Automotive News Daily Drive Apr 29, 2026

April 29, 2026 | BMW’s Sebastian Mackensen; Toyota suppliers face crisis from Iran war

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Concept

Neue Class EV platform

BMW is talking about a new “base” for future electric cars. Think of it like a new EV architecture meant to make building cars cheaper and easier at scale.

Concept

When they say the EV market is “resetting,” they mean the rules are changing—like fewer people buying EVs than expected, or prices and competition shifting. Automakers then have to adjust their plans.

Concept

Supply chain disruptions

If a factory can’t get one important part, it may have to stop building cars. That’s what supply chain disruption means—things don’t arrive when they’re supposed to.

Concept

NAFTA

NAFTA was the older trade deal between the U.S., Mexico, and Canada. Even though it was replaced, people still use the term when talking about how cross-border parts and cars are handled.

Part

aluminum

Aluminum is a common lightweight metal used in cars. If there isn’t enough available, carmakers can’t build parts on schedule.

Part

resin

Resin is basically a type of plastic used to make car parts. If resin supply tightens, factories may not be able to produce those plastic components in time.

Concept

production line shutdown

If one key part doesn’t show up, the whole assembly process can stop. That’s why missing parts can cause big delays.

Company

Denso

Denso is a company that supplies parts to carmakers. If parts or materials get disrupted, Denso can lose money because its deliveries and production get affected too.

Concept

USMCA trade deal

USMCA is a trade agreement between the U.S., Mexico, and Canada. Car companies depend on it because it can change the cost and rules for shipping parts and selling cars.

Concept

affordable models

Affordable cars are the cheaper models that sell in high volume. If costs rise because of trade rules or missing parts, those cheaper cars can become too expensive to make.

Topic

Volkswagen's production playbook

They’re saying Volkswagen’s old way of doing things (design in one place, ship everywhere) isn’t working as well anymore. The world is getting more complicated for shipping and costs.

Concept

Localization

Localization is when a company builds more of its cars (or key parts) closer to where they’re sold. For automakers, that can mean fewer shipping problems and better pricing.

Car

Volkswagen Passat

They’re saying the Chattanooga factory started by making the Volkswagen Passat. Later, the factory shifted to other models, which is common when companies change what they want to sell.

Car

Volkswagen Atlas Cross Sport

Car

Volkswagen Atlas

They’re pointing out that Volkswagen now builds the Volkswagen Atlas in Chattanooga. That’s an example of how factories can switch to different models over time.

Car

Volkswagen Id4

ID.4 is Volkswagen’s electric SUV. They’re saying production of the ID.4 in Chattanooga is ending, which changes what cars that plant will make next.

Concept

Imports vs. local production

They’re comparing two ways of getting cars to customers: importing them or building them locally. Local building can make things more reliable and sometimes cheaper.

Brand

Audi

Audi is the brand they think would benefit most. The reason is that Audi currently brings in all its cars instead of building them in the U.S., so making them locally could help.

Concept

local US production

Local US production means the cars are made in the U.S. instead of shipped in from overseas. That can help dealers get cars faster and can reduce costs for the company.

Car

Neue Class

Neue Class is BMW’s next big EV “foundation” (platform). It’s basically the new design and engineering base that future BMW electric cars will use, and the timing matters because it has to be ready before deliveries can start.

Concept

EV demand resets

They’re saying EV demand is changing—some places are buying more or less than expected. When that happens, car companies have to rethink timing and planning so they don’t build too many (or too few) cars.

Concept

active rollout

“Active rollout” means the new technology is no longer just in planning—it’s being put into cars that customers can buy. It usually happens in steps, not all at once.

Car

iX3 (G08)

The BMW iX3 (G08) is an electric SUV from BMW. Instead of using gasoline, it runs on electricity from a battery. The podcast is talking about when this electric model was first introduced and when customers started receiving it.

Car

BMW 7 Series

The BMW 7 Series is BMW’s top, luxury sedan. BMW sells it with different kinds of power—gas, plug-in hybrid, and electric—so different buyers can get the same overall feel and features, just with different technology under the hood.

Term

EV

EV means electric vehicle. It runs on electricity from a battery instead of using a gas engine as the main power source.

Term

plug-in hybrid

A plug-in hybrid is a car that uses both gas and electricity. You can charge it from a plug, and it can still run on gas when the battery runs low.

Concept

technology openness

“Technology openness” means customers can pick the type of powertrain they want. The idea is you shouldn’t have to give up the car’s overall feel just because you choose gas, hybrid, or electric.

Concept

spreading development energy too thin

The concern is that making lots of different versions of the same car—gas, hybrid, and electric—might make it harder for engineers to focus. The speaker says they don’t see it as a problem because different countries want different kinds of cars.

Concept

EV adoption in the 18-90% range vs 5% range

They’re saying EV popularity isn’t the same everywhere. Some countries buy lots of electric cars, while others buy very few, so BMW needs different powertrain options to match local demand.

Car

BMW 5 Series

The BMW 5 Series is a mid-size luxury sedan. It’s mentioned to show that BMW has built a lot of its reputation on sedans for decades.

Car

BMW 3 Series

The BMW 3 Series is one of BMW’s most important model lines and is referenced here as part of BMW’s “roots” in sedans. The discussion uses it to frame why BMW still sees a future for large sedans even as SUVs dominate market share.

Term

subscription offerings

A subscription offering means you pay for certain car features over time. In this case, BMW includes the software/service suite for a few years, then you can choose to keep paying to use it.

Concept

level three

“Level three” refers to SAE driving automation levels, where the car can handle driving tasks under certain conditions and the driver may not need to continuously monitor. The speaker says BMW has never had “level three” in deployment, contrasting it with the company’s current assisted-driving capabilities.

Term

Highway Assistant Plus

Highway Assistant Plus is a highway driving help feature from BMW. It’s designed to take over some tasks so you don’t have to constantly interact with the car, but it’s not the same as full automation where you can fully disengage.

Term

theater screen

The “theater screen” is a screen for the back seats that folds down like a TV. BMW is saying it’s improved so passengers can use it more easily and connect their own devices.

Term

panoramic eyedrive

BMW’s “panoramic iDrive” is a big display that stretches across the front of the car near the windshield. Instead of just one small screen, it shows information in a more immersive way so it’s easier to see while driving.

Term

Android Auto

Android Auto lets you connect an Android phone to the car so you can use apps on the car’s screen. BMW is saying it still supports this even as it builds its own deeper, car-integrated tech.

Concept

native infotainment

Native infotainment is the car’s own built-in tech and apps. The advantage is it can use information from the car itself—like battery status—to give better guidance than a phone-only setup.

Term

CarPlay

CarPlay lets you use your iPhone through the car’s screen and controls. It’s one way to get apps like maps and music into the BMW without switching entirely to BMW’s own system.

Concept

smartphone mirroring

Smartphone mirroring is when your phone’s screen/apps show up on the car display. BMW is saying that’s helpful, but their native system can do more because it can “talk” to the car directly.

Concept

vehicle data streams for EV routing and charging

For electric cars, the best navigation isn’t just “where to go”—it also needs to know how full the battery is and when you’ll need charging. BMW is arguing that their connected system can use car data to plan charging and routing better.

Concept

battery preconditioning (warming up the battery before charging)

Before charging, some EVs warm up the battery so it’s ready to take power. That can help the charging go faster and feel more consistent.

Term

charging station

A charging station is where you plug your electric car in to add battery energy. The car can plan the trip so you stop at the right place and don’t arrive with too little charge.

Topic

Beijing Auto Show

The Beijing Auto Show is a major event where automakers and suppliers showcase new models, technologies, and branding strategies. In this segment, it’s used as a lens to discuss how Chinese automakers are positioning themselves.

Car

G-Class Gwagon

A “G-Wagon copy” means another car tries to look like the Mercedes-Benz G-Class. They’re saying some companies used to copy the style, but now they’re making their own designs.

LIVE

Welcome to Daily Drive.

For Wednesday, April 29, 2026, I'm Kellan Walker in Las Vegas.

Today on the show, Toyota suppliers face urgent shortages because of the Iran War.

Foreign automakers threaten to pull their cheapest models from the U.S. and deep cuts

could force VW to completely rethink its production model.

Plus, BMW North America's CEO, Sebastian Mackensen, talks about the rollout of the

Neue Class EV platform and whether the brand is nervous about the timing as the EV market resets.

Let's run through all the news you need to know to keep up in the auto industry.

Supply chain disruptions from the conflict in Iran are starting to hit Toyota's supplier network

and the situation's getting urgent. Suppliers are warning that aluminum, resin, and NAFTA

could run short within weeks. It only takes one missing part to shut down a production line.

Denso's already bracing for a 45 billion yen profit hit. And Toyota go say they've penciled in

losing about 200,000 vehicles compared to what customers were planning to build.

Meanwhile, foreign automakers are warning the Trump administration,

renew the USMCA trade deal, or we might stop selling our cheapest cars here.

According to the Wall Street Journal, some automakers say they won't be able to build

and sell affordable models in the U.S. if the agreement goes away or gets watered down.

The industry has been pushing hard for an extension. The three countries are supposed

to wrap up negotiations by July 1st. And Volkswagen's decades-old playbook,

Design Cars in Germany, then ship them worldwide, isn't working anymore.

The numbers tell the story. VW can build 12 million vehicles a year, but it's only selling

about 9 million. The company's already trimmed a million units of capacity in China and Europe,

and another million cuts are coming. Audi's feeling the squeeze most.

US tariffs alone cost the brand 1.2 billion euros last year. And sales in North America?

Down 16% in 2025. Consultants have the obvious answer. Close some German factories, but CEO

Oliver Blum is pushing back, saying, quote, we need to find smarter solutions than simply

shedding factories. Here to talk about what this could mean from a U.S. perspective is our own

Jack Wallsworth, who covers Volkswagen Group and its brands for us at Automotive News. Jack,

welcome back to Daily Drive. Good to be here. So, Jack, this story comes from our sibling

publication Automobile Volca in Germany. What's your take on what this could mean for VW here in

the U.S.? Yeah, I think in a roundabout way, this could potentially be a good thing for Volkswagen

in the U.S. Growing market share has been a long, long goal for Volkswagen Group.

Its U.S. market share compared to the rest of the world is really quite small, and it's something

they've been wanting to do for two increase for a very long time. Localization could be a way to

do that. What that ends up looking like is kind of too be determined. But it's one of those things

that Volkswagen, to be sure, does have North American production already. Chattanooga has been

around since 2011. Their plant in Mexico goes back decades, and there's the upcoming Scout

Motors plant in South Carolina. But an increased focus in localization, even more helpful,

I guess, would be a simple way to put it. It's one of those things that we've seen Volkswagen

kind of change the products they're building in North America. They started the Chattanooga

plant with the Passat, which this is just to sit in. And here we are, they're now making the Atlas

and Atlas Crossport. So they definitely have shifted things around. They are ending ID4 production

as well in Chattanooga. So maybe that plays a role in all this too. Volkswagen did say as part of

that move that they would explore pathways to bring additional products to Chattanooga. Could

that potentially be brand new nameplates? Again, to be determined. But long term, it does seem

kind of funny to say this could be a good thing. But depending on how it plays out, it seems like

more localization would definitely not hurt Volkswagen for sure.

Well, Jack, which brands could benefit most from shifting production to the US?

Yeah, I would say it would be the Audi brand. And it's probably not even close. Audi only imports

every vehicle it sells. So they don't have anything built in the US in the current environment.

That's, you know, less than ideal. Two of their biggest rivals, BMW and Mercedes,

have significant US production. Lexus builds in vehicles in Indiana. So Audi is definitely

behind the pack in that regard. And, you know, if Audi was to get local US production, that's

something that dealers have wanted for a very long time. That would be, I think, welcome news.

What that looks like. There's been talks that, or there's been discussions that maybe they'll

build something in South Carolina. That would probably mean a bigger vehicle. Volkswagen

potentially added Audi production to Chattanooga that I would think mean crossover. But again,

it's to be determined. But again, the localization is super interesting. If

if Audi got some US production finally, that would be a huge deal for the brand. Because,

like I said, they only import. And right now, you definitely want to have some local production.

Perfect. Jack, thank you so much for joining me.

Yep. Anytime. Thanks, Cole.

BMW is set to drop its next gen EV platform. The brand says the Neue Class is a revolutionary

tech leap that will bring it into a new era. But it comes as EV demand resets in many major

markets around the globe. Automotive news tech and innovation reporter Molly Boygon spoke with

BMW North America CEO Sebastian Mackensen, who says he's actually excited about the timing.

This is the first year of the active rollout of the Neue Class. Why now? And do you have any fears

about the timing of this transition given the larger macro environment?

So why now is the answer might surprise you, but you have a certain development time.

And it was always scheduled to be ready now and we delivered it or our engineers delivered it on

time. So this is why we now show roll out the car. We showed it for the first time that first Neue

Class of Vehicle IX3 back in September 2025. But the first customer deliveries, as you correctly

said, have started in Europe now in March of 2026. And yeah, it's happening now because it's ready

now. And that was the plan to go to market. Now, is it a bad moment for the rollout? No.

There's always something going on in the marketplace. And our cycles are driven by

longer strategies. And obviously, you might have a better or worse overall economy,

but it is what it is. We have to deal with that all the time. And since we're excited with the

Neue Class, it is exactly the right time to launch it. Makes sense. BMW is offering many

different variants of the 7 Series, internal combustion engine vehicle, EV, plug-in hybrid,

and a VA. I'm wondering if you can speak to why it's important to have those offerings across

powertrains and whether there are any challenges in delivering the vehicle with all those different

variants. Very good question. I like that question. So there's a lot of people, I'm glad it's a

case that love our brand. Then you have people who are definitely want to drive a combustion

engine car. And then you have other people who definitely want to drive a fully electrified

EV car. Now, the question is, what can they get from us? And our philosophy from the get-go was

they can get a BMW, in this case, 7 Series. So what it is always is a BMW 7 Series from

front to end. But the difference is only, quote unquote, what's under the hood,

what's the propulsion technology. But the experience for the customer, the user interface,

the design of the vehicle, everything which comes in it is always the same. It's the brand promise

which we deliver on. And then you have technology openness, as we like to call it, where the customer

chooses, I want this drivetrain, I want that drivetrain, or I want that drivetrain. And that's

what we really think is the right approach, because it means that you don't have to make

a compromise linked to your choice of drivetrain. Do you have any concerns about spreading

development energy too thin across different powertrains? No. I mean, the world markets today

are very diverse. You have some countries which have an EV adoption in the 18-90% range,

and others in the 5% range, which means we need to be in a successful global brand.

We need different drivetrains anyway. And then we create it in a way that we are flexible and we

can then adapt to the likings of the customer in a specific market. And we need to go into the

different drivetrains. Obviously, it means more capacity and more investment, but I would say

that's the price of entry to be a global player. Some of your competitors are backing off of large

sedans. Why is the large sedan niche still important to BMW? I think it is. Also in 2026 and in the

years to come, it is the statement luxury vehicle. Obviously, the world becomes more SUV when you

look at share of market, and it comes with a lot of convenience and a lot of storage space and a

high seating position. But BMW's roots are in the sedan, in the 3 Series, in the 5 Series,

since almost 50 years in the 7 Series. And we clearly see a future also for the sedan. It's

almost a little bit like with a drivetrain. You have people who would not want to drive an SUV,

and you have people who would not want to drive a sedan, but they both want to drive a BMW,

and that's where we try to offer them. That makes sense. I was reading in the release that

there's a suite of software offerings that are available for four years included in the vehicle,

and then at that four-year point, consumers will have the option to pay for them on a monthly or

yearly basis. Obviously, subscription offerings are a sort of interesting topic in the industry.

People have different opinions about whether consumers will pay. What share of 7 Series drivers

do you anticipate will pay for subscriptions after that four-year period for those offerings?

I'm not sure yet. I mean, for this car, obviously, it's to be seen in four years. But where does it

come from? We really offer a huge suite of services, and what they come with, they come with a lot of

data exchange. And this is where then eventually there is a need to see, is this relevant for

the consumer or not? And that's when they can have a choice. Do they want to stay on that plan

or not? And that's basically the logic behind it. My understanding is that there's no level

three services offered in the 7 Series, and that BMW is backing away from that. What has

been the challenge with deploying level three? We have never had level three in deployment.

We have great assisted driving features in many of our cars and also in this world. For example,

the Highway Assistant Plus. I just drove it in a different vehicle on the weekend, where for, I

think, one hour and 20 minutes on the highway between New York and Boston, I didn't touch

anything in the car, it was just in my seat. And we have these features, and we always

invest also in the future. So I would not say that we are backing away from something, and who

knows what the next generations of vehicles will bring. We believe in certain assisted driving

features, and many of them you will find in this vehicle and in many others. Anything else you're

excited about with the 7 Series that you wanted to emphasize? There's two things I'm excited about.

When we launched the previous 7 Series, we had introduced a thing called the theater screen,

which is a use screen folding down in the second row. So if you are in the great position to be

driven, you can enjoy something on that screen. That feature has been enhanced quite a bit on

this 7 Series, and now it has touch screen. It has an easier way to integrate or connect your

own devices to play whatever you would like to look at. That's one feature which I'm definitely

excited about. The other one is the panoramic eyedrive, what we call it, which is a new display.

You have to imagine, since this is not a video, you have to imagine there's a screen all the way

on the lower part of the windshield from the whole width of the car, from right to left.

And we display there a lot of information, very bright, very sharp, and you can also

configure it. And it is a totally new immersive driving experience. It's difficult to understand

if you only hear about it. I really invite you to test it in the car. I think it brings the

dark driver orientation, which BMW is famous for, to a next level. And it is really a cool feature.

Great. And actually, you're mentioning of the different sort of delivery of driving and other

information to the driver and to passengers. Makes me think of the larger infotainment

investment that BMW is making. And the fact that you're offering consumers all of this

really well integrated native product while also still supporting CarPlay and Android Auto,

why are you choosing to support smartphone mirroring while still investing in the native

infotainment? We think that having the knowledge and the insight into the vehicle and into the

consumer, there's a big benefit in integrating those information and available data streams. And

while there are many, obviously great solutions out there, they're not connected to the car.

So they don't know, for example, when does my car in an electric car need the next charge?

How should I do the routing perfectly? So this battery of this vehicle

gets into the best condition to then be charged. For example, warming up the battery before

charging, because that makes the charging process much more smooth and quicker. And then the car

looks at the route and the charging station on the way, so you get to your destination with the

right level of charging. For example, but there are many things where we believe clearly that the

integration of the functionalities and the features offer a great benefit to our customers.

Great. Sebastian Mackensen, thank you so much. Thank you for your questions, Molly.

Supplier disruptions and everything happening in the auto industry at AutoNews.com. Come back

tomorrow for a look at this week's Beijing Auto Show and what it tells us about how Chinese

automakers are building their brands in new and more strategic ways. Here's to be, you'd see all of

these copies, like a G-Wagon copy or just so many different copies. Now, they feel a lot more

confident and they're doing their own designs. We'd love to hear from you. Let us know what you

think of the show and the topics we cover today. Send us an email at dailydrive at autonews.com

or leave us a voicemail at 313-444-2774. And if you enjoyed the podcast, remember to like,

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April 29, 2026 | BMW’s Sebastian Mackensen; Toyota suppliers face crisis from Iran war

resin

affordable models

Imports vs. local production

EV adoption in the 18-90% range vs 5% range

About this episode

Original notes