Tesla Hit by Tariffs, Nissan Merger Stalls: Auto Week

This week in automotive news: Tesla grapples with US-China graphite tariffs, Nissan halts merger talks with Honda, and BYD faces labor violation scrutiny in Brazil. Toyota holds its title as the world’s top-selling automaker, while supply chain challenges reshape quality control. Meanwhile, Mexico’s used car market battles fraud and weak regulations.

Fasten your seatbelt—this is the week in automotive!

Nissan Steps Back from Honda Merger Amid Rising Pressures

Nissan is reportedly stepping back from merger discussions with rival Honda, according to sources familiar with the situation. The proposed US$60 billion deal, which aimed to create the world’s third-largest automaker, now faces increasing uncertainty. 

Mexico's Used Car Market Hit by Fraud and Weak Regulations

The sale of used cars in Mexico faces mounting risks due to fraud and regulatory gaps that have allowed irregular practices to infiltrate even formal dealerships. Independent intermediaries, known as “coyotes,” contribute to the sale of vehicles with legal issues, outstanding debts, or theft reports, creating significant uncertainty for buyers.

BYD Faces Labor Probe Over Exploitative Contracts in Brazil

Recent revelations about working conditions at BYD's Brazil facility have exposed troubling labor practices involving Chinese workers. A group of 163 workers, brought from China to northeastern Brazil to assist in building the factory, were subjected to exploitative labor contracts. Brazilian investigators claim these agreements included clauses that violated both Brazilian and Chinese labor laws.

Tesla Faces Major Impact from US-China Graphite Tariff Dispute

Elon Musk, CEO, Tesla, is leading efforts to block the implementation of a new 10% tariff on graphite imports from China, directly opposing US President Donald Trump’s tariff increases.

Lamborghini Restores Classics, Rejecting Restomod Practices

Lamborghini has reaffirmed its commitment to preserving the authenticity of its classic models, rejecting the growing trend of restomods and continuation cars. While luxury automakers like Jaguar and Porsche have embraced the demand for modernized versions of their classic vehicles, Lamborghini’s restoration division, Polo Storico, adheres to a strict philosophy: each car must be restored exactly as it was originally built.

Olinia Faces Challenges Over Mineral Shortages

The newly announced EV manufacturer Olinia faces scrutiny over its feasibility and long-term viability, especially due to its reliance on critical minerals with severely constrained sourcing.

Toyota Leads Global Sales with 10.8 Million Vehicles in 2024

Toyota sold 10.8 million vehicles globally in 2024, maintaining its position as the top-selling automaker for the fifth consecutive year.

How Tech, Global Trends Are Reshaping Automotive Quality Control

Supply chain disruptions are becoming more frequent and are affecting quality control. For example, the global shortage of semiconductors, a critical component in modern vehicles, has forced automakers to switch suppliers at the last minute, often compromising quality. Similarly, rare earth metals essential for EV batteries are becoming harder to source, leading to reliance on new and sometimes less experienced suppliers. These challenges, combined with the risks of just-in-time (JIT) manufacturing, put pressure on suppliers to deliver quality components quickly. Automakers need advanced tools to monitor and maintain quality in such situations.