Good morning! It’s Thursday, January 23, 2025, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Tesla Prices Up $6,500 In Canada
President Donald Trump threatened all kinds of tariffs on imports from countries such as Mexico, China and even Canada while out on the campaign trail. Now that he’s in office, the “Home Alone 2” actor has kicked off his efforts to bring in duties of up to 25 percent on products imported into the U.S. from February 1, and this has sparked a response from north of the border that could see buyers in both America and Canada worse off.
The first victim of this impending face off may have come sooner than expected, as Tesla just hiked prices of its electric cars in Canada, reports InsideEVs. The company has raised prices on all of its models except the Cybertruck, which only launched in the country at the end of last year:
The biggest bump in pricing will be for the Model 3 sedan, which will see its MSRP go up as much as $6,200 (C$9,000). Meanwhile, all variants of the Model Y, Model S and Model X will see increases of $2,750 (C$4,000).
It’s unclear what the reason behind the pricing increases is, as Tesla did not explain the move. That said, it might have something to do with the impending tariff war between the United States and Canada. Earlier this week, Canadian Prime Minister Justin Trudeau made it clear that its government plans to respond accordingly if U.S. President Donald Trump imposed 25% tariffs on imports from Canada and Mexico starting next month.
The price hikes in Canada show what the real impact of Trump’s tariffs could be: price rises across the board. Additional fees on imports from Canada and Mexico in particular will have a dramatic impact on the auto industry, as top-selling models like the Toyota Tacoma, Honda CR-V and Nissan Versa are all produced away from America’s fair shores.
Should Trump get his way and a 25 percent tariff is added to those vehicles, the price is likely to be passed on to you, the consumer. What, did you think automakers would just happily make 25 percent less money on each car sold?
2nd Gear: EV Maker VinFast Is Hemorrhaging Money
The corpse of failed EV maker Canoo is still warm, but we already have to move onto the potential demise of another struggling electric vehicle maker: VinFast. The Vietnamese automaker has had a rocky launch for its electric models and has cost its parent company billions in recent years, which is finally taking its toll on shareholders.
VinFast parent company VinGroup is now facing pressure from shareholders to dramatically reduce funding for the struggling automaker, after plowing $17 billion into the EV maker last year alone, reports Reuters. Foreign investors in the brands are now offloading their shares in VinGroup as profits take a hit as a result of VinFast’s struggles:
Among foreigners who fully divested their holdings in the conglomerate last year are investment vehicles of BlackRock and DWS, while JPMorgan’s asset management unit nearly halved its stake to 0.13%, according to LSEG data.
Vingroup’s largest foreign investor, South Korean conglomerate SK Group, is planning to sell by mid-February about one-fifth of its 6% holding as part of a possibly broader divestment plan in Southeast Asia.
Vingroup said foreigners’ net selling was a wider trend in Vietnam and Southeast Asia, driven largely by high interest rates in the United States.
VinFast lost nearly $2 billion in the first three quarters of last year, latest data show, but is narrowing its losses as revenue grew thanks to car sales having exceeded its revised-down target last year.
The losses are reflecting badly on the valuation at parent company VinGroup, adds Reuters, with VingGroup’s market capitalization shrinking by “nearly half” to $6 billion since VinFast’s listing. The company’s share price has fallen six percent in the past year as well.
The solution? Well it looks as though VinFast may be finding a way to claw its way back from the brink. Sales were up in the third quarter of 2024 and the company is still eyeing further expansion around the world. It’s going to have to sell an awful lot of cars to make good on that $17 billion loan, though.
3rd Gear: Jeep Recalls 63,000 Cherokees Over Power Loss
The U.S. recall championship has been off to a strong start in 2025, with Tesla, Chevrolet and Kia all announcing huge recalls of defective models so far this year. Now, Stellantis has got its first major recall on the board after power loss issues hit the Jeep Cherokee.
Stellantis has issued a recall of 63,000 Jeep Cherokee SUVs sold across America, reports CBS News. The recall was called for after certain 2017-2019 models were found to have a defect that could cause the vehicles to lose power and impede parking:
As a result of a poorly seated input shaft ring, the vehicles’ “power transfer unit (PTU) may become damaged and disengage the transmission and differential, resulting in a loss of drive power and/or loss of park function,” the recall documents state. “A loss of drive power can increase the risk of a crash. A loss of park function can cause an unintended vehicle rollaway, which can increase the risk of a crash or injury.”
Though drivers may experience “a Service 4WD message, noise, vibration or change in drive quality,” the manufacturer cautions that “a loss of motive power can cause a vehicle crash without prior warning.”
The recall documents do not state whether Stellantis is aware of any crashes or injuries related to this issue.
Stellantis hasn’t yet outlined a fix for the issue, but added that notification letters will be mailed to impacted owners around February 13.
If you are worried that your car might be affected by a recall, there are a few easy ways to check if it’s the case. First up, the NHTSA has a super handy app that you can use to see if your vehicle is impacted by a recall, or you can head to the regulator’s website and plug your VIN into its recall search tool.
4th Gear: Nissan Cancels U.S.-Bound Small Electric Crossover
Just days after the new administration heralded an end to an electric vehicle mandate that never actually existed, the impact of the new government’s anti-EV stance is taking shape. Support for new EV buyers has already dropped and now Nissan has announced that it’s scrapped plans for a small electric crossover that could have been sold in America.
Nissan has reportedly shelved plans for a subcompact electric crossover that could have been built at its Canton, Mississippi, plant, reports Automotive News. The decision comes amid a turbulent time for the EV market and for Nissan:
The financially hamstrung automaker told suppliers that it won’t build the electric vehicle — code-named PZ1L — at its plant in Canton, Miss., sources tell Automotive News. Instead, output is expected to be consolidated at Nissan’s factory in Sunderland, England, according to AutoForecast Solutions.
Nissan spokesperson Brian Brockman said the automaker is focusing on other EV projects for the Canton plant that would better meet market needs and deliver higher volumes.
“We will continue to evaluate market opportunities for new models and make adjustments accordingly,” Brockman said.
The decision comes just months after Nissan revealed it was pausing plans for next-generation EV production to come to Canton. The move put a $500 million investment in the plant on hold.
Now, Nissan is nearing a deal that would see it join together with fellow Japanese automaker Honda. If the pair joins forces they could share the development costs of new electric models and better utilize their current facilities to help lower the cost of next-generation eclectic models.