US-EU Auto Tariffs Rise as Tesla Expands FSD in Europe

This week in automotive news, global trade tensions escalated as the US raised tariffs on European vehicle imports to 25%. Nissan announced major job cuts in Europe amid cooling EV demand, while the union at Volkswagen Mexico is seeking a 17% wage increase. Despite declining sales volumes, Renault reported revenue growth. Meanwhile, Tesla continues advancing its Full Self-Driving (FSD) technology in Europe, while industry experts are urging Mexico to pursue greater vertical integration to increase regional value creation.

Drivers, eyes on the flag! Here is the week in automotive:

Nissan to Cut 900 European Jobs, Scale Back Sunderland Output

Nissan has announced a sweeping reduction of its European operations, confirming the elimination of approximately 900 jobs and a significant contraction of manufacturing capacity at its flagship Sunderland plant. The move, which represents 10% of the company’s 9,300-strong European workforce, is a central component of the "Re:Nissan" restructuring program aimed at reversing sustained financial losses and adapting to a cooling global electric vehicle (EV) demand environment, which has fallen short of earlier industry projections.

Mexico Needs Regional Vertical Integration: Prodensa

For Mexico to increase its added value and "plant roots," we must take the lead in the regionalization of critical sectors. These include electronics, pharmaceuticals, and electromobility and energy components. To generate more added value, Mexico needs regional vertical integration, which includes everything from mining to specialized steel and high-tech textiles.

Tesla Advances FSD Rollout in Europe After Dutch Nod

Tesla is advancing efforts to deploy its supervised Full Self-Driving (FSD) software in Europe after receiving initial regulatory support in the Netherlands and potential backing from Belgium’s Flanders region. The move marks a step in Tesla’s strategy to expand automated driving capabilities in the European Union, where approval remains fragmented and subject to national and regional oversight.

Renault Group Revenue Rises 7.3% Despite Sales Drop

Renault Group reported revenue of €12.5 billion (US$13.5 billion) in 1Q26, a 7.3% year-over-year increase, despite a 3.3% decline in global sales volume. The company said performance was driven by electrification and financial services in what it described as a “complex environment,” reflecting pricing discipline and improvements in product mix across its portfolio.

Mazda Rolls Out New Minimalist Brand Identity

Mazda de México has officially begun implementing a renewed corporate identity, transitioning to a minimalist design language first unveiled at the Japan Mobility Show 2025. The strategy, effective May 1, 2026, involves a phased rollout across its vehicle lineup, dealership network, collision centers, and corporate offices. This visual evolution aims to enhance brand visibility across digital platforms while aligning its aesthetic with emerging automotive trends in connectivity and electrification.

VW Mexico Union Pushes 17% Pay Hike in 2026 Talks

The Independent Sindicato Independiente de Trabajadores de la Industria Automotriz Volkswagen (SITIAVW) has finalized its opening position for the 2026 collective bargaining agreement negotiations, formally requesting a 17% overall increase in compensation. The proposal, consolidated following a series of internal assemblies across the automaker’s primary manufacturing hub in Puebla, calls for a 13% direct salary increase and a 4% rise in benefits.

US Lifts EU Auto Tariffs to 25%, Scrapping 15% Deal

Donald Trump announced Friday that the United States will raise tariffs on automobiles and trucks imported from the European Union to 25%, effective this week. The administration justified the move by alleging the EU failed to meet commitments under a bilateral trade agreement reached last summer, marking a reversal from the previous 15% rate established under the “Turnberry Agreement.”