Photo: 42-BRT / Wikimedia Commons, CC BY 4.0
In today's issue:
Ford tells staff to expect Chinese rivals here, a week after handing one a production line
A door microswitch just triggered Mercedes' biggest U.S. recall of the year
Mazda is building the next Miata to take an electric powertrain or a gas one
BOTH SIDES OF THE WALL
Jim Farley told employees at a July 30 town hall that Chinese automakers could enter the U.S. market within five to 10 years, despite the trade barriers currently keeping them out, per Automotive News Europe.
Farley and other senior leaders said in the Q&A that entry is more likely at the latter end of that range, closer to 10 years than five, per Carscoops.
Ford is also, right now, partnering with a Chinese automaker. We covered the Geely joint venture on July 23, when Ford gave Geely a line inside its Valencia plant. Some U.S. lawmakers criticized the deal; Ford said Chinese competition in Europe was pushing every automaker to get "leaner and smarter," which was the point of it.
The wall is two separate things, and only one of them is a tariff. Chinese EVs face duties of roughly 100 percent, plus Commerce Department rules banning Chinese software from model year 2027 and Chinese hardware from model year 2030, per Automotive News Europe. Those connected-vehicle rules were adopted in January 2025 under Biden and kept in place under Trump, which is the part worth noticing: they already survived one change of administration.
Automakers including Ford have applied for authorizations under that same rule, so they can keep selling some China-built vehicles here.
Executive chair Bill Ford put the strategy plainly at an Axios event this month: "We can't expect to keep them out forever, and we have to be able to beat them at their own game." Read alongside Valencia, the Geely deal is not a contradiction of that line. It is the clearest statement of it, which is why some in Congress disliked it.
Also worth knowing
Rivian narrows its loss as R2 ships: Rivian's Q2 net loss narrowed to $837 million from $1.1 billion a year earlier, and the company raised its 2026 delivery guidance by 3,000 units to 65,000-70,000 after launching the R2 crossover, per Automotive News Europe and CBT News. #market
Toyota's fifth straight monthly decline: Toyota's global sales fell 1.1% in June, a fifth consecutive monthly drop, and the company now forecasts ¥3 trillion ($18.4 billion) in operating profit, down from ¥3.8 trillion last year, per CBT News and Just Auto. #analyst
Musk denies the China exit rumor: The Wall Street Journal reported Tesla executives were weighing plans to separate the China business ahead of a possible SpaceX merger; Musk called it "fake news" on X, per Teslarati and CBT News. #news
Reveals & culture
Photo: Alexander-93 / Wikimedia Commons, CC BY-SA 4.0
Mazda confirms the Miata is going electric. Also not.: Mazda CEO Masahiro Moro confirmed the next-gen MX-5, codenamed NE, is being engineered to accept a fully electric powertrain alongside a gas option, with Moro targeting a curb weight somewhere between 2,205 and 2,645 pounds. Today's car sits near the bottom of that range at 2,341 pounds, so the top of it would be roughly 300 pounds heavier than the Miata you can buy now, per AutoGuide and Carscoops.
$25,000 gets you a truck that doesn't feel cheap: Business Insider drove Slate's stripped-down EV pickup and came away calling it a "surprisingly serious pickup" whose toy-like looks undersell it, at a base price under $25,000, per Business Insider. Car and Driver drove it too and was cooler on it, filing the Slate under "an EV for the new austerity era" whose ultrabasic foundations "may not be for everyone," per Car and Driver.
Recalls & legal action
Photo: Alexander Migl / Wikimedia Commons, CC BY-SA 4.0
310,667 Mercedes recalled over a door switch that skips the parking brake: Corrosion in a driver's-door microswitch can stop the automatic parking safeguard from engaging, per Car and Driver and Carscoops. It is Mercedes' biggest U.S. recall of 2026. Seven model lines are affected, and the years differ for each one: 2019-2022 A-Class, 2020-2021 CLA, 2022-2023 C-Class, 2024 CLE, 2020-2026 GLA, 2020-2026 GLB, and 2023-2024 GLC, including AMG and 4Matic variants. → If you own one: Check your model year against that list rather than the headline range, and set the parking brake manually every time until Mercedes' dealer fix arrives.
Evenflo recalls 66,000 child seats: The REO convertible seat's headrest can shift during a crash in certain positions, per Carscoops. Evenflo says most affected seats stay usable while owners wait for repairs, which is the company's own assessment of its own recall. → If you own one: Look up your seat's model and date of manufacture against the recall notice, request the free remedy kit, and avoid the affected headrest positions until it arrives.
Photo: Alexander Migl / Wikimedia Commons, CC BY-SA 4.0
VW recalls nearly 58,000 Atlas SUVs over dead backup cameras: A software flaw on Atlas and Atlas Cross Sport models can knock out the federally mandated rearview camera, per Autoblog and Motor1. → If you own one: Check for the software update notice and don't rely on the camera until it's confirmed working.
Quick links
Lotus's U.S. sales problem has a tariff-shaped hole in it: Motor Trend traces Lotus's American sales slump largely to import tariffs, not product demand.
GM is building its own in-car AI: GM says it will launch a vehicle-specific AI assistant later this year, drawing on OnStar data for predictive maintenance and personalized settings, per CBT News.
Honda's Japan-market Accord update is all turn signals: The refreshed sedan keeps its dual-motor hybrid system and adds Sensing 360+, but the visible news is new blinkers, per Carscoops.
Dongfeng claims a 1,500kW charging prototype: The Chinese automaker says its megawatt charger can hit a 1,500A peak across a 150V-to-1,000V range, per chinaevhome.
Nissan says it cracked "China Speed": Nissan cut development time for new vehicles to 37 months from 50, and to 30 months for derivative models, chasing the 24-month cadence Chinese rivals set, per Automotive News Europe.
Yesterday's picks
Ferrari Says Its EV Sold Out. It Won't Say What "Sold Out" Means.: Ferrari raised full-year guidance after Q2 EBITDA beat forecasts, but won't disclose actual Luce EV order numbers behind its 'sold out' claim.
Zoox clears the last federal hurdle before charging for robotaxi rides: NHTSA granted the first-ever Part 555 commercial exemption for a steering-wheel-free robotaxi, clearing Zoox to move toward paid rides.
318,495 BMWs and Toyotas recalled over starter motors that can catch fire: A shared starter motor defect that can overheat and catch fire affects over 318,000 BMWs and Toyota Supras across multiple model lines.
Suspension is the daily email that makes you the most informed car person in the room.