The Automotive Update: Carmakers prioritise powertrains and plan production possibilities
31 January 2025
Major carmakers have made clear their powertrain priorities. Meanwhile, production planning has been carried out as companies make cutbacks. Autovista24 journalist Tom Hooker takes a look at the week’s automotive headlines.
Which powertrains have carmakers prioritised as electrification appears to run out of power? While some companies look to cut operating costs, others are continuing to invest in development projects. But which brands fall into which category?
What action has Tesla taken over EU tariffs on battery-electric vehicles (BEVs) made in China? What is the latest on the potential Nissan-Honda merger? Finally, will BEVs last as long as internal-combustion engine (ICE) vehicles?
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Powertrain prioritisation for carmakers
Carmakers revealed more about their ongoing electrification plans this week. Renault’s CEO Fabrice Cambolive told Autocar the company will focus on full hybrids (HEVs). This means the brand will not expand its plug-in hybrid (PHEV) range past the Rafale SUV.
Alfa Romeo dropped plans to become an all-electric carmaker from 2027. Instead, the carmaker is opting for a multi-energy strategy. This means Alfa Romeo’s range of ICE models will expand.
Genesis confirmed its commitment to electrified products in the UK. This year the brand will offer three BEVs in the country. This includes the electrified G80, the electrified GV70, and the GV60. In future, its range will be enhanced with hybrid technology.
Production planning
According to a Handelsblatt report, there are growing concerns among Volkswagen’s (VW’s) board members over its finances. This follows the sweeping cuts made at the end of last year. The brand may not reach its profitability target of 6.5% for three to four years, the German publication reported.
Continental’s ContiTech division plans to close three sites before the end of this year. The includes German sites in Bad Blankenburg, Stolzenau and Moers. Around 580 jobs are expected to be affected.
In more positive news, Hyundai has completed its test centre expansion at the Nürburgring. This will enhance the brand’s testing and development capabilities for future electric and high-performance vehicles. This includes new workshop areas, specialised laboratories and high-voltage electric vehicle (EV) charging capabilities.
Meanwhile, SEAT signed the ‘Casa SEAT Declaration’ with governmental bodies. The agreement will promote electric mobility in Spain. This cover purchase incentives, promoting charging infrastructure, renewing public fleets with EVs, and communicating the advantages of the technology.
Tesla and tariffs
The FT reported that Tesla is suing the EU over import tariffs placed on BEVs built in China. The carmaker’s Shanghai division filed the case, which was confirmed by the European Court of Justice on Monday. This follows challenges from multiple Chinese brands as well as BMW and Mercedes, which has joined Geely’s lawsuit against Brussels.
Elsewhere, Renault urged Nissan to negotiate a higher premium from Honda during merger talks, Reuters reported. Representatives from the French carmaker travelled to Japan to underline the value of its stake in the Japanese company.
Meanwhile, Nissan announced it is cutting back shifts at three US factories, Reuters reported. The carmaker will offer employees buyouts to reduce its workforce and cut costs by over €2.5 billion globally.
Can BEVs outlast ICE?
Finally, a new study conducted by the London School of Economics (LSE) confirmed the longevity of all-electric cars. According to the LSE, BEVs now match the lifespans of models powered by ICE.
Researchers used nearly 300 million UK MOT test records to chart the health of every vehicle on the road between 2005 and 2022. This enabled an estimation of vehicle longevity, providing a comprehensive analysis of survival rates for different powertrains.
Early BEVs were less reliable than ICE vehicles. However, rapid technological advances have enabled newer all-electric models to achieve comparable lifespans, even under more intensive use.
‘No longer just a niche option, BEVs are a viable and sustainable alternative to traditional vehicles – a significant step towards achieving a net-zero carbon future,’ said co-author Dr Viet Nguyen-Tien, research officer at the centre for economic performance at LSE.
