The e‑Power system is a type of hybrid that helps the car use less gas. It adds an electric motor to give extra push when you accelerate, so the car runs smoother and saves fuel.
In a series hybrid, the gasoline engine only charges the battery or runs an electric motor. It never turns the wheels directly, which helps the car run more efficiently.
The car has a small battery that can hold 2 kWh of energy. It’s not huge, but it’s enough to give the car quick bursts of power and help the gasoline engine recharge it.
Instant torque means the car can start moving very quickly because the electric motor can give power right away, unlike a gasoline engine that needs to rev up.
A long‑range hybrid is a car that can drive far using only its electric battery, and if it runs out of charge the gasoline engine kicks in to keep going.
The 50 gram limit means a car must emit no more than 50 grams of CO₂ for every kilometer it travels. It’s a strict rule to keep air cleaner.
LIVE
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hybrid powertrains in Tennessee to make the rogue tear of proof. Redwood materials shifts away from EV battery recycling, and Asbury Automotive's CEO is stepping down. Plus, we'll hear from Volvo's CEO,
Hockon Samuelson, who says 2026 will be a comeback year for the automaker. With those three cars relip now ramping up, I'm confident that we will return to grow.
Let's run through all the news you need to know to keep up in the auto industry. Nissan's Tennessee powertrain plan was supposed to become the heart of its electric future. Now, it might build hybrids instead. The automaker pledged $250 million in 2023 to convert its deckered factory into an EV motor producer.
But those plans are now on ice because of cooling consumer demand and reduced government incentives. Nissan America's Chairman, Christian Mune, says the company is studying U.S. production of its e-power hybrid system, which launches in the redesigned rogue late next year. A decision comes early next year with production potentially starting in 2028.
Mune tells us at automotive news, quote, I'm pushing for it. More on this story in a minute with our own Irvash Kakaria. Battery recycling company Redwood materials is shifting focus from EV batteries to energy storage systems. The company is responding to lower than expected EV demand and changing federal policies.
At the same time, demand for electricity from data centers is expected to surge. From four gigawatts in 2024 to 123 gigawatts by 2035, Redwood raised $350 million in October to fund energy storage and battery materials projects.
It's already built North America's largest microgrid at its Nevada campus to power an AI data center. As Berry Automotive Group's CEO, David Holt will step back to an executive role in May, handing the CEO job to COO Dan Clara.
Holt has led Asbury through major growth since becoming CEO in 2018, tripling earnings and shareholder value. That includes the nearly billion and a half dollar purchase of Herb Chambers companies in July.
Clara, who's 45, started at Asbury in 2002, as a management trainee and worked his way up to COO and now CEO.
Asbury ranks number five on automotive news list of top US dealership groups with retail sales of 173,000 new vehicles last year.
And those are today's headlines. You can find more details on all those stories at autonews.com. Joining me now to talk more about Nissan's effort to make the rogue tear of proof by possibly building hybrid power trains in Tennessee is our own Irvash Kakaria. Irvash, welcome back to Daily Drive.
Hi, Kel, good to see you again. Now Irvash, what are the most important factors for Nissan here? And why is this an investment CEO Christian Mune wants to make?
So Nissan is studying a plan to essentially localize production of its e-power hybrid system. This is a hybrid that Nissan has developed in house.
And they're finally bringing it to the United States in their bestseller, which is the rogue. This is the third generation of e-power.
And the last two generations have been relatively underpowered for US consumer driving habits. So Americans like to go fast and they like to go far.
And so until now this hybrid system, which I'll explain what it is in a minute, has been, you know, from a performance standpoint, it probably would not have had much adoption by Americans.
So now that Nissan is bringing e-power to the United States in the road, they want to try and build it in the United States.
Now that's for three major reasons. One is they want to offset the tariffs that they would have to pay if they imported the powertrain from Japan.
It also kind of gives them more flexibility when it comes to the supply chain. If you're building locally, you can get the product faster to the factory and put it into the roads.
And it kind of also reduces the risk of overseas supply chain disruptions.
And then the third reason, which is probably more important than anything else, is the fact that they have an engine factory in Decker, Tennessee.
And obviously, as Nissan's volumes have fallen, that factory is relatively underutilized.
It has a capacity to build about 1.2 million engines a year. And right now, it's only building at about 35%.
So by bringing the e-power powertrain to the United States to the Decker plant, it essentially increases utilization and it reduces the cost of operating that plant.
What else is localization helpful for e-power?
So Nissan is introducing e-power initially on the road, which, as I said, is their number one bestseller.
But they're also considering bringing e-power on their subcompact kicks crossover.
The kicks is available with e-power in other parts of the world, but it hasn't been brought to the US again, because the technology was not ready.
But with the third generation, if kicks is to get e-power, they're going to have to lower the cost of building and developing the powertrain.
And so by localizing e-power production in Decker, Nissan will have the tooling, the equipment, to also build e-power powertrains for the kicks.
And by combining the volume, they'll be able to reduce the cost of production, making that equation doable.
And remind our listeners what the e-power hybrid system is, and why it's different from other hybrids, and how important is it for the future of the company?
So, like I said, it's been developed by Nissan, and it's what's called a series hybrid.
But essentially, what it is is it has a gas engine, but the gas engine is only used to charge a two kilowatt hour battery, and then the battery powers an electric motor which powers the wheels.
So, it's kind of has the same driving feel, the same instant torque as an EV, but it has a gas engine, and the benefit of that is that the gas engine then can keep charging the battery and get it to go a lot further than a two kilowatt hour battery would go, which is nowhere.
So, unlike, let's use an example of Toyota. So, Toyota's hybrid system also has a gas engine, but that gas engine not only charges the battery, but it also drives the wheels.
Whereas Nissan's e-power only charges the battery, and then the battery basically powers the motor and drives the wheels.
So, it's more EV-like than say Toyota's system.
Good stuff. Irvash, thank you so much for joining me.
Thank you.
Coming up, Volvo CEO Hocon Samuelson talks about why he thinks 2026 will be a big comeback year for the company.
That's next on Daily Drive.
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Welcome back to Daily Drive. I'm Kellan Walker.
Volvo CEO Hocon Samuelson says he's confident the automaker will return to growth in 2026.
He recently spoke with Automotive News Europe Managing Editor Douglass Bolduck to discuss Volvo strategy for plug-in hybrids as bridge technology and why he opposes weakening Europe's 2035 emissions target.
Thank you so much, Hocon Samuelson CEO at Volvo Cars for being with us today here on Automotive News.
Really great to see you and thanks for your time today.
Thank you. I'm glad to be here, Doug.
Alright, I'll get started. How can it's been a difficult year for Volvo because you've been trying to match or beat record global sales last year of 700,000 more than 700,000 vehicles.
It's just not going to happen. You guys are probably between 8% to 10% behind last year.
But again, you're going against a record so that's kind of a hard thing to have a record every single year.
Wanted to ask you, do you think that the pieces are in place for you to return to growth in 2026 and would a new record be possible with all of the actions that you are taken in 2025?
Yes, it's a short answer and I can tell you why. I mean, we have lost this year in volume, basically on two cars.
That is a reason for that. The electromobility is growing quite good. I mean, it's really better than the impression you get reading papers.
People are hesitating, but we have a good growth in beb sales. But our problem has been with our best seller, the small EX-30.
That was made in China. We had to move it to again. And then, of course, we lost volume so we are still not back where we were with that car in 24.
That's one reason. And the other reason is also well known. Our flagship car is really ready for the demanding customers really mid this year or something we said.
Now we are really satisfied with that car. So that volume has also been lagging behind.
So those two cars are now ready to be ramped up and that's why I'm positive for 26. The other reason is that China have lost sales.
Electrification is very rapidly and there we need a long range hybrid which is the XC-70. And that's the third car really that will bring us volumes in the electrified segment.
So with those three cars really now ramping up, I'm confident that we will return to growth.
Okay. Fantastic. Are you already anticipating that you might be able to get into or get closer to 800,000? That was a goal many years ago.
Because of COVID and other kinds of things that happened, it stopped that goal. Could 2026 be the year that 800,000 becomes reality? Or do you think you might need another year to get there?
No, I think we are a bit careful now with the volume target because number one, very difficult to predict the market as everybody said.
So I think nobody is doing really hard volume commitments. We should also of course include profitability.
So let's see where the market is going and what's happening with all tariffs and the types of uncertainty on the market.
But what I said with these three cars we are ready to grow. I mean now we have the cars we have been lacking before.
And let's see our customers how the market will develop, we'll define then how many cars that will be, but I think we are ready to grow, but I would not like to give an prediction or forecast.
Fair enough. Yeah. As you said, I mean, it seems like every time a prediction gets made, it has to be adjusted because of factors that are way outside of how you run your business.
I wanted to talk a little bit more, dig a little bit more down into what's happening in the US. Volvo has been adjusting to the slowing EV market in the US by adding the PHEV production in South Carolina with the XC60.
You're basically global number one seller. That should help. Definitely there, but with the emphasis on combustion cars in the US.
Do you foresee needing some additional all new products that are sort of a combination of combustion and electrification for that market as it slowly moves towards electrification because you know you can't just go electric only there.
It will be difficult. But on the other hand, I think you should be careful also believing that the market will go back to combustion cars because I think we have one underestimated the advantage with electrified cars.
All electric, but also with PHs with a longer range. And that is the advantage of having your car in the car park or in the garage filled up full every morning.
And you never need to go to a gasoline station, which is maybe not such a pleasant experience. We hear that from any customers.
So to have your car filled up or charged every morning, and then you would have a range of say up to 200 kilometers, how much is that 150 miles.
So very seldom need more during one day. So I mean, even with the long range plug in, you would really experience that as an all electric car. And the backup engine would very seldom kick in.
So I mean, that advantage is still, and I would say it's extra valid in the US, where a lot of people have their cars parked outside their house, and you could really have an overnight charging.
I mean, many people say America is difficult for electrification. I think in many respects, in this respect, it's an ideal market for electrification.
Much more difficult if you live in a city and park somewhere on the street, like many times happens here in Europe.
So I would, I think right now, of course, a subsidies for electrified car, you know, that is now closed down.
And of course, and the sales goes down because everybody was, of course, pre-buying to utilize that before it was closed down.
When we are through that process, I think people will not necessarily as return to combustion, but look into a plug in hybrid, especially as they will be getting longer range.
I mean, that's something that I'm sure will come. And then I think we have a very good product for US. And of course, we should build that product also in the US to have really fast delivery times.
And of course, feel our factory, which is there. I mean, we need to utilize that factory. That's also a factor behind that.
Yeah, and you're talking about the XC60, again, which will start production very soon. I was going to ask you also about the XC70, your first long range plug in hybrid.
We've talked to you and I a little bit about the plans for it to come to Europe, which I will ask you again about when you might see that happening.
But as an addition to the question, would be, wouldn't that also be a perfect car for the US with the longer range, but the issue that's holding you back potentially is that it's built in China.
So you would have to sort of either build it in another part of the world where you wouldn't face such a heavy tariff, which leads me again, sorry, to a very longer part of this question, which was, is there potential to build it in the US?
That would be a long shot. First step now while it's taking, we were planning to bring it to Europe. It has to be electronics and software has to be replaced with western compliance software and electronics.
I mean, that's a no-no to use Chinese technology in Europe or in the US for that sake.
So that will be done. We also have to, of course, fulfill all safety standards that we have in the US and in Europe.
And what is it more is also CO2 requirements in Europe, you know, this 50 gram limit we have to fulfill.
So that will take some time and we are working with this fastest we can, but it will take some time and we will reveal the exact timing later on.
But building it in the US to avoid the tariff is, of course, huge investments. So we have chosen to go with the XC60.
But, of course, all our cars will be upgraded in all respect when it comes to performance. I wouldn't rule out. We will, of course, also do something with the range.
Let's wait and see what comes out when we will talk about that more in detail later on.
Volvo CEO, Hoke on Samusen, spoke with automotive news Europe managing editor Douglas Boldeg. You can hear more of that interview on this week's bonus episode of Daily Drive available on Sunday.
That's Daily Drive for Today. I'm Kellen Walker. Thanks to automotive news executive producer Jake Near, as well as around Irvash Kakaria, Riley Hodder and John Hudder for their reporting for today's podcast.
You can get the latest news on manufacturing, retail, and everything happening in the auto industry at autonews.com.
Come back tomorrow for a conversation with Iona CEO Seth Cutler about the charging networks build out and what it expects in 2026.
This year we've been really marching towards how to deliver what we call quality at scale to customers and demonstrate that we can go from four sites to a hundred sites.
We'd love to hear from you. Let us know what you think of the show on the topics we covered today. Send us an email at DailyDrive at autonews.com or leave us a voicemail at 313-444-2774.
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About this episode
Volvo's CEO Hakan Samuelsson discusses the automaker's strategy for 2026, expressing optimism for a comeback year despite current sales challenges. He highlights the importance of the new EX-30 and XC-70 models in driving growth, particularly in the U.S. market. The episode also covers Nissan's plans to potentially produce hybrid powertrains in Tennessee, shifting focus from EVs due to market conditions. Additionally, Redwood Materials is pivoting from EV battery recycling to energy storage solutions, reflecting changing demand dynamics.
