New models planned by Alfa Romeo in 2027

Stellantis' premium brand, Alfa Romeo, will launch the first of its planned new models by the end of 2027, the automaker's head for Europe, Emanuele Cappellano, said last week. The new model, a mid-sized SUV, will be produced at Stellantis' Melfi plant in southern Italy. As part of the new Stellantis business plan, Alfa Romeo will also launch a C-segment hatchback by 2030, based on the automaker's STLA One new modular platform. Alfa Romeo's lineup includes the Junior compact SUV, for which it plans a revamped version, and the Tonale mid-sized SUV, due to be replaced by the new model expected in 2027.

Steep decline for Volkswagen in China

Volkswagen reported an 8.6 percent fall in global vehicle deliveries in the second quarter to 2.07 million units. The steepest quarterly decline in four years comes as a sharp downturn in China outweighed increases in North America and Europe. Deliveries in China, Volkswagen's largest market, tumbled 36.6 percent in the quarter. By contrast, they rose 7.7 percent in North America, 1.8 percent in Western Europe and 6.7 percent in Central and Eastern Europe, the automaker said in a statement. The decline in China was Volkswagen's steepest quarterly drop there since the fourth quarter of 2021, a spokesperson said. "Deliveries in China are disappointing as VW underperforms an already weak market," Metzler analyst Daniel Schwarz said.

US state rebates for first-time buyers

The state of California in the United States has signed legislation creating state rebates of $3,500 on new electric vehicles for first-time buyers later this summer. The $270 million rebate program for California residents is funded by the state budget and automakers. It applies to new vehicles with a suggested retail price of up to $50,000. It includes a separate $1,750 rebate for used EVs costing up to $25,000. US President Donald Trump signed legislation in 2025 that killed the federal $7,500 EV tax credit and a $4,000 used EV credit. The International Energy Agency said one in four new cars purchased worldwide in 2025 was an EV, compared to 7.8 percent of vehicles in the US in 2025, which was down from 8.1 percent in 2024.

Tesla plea over recall and headlight repairs rejected

The US National Highway Traffic Safety Administration on Thursday said it was denying a 2024 petition by Tesla to avoid a recall fix for nearly 20,000 vehicles with headlights that may exceed maximum lighting levels. Tesla argued the issue was inconsequential to motor vehicle safety and did not require a recall or notification to consumers. NHTSA said it disagreed with Tesla's conclusion that there is no increased risk of glare for surrounding traffic or the driver of the vehicle. Tesla did not immediately respond to a request for comment. The agency noted in 2022 it rejected a similar petition from GM to avoid fixing 820,000 vehicles over a lighting issue.

Bosch starts testing out Californian chip factory

German auto component and chipmaker Bosch is beginning sample production at its first US semiconductor factory, finalizing a $225 million agreement with the US Department of Commerce to strengthen manufacturing of silicon carbide chips. Chip shortages sparked industry-wide turmoil during COVID-19, exposing the sector's heavy dependence on a small group of suppliers in Europe and Asia. Bosch bought the chip plant in California in 2023 from TSI Semiconductors and reconfigured it, at a total cost of $2 billion, and will begin commercial production later this year. Paul Thomas, president and CEO of Bosch in North America, said the US-Mexico-Canada Agreement on trade was part of the reason Bosch had increased its investment in the US chip sector.

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