Geely rides to Ford’s rescue

Ford has not had a good decade in Europe. As recently as 2016, it sold more than 1 million cars on the continent. In 2025, the U.S. automaker sold just over 426,000 cars and in the first six months of this year sales are down more than 15%.

Like traditional rivals, Ford faces growing competition from lower-cost Chinese competitors who are expanding rapidly in Europe.

Industry data shows Ford has been using barely a quarter of the production capacity at its car assembly plant in Spain’s Valencia region.

To fill up that plant, it has formed a joint venture with Geely, under which the rapidly expanding, lower-cost Chinese automaker will make two electric SUVs.

The deal will lower Ford’s costs and help it compete in Europe. It also gives Geely much-needed European production to comply with upcoming local content rules.

But it went down badly with some Republicans, with the chair of the U.S. House select committee focused on China saying the “partnership with Geely will further enable China’s decimation of auto markets in Europe”.

Tesla needs to sell more of these to raise cash -   REUTERS/Mike Blake

Elon Musk has made it clear for some time that he’s not that interested in selling lots of cars as he works towards a bigger, brighter future for Tesla of humanoid robots and AI.

But as Reuters colleagues Akash Sriram and Abhirup Roy report, the problem is that Tesla needs cash from car sales to fund that future.

You can read all about it here.

Tesla missed analysts' profit forecasts for the second quarter and, for the first time in more than two years, reported negative free cash flow as it accelerated its spending.

The company was a first mover in the EV making business for years, but now Chinese and traditional automakers alike are launching electric cars at a blistering pace.

Lower average selling prices hurt Tesla's profitability, as it faces tougher competition across its biggest markets.

The profitability squeeze will make it harder to fund Musk's spending plans, more than $25 billion this year to pay for AI-powered self-driving technology, robotaxis and humanoid robots.

BYD hopes Japanese drivers will love this EV - REUTERS/Manami Yamada. 

Chinese EV giant BYD has been expanding rapidly overseas.

But so far, not in Japan. Between its 2023 Japanese launch and the end of 2025, BYD had sold just over 7,400 cars, in a market where sales hit 4.6 million cars in 2025.

As Reuters colleagues Daniel Leussink and Maki Shiraki report, BYD has now entered Japan’s “kei car” or mini-car market with a boxy EV called the Racco.

You can read all about it here.

BYD will sell the entry-level Racco for less than 2 million yen ($12,213) after taxes and government subsidies, a threshold some analysts see as key for attracting Japanese drivers.

BYD is targeting 10,000 orders by the end of 2026 in a segment that has traditionally been dominated by local automakers like Honda and Suzuki.

A U.S Senate committee approved legislation to toughen a ban on Chinese automakers selling cars in the world’s second-largest, and most lucrative, car market.

But critics say the bill could bar Mercedes-Benz, which is nearly 20% Chinese owned, from selling cars in the United States as a provision would ban companies with ‌more ⁠than 15% Chinese ownership. 

A ban would be a massive blow to Mercedes, which only a few months ago said it would invest $4 billion at its plant in Alabama, about as staunchly Republican a state as you can get, as part of plans to invest $7 billion in the U.S.

Though kicking out the German automaker would no doubt be a boon for its U.S. rivals.

Volkswagen must deepen cost cuts to remain competitive against Chinese brands increasingly taking aim at the German auto group's home market, CEO Oliver Blume said after a mixed quarterly earnings report.

Harley-Davidson reported a lower second-quarter profit and revenue but raised its annual forecast, as the legacy motorbike maker leaned on its wider turnaround plan to ‌navigate higher costs of raw materials.

Renault’s sales rebounded ‌in the second quarter as strong demand for its Renault 5 electric vehicle helped the French automaker resist mounting pressure from Chinese rivals rapidly expanding across Europe.

Mercedes-Benz shares got a boost after cost cuts helped stabilise profit in ‌the second quarter, with further measures planned at its German plants, but intense Chinese competition cast a shadow over its core business.

Hong Kong-listed autonomous mining equipment maker CiDi expects overseas deployments to grow this year as ‌it expands beyond China, said CEO Albert Hu.

Hyundai reported a 21% fall in second-quarter operating profit, missing analysts' estimates, as weaker vehicle ‌sales, production disruptions and higher costs offset support from a weaker won.

Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.