Dec. 29, 2025 | Tech Year-In-Review: Innovation and disruption in a year of upheaval
About this episode
A deep dive into the automotive technology landscape of 2025 reveals significant disruptions caused by policy shifts, particularly the reduction of federal support for electric vehicles. Experts discuss the implications of these changes, including layoffs in Detroit and a pullback on EV investments from traditional automakers. The episode features insights on how this shift contrasts with the innovative strides being made by companies like Tesla and Rivian in Silicon Valley. The conversation also touches on the ongoing challenges posed by tariffs and the semiconductor supply chain, highlighting the industry's need for adaptability in a rapidly changing environment.
Daily Drive’s year-end series shifts focus to automotive technology in 2025. The Automotive News Tech and Innovation team examines the year’s biggest tech stories, from advances in vehicle software and connected technology to the disruption caused by the Nexperia chip crisis.
vehicle software
"Molly Boygon covers vehicle software, connected technology and more, and host of the Automotive News Shift podcast."
Vehicle software is the code inside a car that tells it how to drive, play music, and stay connected.
Vehicle software refers to the embedded computer programs that control various functions of a car, from engine management to infotainment.
connected technology
"Molly Boygon covers vehicle software, connected technology and more, and host of the Automotive News Shift podcast."
Connected technology lets your car talk to the internet, get software updates, and work with your phone.
Connected technology in cars includes features like over-the-air updates, internet connectivity, and integration with smartphones.
Lucid
"Lonnie Eiliff covers Tesla, Rivian, Lucid, and other automakers from Silicon Valley."
Lucid makes high-end electric cars that are very fast and have long battery range.
Lucid Motors is an American electric vehicle company known for its luxury sedan, the Lucid Air.
EV tax credits
"And that took many shapes from the elimination of EV tax credits to the revision of CAFE,"
EV tax credits let people pay less for an electric car by getting a discount on their taxes.
EV tax credits are government incentives that reduce the purchase price of electric vehicles by giving buyers a credit on their taxes.
CAFE
"And that took many shapes from the elimination of EV tax credits to the revision of CAFE,"
CAFE is a rule that makes car makers sell cars that use less gas on average.
CAFE stands for Corporate Average Fuel Economy, a U.S. regulation that sets fuel efficiency standards for vehicle manufacturers.
California waiver
"And that took many shapes from the elimination of EV tax credits to the revision of CAFE, to the revoking of the California waiver, and the automakers sort of responding to that"
California has a special rule that lets it make cars more fuel‑efficient than the rest of the U.S. for a while.
The California waiver refers to the state's temporary exemption from federal fuel economy standards, allowing California to set stricter rules.
turbocharged engines
"fuel injection, turbocharged engines, emissions"
A turbocharged engine has a small turbine that pushes extra air into the engine, making it stronger and more efficient.
Turbocharged engines use a turbine-driven compressor to force more air into the combustion chamber, allowing more fuel to be burned and increasing power without enlarging the engine size.
fuel injection
"fuel injection, turbocharged engines, emissions"
Fuel injection is how a car’s engine gets its gas; it sprays fuel directly into the engine instead of mixing it in air before combustion.
Fuel injection is the system that delivers gasoline into an engine’s combustion chambers, replacing older carburetor systems for better efficiency and performance.
emissions
"fuel injection, turbocharged engines, emissions"
Emissions are the dirty gases cars put out when they run; regulations try to keep these levels low for cleaner air.
Vehicle emissions refer to the gases and particles released into the atmosphere by a car’s engine, including CO₂, NOx, and particulate matter.
electric vehicle tax credits
"We had the One Big Beautiful Bill Act, which ended the electric vehicle tax credits in September."
These are discounts the government gives when you buy an electric car, making it cheaper.
Government subsidies that reduce the purchase price of electric vehicles, encouraging consumers to buy EVs.
electric vehicle transition
"and acknowledgement that the industry had to make the electric vehicle transition in order to stay relevant."
It means cars are moving from gasoline or diesel engines to batteries that power electric motors, so the industry is changing how it makes cars.
The shift from internal combustion engines to electric powertrains that many automakers are undertaking to meet future regulations and consumer demand.
automakers position on electric vehicles
"So for me, it's just been a really like a 180 in terms of the automakers position on electric vehicles"
It’s how car companies decide whether to make more electric cars and how fast they want to do it.
The stance or strategy that car manufacturers adopt regarding the development, production, and marketing of electric vehicles.
self-driving
"They've paid for that stuff and paying for EVs or self-driving or other technology."
Self-driving cars can drive themselves, using sensors and software to avoid obstacles and follow traffic rules.
Self-driving refers to vehicles equipped with autonomous driving technology that can navigate without human input.
Rivian
"But here in Silicon Valley, when you talk to people at Rivian or Lucid or Tesla..."
Rivian makes electric cars like trucks and SUVs that are meant for outdoor adventures.
Rivian is an American electric vehicle manufacturer known for its pickup trucks and SUVs, focusing on adventure-oriented EVs.
BMW
"now with BMW, those cars charge very, very fast"
BMW is a German car maker that now also makes electric cars like the i4 and iX.
BMW is a German automotive manufacturer known for its performance-oriented vehicles; it has expanded into electric models such as the i4 and iX.
supply chain
"I'll note on the supply chain as it relates to this pullback with EVs."
The supply chain is the whole system that brings parts and cars from factories to dealerships.
The supply chain refers to the network of suppliers, manufacturers, and logistics that produce and deliver vehicle components and finished cars.
EV incentives
"For instance, instead of completely getting rid of those EV incentives, couldn't they have been rolled back $1,000 a year, $500 a year, a little bit?"
EV incentives are discounts or tax breaks the government gives people who buy electric cars, making them cheaper and more attractive.
Government subsidies or tax credits that reduce the purchase price of electric vehicles, encouraging buyers to choose EVs over internal‑combustion cars.
gasoline vehicle platforms
"They're kind of going to use this time when they have the support for their gasoline vehicle platforms"
A platform is like the base structure that many cars share. Gasoline platforms are built for cars that use gasoline engines.
A vehicle platform is the shared architecture (chassis, powertrain layout, etc.) that underlies multiple car models. Gasoline vehicle platforms refer to those designed for internal combustion engines running on gasoline.
hybrid platforms
"They're kind of going to use this time when they have the support for their gasoline vehicle platforms and their hybrid platforms"
Hybrid platforms let a car use gasoline, electricity, or both to drive. They’re the base design for hybrid cars.
Hybrid platforms are vehicle architectures that support both an internal combustion engine and an electric motor, allowing cars to run on either or both power sources.
Volkswagen
"And the investment from Volkswagen, right?"
Volkswagen is a big car company from Germany that gave Rivian a lot of money to help build its first cars.
Volkswagen is a German automotive manufacturer that invested nearly $6 billion in Rivian’s first vehicle platform.
destacking
"before we got into destacking and exemptions for USMCA compliant goods"
Destacking means taking away some of the extra taxes on products so they become cheaper to buy from other countries.
Destacking is a trade policy that removes or reduces tariffs on certain goods, often to encourage free trade and lower costs.
exemptions
"after the president signed that executive order that we got the clarification that, okay, USMCA goods are going to be exempted."
An exemption is like a special permission that lets some products skip the extra taxes they would normally have to pay.
Exemptions are specific rules that allow certain goods to avoid tariffs if they meet predefined criteria, such as being manufactured under a trade agreement.
steel and aluminum tariffs
"We've seen, on the other hand, steel and aluminum tariffs raised from 25% up to 50%, in most cases at least."
Steel and aluminum tariffs are extra charges on metal parts that cars use, making the whole car more expensive to build.
These tariffs are taxes on imported steel and aluminum, materials critical for vehicle manufacturing, which can increase production costs.
profit margin
"more flexibility built into the profit margin than anticipated"
Profit margin is the extra money a car company keeps after paying for all the parts and labor to make the vehicle.
Profit margin is the difference between a vehicle's selling price and its production cost, indicating how much profit an automaker makes per car.
wire harness
"I mean, thinking about something like a wire harness, it's so labor intensive."
Think of it as a set of cables that connect all the electrical parts in a car, like lights and engines. It keeps everything organized so mechanics can find what they need quickly.
A wire harness is a bundle of electrical wires and connectors that supply power and signals to various components in a vehicle. It’s designed for reliability, ease of installation, and future maintenance.
manufacturing equipment import
"And then, yeah, on top of that, you know, manufacturing equipment, as you alluded to Molly..."
When a car factory needs special machines that only other countries make, they have to ship those machines across the ocean. This can be expensive and slow, so it’s a big issue for U.S. car makers.
This refers to the practice of bringing specialized production machinery, such as robotics and assembly tools, from overseas into U.S. factories. It highlights the challenge of building domestic manufacturing capacity for complex automotive components.
chip supply
"If there's ever, I mean, tensions between China and Taiwan, I mean, that long term that could be pretty massive ramifications for the auto industry as it relates to chip supply long term."
The parts that let cars do smart things—like navigation or self-driving features—are made from chips. If there aren't enough chips, car makers can’t finish cars on time.
Chip supply refers to the availability of semiconductor chips needed for automotive electronics. Shortages can lead to production delays and higher costs.
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