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Dodge is pulling the plug on electric Charger Daytona R/T amid lackluster sales
Dodge is pulling the plug on electric Charger Daytona R/T amid lackluster sales

USA Today

time18-05-2025

  • Automotive
  • USA Today

Dodge is pulling the plug on electric Charger Daytona R/T amid lackluster sales

Dodge is pulling the plug on electric Charger Daytona R/T amid lackluster sales Show Caption Hide Caption Stellantis: The automaker's history, legacy Explore the history of Stellantis, the automotive giant formed in 2021 through the merger of Fiat Chrysler Automobiles and PSA Group. Fewer than 2,000 electric Dodge Charger Daytonas sold in the United States in the first three months of 2025. Dodge will launch gas-powered Chargers later this year. Dodge is pulling the plug, so to speak, on its base model electric Charger Daytona, the R/T, as it deals with slow sales, but don't expect what appears to be a limited-edition run of vehicles to turn into collector's items, according to a key industry watcher. 'Rarity does not make a collectible. You need to have demand for it,' said Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions. 'You can't presume that this will be a Charger Daytona of 1970. They couldn't sell those originally and years later they were collectible.' Fiorani said it's risky to bet on a car of today becoming something that brings big dollars in the years to come, even when the numbers of those made and sold are relatively small. Still, Dodge will continue to offer the more powerful and expensive electric Charger Daytona Scat Pack for the upcoming model year, even as it prepares to launch several gas-powered versions. While it's not clear how many Dodge Charger Daytonas will be produced this year, so far the sales picture is showing a fairly light impact. Electric Charger sales – the company did not distinguish between versions – for the first three months of this year were at 1,947. Granted, they were just beginning to arrive in showrooms in January after months of delays. However, the automaker likely had higher hopes. Fiorani noted that he'd recently driven by a Dodge dealership and saw a row of Chargers waiting to be sold. In a statement, Dodge CEO Matt McAlear said 'production of the Dodge Charger Daytona R/T is postponed for the 2026 model year as we continue to assess the effects of U.S. tariff policies. The Charger's flexible, multi-energy STLA Large platform allows us to focus on the Charger Daytona Scat Pack's performance as the world's quickest and most powerful muscle car, add the new four-door model to the Charger mix for the 2026 model year and lean into the new Charger SIXPACK models that will launch in the second half of the year.' Sixpack refers to the engine, the inline-six Hurricane, which will come in 550-horsepower or 420-horsepower variants. The current electric Scat Pack promises a peak power base of 630 horsepower with a limited push-button burst to 670 horsepower called the Power Shot. The Dodge website lists the Scat Pack all-wheel drive with a starting price of $73,985, excluding destination charge. Adding gas-powered versions to the lineup is not a surprise, as Dodge had previously said that was the plan. However, the decision, reported earlier by to end the electric R/T's run so soon does highlight how the market has changed, both in terms of the slower adoption of electric vehicles and President Donald Trump's embrace of tariffs. The Charger Daytona is assembled at the Windsor Assembly Plant in Ontario, but the batteries initially were to come from South Korea. Fiorani offered some perspective on the potential tariff impact, however. 'Everybody is leaning on tariffs for every change in production or sales, whether real or not,' he said. Market realities are, however, what they are. 'The idea that an internal combustion engine version would hit the market better at the moment is a strong one,' according to Fiorani. 'Buyers haven't warmed up to EVs as a performance vehicle yet, especially since every EV is a performance model now.' Fiorani noted also that the company's planned shift in production volume toward the gas-powered Charger would also take the focus off the less expensive EV version – the R/T was listed with a starting price of $59,595, not counting destination. '(They) kind of want to focus on the vehicle that will make money versus the entry-level models that will sell on price,' Fiorani said. New car prices surge: Car-buying frenzy continues, pushing new vehicle prices higher The moves for Dodge follow news that Ram is also adjusting its electric plans. Crain's Detroit Business, citing a memo to suppliers, reported this week that the electric Ram 1500 REV would be delayed until summer 2027, a year later than what the automaker told the Free Press in January, and the extended range Ramcharger is being pushed from later this year to early next year. The company, in a statement provided by spokesman Nick Cappa, cited "slowing consumer demand for half-ton" battery electric pickups and noted that "we also are extending the quality validation period for the Range Extended Ram to support a successful launch and the highest build quality." Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at

Dodge plans gas-powered Charger but will cut cheaper electric variant
Dodge plans gas-powered Charger but will cut cheaper electric variant

Yahoo

time17-05-2025

  • Automotive
  • Yahoo

Dodge plans gas-powered Charger but will cut cheaper electric variant

Dodge is pulling the plug, so to speak, on its base model electric Charger Daytona, the R/T, as it deals with slow sales, but don't expect what appears to be a limited-edition run of vehicles to turn into collector's items, according to a key industry watcher. 'Rarity does not make a collectible. You need to have demand for it,' said Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions. 'You can't presume that this will be a Charger Daytona of 1970. They couldn't sell those originally and years later they were collectible.' Fiorani said it's risky to bet on a car of today becoming something that brings big dollars in the years to come, even when the numbers of those made and sold are relatively small. Still, Dodge will continue to offer the more powerful and expensive electric Charger Daytona Scat Pack for the upcoming model year, even as it prepares to launch several gas-powered versions. While it's not clear how many Dodge Charger Daytonas will be produced this year, so far the sales picture is showing a fairly light impact. Electric Charger sales — the company did not distinguish between versions — for the first three months of this year were at 1,947. Granted, they were just beginning to arrive in showrooms in January after months of delays. However, the automaker likely had higher hopes. Fiorani noted that he'd recently driven by a Dodge dealership and saw a row of Chargers waiting to be sold. In a statement, Dodge CEO Matt McAlear said 'production of the Dodge Charger Daytona R/T is postponed for the 2026 model year as we continue to assess the effects of U.S. tariff policies. The Charger's flexible, multi-energy STLA Large platform allows us to focus on the Charger Daytona Scat Pack's performance as the world's quickest and most powerful muscle car, add the new four-door model to the Charger mix for the 2026 model year and lean into the new Charger SIXPACK models that will launch in the second half of the year.' Sixpack refers to the engine, the inline-six Hurricane, which will come in 550-horsepower or 420-horsepower variants. The current electric Scat Pack promises a peak power base of 630 horsepower with a limited push-button burst to 670 horsepower called the Power Shot. The Dodge website lists the Scat Pack all-wheel drive with a starting price of $73,985, excluding destination charge. Adding gas-powered versions to the lineup is not a surprise, as Dodge had previously said that was the plan. However, the decision, reported earlier by to end the electric R/T's run so soon does highlight how the market has changed, both in terms of the slower adoption of electric vehicles and President Donald Trump's embrace of tariffs. The Charger Daytona is assembled at the Windsor Assembly Plant in Ontario, but the batteries initially were to come from South Korea. Fiorani offered some perspective on the potential tariff impact, however. 'Everybody is leaning on tariffs for every change in production or sales, whether real or not,' he said. Market realities are, however, what they are. More: Detroit automakers want Silicon Valley talent, but need Michigan engineering knowledge 'The idea that an internal combustion engine version would hit the market better at the moment is a strong one,' according to Fiorani. 'Buyers haven't warmed up to EVs as a performance vehicle yet, especially since every EV is a performance model now.' Fiorani noted also that the company's planned shift in production volume toward the gas-powered Charger would also take the focus off the less expensive EV version — the R/T was listed with a starting price of $59,595, not counting destination. '(They) kind of want to focus on the vehicle that will make money versus the entry-level models that will sell on price,' Fiorani said. The moves for Dodge follow news that Ram is also adjusting its electric plans. Crain's Detroit Business, citing a memo to suppliers, reported this week that the electric Ram 1500 REV would be delayed until summer 2027, a year later than what the automaker told the Free Press in January, and the extended range Ramcharger is being pushed from later this year to early next year. More: U.S. auto industry wants trade deal with Canada and Mexico to be Trump's priority The company, in a statement provided by spokesman Nick Cappa, cited "slowing consumer demand for half-ton" battery electric pickups and noted that "we also are extending the quality validation period for the Range Extended Ram to support a successful launch and the highest build quality." Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at This article originally appeared on Detroit Free Press: Dodge pivots on future EV offerings after lackluster sales

U.S. auto industry wants trade deal with Canada and Mexico to be Trump's priority
U.S. auto industry wants trade deal with Canada and Mexico to be Trump's priority

Yahoo

time13-05-2025

  • Automotive
  • Yahoo

U.S. auto industry wants trade deal with Canada and Mexico to be Trump's priority

President Donald Trump's trade agreement with the United Kingdom, reached earlier in the week, has set off alarm bells in the U.S. auto industry. The U.S. carmakers worry that other automakers that import from Europe and Asia will be next to get a deal while General Motors, Ford Motor and Stellantis wait on the sidelines for a new free trade agreement to replace the United States-Mexico-Canada Agreement (USMCA), which was negotiated during Trump's first term. Trump has said USMCA must be renegotiated. But he has seemingly put the United Kingdom ahead of that task, likely because it was the easier deal to get done, experts said. That made U.S. automakers jittery as they watch others get trade advantages first. "Businesses set up their finances on a free trade agreement that was set up under the previous Trump administration, and to pull the rug out from under them is the problem," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. "The U.K. deal is a deal, that's why it's making news. If South Korea comes to the table next, all hell will break loose. If South Korea gets a 10% (tariff) deal, that would be the bigger deal.' That's because Ford CEO Jim Farley has been blunt in saying that if 25% tariffs on imports from Mexico and Canada stick, yet Asian and European brands are not given the same tax, it would "blow a hole" in the U.S. auto industry and give "free rein to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S." annually, giving them "one of the biggest windfalls" ever. Fiorani notes that GM CEO Mary Barra, however, would likely welcome it if South Korea got a deal. "Last year, Buick sold 109,000 South Korean-built vehicles in the U.S. and Chevrolet sold 305,000," Fiorani said. GM assembles the Buick Encore GX and Envista and the Chevy Trax and Trailblazer SUVs in South Korea. The policy group representing U.S. carmakers indicated its displeasure at Trump for prioritizing a tariff agreement on vehicle imports from the United Kingdom before renegotiating USMCA, in a statement released May 8, shortly after the Trump administration announced the U.K. deal. The May 8 agreement, which Trump said would be the first of many, would include Britain dropping its tariffs on U.S. beef, ethanol and other products, and buying $10 billion worth of Boeing airplanes. In return, the United States would reduce the 25% tariffs that Trump put on all imported cars and steel last month. Specifically, the first 100,000 vehicles imported from the United Kingdom would face a 10% levy. After 100,000, the tariff rises to at least 25%, according to a White House fact sheet. Industry data shows that just slightly more than 100,000 vehicles assembled in Britain were sold in the United States last year. Still, American Automotive Policy Council President Matt Blunt said in the May 8 statement that the U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the United States and the United Kingdom. "We are disappointed that the administration prioritized the U.K. ahead of our North American partners. Under this deal, it will now be cheaper to import a U.K. vehicle with very little U.S. content than a USMCA-compliant vehicle from Mexico or Canada that is half American parts," Blunt said. "This hurts American automakers, suppliers and autoworkers. We hope this preferential access for U.K. vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors." The American Automotive Policy Council, located in Washington, D.C., represents Ford, GM and Stellantis — which makes Chrysler, Dodge, Jeep, Ram and Fiat brands — on public policy interests. Spokespeople for GM, Ford and Stellantis told the Free Press on May 9 that the companies support the policy council's statement and had nothing to add to it. The union that represents Canada's autoworkers appeared equally perturbed at Trump's action. On May 9, Unifor National President Lana Payne told the Free Press that if the Trump administration's goal is to strengthen the domestic auto industry, prioritizing trade talks with the U.K. instead of ending "a punitive trade war with Canada" is a "backward move" that hurts autoworkers. Payne said that last year 5 million vehicles were sold in North America that weren't built in North America. "We need to address this challenge, which is equivalent to 20 assembly plants worth of lost work. Why this isn't being discussed by the Trump administration is unclear," Payne said. "Targeting Canadian-made vehicles with higher tariffs than those with no North American ties is not just shortsighted — it's an attack on our shared industry that sets a dangerous precedent and weakens the collective strength of North American autoworkers." Payne said there is no such thing as an all-American or all-Canadian vehicle because so many cars built in Canada contain U.S. components and support thousands of U.S. jobs, just as U.S.-made vehicles rely on Canadian parts. "Undermining this deeply integrated supply chain threatens Detroit Three operations and puts thousands of jobs at risk on both sides of the border," Payne said. Unifor has called for a united North American approach to trade to protect the shared interest against rising global imports such as those coming from China-based automakers. Reaction among the industry experts to the deal with Britain was mixed. Erik Gordon, a business professor at the University of Michigan Ross School of Business said the American Automotive Policy Council's statement is "self serving," claiming a right to "priority relief from what some U.S. workers see as the fruit of the companies' decisions to move jobs out of the country." "There will be no noticeable damage to the Canadian-American-Mexican auto industry of partial tariff relief that covers the tiny number of English cars sold in the U.S. — cars that, unlike the cars made by Council members GM, Ford and Stellantis, were not moved from U.S. production and American workers to Canadian or Mexican production," he said. Fiorani said his data showed the British brands that export vehicles to the United States are: Land Rover, Jaguar, Mini, Bentley, Rolls Royce, McLaren and Aston Martin. About 103,250 vehicles across those seven brands were imported into the United States last year out of the nearly 16 million new vehicles sold here, he said. Fiorani believes Trump tackled the U.K. tariffs first because it was the "low-hanging fruit." More: UAW says automakers can build millions more vehicles in US; some question that belief "It's 100,000 vehicles. It's 100,000 luxury vehicles," Fiorani said. Most of those vehicles are higher priced than anything the Detroit Three offers, with maybe a few exceptions such as a top-of-the-line Corvette or heavy-duty pickup. For example, Cox Automotive's spokesman Mark Schirmer said in April the average transaction price for a Land Rover, which sells the most of the British brands in the states, was $113,000. Fiorani said if Trump's goal with tariffs is to encourage more manufacturing in the United States, these British auto companies were not likely to ever build cars here. 'At 100,000 vehicles a year that's a small factory that would be spread across seven brands and they would have to build a dozen unrelated vehicles," Fiorani said. "The factory itself would build vehicles that would cost $1 million apiece. That's an exaggeration, but it would cost a fortune. You'd basically have to hand-build all of these products, even a Mini.' This deal is more aimed at moving an ally, Britain, from unfriendly terms to better terms, Fiorani said. "Canada should have been there first," Fiorani said. "But Canada is more difficult because they already have a free trade agreement underlying negotiations.' Gordon agreed that not only was a U.K. deal less complicated than a deal with Canada or Mexico, but also "the Brits reacted less adversarially than the Canadians." Wall Street analyst Dan Ives said the deal with Britain could hurt the U.S. car industry in the near-term and even long-term, depending on how things shake out. He called it a "George Costanza moment," referring to the oft-ridiculed character on the former popular sitcom "Seinfeld." "The U.S. auto industry is getting no respect and the U.K. gets a sweetheart deal," Ives, managing director at Wedbush Securities, told the Free Press. "It's illogical. A slap in the face to the U.S. auto industry in our view." More: Automakers, suppliers compete to hire data specialists to help navigate tariffs Joe McCabe, CEO AutoForecast Solutions, said there is currently a 2.5% tariff on vehicles imported from Britain to the United States. So the 10% tariff is a small win for the United States, but it won't move the needle in terms of opening up the U.K. market for more U.S.-assembled vehicles. In short, it does not provide any significant value to more U.S. production. "This deal was a way to show the U.S. willingness to work with an ally, which should hopefully inspire other allies to come to the table, especially other European countries," McCabe told the Free Press. He said the American Automakers Policy Council is 100% right in the idea that the highly integrated relationship with Canada and Mexico should be the priority. The White House's recent move to give a bit of relief to U.S. automakers to import up to 15% of their parts and get some tariff reimbursement shows some flexibility. "However, with the reevaluation of USMCA coming up, the White House will most likely continue to leave the Canada/Mexico relationship in flux in an effort to control any new USMCA contract language to benefit the U.S.," McCabe said. For now, Fiorani said the math under the current tariffs, with the reimbursements the Trump administration provided on April 29, still makes it cheaper to build the Ford Maverick, Bronco Sport and Mach-E in Mexico and to sell in the United States than for other automakers to import a vehicle from the United Kingdom. Still, there lies that nagging concern among the U.S. auto industry: Other nations could get more favorable tariff deals ahead of U.S. automakers. Said Fiorani, "One down. The rest of the world to go.' Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: U.S. auto industry concerned over Trump's U.K. deal, wants priority Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

W Rome hotel review: laid-back luxury in a quiet corner of the Eternal City
W Rome hotel review: laid-back luxury in a quiet corner of the Eternal City

Times

time04-05-2025

  • Entertainment
  • Times

W Rome hotel review: laid-back luxury in a quiet corner of the Eternal City

Once the wild child of five-star hotels, W has begun to reinvent itself as a less-rave, more-relax brand, with the Rome outpost one of the first to channel the chilled-out vibe. It's housed in two 19th-century palazzos, joined by the glass-roofed lobby lounge and subterranean gym — and gone (mostly) are the in-room bathrooms and blingy, pop art decor, replaced by a softer, more sophisticated style that still exudes a breezy, clubby feel. Cocktails in the glitzy W Lounge — art deco lighting, dove-grey sofas and a slick, glass-panelled bar — come with a DJ soundtrack every evening, while the sizeable rooftop, which is half pool area, half pizza restaurant, has glorious views across the Eternal City. Families are as welcome as couples and retired couples take dinner alongside influencers — the W is now a party that's open to everyone, and much the better for it. This article contains affiliate links, which may earn us revenue Score 9/10W hotels are basically Marriott in better clothes and the 162 rooms here are certainly a notch up; abstract artworks and framed newspaper front pages on the clean, powder-blue walls, herringbone wooden flooring edged with marble, and feather-soft linens on the sumptuously comfortable beds. Rooms are set across both palazzos; those in the right-hand building are larger but on lower floors (and thus darker). The top choice is a room in the left-hand building that overlooks the Swiss Institute — a grandiose, early 20th-century villa surrounded by lush gardens. The 'Fantastic' and 'Sensational' room categories have small balconies that overlook the internal 9/10Rome is a city that runs on its stomach and the W has rounded up a trio of Italy's top chefs to create everything from Sicilian street food to handmade chocolates and thin, crispy pizzas. The slick ground-floor coffee bar, Zucchero x Fabrizio Fiorani, is equally popular with guests and locals, who come for Fiorani's handmade pastries and unctuous chocolates. The menu for the rooftop restaurant, meanwhile, combines crudo (raw fish) and fritti (deep-fried starters) with classic pizzas. But the biggest treat is a table at Giano in the cool, internal courtyard, where upscale Sicilian dishes — white grouper carpaccio or braised veal cheek with masala — can be combined with street food classics such as arancini and the best tiramisu in town. • More great luxury hotels in Rome• Best things to do in Rome Score 9/10The rooftop pool, flanked by loungers and shaded easy chairs, is the perfect place to cool off, with yoga classes on the wet deck in the warmer months. Six floors below, hidden in the vaulted cellars, the gym has an excellent range of Technogym machines, each tucked into an individual space between the arches, giving it a delightfully private feel. Guests with a sweet tooth can arrange chocolate-making classes at Zucchero and there are mixology workshops in the W Lounge. Score 9/10The W pulls off the impressive trick of being in a peaceful location on a quiet street in the upscale Ludovisi neighbourhood, yet within easy walking distance of Rome's big draws — the Spanish Steps, Trevi Fountain and the Pantheon. There are good restaurants and a classic Roman deli in the surrounding streets, with the glorious Borghese gardens and sculpture-rich Villa Borghese museum, shaded by the city's umbrella pines, just a few minutes' stroll away. Public transport isn't Rome's strongest point, but the Barberini metro station, two stops from Termini station, is five minutes' walk. Price Room-only doubles from £420Restaurant mains from £30Family-friendly YAccessible Y Annabelle Thorpe was a guest of W Rome • Best affordable hotels in Rome• Best restaurants in Rome

Trump's auto tariffs could help China's carmakers, experts say
Trump's auto tariffs could help China's carmakers, experts say

Al Jazeera

time03-04-2025

  • Automotive
  • Al Jazeera

Trump's auto tariffs could help China's carmakers, experts say

China's automakers could be among the surprising beneficiaries of United States President Donald Trump's trade war as a 25 percent tariff on imported vehicles and auto parts takes effect on Thursday, analysts say. The White House has argued the tariff is necessary to protect the US auto industry and strengthen the country's industrial base and supply chains. The US last year imported $475bn worth of auto parts, engines and vehicles, according to the Bureau of Economic Analysis, primarily from Mexico, Japan, South Korea, Germany and Canada. China's presence in the US auto industry has been limited since Trump launched his first trade war in 2018 and imposed tariffs on $380bn worth of Chinese goods. Chinese-made 'light vehicles' – cars, vans, and motorcycles – represented only 0.4 percent of light vehicle sales in the US in 2024, according to JATO Dynamics, an automotive market research firm. This limited presence is largely due to low brand recognition in the US for Chinese automakers and a 100 percent tariff imposed last year by former US President Joe Biden. Starting in 2027, the US will also ban the sale of any Chinese-made 'connected vehicle' hardware or software on alleged national security grounds. These systems, commonly found in EVs, allow vehicles to exchange data via Bluetooth, Wi-Fi or satellite. Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said Chinese automakers are less immediately affected by the US tariffs than their global competitors, which could give them a long-term advantage. 'With European, Japanese and South Korean brands financially burdened by the US market, Chinese brands now have weakened competitors. The cost of doing business in the US will hurt every automaker in that market, but Chinese automakers don't rely on the US for significant revenue,' Fiorani told Al Jazeera. Chinese automakers could also benefit as their competitors face higher costs due to the tariffs, potentially making them more cost competitive in other markets, Fiorani said. The benefits will be most apparent in the EV market, according to experts, even as they remain locked out of the US. China dominates both EV manufacturing and battery production, and last year its EV powerhouse BYD surpassed Elon Musk's Tesla in annual global revenue thanks to strong domestic sales. China is also home to six of the world's top 10 EV battery manufacturers. While Trump's tariffs are expected to have a limited impact on Tesla, which relies less on foreign parts, experts say they will harm would-be competitors to BYD like South Korea's Hyundai, Japan's Nissan, and Germany's BMW and Mercedes. Tu Le, the founder and managing director of Sino Auto Insights, said Trump's tariff policies and push to onshore manufacturing in the US could make American brands less competitive in the long term, ultimately benefitting China. 'The reality is, if things continue as they are for the US auto industry, it could be uncompetitive in four years. Instead of investing in clean energy or charging infrastructure, they are focusing on bringing factories back to the United States,' Lu told Al Jazeera. However, Chinese auto parts suppliers could suffer greater fallout from the tariffs than automakers due to their higher exposure to the US market, according to Nick Marro, principal economist for Asia at the Economist Intelligence Unit. 'Chinese carmakers don't sell much in the US, especially due to high tariffs on electric vehicles, which Chinese brands tend to dominate. However, Chinese auto part manufacturers have historically seen the US as a major market,' Marro told Al Jazeera. 'If disruptions occur, it would likely affect the intermediate components part of the supply chain, which could have cascading effects on the final assembly of US vehicles.' A significant question surrounding Trump's auto tariffs is how they will affect Chinese and other foreign manufacturers that have relocated to Mexico to take advantage of the United States-Mexico-Canada Agreement (USMCA) and proximity to the US border. Following Trump's 2018 trade war with Beijing, many Chinese manufacturers moved operations to Southeast Asia and later Mexico to avoid tariffs. As a result, Mexico's trade with the US has surged, surpassing China to become the US's top trading partner in 2023. In 2024, Mexico supplied more than 40 percent of US auto parts, but many originated from Chinese factories that established operations there over the past eight years. While the Mexican and Canadian auto industries will receive some exemptions from Trump's 25 percent tariffs thanks to the USMCA, the EIU's Marro said that Mexico City is expected to reassess its Chinese manufacturing base as it tries to negotiate down additional tariffs. During his presidential campaign last year, Trump incorrectly claimed that Mexico allowed Chinese automakers to build factories to ship finished vehicles to the US without paying taxes. The issue remains a point of contention, particularly after Trump's return to the White House in January. The Financial Times, citing people familiar with the matter, reported last month that Mexico's Ministry of Commerce had been delaying approving a BYD manufacturing facility due to concerns smart car technology could make it across the US border. Tu Le from Sino Auto Insights said some Chinese companies might seek permission to set up manufacturing in the US. 'I think there is going to be a huge opportunity for Chinese automakers to negotiate a way to build in the United States. I think the Trump administration might see that there is investment happening in the EU,' he said. Such a development would follow similar moves by other Asian carmakers, such as South Korea's Hyundai, which recently announced a $21bn investment in the US ahead of the tariff deadline. Ilaria Marzocco, a senior fellow specialising in Chinese business and economics at the Center for Strategic and International Studies (CSIS), said prospects for Chinese automakers remain uncertain due to current restrictions on 'connected vehicles' imposed by the Bureau of Industry and Security in January. 'I think many people are speculating about a deal where Chinese automakers invest in the US. But aside from the politics, which are challenging, the current connected vehicle restrictions would make it very difficult,' Marzocco told Al Jazeera.

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