Mexico Exports Grow as Olinia EV Prototype Moves Forward

This week in automotive news: Mexico’s automotive sector recorded an 11.4% increase in light-vehicle exports in April, supported by diversification strategies aimed at offsetting US tariff pressure. At the same time, the country advanced its domestic electric vehicle strategy with the announcement that the Olinia prototype will be unveiled on June 7.

In parallel, industry groups intensified efforts to block Chinese vehicle imports into the United States, while global automotive stakeholders renewed calls to extend the USMCA. Meanwhile, European and Japanese automakers faced mounting margin pressure linked to tariffs and weakening demand, with companies such as Honda pausing electric vehicle expansion plans due to significant projected losses.

More news below:

Tesla Ends Model S and X Production After 14 Years 

Tesla has ended production of its Model S sedan and Model X SUV after 14 years at its Fremont, California, factory, signaling a decisive shift toward artificial intelligence, robotics, and autonomous mobility. The company confirmed the move on social media, sharing images of the final vehicles assembled and formally closing a chapter that helped establish Tesla as a pioneer in the premium electric vehicle market. 

US Automakers Urge Trump to Block Chinese Car Imports 

A coalition of US automakers, labor unions and lawmakers is urging Donald Trump to block Chinese vehicles from entering the US market ahead of a planned summit with Xi Jinping. The push reflects growing concern that expanded market access for Chinese automakers could disrupt domestic manufacturing and supply chains. Industry stakeholders warn that price competition fueled by state-backed subsidies could alter production dynamics and reduce domestic output across multiple segments of the automotive sector. 

Mexico to Unveil Olinia EV Prototype on June 7 

The government of Mexico announced that the prototype of the Olinia electric vehicle will be presented on June 7, with production scheduled to begin in 2027 at a plant with an initial capacity of 20,000 units per year and a target of 50,000 vehicles within four years. The project, presented at Palacio Nacional by President Claudia Sheinbaum Pardo, forms part of Plan México, a national industrial strategy aimed at establishing a domestic electric vehicle brand.  

European Automakers Face Margin Squeeze on US Tariffs 

European automakers face mounting pressure on profitability and sales following new tariff measures promoted by Donald Trump, according to an analysis published by Scope Ratings. The agency said the proposed US tariffs targeting vehicles produced in the European Union are expected to reduce margins and intensify operational challenges for manufacturers dependent on exports to the United States. 

Mexico Vehicle Exports Climb 11.4% Amid US Tariff Pressure 

Mexico’s light-vehicle exports rose 11.4% in April to 286,317 units, driven by market diversification strategies adopted by automakers facing tariff pressure from the United States. Data published by INEGI and industry representatives show the increase helped stabilize production and sustain external demand despite trade uncertainty affecting North American manufacturing flows. 

Why Nearshoring Is North America’s New Industrial Era 

“For years, nearshoring was treated as a buzzword, an appealing concept circulating in boardrooms, trade forums, and investment decks. That framing no longer holds. In Mexico, particularly within the automotive sector, nearshoring has evolved into a structural force reshaping production, capital allocation, and the very logic of North American competitiveness,” says Francisco Nicolas González, President, INA. 

Honda Suspends Canada EV Expansion, Cites US$15.7 Billion Losses 

Honda is halting construction of planned electric vehicle and battery plants in Canada as weaker demand and rising financial risks prompt a restructuring of its electrification strategy. The company estimates cumulative electric vehicle–related losses could reach ¥2.5 trillion (US$15.7 billion) by the fiscal year ending March 2027, driving a shift toward hybrid vehicles.  

Toyota Sees 19% Profit Decline on US$9 Billion Tariff Impact 

Toyota reported a 19% decline in annual net income after United States tariffs reduced operating income by approximately ¥1.38 trillion (US$9 billion), according to results for the fiscal year ended March 31, 2026. The company said tariffs were the single largest factor affecting profitability and warned that business conditions remain challenging heading into the next fiscal year. 

Porsche Cuts 500 Jobs as CEO Refocuses Core Business 

Porsche announced Friday a significant reduction in its corporate footprint, confirming the closure of three specialized subsidiaries and the elimination of more than 500 jobs. The move underscores a strategic shift under CEO Michael Leiters, who is refocusing the automaker on its core vehicle business amid weaker quarterly results and evolving demand in the electric mobility segment.  

Rolls-Royce Hires Tattoo Artists for EV Bespoke Project 

Rolls-Royce has announced a major expansion of its manufacturing headquarters alongside the unveiling of “Project Nightingale,” a fully electric two-seater convertible that inaugurates the brand’s permanent Coachbuild Collection. Supported by a £300 million (US$408.63 million) investment to add 40,000 m² of production space, the British luxury marque is shifting further toward high-margin, low-volume commissions as demand for bespoke craftsmanship reaches record levels. 

Auto Industry Urge USMCA Extension Ahead of Review 

Seven of the world’s leading automotive trade associations formally petitioned the administration of President Donald Trump to extend the USMCA, describing the free trade agreement as essential to preserving the United States' position as a "globally competitive production base" amid mounting pressure from Asian and European competitors. 

China EV Truck Sales Jump 45% in 1Q26 as Diesel Costs Rise 

China’s transition toward electric heavy trucks is accelerating as rising diesel prices linked to the Iran conflict reshape cost structures across the freight sector. New-energy heavy truck sales increased 45% year over year to 44,000 units in 1Q26, representing more than a quarter of total segment sales.  

NORMA Group Wins US$35 Million Auto Supply Deal for Mexico Output 

NORMA Group, a global leader in engineered joining technology, has secured a seven-year contract valued at approximately US$35 million to supply advanced thermoplastic fluid and purge lines to a leading automotive manufacturer. Beginning in 2029, the company will use its manufacturing facilities in Mexico and Serbia to deliver specialized tubing systems directly to original equipment manufacturer (OEM) assembly plants in the United States and Europe. 

Mexico City Tightens Rules for E-Scooters, Mobility EVs in 2H26 

The Government of Mexico City has announced a comprehensive regulatory framework for electric scooters and personal mobility devices, mandating license plates, official registration, and specialized driver’s licenses beginning in 2026. The new measures, which classify vehicles based on speed and power output, aim to integrate the rapidly expanding electric mobility segment into the city’s formal transportation system while addressing growing concerns over road safety and infrastructure use. 

BMW Group Hits 2 Million EVs Produced Globally 

BMW Group has produced its 2 millionth fully electric vehicle, a BMW i5 M60 xDrive assembled at its Dingolfing plant in Germany, marking a production milestone tied to the company’s manufacturing scale and electrification strategy. The anniversary vehicle, finished in Tanzanite Blue, is scheduled for delivery to a customer in Spain, the company said on May 5.