“Cutting rates” refers to lowering interest rates set by the Federal Reserve (the Fed). If the Fed doesn’t cut rates, borrowing costs can stay higher, which can make car loans and overall vehicle affordability harder for consumers.
Ford is the automaker reporting its financial results in this segment. They’re saying the company’s earnings improved, partly due to expected money back from tariffs.
A tariff is a tax on imported goods. A tariff refund means the government gives some of that tax back to the company later, which can improve its financial results.
A used car buyer is someone buying a car that’s already been owned before. The point here is that used-car shoppers may be getting fewer ways to lower their payment.
Concept
incentives or programs
These are special offers that can make financing a new car cheaper. They might lower your interest rate or reduce your monthly payment, depending on your situation.
Edmunds is a car-shopping website/company that studies pricing and buying trends. Here, they’re being cited for what they’ve found about how affordability changes what happens at dealerships.
In dealerships, FNI usually means the finance-and-insurance part of the process. That’s where loan approval and extra products get discussed, and that’s where affordability problems can derail a deal.
A software defined vehicle means the car’s features are controlled more by software than by fixed hardware. That can allow updates later, but it also makes the software side a big part of competition.
Concept
STV space race
The “STV space race” is the competition to be ahead in the car’s tech and software systems. The idea is that some companies are already pulling ahead, while others are falling behind.
Term
IP
IP means intellectual property—things companies legally own, like technology or inventions. When many companies’ IP gets mixed together, it can be complicated to figure out who owns what.
Tesla is a company that makes mostly electric cars. The episode is talking about why Tesla has been ahead in EVs and whether newer EV brands can catch up or keep that edge.
An “EV-only” brand mostly makes electric cars, not gas cars. The idea is that concentrating on EVs helps a company get better faster at making and selling electric vehicles.
“Legacy brands” means the older, established car companies that used to mainly make gas cars. The episode is saying these companies are now trying to catch up to newer EV-focused competitors.
They’re talking about the Beijing Auto Show, which is a big car event where automakers show new vehicles and technology. The hosts use it to explain what Chinese brands are doing to grow beyond China.
“Global expansion” here means Chinese automakers moving beyond their home market to sell and compete internationally. The segment links this to brand identity-building and product strategy changes shown at the Beijing Auto Show.
“Tighten the budget” refers to reducing spending or being more cost-conscious. In the context of the segment, it’s tied to intense competition in China’s domestic market and the need to manage costs while pushing for international growth.
Zeekr is singled out as the first Chinese brand Doug Bolduck wants to discuss in detail after the general overview. It’s presented as a notable player in the competitive landscape for global expansion.
“Premium” here means the car brand is trying to feel more upscale and expensive than regular mass-market models. It usually comes with nicer features and a higher price.
“Volume” means selling a lot of cars, usually at more typical prices and with less luxury than premium brands. The idea is to sell big numbers without losing the premium image.
A plug-in hybrid is a car that uses both electricity and gas. You can charge it by plugging it in, and when the battery runs low, the gas engine takes over.
Range anxiety is the fear that your car won’t have enough battery to get where you’re going. People worry they’ll get stuck because they can’t find a charger.
Company
Bezeker
Bezeker is the name of the organization the host says they spoke with Stefan Selauf through. It’s basically the source/context for the interview.
Term
push the envelope
“Push the envelope” is used here in a design/engineering sense: taking bolder risks and exploring more unconventional ideas than a company with stricter internal rules might allow. The host contrasts this with established automakers that must maintain continuity with existing design identities.
Smart is a car brand that makes small cars meant for city driving. Here, they’re talking about Smart’s next-generation two-seat car and what the new design will look like.
A concept car is a show-car or prototype built to preview future styling, technology, or design direction. In this segment, Smart shared concept-car pictures internationally to gauge reaction before the final production version is revealed.
It means a car company is trying to sell nicer, more expensive cars instead of only cheap ones. The idea is they’re upgrading their image and product quality.
It means the company is creating a recognizable look for its cars—so people can tell the brand apart. It’s like having a consistent style in the design.
Concept
cost advantage
It means the company can make cars cheaper than others. That can help them sell at lower prices or include more features.
The G-Class is a luxury SUV made by Mercedes-Benz. It’s famous for its very square, tough-looking shape and for being able to handle rough roads. People bring it up when talking about how certain car designs became more original and less copied over time.
Concept
system that says, okay, you are going to get brakes for this much, you are going to get this technology from this much
They’re describing how parts and tech can be sourced in bulk at set prices. That makes it easier for car makers to put better equipment into cars without it getting too expensive.
They’re talking about how many cars in big cities are now electric. Electric cars don’t put exhaust fumes out from the tailpipe, so the air in the city can be cleaner than with gas cars.
A “combustion car” is a gas or diesel car that burns fuel and sends exhaust out through the tailpipe. The hosts are comparing that to electric cars, which don’t have that same tailpipe exhaust.
Overseas production means making cars in other countries instead of only at home. The idea is to sell in those markets more easily and deal with trade obstacles.
Overcapacity is when factories can build more cars than people are buying. If sales don’t match production, companies may have to cut prices or try selling in other countries.
A brownfield plant is an existing industrial site that’s reused or expanded rather than building from scratch on a new location. Automakers use brownfield sites to reduce time and cost versus greenfield construction.
Stellantis is a big car company that makes lots of different brands. Here, they’re talking about working with Chinese factories that aren’t producing enough so they can ramp up output.
Capacity utilization means how much a factory is actually producing compared to what it could produce. Higher utilization usually helps the factory make money more efficiently.
“Tight margins” means car companies aren’t making much profit per vehicle. When margins are small, extra costs like tariffs or shipping can hurt more.
LIVE
Welcome to Daily Drive.
For Thursday, April 30th, 2026, I'm Kellan Walker in Las Vegas, today on the show.
Lots of news and automakers' earnings results.
Ford expects tariff refunds to catapult its full-year earnings, VW plans even more cost
cuts, and the Fed's refusal to cut rates compounds affordability problems.
Plus, our own Doug Bolduck tells us what he saw and heard at this week's Beijing Auto
Show and about how Chinese brands are positioning themselves for a global blitz.
They are so confident now that their products can really find buyers in markets outside of
China.
The Chinese are ready to compete on the global scale.
Let's run through all the news you need to know to keep up in the auto industry.
Ford is posting first quarter net income of $2.5 billion and it's raising its full-year
earnings forecast.
That's because it expects to get a $1.3 billion refund of tariffs it has already paid, nearly
triple what CRO General Motors expects to receive.
Ford said it isn't sure when it will receive the one-time money.
CFO Sherry House says Ford's underlying business outperformed expectations in the quarter.
Revenue rose 6% to over $43 billion.
Adjusted earnings before interest and taxes more than tripled to $3.5 billion.
Meanwhile, Stellantis' earnings turned positive in the first quarter.
That's after the automaker benefited from rising demand in North America for its refreshed
Jeep and Ram models.
The automaker's net profit climbed to $440 million for the period after it lost about
the same amount a year ago.
And Volkswagen Group is cutting even more after its first quarter operating profit fell
14% to just under $3 billion.
The automaker is absorbing billions in tariff costs while battling competition from Chinese
rivals both in China and increasingly in Europe.
Executives say the automaker must fundamentally overhaul its business as tariffs, geopolitical
shocks, and weak car demand batter the industry.
VW is trimming excess capacity and is already cutting 50,000 jobs in Germany by 2030.
And those are today's headlines.
You can find more details on all those stories at AutoNews.com.
On Wednesday, the Fed stood pat, deciding against cutting its benchmark interest rate
despite heavy pressure from the Trump administration.
It's Jerome Powell's last-rate decision as Fed chair.
Keeping the rate where it is might help buffer inflation as the Iran War drives up fuel prices,
but it doesn't help much when it comes to auto affordability problems.
Our own Paige Hotter has been writing about the Fed's decision and its implications for us
at Automotive News, and she joins me now to talk about it.
Paige, welcome back to Daily Drive.
Thanks for having me.
So Paige, what does this all mean for dealers and their customers?
It basically means that auto loan interest rates are not going down, anytime seen,
or at the very least, they're not going down significantly.
And that means the affordability situation will continue to remain how it is,
which is kind of tough, especially for low-income and medium-income buyers.
I spoke to some experts who said that it's really the used car buyer who's getting a little screwed
here, because on the new side, depending on your credit, you have access to some incentives or
programs that might give you a nicer interest rate or payment or something like that.
That's not really an option on the used side.
So if you can't afford a new car, but you need to buy a car, so you have to look at the used market,
you're going to be likely stuck with a higher interest rate for a while now.
Now, you spoke with Edmunds head of insights, Jessica Caldwell,
who said affordability constraints also can interrupt the sales process at the dealership.
Explain that.
Yeah, so it's all about expectations.
If you haven't been in the market for a little while, which sometimes people haven't been,
affordability has been this way for a few years now, but depending on how long people keep their
car, sometimes five, six, seven years, maybe they haven't bought a car since 2019.
And if they don't know what payments are, if they don't know really how expensive this
thing is going to be, they might come in and decide on a car and negotiate a price and then get to
the end of the process and not be able to afford that monthly payment or not even be approved
for that loan. And that causes frustration on both sides. The customer is really disappointed
because they've gotten excited about this vehicle and the salesperson thought they had a done deal
and now they have to start over. And so she sort of suggested that we might have to start.
I've heard this from other sales and FNI folks I've talked about or I've talked to in dealerships,
which is talking about budget much earlier in the process than I think people expect to really
manage expectations and maybe steer someone towards a lower trim model or a smaller car
if their budget is tighter. Perfect page. Always great talking to you. Thank you so much for joining
me. Thank you. Coming up, a look at this week's Beijing Auto Show and what it tells us about
how ready Chinese brands are to take over new markets. That's next on Daily Drive.
The auto industry talks a lot about the software defined vehicle, but the
STV space race is already creating clear winners and losers. It's kind of a Frankenstein's monster
of IP. On this week's episode of the automotive news shift podcast, I'm joined by Alex Euler,
consulting director at SBD Automotive. We break down who's leading in the STV race,
why Tesla and other EV only brands have an edge and whether newer EV automakers can keep their lead
as legacy brands try to catch up. Plus, we'll hear about the latest Chinese tech on display
at the Beijing Auto Show this past week. I'm Molly Boygon. Join me on shift available this
Sunday wherever you get your podcasts. Welcome back to Daily Drive. I'm Kellen Walker.
The Beijing Auto Show offered a window into how Chinese automakers are evolving their
brands and preparing for global expansion. Chinese brands are moving beyond just competing
on price. They're building real brand identities. Doug Bolduck is managing editor of Automotive
News Europe. He spoke with Daily Drive executive producer Jake Nier about his visit to Beijing
and what it revealed about the competitive threat Chinese automakers posed to legacy brands.
Doug Bolduck, always great to have you and it always seems like you're on the road when we talk
here. You just got back from Beijing. Thanks for taking the time to join us while you're in transit.
Thanks, Jake. Really happy to be here and to talk a little bit about what I saw and experienced
in Beijing. I'm so fascinated by this. Start off with your big takeaways. Obviously, you write for
the European auto audience and we're talking largely to an American audience here. What were
the big things in your mind this year that are new and exciting and maybe even alarming for certain
people? What the big difference was from the past shows that I have attended is that it was a lot
product. It was less gimmicky and fewer games. They really have just tightened things up with the
Chinese automakers because they're becoming global players. So you don't have to do funny things to
get people to pay attention to you and also because it is such a battle in their domestic market.
I think that maybe they've had to sort of tighten the budget a little bit because
you just have to watch every single penny and one of the reasons why there's such a push to
expand the Chinese automakers is because the domestic market is so competitive right now.
You spoke to a bunch of Chinese brands, mostly folks who are focused on the European market.
Let's start with Zeekr because this was a really interesting conversation that you had
with them. Talk about where they're trying to go as a brand right now.
Well, they're already in 16 European markets and they're trying to kind of straddle that line between
premium and volume with a focus on being premium, going after buyers of BMWs,
Audi's and Mercedes. Really, really incredibly difficult market to get into. None of the Chinese
have been able to crack it, be interested in to see if they can do it. But one of the things that
we saw that has the potential to really catch people's eyes is the 8X. The 8X is a long range
plug-in hybrid. They didn't commit to bringing it to Europe, but it's that kind of vehicle with a
range of about 1400 kilometers. And in the mixture of the electric and the gasoline engine to power
the battery, you just don't have any range anxiety. And the car does zero to 62 miles per hour, 100
kph in less than four seconds. So you're obviously not giving up on performance. So that was a very
interesting vehicle, especially for anybody who is still facing range anxiety. And I know in the U.S.
market where there's still a great deal of concern about the infrastructure to have a vehicle that
is mostly an electric car, but you can still go, I guess, 800 miles on a full tank and a full battery.
It's pretty impressive. So you spoke with Stefan Selauf there for Bezeker. What did he tell you
about sort of the way that the design is leading them into this sort of new era for them and also
other Chinese brands? What was really impressive when speaking to Stefan, a longtime designer with
tons of years with the German automakers, was that he was talking about how European design has
really, really just infiltrated into the Chinese design. And one of the things that was quite
impressive is that I think that he and some of his colleagues are really appreciating the freedom
that they have to really push the envelope. When you work for a very established company,
you have to follow all of these design rules because there are designs that you want to continue
to pay respect to. But with these newer brands, they really just have a white sheet of paper
and they can create more so than continue a design philosophy. So they're actually creating
the next generation. We come from a very long tradition in design. So we learned and grew up
in this, let's say, environment of designing cars for very traditional brands. I think my
Chinese bosses understood that these European designers have a knowledge that we have to
transfer also to our Chinese colleagues. It is very interesting how well it resonates with
our Chinese colleagues, how quick they learn, how talented they are. And he was talking to me about
that Zika wants to go even another step further when it comes to luxury. And he's working on that
right now on taking that next step for luxury for that particular brand. And again, if you had
spent your career at a Volkswagen or a Ford or a GM, a lot of your designs would probably, again,
be continuations of these classic designs. And you might not have had so much freedom
as you do in these situations with these young and upcoming Chinese brands. And I think that
designers really appreciate that. I think it is very important that our top stakeholder
want us to have this possibility to explore things in China that are maybe not visible for
everybody. But it's a part of our world. And it is understood that if we look at that and
learn about it and digest it, it will help us to get more authenticity into our products now and
also in the future. So you also caught up with Wolfgang Ufer of Smart, pretty familiar name for
especially your audience over there in Europe. What are they doing now? What was the what was
sort of the interesting thing from that conversation for you? Well, after so many years of being asked
about probably 1.7 million times, what is going to happen with the smart car, the four two here
in Europe, the two seat iconic mini cars or run around in the cities, they've been asked about
what are you going to do with this? When is it coming back? And they finally had an answer. They
had the exterior design for what is going to be the the new generation of this car. It's going to
be called the hashtag to following the naming system that they're using with smart right now.
And I can tell you it was quite a very positive response already internationally where we showed
the pictures of this concept car and be really going back to our DNA product after launching
now four cars here in different regions. You could definitely see it was the classic iconic
smart car of the past, but with some very interesting new highlights. So updated, we're supposed to see
an interior for the vehicle very soon. And then in Paris in October, we will see the final version
as it starts to come out. They're very, very excited about it in Europe simply because it's
basically synonymous with driving in these big cities like Paris or Rome, because you actually
can fit the car between two parallel park cars, you can park it in nose or rear ways in because
it's so small, absolutely perfect in these in these mega cities where parking spaces are an
absolute premium. And I know it also had some fans in the US because of the same issue, you know,
in a New York City or a Los Angeles where parking is at a premium, having one of these little cars
that you can almost like put inside your pocket comes in quite handy.
What's interesting from those conversations that you had in others also that you had in Beijing,
it seems like these brands are taking a wider approach to growth than maybe I was aware of or
that I was expecting, that they're moving up market fast, they're not relying solely on cost
advantage, and they're investing in brand identity and design language. I mean, is it just me or is
that something that people in other markets like the US and Europe really need to take note of?
Oh yeah, I mean, again, there's an incredible maturation of the brands that used 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. And because, I mean, one of the great
advantages that Chinese have is that there is an overall system that says, okay, you are going to get
brakes for this much, you are going to get this technology from this much, because these superstar
technology companies are going to provide it to you en masse. You cannot do that in so many other
markets, gives a massive advantage to the Chinese, because then all of a sudden, technology that you
would have to move up to another class of vehicle, or you'd have to get the highest trim line of a
particular vehicle is basically baked right into the car, because it's not a situation where you're
going beyond the affordability line for the automaker, they're not sitting there saying, oh my gosh,
I'm not going to make any margin. They're still going to make a margin because they're getting it
for such an incredibly low price. And again, that was a lot to do with the Chinese government
and the automakers and the technology companies and suppliers working together and saying, all
right, our push is going in this direction. And especially with electric cars, it is unbelievable
when you drive on the streets, well, we didn't drive, but when you're driven on the streets
in Beijing or Shanghai, it is so, so many electric cars. It's almost a rarity to see a combustion
car. It was interesting, I was looking around for fuel stations, there's still a few, and they
didn't have, they weren't packed, but the electric cars are just all over the place. And it's made
a massive difference, especially for the quality of the air in the local cities, which used to have
so many combustion cars, you know, popping out those emissions, now you have the electric cars.
Now granted, some of that electricity is made by coal, so somebody's paying for that, but it's not
in downtown Beijing or Shanghai when 50, well, whatever percentage of the cars, I don't know
the number, but a huge percentage of the cars are electric. I do want to talk a little bit about
what you're hearing about trade. Earlier this week, we heard that Chinese automakers are looking to
nearly triple their overseas production to 3.4 million vehicles by 2030. They're really trying
to escape brutal competition back home, overcapacity issues, a market that just can't absorb all the
cars they're trying to make. So what did you hear about that, if anything, at the Beijing show?
Oh, that is 100% the objective of the automakers. They really want to go outside of China. That has
become a major, major focus, and that is what they're working toward. They are looking at the
South American market. Of course, we know a little bit about some cars that are going to be going
into Canada, Europe, big, big, big ideas and big plans for Europe, also Malaysia, other parts of
Asia. So they know that their future is exporting into as many markets as they can get into, and
that's not being hidden. That's right out there in the open for all of the brands.
And what about the trade environment right now? Obviously, tariffs are a major concern.
What are they saying to you, or what were you hearing while you were there about
the barriers that exist and how Chinese automakers are trying to either get around them or work with
them? Well, again, I think that there's a pretty strong belief that because of the high tariffs
in the US market, that that market's really closed. And for them now, okay, they say,
all right, we will focus on Europe. There are some penalties to cars that are coming into
the market that are electric only, some tariffs and things of that nature. But that's why they're
looking to build plants in Europe. So there is sort of a double-edged sword with the Chinese. And
sold there could be beneficial. Yeah, but I mean, again, the idea outside to get outside of China
is to build plants either using existing plants, brownfield plants, what they're called, or building
new plants, and just getting that production. We're hearing also this week that Stellantis is
talking with some of the Chinese about utilizing some of their plants that are not building up
to capacity. They aren't keeping them busy enough. So they're saying, okay, come on in to the Chinese
automaker to start getting the volumes up to the level where the plant basically is running at full
capacity utilization. Doug, anything else that you want to get in before we, I know that you've
spent a lot of time there this week. And there's probably a lot to take in. Leave us with any other
impressions you got. I kind of circle back to something that we spoke about was just the very
fast maturity of the Chinese brands. And it's happened so much faster, I think, than all of the
other brands that we've seen over the years. And it's because there has been a very, very focused
overall desire by the government and the automakers working together to achieve
this. It's interesting because that kind of level of everybody's going to row in this direction
definitely brings some advantages, especially in a time like now when margins are always so tight.
And also, they are so confident now that their products can really find buyers in markets outside
of China. They are completely confident that that will happen. And that confidence was an
interesting change and a big takeaway from the event that the Chinese are ready to compete on
the global scale. Doug Bolduc of Automotive News Europe, back near Munich after spending plenty
of time in Beijing for the auto show there this week. Doug, thank you so much for taking the time.
Thanks, Jake. Hope to speak to you again soon. That's Daily Drive for today. I'm Kellan Walker.
Thanks to Automotive News executive producer Jake Nier, as well as our own Paige Hodder,
Michael Martinez, and Ervash Kakarya for their reporting for today's podcast.
You can get the latest news on Chinese brands, earnings results, and everything happening in
the auto industry at AutoNews.com. Come back tomorrow for a preview of Automotive News'
upcoming top 100 dealerships in used car sales. We'd love to hear from you. Let us know what
you think of the show and the topics we covered today. Send us an email at dailydrive at autonews.com
or leave us a voicemail at 313-444-2774. And if you enjoy the podcast, remember to like,
leave a review, and subscribe so you never miss an episode.
About this episode
Rising auto loan rates frame the affordability side of the day’s news, with the Fed’s stance suggesting relief is not coming soon. The larger conversation then turns to Beijing Auto Show, where Chinese automakers appear more polished, more product-focused, and increasingly confident about competing abroad. Zeekr’s premium push in Europe, Smart’s next city car, and broader plans for overseas plants all point to brands that are no longer just building for China, but for global markets.
Douglas Bolduc, managing editor of Automotive News Europe, discusses his visit to the Beijing auto show and how Chinese automakers are positioning themselves for global expansion. The Fed’s decision to hold interest rates steady could compound affordability problems. Plus, Ford and Stellantis post first-quarter earnings boosted by tariff refunds.
