17.07. Mobility Update: Electric Pumas, Tariff Reliefs, and One Survivor

EMOTION NEWSLETTER - Daily Mobility Update - July 17, 2024

Welcome to today’s edition of the Daily Mobility Update. In this issue, we cover potential EU tariff reductions for Volkswagen and BMW, Audi's revamped A5, Ford's upcoming all-electric Puma, Honda's hybrid Prelude comeback, and Jaguar Land Rover's strategic model cuts!

EU Considers Lower Tariffs for VW and BMW's China-Made EVs

The European Commission is evaluating the possibility of lowering tariffs on China-made electric vehicles imported by Volkswagen and BMW. This move could reduce tariffs from the current 37.6% to 20.8%, classifying these automakers as cooperating companies. The tariff adjustment would impact BMW's electric Mini and Volkswagen's Cupra Tavascan, both produced in China but not included in Brussels' initial tariff analysis.

This potential reduction aims to alleviate financial strain on European automakers manufacturing in China. The German automotive industry has expressed concerns over high tariffs, fearing retaliatory measures from China, a vital market contributing to a third of their revenue last year. Final decisions on the provisional tariffs are expected by autumn.

Ford to Launch All-Electric Puma EV

Ford is set to launch an all-electric version of its popular Puma compact SUV by the end of this year. The Puma EV, expected to start at under €35,000, will join Ford’s expanding lineup of electric vehicles in Europe, positioned below the Mustang Mach-E, Explorer Electric, and the recently revealed Capri EV. This move comes as Ford aims to revitalize its brand in Europe, where the Puma was the best-selling car in the UK last year.

The powertrain options for the Puma EV are expected to be similar to those used in Ford's E-Transit Courier, with a likely inclusion of a single 134 hp (100 kW) electric motor. The electric Puma, dubbed the “Gen-E,” will incorporate updated features from the new Puma model, including a tech-loaded interior with a wrap-around sports car-style cockpit. It will also feature Ford’s SYNC 4 connectivity and infotainment system, offering twice the computing power of its predecessor, voice recognition, and support for Apple CarPlay and Android Auto. Distinct styling elements will help the Puma EV stand out, such as new badging, redesigned headlights, a closed grille, and a reworked front bumper to enhance efficiency and range.

Jaguar Land Rover's F-Pace midsize SUV is the only survivor

Jaguar Land Rover (JLR) will eliminate five Jaguar models this year identified as "close to zero profitability" to enhance margins and pivot towards luxury electric vehicles. The models being discontinued are the XE midsize sedan, XF large sedan/wagon, F-Type sports car, E-Pace compact SUV, and I-Pace electric SUV. The F-Pace midsize SUV will be the only current Jaguar model to remain in production.

This move aligns with Jaguar's transition to an all-electric luxury brand, with its first new-generation electric vehicle set to be unveiled next year. JLR plans to launch three new all-electric models built on the Jaguar Electrified Architecture (JEA) platform. CEO Adrian Mardell explained that discontinuing these lower-value models will increase the average selling price of JLR products, enhancing profitability.

Honda Revives Prelude Hybrid Coupe for Europe

Honda is reintroducing the Prelude hybrid coupe to the European market, reviving a nameplate last used over 20 years ago. The new Prelude is part of Honda's electrification strategy and was revealed at the Goodwood Festival of Speed. Competing against models like the Mazda MX-5 and Toyota GR86, the Prelude will feature a hybrid drivetrain to offer lower CO2 emissions.

The new Prelude will utilize an enhanced version of Honda's two-motor hybrid system, currently used in the Civic ecompact hatchback. This system pairs a 2.0-liter gasoline engine with a 184-hp electric motor. Honda has not disclosed the exact sales launch date for the Prelude coupe, but its return marks a significant step in the brand’s hybrid innovation journey, building on its history of introducing hybrid technology to Europe in 1999 with the Insight coupe.

Audi A5 Debuts with New ICE Platform and Sleek Design

Audi has unveiled the new A5, replacing the A4 in the brand's updated naming convention, where even numbers denote electric vehicles and odd numbers combustion-engine vehicles. Built on Audi's new Premium Platform Combustion (PPC) architecture, the A5 will be available in sedan and Avant wagon formats in Europe. The A5 features a coupe-inspired shape with a rear hatchback, maintaining the practicality of the previous A5 five-door Sportback. Production of the hybrid version is currently being worked on.

Entry-level models include a gasoline engine. A plug-in hybrid version with a 100-km electric-only range will launch in mid-2025. The new A5 introduces VW Group's E-cubed electrical architecture with enhanced digital user experience features, including up to three dashboard screens and advanced software. Orders in Germany start this month, with prices beginning at €45,200 for the sedan. Deliveries are expected in November across Europe.

Join the conversation!

How do you think potential EU tariff reductions will impact VW and BMW's market strategies?

How significant is JLR's decision to cut five Jaguar models for its future strategy?

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