Welcome to the Daily 5 report for Friday, Jan. 17.
North American suppliers face a "treacherous environment" with likely steep tariffs coming and the ongoing chaos created by less-than-expected demand for electric vehicles, as our story today by John Irwin explains.
But the situation appears far worse in Europe, where suppliers cut 54,000 jobs in 2024 with more job losses likely to occur in 2025. Automotive News Europe reports today that the record number of job cuts are greater than those announced in 2020 and 2021 combined, European supplier association CLEPA said Jan. 16.
"Unless demand picks up and Europe regains competitiveness, the wave of job losses will continue well into the coming years, leaving the industry and its workforce in a precarious position," CLEPA said.
While North American auto production has remained relatively stable, that's not the case in Europe, the story by Lois Hoyal says. EU vehicle production has plummeted 20 percent, or 3.2 million units, from before the COVID-19 pandemic. In 2024, production was down 700,000 vehicles compared with 2023, CLEPA said.
There's a lot more optimism among Europeans about the launch of Volkswagen Group's Cupra brand in the U.S. Cupra's bold ambitions to enter the U.S. market call for a new model designed specifically for the region and built in North America, a variety of powertrains and a heavy dose of Spanish style, as Jack Walsworth reports today.
To attract American consumers, Cupra plans to lean heavily on an exclusive retailer: Penske Automotive Group. VW and Penske hope to reach a U.S. distribution agreement in 2025. Cupra plans to partner with Penske to open what it calls Cupra City Garages, essentially showrooms, along the East and West Coasts, and throughout the Sunbelt. Details are still being negotiated.
Unlike VW's Scout Motors startup, which plans to sell directly to consumers, a move likely to draw legal challenges from dealers, Cupra will not go down the same road.
From the world of disappearing sedans, Larry P. Vellequette reports today that Lexus will end production of the RC and RC F this year, adding the coupes to the ranks of internal combustion two-door cars being discontinued as Americans migrate to light trucks.
Finally, be sure to check out our report on Rivian Automotive closing its $6.6 billion loan agreement with the U.S. Department of Energy allowing the automaker to build a factory in Georgia for its R2 and R3 crossovers.
Daily 5 will be back on Tuesday, Jan. 21. We'll be off Monday in observance of Martin Luther King Jr. Day.
That's it for today, have a great weekend!
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— Philip Nussel, online editor
