Golf Returns to Puebla; GML Doubles Production in Mexico

This week in automotive news: Geopolitical tensions are disrupting EV and battery supply chains, as Tesla stock drops following comments by Donald Trump. China’s dominance in rare earth elements and battery technology remains under global scrutiny. In the United States, automakers are calling for updated regulations on autonomous vehicles (AVs).

Meanwhile, Volkswagen announces the return of the Golf to its Puebla plant, GML doubles its production output in Mexico, and BYD targets families with the launch of its M9 hybrid.

Rev up your engines—this was the week in automotive!

Volkswagen Mexico to Restart Golf Production in Puebla by 2027

Volkswagen Mexico announced it will resume production of the Golf model at its Puebla plant starting in 2027, according to an official company statement. This will be the fifth generation of the Golf assembled in Mexico.

VW Mexico Plant Wins Supply Chain Excellence Award

Volkswagen Mexico’s engine plant in Guanajuato has received the first-ever Road 2 Logistics Award 2025 for its supply chain performance. The facility, located in Guanajuato Puerto Interior, produces up to 2,100 engines daily—one EA888 every 47 seconds and one EA211 every 49 seconds—and supplies Volkswagen Group plants across North America.

Tesla Shares Drop 6% After Trump Targets Musk’s Status, Subsidies

Tesla shares  fell more than 6% on July 1 following remarks by Donald Trump suggesting potential government actions against Elon Musk. These include a review of Musk’s immigration status and reconsideration of federal subsidies provided to Musk-led companies.

China's Rare Earth Curbs Hit Supply Chains; Europe Eases Fears

China’s restrictions on rare earth magnet exports have caused ripples throughout the automotive supply chain, though fears of widespread production halts are easing.

Top Automakers Push US Congress to Fast-Track AV Rules

Leading automakers are urging Congress and the Trump administration to accelerate updates to federal regulations governing autonomous vehicles (AVs), citing expanding robotaxi tests and global competition, particularly from China.

Geopolitics of Batteries Key in Global Energy Transition

“China has taken a significant lead in battery and electric vehicle production, establishing itself as the world leader in this sector. In 2023, it accounted for 54% of global EV production and controlled around 80% of the battery market, thanks to companies such as CATL and BYD. This dominant position is not only due to technological capabilities but also to a comprehensive government strategy involving subsidies, control of raw materials, and long-term planning,” says NextGen Intelligence’s Raul Moreno.

BYD M9 Hybrid Debuts in Mexico, Aims for Toyota Sienna Buyers

Chinese automaker BYD has debuted its M9 plug-in hybrid minivan in the Mexican market, priced at MX$979,800. The model directly competes with Toyota’s Sienna, the segment leader, and marks BYD’s strategic entry into the family minivan space with advanced electrified powertrain technology. BYD aims to sell 200 units monthly.

BYD Transfers Stores From Liverpool to Dealers in Key Markets

BYD is revising its distribution strategy in Mexico following the departure of Liverpool as its initial dealership partner. The Chinese automaker announced that the seven BYD stores previously managed by Liverpool will be transferred to established automotive dealer groups. These locations, situated in key markets such as Perisur, Galerías Insurgentes (Mexico City), Santa Anita, and Guadalajara (Jalisco), will continue operations under new management.

GML to Invest US$165 Million, Doubling Hidalgo Plant Capacity

Giant Motors Latinoamérica (GML), the assembler and distributor of JAC vehicles in Mexico, announced a MX$3 billion (US$165 million) investment to expand its manufacturing plant in Ciudad Sahagun, Hidalgo. The investment will double the plant's annual production capacity to 60,000 vehicles and enable the implementation of Industry 4.0 processes by 2026. The expansion includes constructing 33,000 m² of new facilities and creating 1,000 direct and 4,500 indirect jobs.

New Stellantis CEO Filosa Faces Sales, Industry Pressures

Antonio Filosa officially assumed his role as CEO of Stellantis on June 23, stepping into leadership during a period marked by declining sales, internal tensions, and broader industry uncertainty. His appointment follows the abrupt resignation of Carlos Tavares in December after years of underperformance and mounting dissatisfaction within the company.

Mitsui Chemicals Opens MX$250 Million Plant in Aguascalientes

Advanced Composites, a subsidiary of Japan’s Mitsui Chemicals, has inaugurated an expanded production and logistics facility in Aguascalientes, part of a MX$250 million investment aimed at  achieving an annual output of 9,000 tons of high-performance TPO and polypropylene compounds for vehicle manufacturing. The plant supplies major automakers such as Nissan, Honda, General Motors, Toyota, Volkswagen, and Ford.

GM Recalls 62,468 Silverado HD Trucks Over Fire Risk

General Motors has issued a recall for 62,468 Chevrolet Silverado HD trucks due to a brake pressure defect that poses a potential fire hazard. The National Highway Traffic Safety Administration (NHTSA) confirmed that the affected models include the 4500 HD, 5500 HD, and 6500 HD variants from model years 2019 through 2024.

Uber Considers Kalanick’s Pony.ai Bid to Boost Self-Driving Tech

Uber Technologies is reportedly in preliminary discussions with its co-founder and former CEO, Travis Kalanick, to help finance his potential acquisition of Pony.ai’s US subsidiary. The China-based autonomous vehicle company has been exploring the sale of its US operations to comply with regulatory restrictions.

Chinese Auto Brands: Steady Presence, Slower Growth

“Despite the lack of official records for some brand operations, their presence has undeniably grown and continues to increase in the country. One only has to look at the streets and highways to see the number of previously unknown Chinese-brand vehicles now flooding the cities” says TIP Mexico's Mauricio Medina.