashed By 50%

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Concept

tariffs on European cars

A tariff is basically a tax on imported products. If the U.S. adds a bigger tariff to European cars, those cars can get more expensive to sell in the U.S., which can hurt automakers’ profits.

Company

Bernstein Wealth Management is cited as the source for estimated costs to European automakers from higher tariffs. In this context, it’s being used as a market-research authority rather than an automotive supplier.

Concept

IEEPA refunds

IEEPA is a law the U.S. can use to impose economic actions during emergencies. The Supreme Court said some tariff actions were not allowed under that law, so companies are trying to get their money back.

Brand

GM

GM is the company being mentioned here. They said they’ve already recorded some money they expect to get back from the tariff situation.

Brand

Ford

Ford is another automaker mentioned as having already set aside money related to expected tariff refunds. It’s about the business impact, not a car model.

Brand

Stellants

Stellantis is the car company being referenced. They reported refund-related numbers tied to the tariff situation.

Brand

BYD

BYD is discussed in terms of sales performance: a slump in China contrasted with growth overseas. This matters because EV makers’ profitability depends heavily on regional demand and pricing.

Concept

profit parity between EV's and ICE vehicles

Profit parity means EVs and gas cars make about the same profit per vehicle. The segment says Volkswagen doesn’t expect EVs to match gas-car profits until later in the decade.

Term

Rivian software

They’re saying Volkswagen plans to use Rivian’s software in its next EV platform. That means some of the car’s digital systems may come from Rivian to help cut costs.

Concept

cut costs twenty percent

Cost reduction is being quantified here: Volkswagen expects the new SSP approach to cut costs by 20% versus the current MEB platform. In EV manufacturing, lower costs typically come from simplified design, shared components, and improved production efficiency.

Term

CMP platform

A “platform” is the shared design and production setup a car company uses to build many different models. “CMP” here means the specific EV platform those China-market cars are based on.

Brand

Bridgetone Weatherpeak tires

This is a named tire model. Different tire models grip differently and can be better for certain weather or road conditions.

Car

Tesla Model three

The Tesla Model 3 is an electric car. They’re talking about a cheaper version being sold in Canada and how taxes and incentives affect the final price.

Term

rear drive version

Rear-wheel drive means the electric power goes to the back wheels. That can make the car cheaper than an all-wheel-drive version.

Term

EV rebate program

A rebate program is money the government gives you (or credits) if you buy a qualifying electric car. If a car doesn’t qualify, it won’t get that price cut.

Term

Base Charger

Base Charger is Tesla’s lower-power charging unit for semi trucks, positioned as an alternative to the higher-output Megawatt Charger. The episode compares their power ratings and charging-time expectations, and notes a minimum purchase requirement for operators.

Term

megawat charger

This is Tesla’s faster, higher-power truck charger. The episode is comparing it to a cheaper, slower option.

Term

kilowatts

Kilowatts are a measure of how much electrical power a charger can deliver. More kW usually means faster charging, if the car can accept it.

Term

drive unit

In an EV, the drive unit is the main power hardware that turns the wheels. They’re saying they redesigned it to use fewer parts.

Term

castings

Castings are metal parts made by pouring metal into a mold. Using bigger castings can mean fewer separate pieces to assemble.

Term

ultrasonic sensors

Ultrasonic sensors are little “sound” detectors used to sense objects nearby, like when parking. The episode says Rivian can do without them by relying more on radar.

Term

Formula one

Formula 1 is the highest level of pro car racing. Teams use computer simulations a lot because they don’t get unlimited time on the track.

Concept

simulation war

“Simulation war” is the idea that modern racing development increasingly depends on computer modeling and simulation rather than only on-track testing. The segment links it to limited testing windows and argues generative AI can make simulations more accurate.

Term

Supercharge V eight

A supercharged V8 is a big engine that’s boosted by a device that pushes extra air into it. More air usually means more power.

Part

upgraded supercharger

A supercharger is a device that helps the engine breathe more air. Upgrading it usually lets the engine make more power, because it can push more air into the cylinders.

Term

horsepower

Horsepower is a measure of how much power the engine can produce. Higher horsepower usually means the car can accelerate more strongly, all else equal.

Term

pound feet

Pound-feet is a way to measure twisting force (torque). More torque often means the car feels stronger when you accelerate, especially from lower speeds.

Topic

order books

“Order books” just means when the company starts taking customer orders for a new car. It’s basically the window when you can reserve one.

LIVE

Speaker 1: This is Outalying Daily, the show dedicated to enthusiasts of the global automotive industry. President Trump fired off another shot

against the European auto industry. He says he's going to

boost tariffs on European cars from fifteen to twenty five percent.

He's mad that the European Union has failed to cut tariffs on US products, even though it agreed to do so last September. If Trump actually goes through with it,

that could cost European automakers more than four billion dollars this year and nearly six billion dollars next year, according to Bernstein Wealth Management. But let's see what happens. If

the EU enacts the September tariff agreement and cuts tariffs on US products, Trump could back off. But President Trump

is also mad at American automakers. They've already booked tariff

refunds in their first quarter earnings. In February, the US

Supreme Court ruled that Trump's tariffs that were enacted under the IEEPA were unconstitutional. The IEEPA is the International Economic

Emergency Powers Act. Automakers and suppliers immediately applied for refunds

and are acting like they expect to get them. GM

booked half a billion dollars in refunds, Ford booked one point three billion, and Stillants booked four hundred and sixty seven million. Tesla booked an undisclosed amount, while Rivian did

not book any but has applied for tens of millions in IEEPA refunds. Now, the question is whether or not

the Trump administration will give any of the money back or will drag the process out for years. Neil Gangooli,

partner and managing director and the Automotive Industrial Practice at Alex Partners, told Auduline that the refund process is likely to go very slowly. Byd once looked like it was

going to take over the world, but not anymore. It's

in a sales slump that shows no signs of slow and down. It sold three hundred and fourteen thou one

hundred passenger vehicles last month, down nearly sixteen percent from a year ago, which is the eighth month in a row that sales have dropped year over year. However, it

saw big growth overseas. It sold more than one hundred

and thirty four thousand passenger vehicles outside of China in April up seventy one percent from last year, but the increase overseas has not been enough to offset the drop in China. Through the first four months of the year,

BYD sold just over a million vehicles globally, down twenty six percent. Volkswagen says it's evs won't reach profit parity

with its combustion engine vehicles until the end of the decade.

The automaker's chief financial officer says it will not achieve profit margin parody between EV's and ICE vehicles until it launches its next gen SSP platform, which VW is a to debut before the end of the decade. The automaker's

current MEB plus EV platform only achieves seventy to eighty percent of the margins delivered by similar IC models. VW

expects the new SSP architecture, which uses Rivian software, to cut costs twenty percent compared to its MEB platform, and speaking of VW and EVS, CEO, Oliver Blooma says it's considering bringing China only models to Europe and that models could be built in Europe to fill unused capacity. VW's

China only models are based on its CMP platform, which was developed with Chinese automaker Japong making the life full of memories one road trip at a time. That's what

really matters.

Speaker 2: Bridgetone Weatherpeak tires.

Speaker 3: With the seventy thousand mile womened warranty.

Speaker 1: Looks like Tesla is taking advantage of Canada opening its doors to EV's made in China. It just launched the

cheaper rear drive version of the Model three in the country, with a starting price of a little over forty two thousand Canadian dollars including delivery and fees. That translates to

just under thirty one thousand US dollars, which is twenty seven percent less than what the same version of the Model three costs in the US. Tesla used to sell

the China made Model Y and three in Canada until it slapped a one hundred percent tariff on all China made evs in twenty twenty four, but now Canada will allow up to forty nine thousand China made evs into the country a year at a six point one percent tariff rate compared to the twenty five percent tariff rate for US made vehicles going to Canada. That's likely why

the Model three performance costs over seventy seven thousand, five hundred Canadian dollars, a whopping thirty five thousand, five hundred dollars difference to the new Model three premium, and while the new version of the three doesn't qualify for the Canadian government's five thousand dollars EV rebate program, it will still be among the cheapest evs in the country. That's

why we think Tesla will also send the cheaper version of the Why to Canada and try and eat up as much as that forty nine thousand a year total as it can. Speaking of cheaper, in Tesla, it's launching

a new charger for Semis called Base Charger. It's much

less powerful than it's megawat charger for Semis, add an output rating of one hundred and twenty five kilowatts, but it's designed for places where truckers have a longer time to charge, adding up to a sixty percent charge in four hours. Tesla requires operators to buy at least two

charging units, whether it's the Base or megawat charger, but two Base chargers cost forty thousand bucks, not including tax or installation, compared to one hundred and eighty eight thousand dollars for two megawat chargers. Rivian says the new R

two will cost it half as much to build as its R I models. It previously revealed details like removing

over two miles of wiring and using forty one percent fewer parts in its new drive unit, but in its latest earnings release, Rivian shared even more details of its cost cutting measures. The R two has large castings, which

cut part count by ninety percent and piece cost by thirty percent. The rear doors have sixty five percent fewer

parts and offer fifty five percent savings. Rivian added more

functionality to its radar, allowing it to get rid of ultrasonic sensors, which provided savings of over fifty percent, and it was even able to slash how much it pays for windshields. Deliveries of the R two kickoff soon first

with a nearly fifty eight thousand dollars performance model, but the company says there will be a forty five five thousand dollars version as well. AI loves F one and

F one loves AI, and Peer Analysis says eight AI companies have signed sponsorship packages with F one teams in the last six months. Besides advertising exposure AI. Companies like

Formula one because it's become a simulation war as much as an engineering war. Teams are limited to very little

on track testing, so simulation plays a critical role, and generative AI can make simulation much more accurate. And speaking

of F one, Cadillac used the Miami Grand Prix this past weekend to unveil the CT five V Black Wing F one Collector series and talk about exclusive. They're only

going to make twenty six of them. The heart of

the car is its six point two leaders Supercharge V eight that generates six hundred and eighty five horsepower with six hundred and seventy three pound feet of tour. That's

seventeen horsepower and fourteen pound feet more than before thanks to an upgraded supercharger. The Black Wing F one also

gets special F one badging inside and out and special paint and trim. Cadillac will open up the order books

sometime this summer. And that's all for today's show. Thanks

for making autoline a part of your day.

Speaker 2: Auto Line Daily is brought to you by Alex Partners.

When it really matters, Bridgestone Solutions for your Journey CSP the composites solution partner Intrepid Control Systems over the Air Engineering boost your game and thanks to the following YouTube and Patreon members.

Speaker 3: We act, we grow, we transform, We protect, we rescue in moments that define the future. We are the partner

you can trust. Alex partners when it really matters. At CSP,

we work with OEM engineers across the country on their journeys to lighter, safer, and more eco friendly vehicles.

Speaker 2: Learn more at THECSP dot com

0:00

9:48

AD #4289 - Trump Threatens 25% Tariff on European Cars; VW EV Profit Parity Delayed Until 2030; Rivian R2 Production Costs Slashed By 50%

tariffs on European cars

Bernstein Wealth Management

IEEPA refunds

GM

Ford

Stellants

BYD

profit parity between EV's and ICE vehicles

Rivian software

cut costs twenty percent

CMP platform

Bridgetone Weatherpeak tires

Tesla Model three

rear drive version

EV rebate program

Base Charger

megawat charger

kilowatts

drive unit

castings

ultrasonic sensors

Formula one

simulation war

Supercharge V eight

upgraded supercharger

horsepower

pound feet

order books

About this episode

Original notes