Auto Market Warning: Recalls, Tariffs, and What Buyers Face Next!

This week we've got some controversial new information about the Hyundai Santa Cruz,

President Trump threatening Canada over the China EV deal, several major vehicle recalls,

and my week with the Subaru Forester Hybrid. This is Weekly Wheelhouse, let's get into it.

Over the past week, multiple outlets reported that Hyundai was preparing to cancel the Santa Cruz.

This story spread quickly especially because compact trucks have struggled

to gain traction here in the US. Hyundai has now directly pushed back on that narrative.

In a statement provided to media, Hyundai confirmed that the Santa Cruz remains an active part of

its US lineup and the company is not commenting on future product speculation.

More importantly, Hyundai reframed what the Santa Cruz represents internally. Since its

launch in 2021, the Santa Cruz has helped Hyundai reach a new buyer, one that values

open bed utility without stepping into a full midsize pickup. Hyundai also confirmed something

bigger. Experience gained from the Santa Cruz directly contributed to its decision to develop

a new body on frame midsize truck, which Hyundai publicly confirmed at its 2025 investor day and

plans to bring to the US before 2030. This shows how quickly speculation turned into assumed fact,

and how automakers often use smaller experimental vehicles as stepping stones rather than long

plays. For buyers, it means the Santa Cruz isn't disappearing tomorrow, and for the market,

it confirms Hyundai is serious about entering the traditional truck space, but on its own timeline.

What to watch next is whether the Santa Cruz evolves or simply holds position until that

larger truck arrives. Following the Canada-China trade news, Trump publicly threatened increasing

tariffs on Canada if Chinese EVs gained easier access through Canadian trade channels.

The auto industry is caught in the middle because US, Canadian, and Mexican production

are tightly linked. Parts, assemblies, and finished vehicles cross borders multiple times before

reaching buyers. This matters because tariffs don't stay abstract. They show up in vehicle

pricing, trim availability, and sourcing decisions. Even brands that build vehicles in the US

rely heavily on cross-border parts. What happens next depends on political escalation.

Automakers may be forced to further regionalize sourcing, warn consumers about pricing pressure,

or delay product decisions until trade clarity improves.

Volkswagen is recalling 44,551 IDFORs in the US over a high-voltage battery issue

that could increase a risk of a fire in certain situations. Most of the affected vehicles are

model years 2023 through 2025, built between September of 2022 and April of 2025. According

to federal safety filings, certain battery modules can overheat under specific conditions,

which could lead to thermal runaway, the type of failure that regulators treat with zero tolerance.

Volkswagen says incidents are rare, but EV battery safety leaves no room for error.

Here's what owners need to know. Dealers will perform a battery health inspection and install

updated battery monitoring software designed to detect abnormal self-discharge.

If the system flags a problem, Volkswagen will replace the affected battery modules at no cost

to the owner. Owner notification letters are expected to begin mailing March 20th,

but VINs have already been uploaded into the recall databases.

Volkswagen's internal recall code is 93 EA. If you own an IDFOR, check your VIN and follow any

guidance Volkswagen provides about charging and parking until your inspection is complete.

Hyundai has issued a major US recall covering 568,576 Hyundai Palisades, spanning model years 2020

through 2025 due to a problem with the third row side curtain airbag. According to Hyundai and

federal safety regulators, the airbags may deploy improperly in certain crashes, meaning they may

not meet federal ejection mitigation standards. In plain terms, that could increase the risk of

injury for third row passengers. This is not a small recall and it affects one of the most popular

family three row SUVs on the road. At this point, Hyundai says a repair solution is still being

finalized, so owners may not be able to schedule repairs immediately. Notification letters are

expected to begin mailing around March 23rd. Hyundai's recall number for this issue is 292 and

the company says owners can contact customer service directly if they have any concerns.

Toyota is recalling approximately 162,000 Toyota Tundra and Tundra hybrid pickups from the model

years 2024 and 2025 due to a problem with the backup camera display system. Under certain

conditions, the center display could freeze or go black, preventing the rear view image from appearing

while the truck is in reverse. That creates a safety concern and puts the vehicles out of

compliance with federal rear visibility requirements. The fix is straightforward,

dealers will update the parking assist control software free of charge. Toyota expects owner

notification letters to go out by late March. For truck owners, this matters more than it might

sound. Backup cameras are used constantly, backing into driveways, job sites, trailers,

and tight parking. When the screen doesn't work, it's not just annoying, it's a real safety problem.

What to watch for next is whether Toyota expands the recall population if additional

software versions show the same behavior. Nissan is recalling 26,432 vehicles because

they may have door strikers that were improperly welded during production. According to the recall

filing, the metal loop on the door striker can crack or separate, which could prevent the door

from latching correctly. If that happens, the door may not stay closed during driving or during

a crash, increasing the risk of injury. The effective vehicles include certain 2025 Altima,

2025 Sentra, 2025 to 2026 Frontier, and 2026 Kix models, all built during a specific production

windows in late summer and early fall of last year. The repair is simple and fast,

dealers will replace the affected door strikers with updated parts and Nissan estimates the fix

to take less than 30 minutes. Owner notification letters are expected to begin mailing around

March 13th. This is a basic but serious safety issue. Door retention is one of the most

fundamental crash protection elements in any vehicle. Nissan's success here comes down to

quick owner outreach and fast dealer execution so affected vehicles don't stay on the road

unrepaired. If you own any of these vehicles, remember recall repairs are free and the easiest

first step is to check your van through the NHTSA recall database or the manufacturer's website.

Automakers and suppliers are watching a renewed increase in DRAM memory prices,

which impacts infotainment systems, driver assistance modules, and digital displays. While

this isn't a full blown shortage yet, it's a reminder that vehicle electronics remain vulnerable.

If memory pricing tightens further, automakers may face higher costs, delayed production,

or feature adjustments, especially on tech heavy trims. The next signal to watch

is whether manufacturers quietly reduce content again or absorb costs to protect pricing.

Consumer Reports has released its latest ranking of driver assistance systems,

evaluating how well they actually help drivers, not just how many features they advertise.

The top rated systems came from Subaru, Lexus, BMW, Mercedes, and Ford, with scoring based on

factors like driver monitoring, ease of use, clear alerts, and how well the system keeps

drivers engaged instead of overconfident. This matters because advanced driver assistance

systems are now standard or optional on most new vehicles, but not all systems are equally

safe or intuitive. Consumer Reports found that systems with strong driver monitoring and clear

limits performed far better than systems that allowed misuse. For buyers, this reinforces

an important point. More tech doesn't automatically mean better safety. How the system behaves

matters more than how it's marketed. Looking ahead, expect regulators and insurers to increasingly

rely on this kind of independent evaluation, which could influence future safety standards

and how automakers designed their systems. Volkswagen has issued a rare and very direct

warning. Future Audi production in the United States could be at risk if tariff conditions

don't improve. According to reporting from the outlet, the manufacturer, Volkswagen executives

have stated that high tariffs on imported components, particularly those tied to electric

vehicles and batteries, are making US production plans increasingly difficult to justify.

While VW has publicly discussed expanding Audi's US footprint, executives now say those plans

depend heavily on tariff relief and policy clarity. This matters because Audi does not

currently build vehicles in the US at scale, and future investment decisions are being weighed

against alternatives in Europe and other regions. If tariffs remain high and unpredictable, Volkswagen

may shift production elsewhere. For US buyers, this affects long-term pricing and availability.

For US workers, it affects whether premium brand manufacturing jobs ever arrive.

And for policymakers, it highlights how trade policy directly shapes where cars are built,

not just how much they cost. Next, watch for lobbying activity and policy negotiations tied to

EV and battery sourcing rules because those decisions could determine where Audi's next

generation of vehicles are made. Before we move into the press room, go down and hit the subscribe

button if you want to keep up to date with all the automotive news. Now for the OEM press room

roundup. Kia has announced pricing for the 2026 Nero EV, positioning it as one of the

more accessible electric crossovers still on the market. The Nero EV will be offered in two trims.

The wind starts at $39,700 while the wave comes in at $44,700, excluding destination.

Both trims emphasize tech, efficiency, and everyday usability rather than performance.

Affordable EV options are shrinking and Kia is betting that familiar size, usable range,

and standard driver assist features can keep EVs appealing even as incentives fluctuate.

Nissan released new technical detail on how the Frontier's 3.8L V6 is engineered to handle

extreme use. The engine has been tested under sustained high load conditions including towing

cycles, thermal stress, and off-road durability testing. Nissan is reinforcing the Frontier's

position as a simple, proven mid-sized truck rather than a high-tech experiment. Durability

messaging resonates strongly with truck buyers especially as competitors act on complexity

like turbocharged or hybrid engines. Audi has officially confirmed that the next generation

RS5 will move to a plug-in hybrid setup, marking a major shift for one of its most recognizable

performance cars. According to reporting from Motor Illustrated and corroborated by European

regulatory filings and Audi executive comments, the upcoming RS5 will retain a performance-focused

gasoline engine paired with electric assistance rather than moving to a full EV.

Power output is expected to exceed the current RS5's 444 horsepower with significantly higher

torque delivered at low speeds thanks to the electric motor. Audi is drawing a clear line

between electrification for performance and electrification for compliance. Instead of

replacing enthusiast models with EVs, Audi is using plug-in hybrids to preserve speed, sound,

and driving character, all while meeting emissions targets. This signals that high performance gas

engines aren't disappearing overnight, but they are being reshaped. For Audi, it's a way to keep

RS buyers engaged without forcing them into full EV ownership. What to watch next is whether Audi

brings this RS5 plug-in hybrid to the US unchanged, or it tunes it differently to meet American

expectations around range, pricing, and performance feel. The long-running question of whether Dodge

and Ram should reunite under one brand has resurfaced and this time Ram's CEO addressed it directly.

According to Motor Illustrated, Ram leadership acknowledged that consumers still associate

Ram trucks with Dodge even years after the brand split. While no reunion is planned, executives

admitted that the separation continues to create brand confusion especially among casual buyers.

Brand clarity directly affects sales, loyalty, and marketing efficiency. Dodge is now focused on

performance cars and electrified muscle while Ram is pushing trucks and commercial vehicles,

but many buyers still see them as one brand. This confusion can impact resale perception

and long-term brand trust. For Stellanus, it raises a strategic question. Does separation

still help or has the market moved on? The future implication is subtle but important.

If electrification reshapes both brands, Stellanus may eventually revisit how Dodge and Ram are

positioned even if they never formally reunite. Now we'll move into a recently posted review

on our main channel Off the Shelf Rides and that is of the 2025 Subaru Forester Hybrid.

This is Subaru's new Hybrid SUV and the big story is that it finally combines good fuel economy

with standard all-wheel drive. Subaru uses a new hybrid system with the 2.5-liter boxer engine

along with electric motors making 194 horsepower. It's not built to be fast but it feels smooth

and easy to live with. Fuel economy is around 35 miles per gallon but what really makes this stand

out is the range. Subaru kept the full size 16.6 gallon fuel tank which means you can drive close

to 580 miles on a tank. That's fewer fuel stops and easier road trips compared to rivals.

Now it rides comfortably, feels confident in bad weather and comes loaded with safety tech as standard.

With an OSR score of 87, this Forester Hybrid is best for buyers who value safety,

efficiency and long-term ownership confidence more than outright speed.

Before we move on, here's a quick reminder of what we covered in last week's Weekly Wheelhouse in

case you missed it. We talked about how automakers are quietly resetting EV timelines and shifting

more focus back to hybrids as buyers continue to prioritize affordability, convenience and

real-world usability. We also covered Canada's evolving trade position with China and how changes

to EV tariffs north of the border could eventually pressure US pricing and policy decisions. If you

want the full breakdown and deeper context on those stories you can go back and check out last week's

episode right after this one. This week I do have a press vehicle. It's been several weeks without one

and I mentioned this last week but I'll recap it. I'm currently driving the 2026 Ram 1500

Big Horn Crew Cab 4x4 powered with the 5.7 liter V8 Hemi with e-torque and it's paired to an 8-speed

automatic transmission and this one stickers right around $64,975. It's equipped the way

that a lot of real buyers spec their trucks with the Big Horn Level 2 package, the off-road group,

night edition and a 33 gallon fuel tank and it also has a tri-fold tonneau cover.

So far the interior feels large and comfortable. The dash layout is clean and the infotainment

screen is nicely integrated. The Hemi feels strong and sounds great though the fuel economy

is not a strong point. Ride quality however is smooth and relaxed. The Canyon Lake green paint

paired with the night edition blacked out trim looks excellent. As for next week the vehicle I

was scheduled to have the 2026 Dodge Charger Daytona Scat Pack EV was pulled back by the manufacturer

for an event. That happens sometimes and we'll reschedule it when it becomes available hopefully

sometime in March. For now I'll be testing out this Ram and the review will be up on off the shelf

rides in a couple weeks. If you're watching on YouTube make sure that you're subscribed so you

don't miss next week's breakdown and if you're listening on the podcast thanks for spending

part of your day with me. I'll be back next week with more real world auto news, buyer insights

and honest driving impressions. I'm Jim and this has been Weekly Wheelhouse.

Auto Market Warning: Recalls, Tariffs, and What Buyers Face Next!

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