Welcome to My Car Week, a newsletter by Thomas Gigold. I’ve been writing about cars and mobility for 20 years now. Feel free to share & subscribe, helping me to keep it real. ✌️

Hey, Welcome back.
I hope this mail finds you well. I've taken a few days off and am writing this mail from the balcony of a lovely house in northern Tuscany. I made good use of my time and moved the little newsletter from substack to beehiiv - for a reason.
Since a lot has happened in the last weeks, let's try to catch up, shall we?

In this mail:

• Punitive tariffs in Europe against Chinese electric cars

• VW and Mercedes invest in combustion engines again

• New, exciting electric models

🤑 EV company Fisker is done. But that also means they have to get rid of all the cars they still have. So, if you're interested, the Fisker Ocean is now available with an astonishing 80% discount. / The Verge & futurezone (de)

Europe imposes punitive tariffs on EVs from China

After the announcement a few weeks ago, the EU is now getting serious. Since 4 July, punitive tariffs have been imposed on EV imports from China.
This doesn't just affect purely Chinese manufacturers, but also companies like BMW, which produce cars in China and import them to Europe - a normal practice in a global production process.

German and even French manufacturers are strongly opposed to the tariffs imposed by the EU Commission. However, the new rule does not affect French manufacturers at all - they neither produce nor sell cars in China, unlike their German competitors.

The EU has promised talks with China. For the time being, nobody has to pay anything; the tariffs are only "credited" temporarily. But time is ticking. No manufacturer wants to accumulate large sums of money. Moreover, companies like BMW need planning certainty for their electric MINI models that come from China.

Depending on the manufacturer, the penalties range from 17.4% to 37.6% of the vehicle price. The EU Commission believes that "significant damage is imminent, clearly foreseeable and imminent" because manufacturers in China receive massive financial support from the government.
European manufacturers disagree with the EU and don't see an immediate threat in their home markets. Instead, they fear a trade war with China that could cause major problems in sourcing resources and car sales in China. China is one of the largest trading partners for batteries and rare earths. For German premium manufacturers, the Chinese market is crucial - Mercedes and BMW sell around a third of their vehicles there.

The EU and its member states have until November to agree on final measures. Until then, the current rules will remain in place unless a majority of members object by 18 July, which is unlikely.

In the meantime, Chinese BYD is investing in Turkey to start building cars for the European market there by 2026. / QZ

🙅 BMW will discontinue the X4 series after the current model. At least as a car with a combustion engine. / Motor1 (it)

6️⃣ There’s also rumors around bringing back 6 Series model, even though BMW declines those / Car & Driver

Germany is losing touch with electric vehicles - as a market

Germany is not making the transition to electromobility. The political uncertainties surrounding expansion of charging infrastructure and subsidies for buying an EV are leading to a massive slump in EV sales.
Instead of electric cars, the number of combustion engine sales is increasing again, as are CO2 emissions in the transport sector.

In June, the number of new registrations increased by 6% compared to the same month last year. At the same time, the number of new EV registrations fell by 18%. While EV registrations are rising in Europe, the curve in Germany is pointing downwards. June was not an outlier. In the first 6 months of 2024, the decline in EV registrations was 16% compared to the same period last year.

🚙 A car in Germany covers an average of 12,320 kilometers per year.

A breath of fresh air in the electric compact segment

First, the Hyundai Inster.
A compact electric vehicle designed for urban use. Visually, it looks like a Frankenstein's monster of 90s micro cars and new Hyundai design. Technically, however, it is impressive - with a battery range of 355 kilometres, lots of assistance systems and clever ideas. Price: below 25k Euro, details will follow later this year.

The Fiat Grande Panda is more stylish than the Inster, if you ask me.
Funnily enough, with its pixel design it looks more like a brother of the Hyundai Ioniq 5 than Hyundai's take on the segment. Technically, the Grande Panda is closely related to the new Citroën C3 (both come from the Stellantis group) and, like the latter, has a range of 320 kilometres.

Like the Citroen C3, the Grande Panda will be available as an EV and a combustion engine - the prices should then be at the same level. The combustion engine starts at 15,000 euros at Citroen, while its electric brother starts at 23,000 euros.

Last, but not least, Ford is reviving the name “Capri” – and like the Puma, the new car is a SUV. This time, though, it’s an electric one; even though it is a Volkswagen: under the Ford design there’s a Volkswagen ID.5 hidden - so it is not surprising that Ford is launching the new Capri with the same technical data and at similar prices, starting at 50k Euro. For the start, there is a rear-wheel drive and an all-wheel drive model, which come with a 75 or 77 kWh battery and offer a range of 627 kilometres. An entry-level 52 kWh battery version is to follow at the beginning of 2025.
The fact that VW technology is being used here is probably also due to a long period of neglect, as Ford has been asleep for years in the development of its EV platform.

📉 Porsche has to watch its sales of the Taycan falling. The German newspaper Stuttgarter Zeitung speaks of 54% fewer sales in 2024 and reports that the company in Zuffenhausen is planning to produce the model in single-shift operation only. / Stuttgarter Zeitung (de)

Tell Me You Have Money, Without Telling Me…

Just one word: insane. The Bugatti Tourbillon.
A hybrid consisting of a 1,000 hp V16 engine combined with 3 electric motors delivering an additional 800 hp. 0 to 300 km/h in less than 10 seconds - faster than a normal car from 0 to 100 km. Top speed 445 km/h.

The Tourbillon is initially limited to 250 units.
Price: 3.8 million Euros, excluding taxes.

Oh, and the instruments are made by luxury watchmaker Jacob & Co. The company has, of course, also presented a watch to go with the car. You can get it for "only" 340,000 Euros. / Bugatti

🪓 Tesla has reduced its global workforce by more than 14 percent since the beginning of 2024. In April, the figure was still 11 percent. There could be more to come. / CNBC

Mercedes and Volkswagen to Update Their Compustion Engines

Volkswagen and Mercedes now plan to build combustion vehicles for longer than originally planned. The reason for the decision is the same for both manufacturers: sales of EV models are sluggish.

Contrary to their plans, both manufacturers are investing billions more in their combustion engine divisions to make them "fit for the next decade". The aim is to meet future emissions targets without dramatic new developments & to make the engines fit for hybrid use.

The intention to build combustion engines for longer also has consequences for the S-Class: the revised version of the current car will be launched in mid-2026. "We have invested much more in the facelift of the new combustion S-Class than we normally spend on a facelift," Mercedes CEO Kallenius told the German business magazine Wirtschaftswoche. / Auto, Motor Sport (de) & Wirtschaftswoche (de)

💰 VW is investing heavily in the US electric car manufacturer Rivian. The Group wants to benefit from the start-up's software and car platform. / Car & Driver

That’s all folks!
– Thomas