Category: Auto

TENS of thousands of Volkswagen vehicles have been recalled in the US after some engines began coming loose – risking starting a blaze.

The company is ordering the return of some crossover SUVs, including certain Atlas and Atlas Cross Sport cars made in 2024 and 2025.

VW Atlas 2024 is one of the models being recalledCredit: YouTube @Consumer ReportsA total of 177,493 have been recalled over fears they could have loose engine covers.

The manufacturer wants to check whether the covers were installed incorrectly after the cars were serviced.

Loose covers could make contact hot engine surfaces, according to the National Highway Traffic Safety Administration.

And officials warned this hot contact posed a risk of fire.

Customers with the affected cars are being urged to bring them to a Volkswagen dealership.

There, the engine cover will be removed free of charge to remedy the issue.

The problem is understood to only affect Volkswagen models based in the United States.

Owners can check if they need to visit a VW dealership by searching online with a few details.

They need to input their licence plate number, model and year of manufacture into the NHTSA portal.

That will immediately tell the owner whether their particular model is affected by any recall orders.

It comes after another huge car name recalled 9,000 motors over fears they pose a fire risk.

Hyundai bosses are concerned that brake fluid could leak into the affected cars, potentially sparking engine fires.

The company is urging drivers to park vehicles in open spaces and away from flammable materials.

And thousands of cars have been recalled over a faulty display feature that could cause serious danger to drivers.

Drivers of these vehicles should look out for a missing detail which could prompt a trip to the auto shop.

According to the latest recall, Volkswagen and Audi electric vehicles were missing the gear “N.”

This mistake could confuse drivers, increasing the likelihood of a vehicle rolling away, according to the National Highway Traffic Safety Administration.

Source: https://www.the-sun.com/motors/13726462/thousands-volkswagen-recalled-engines-loose-fire/

China’s electric vehicles are around three to five years ahead of the competition in terms of products, technology and the industrial chain, BYD’s CEO Wang Chuanfu said in an interview with China’s national television broadcaster.
Wang was interviewed on Monday after Chinese President Xi Jinping’s symposium with some of the biggest names in China’s technology sector. Wang was among the business leaders who spoke at the meeting.

China overtook Japan in 2023 as the world’s largest auto exporter, but its electric vehicle exports face tariffs from the United States and the European Union, with the EU imposing 17.0% tariff on BYD’s EVs.

Source : https://www.reuters.com/business/autos-transportation/chinas-electric-vehicles-are-around-3-5-years-ahead-byd-ceo-says-2025-02-18/

The discussions unravelled after Honda proposed to have Nissan as a subsidiary instead of the plan, to integrate under a new holding company.

Tokyo, Japan: Japanese auto giants Honda and Nissan on Thursday confirmed they had scrapped merger talks announced in December, bringing an end to a tie-up that would have created the world’s third-largest automaker.

The firms said in a joint statement that they “agreed to terminate the MOU (memorandum of understanding) signed on December 23 last year for consideration of a business integration between the two companies”.

The firms’ intention to join forces had been seen as a bid to catch up with US titan Tesla and Chinese firms in the electric vehicle market.

Honda’s CEO insisted in December that it was not a bailout for Nissan, which last year announced thousands of job cuts after reporting a 93 percent plunge in first-half net profit.

Local media reports have said the discussions unravelled after Honda proposed to make its struggling rival a subsidiary instead of the plan, announced in December, to integrate under a new holding company.

In the joint statement, the automakers confirmed Honda “proposed changing the structure from establishing a joint holding company… to a structure where Honda would be the parent company and Nissan the subsidiary through a share exchange”.

“As a result of these discussions, both companies concluded that, to prioritise speed of decision-making and execution of management measures in an increasingly volatile market environment heading into the era of electrification, it would be most appropriate to cease discussions and terminate the MOU,” the statement said.

Source: https://www.ndtv.com/auto/honda-and-nissan-terminate-merger-heres-why-the-talks-fell-through-7707500#pfrom-movies-topstories

THE US government is reportedly planning to buy buffed-up “Armoured” Tesla EVs worth $400million from Donald Trump’s best pal Elon Musk.

The Department of State released a procurement forecast list which mentions a five-year contract – reportedly the biggest of 2025 – that could fall into Musk’s lap.

The initial version of the document released in December included an item called “Armored Tesla” with a five-year contract starting in 2025.

However, the document was revised to remove the mention of Tesla Inc. after reports emerged about it on Wednesday.

It now simply says $400 million worth of “armoured electric vehicles”.

The contract is due to be finalized by the end of the year and is currently in the “planning” phase.

However, given Trump and Musk’s newly forged bromance, one can expect Tesla to land the deal.

While no specific car model has been announced yet, the huge government order is most likely to be for Tesla Cybertrucks, which can cost almost $100,000 with full specifications.

Musk, who is known to be a huge fan of military and defence equipment, said in 2020: “I just wanted to make a futuristic battle tank, something that looked like it came out of Blade Runner or Aliens.”

Although, Musk replied to a post on X saying: “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”

Many state police departments have already added the futuristic truck to their fleet, some even splashing up to $150,000 to upgrade it into a “Robocop”.

Musk also deployed Cybertrucks across Los Angeles to act as power hubs and battery banks during the ongoing wildfire mayhem.

Billionaire tech tycoon Musk is leading Trump’s new Department of Government Efficiency (DOGE) as the “secretary of cost-cutting”.

He has been tasked by the US president to gut federal government spending across all departments.

However, speaking to reporters in the Oval Office this week, the Tesla boss insisted there would be no “conflict of interest” if his billion-dollar companies received government contracts from the same agencies where he is looking to axe spending.

He said: “You have to look at the individual contract.

“If you see any contract where it was awarded to SpaceX and it wasn’t by far the best value for the taxpayer, let me know – because every one of them was.”

Musk’s SpaceX was awarded a $39 million defense contract just days ago.

Source : https://www.the-sun.com/motors/13532812/us-400million-armored-tesla/

Skoda India recently launched its most affordable vehicle in the Indian market, the Kylaq. The sub-4m SUV is the flag-bearer of the brand in its segment and hence carries a lot of hopes for the brand. It has already received over 20,000 bookings within 2 months of launch and now the brand hopes to increase the numbers further via a partnership with the quick-commerce company, Zepto.

The Bengaluru-based company, Zepto is known for its promise of delivering groceries among other items within 10 minutes. Now, the company has partnered with Skoda Auto to deliver the car to the doorstep of interested customers for a test drive. Zepto will add a new tab for its consumers saying ‘Test drives in 10 minutes’.

Zepto recently released a video showing an executive delivering a Skoda Kylaq to customers after they pick it up from a dealership. The advertisement went viral, and while gaining traction on social media, the ad also got people thinking about the possibility of a 10-minute delivery of a car. However, that’s not the case.

Clarifying the situation, Zepto CEO and Co-Founder, Aadit Palicha said, “No, We’re Not Delivering Cars in 10 Minutes…yet.” He further added, “We’ve seen the headlines—Skoda & Zepto delivering cars in 10 minutes?! We love the energy, but let’s clear things up: you won’t be ordering a Škoda Kylaq from the Zepto app (as tempting as that sounds).”

He then said, for now, the consumers can only get a test drive of the Skoda Kylaq within 10 minutes. But he still left out the possibility of delivery of cars via Zepto, saying “But…who knows what the future holds?”

Source : https://www.ndtv.com/auto/skoda-kylaq-delivery-in-just-10-minutes-via-zepto-really-true-7646800#pfrom-movies-topstories

Nissan (7201.T), CEO Makoto Uchida met with his Honda (7267.T),  counterpart Toshihiro Mibe on Thursday to say he wanted to end their merger talks after the larger automaker proposed making Nissan a subsidiary, said a source with knowledge of the matter.
The Japanese automakers in December signed a memorandum of understanding to discuss an integration under a holding company to create the world’s No.3 automaker and compete in an increasingly tough industry.

But the talks have been complicated by growing differences, multiple people familiar with the matter have told Reuters, and hit a wall after Honda said it wanted to turn Nissan into a subsidiary.
“A consensus was reached (on Nissan’s side) that the talks cannot proceed under that proposal,” said the source with knowledge of the discussions, declining to be identified because the information is not public.

Nissan will formalise the decision to withdraw from the MOU at a board meeting to be held before the company’s third-quarter earnings announcement next week, the source added.
Honda’s current stance is that it would not accept an integration unless Nissan agrees to become a subsidiary, Japanese public broadcaster NHK reported.
Honda is Japan’s second-largest car maker behind Toyota (7203.T), and Nissan is the third-largest.

Nissan and Honda spokespeople declined to comment on the status of their talks, repeating earlier statements that they aimed to finalise a future direction by mid-February.
A scrapping of the talks raises questions about how Nissan, which is in the middle of a turnaround plan, can ride out its latest crisis without external help. Nissan has already announced plans to cut 9,000 workers and 20% of global capacity.

Source : https://www.reuters.com/markets/deals/nissan-ceo-uchida-tells-honda-ceo-mibe-he-wants-terminate-merger-talks-asahi-2025-02-06/

Volkswagen has sued Indian authorities to quash an “impossibly enormous” tax demand of $1.4 billion, arguing the ask is contradictory to New Delhi’s import taxation rules for car parts and will hamper the company’s business plans, court papers show.
Volkswagen’s unit, Skoda Auto Volkswagen India, also told the High Court in Mumbai the tax dispute puts at risk its investments of $1.5 billion in India, and is detrimental to the foreign investment climate, according to the 105-page filing which is not public but was reviewed by Reuters.

In the biggest ever import tax demand, India in September slapped a $1.4 billion tax notice on Volkswagen (VOWG_p.DE), opens new tab for using a strategy to break down imports of some VW, Skoda and Audi cars into many individual parts to pay a lower duty.
Indian authorities alleged Volkswagen imported “almost the entire” car in unassembled condition – which attract a 30-35% tax applicable on CKDs, or completely knocked down units, but evaded the levies by mis-classifying them as “individual parts” coming in separate shipments, paying just a 5-15% levy.

Volkswagen India had kept the Indian government informed of its “part-by-part import” model and received clarifications in its support in 2011, the company says in the court challenge.
The tax notice is “in complete contradiction of the position held by the government … (and) places at peril the very foundation of faith and trust that foreign investors would desire to have in the actions and assurances” of the administration, the Jan. 29 court filing states.

The Indian finance ministry and the customs official who issued the demand order did not respond to requests for comment outside regular business hours.
Volkswagen’s India unit said in a statement it is using all legal remedies as it cooperates with authorities and remains committed to ensuring “full compliance” with all global and local laws.
A Volkswagen spokesperson in Germany did not respond to a request for a comment.

The German carmaker is a tiny player in India’s 4 million units a year car market, the world’s third biggest, where its Audi brand also lags competitors in the luxury segment like Mercedes (MBGn.DE), opens new tab and BMW.
A government source earlier told Reuters that with penalties, Volkswagen India may have to pay about $2.8 billion if it loses the dispute. In 2023-24, VW India reported sales of $2.19 billion, and a net profit of $11 million.
The tax dispute comes at a time when Volkswagen is battling to cut costs to better compete with Chinese rivals and cope with weak demand in Europe. In December it announced 35,000 future job cuts in Germany. In its biggest market, China, the carmaker has said it will sell some of its operations.
‘BODY BLOW’ FOR INVESTOR SENTIMENT
Volkswagen argues it is not liable to pay higher taxes as it did not import car parts together as a single “kit”, but instead shipped them separately, combining them with some local components to make a car.
To explain what a “kit” is, it refers to a “practical analogy” of buying a chair online from Amazon, which is then delivered in one shipment with all parts and fixtures needed to assemble the piece of furniture.
In the case, authorities alleged Volkswagen’s local unit regularly placed bulk orders for cars through internal software which connected it to suppliers in Czech Republic, Germany, Mexico and other nations.
And after the order was placed, the software broke it down into “main components/parts”, roughly 700-1,500 for each vehicle depending on the model, which were shipped separately over time.
Source: https://www.reuters.com/business/autos-transportation/volkswagen-sues-india-quash-enormous-14-bln-tax-demand-legal-filing-shows-2025-02-02/

Hyundai Creta Electric offers a maximum range of up to 473 km on a single charge using a 51.4 kWh battery pack.

Hyundai India has launched the Creta Electric in the Indian market. The electric SUV has been introduced at a starting price of Rs 17.99 lakh (ex-showroom) and goes up to Rs 23.50 lakh (ex-showroom). Carrying forward the name of the brand’s most popular model in the Indian market, it is also the most affordable electric vehicle in the brand’s current lineup. The EV is poised to compete against models like Tata Curvv EV, Mahindra BE 6, and the upcoming Maruti Suzuki e-Vitara in the country.

The design of the Hyundai Creta Electric draws significant inspiration from its internal combustion engine (ICE) version, particularly in terms of aesthetics. It features similar headlamp designs and daytime running lights (DRLs). It gets some unique elements like a sealed grille and a charging port adorned with the Hyundai emblem. Additionally, it gets a newly designed bumper is to accommodate active air flaps that manage airflow for battery cooling. The overall shape of the vehicle remains unchanged, but it includes a redesigned 17-inch alloy wheel. Buyers can choose from eight monotone colors and two dual-tone variations.

Inside the Hyundai Creta Electric, the layout closely mirrors that of the ICE model, with some revisions. It includes a revamped three-spoke steering wheel that displays a pattern with dots instead of the standard Hyundai logo. The vehicle also features a completely digital instrument panel and an updated touchscreen infotainment system equipped with new software and other elements, all presented with light-colored upholstery.

Source: https://www.ndtv.com/auto/auto-expo-2025-hyundai-creta-electric-launched-in-india-priced-at-rs-17-99-lakh-7495392#pfrom-auto-topstories\

Tiago NRG is a more rugged version of the Tiago. It comes with a host of cosmetic changes to the exterior.

Tata Motors has teased a new variant of the Tiago NRG. It is expected that the new variant will be the XT variant. As of now, the Tiago NRG is only offered with the top-spec XZ. The upcoming XT variant of Tiago NRG will be more affordable than the top-spec variant and will sit below it. We are expecting Tata Motors to launch the Tiago NRG in the coming weeks.

The NRG version of the Tiago gets only cosmetic changes. The additional body cladding does give a rugged stance to the Tiago NRG. When compared, the Tiago NRG is 37 mm longer than the regular Tiago. There are no changes to the underpinnings, the additional length comes from the added body cladding in the front and back.

Source: https://auto.hindustantimes.com/auto/news/renault-to-carry-on-with-separating-electric-and-combustion-engine-businesses-41659248180135.html