AGP Executive Report

GM’s Strategic Shift: General Motors reported $50 billion in third-quarter revenue and higher profit, even as U.S. sales fell about 6%. It plans to add hybrids as Toyota gains ground, while expanding OnStar with AI features and targeting eyes-off driving. Connected Cars: Spotify and Audi launched a native in-car app in select models, letting drivers stream without phone tethering. Industry Investment: Canada and Ontario announced a $9-billion support plan for steel and auto industries, including $2.5 billion over two years for major automotive projects. Safety Alerts: Toyota is recalling about 106,000 Land Cruiser hybrids over a fuel-leak fire risk; Volkswagen recalled nearly 73,000 EVs over faulty batteries. New Technology: Toyota plans to test a hydrogen fuel-cell Hilux at the Dakar Rally, while Hyundai Mobis aims to begin domestic automotive-chip production by 2029. Market Moves: BYD’s updated Seagull EV launched in China with a claimed range of up to 420 kilometres.

Autonomous Driving: Toyota plans to use its own AI in self-driving cars from 2028, drawing on data from its global fleet and adding safeguards for unexpected situations. Supply Chains: Hyundai Mobis is targeting 2029 for mass production of its first domestically developed automotive chips, linking local chipmakers with vehicle demand. Safety Alerts: Toyota is recalling about 105,800 Land Cruiser hybrids in the U.S. over a fuel-leak fire risk. Volkswagen is recalling nearly 72,700 EVs worldwide over faulty battery cells, with affected owners told to limit charging to 80% pending inspection. Industry Outlook: A KPMG survey found 51% of executives expect software and digital technology to become automakers’ main competitive edge by 2035; 48% expect six of the world’s 10 largest carmakers to be Chinese. Hydrogen Trucks: Toyota says its fuel-cell trucks can refuel in eight minutes and travel up to 450 miles; U.S. commercial service is planned for 2027. Motorsport: Toyota Racing secured the WEC manufacturers’ title with a one-two finish at Barcelona.

GM Earnings: General Motors reported higher third-quarter profits and announced a $20 billion share buyback, drawing criticism from the UAW and Michigan Senate candidate Mike Rogers, who said the company should prioritize workers and manufacturing. EV Safety: Volkswagen recalled nearly 23,000 ID.4s over battery-fire risk; owners are advised to keep charging below 80% until a repair is ready. AI in Development: Nissan says AI-assisted diagnostics cut vehicle software investigation time from two weeks to two days, and the system will expand to future vehicle programs. Hydrogen Trucks: Toyota plans to start building fuel-cell Hilux pickups in Thailand in December 2027, initially for export. Autonomous Driving: Mercedes-Benz and Nvidia are expanding their partnership to develop advanced driver-assistance and autonomous systems, with technology designed to support Level 4 driving.

EV Transition: South Africa’s AutoWeek panel focused on building electric-vehicle demand, expanding charging infrastructure and turning growing consumer interest into jobs and investment. EU Trade Rules: Türkiye is pressing for full inclusion in the EU’s proposed “Made in EU” framework, warning that sourcing and assembly rules could disadvantage its auto exporters. Software & Chips: ECARX’s acquisition of Flyme Auto and Flyme OS assets gives it software, engineering teams and OEM contracts as automakers compete to control the in-car digital experience. Korean partners are also developing chiplet-based automotive semiconductors for AI and autonomous driving. New Models: Mercedes-AMG has unveiled its first in-house-developed full-size electric SUV, with the GT 63 rated at up to 860kW. BMW’s new iX4 will offer up to 828km of claimed range. Industry & Autonomy: Volkswagen is weighing a global wage freeze through 2030 as it pursues cost cuts, while Hyundai and Kia are testing Level 4 autonomous trucks on a 400km route.

Electric Performance: Mercedes-AMG unveiled its first fully in-house-developed electric SUV, with up to 1,153 hp and 710-kW charging. Production Recovery: Toyota and Honda have restarted Thai production as supply chains recover from flooding. Volkswagen Cuts: The company is considering a global pay freeze through 2030 as it steps up cost-cutting and job reductions. Software and Autonomy: Toyota aims to make all its models software-defined by 2030, while Volvo and Nvidia are expanding work on self-driving systems. New EV Platforms: Subaru says its next electric platform, due in 2029, will be developed independently, with software-defined vehicles also planned for the late 2020s. Safety Recalls: Hyundai is recalling more than 94,000 Genesis sedans over a power-seat fire risk; Toyota has also recalled vehicles over a fault that could cause power loss at speed.

EV Strategy: Honda is studying India’s used electric two-wheeler market, focusing on battery health and resale values before deciding how to expand; it expects a clearer picture within three years. Mercedes-Benz is stepping up its South Korean EV push with the electric CLA and GLC, its first models on new dedicated platforms. Market Shift: Hybrids made up 37.1% of vehicle exports through Ulsan in the first nine months, up from 29.8% a year earlier, while combustion and fully electric shipments declined. South Korean auto exports fell 5.5% in September, though shipments to North America and the EU rose. Global Competition: Hyundai’s vehicle-development chief warned that Chinese automakers are bringing better-equipped designs to Europe at prices about $10,000 lower. Volkswagen plans to sell Chinese-built models in Australia as it seeks new export markets. Europe’s Comeback: Ford is preparing a product push featuring compact EVs, hybrid crossovers and a small Bronco, but key launches are still years away. France and Germany also backed a conditional path for UK-built vehicles to qualify for proposed European sourcing preferences; EU approval and reciprocity terms remain unresolved. New Models: Audi has launched the third-generation Q5 in South Africa, where the luxury market has contracted sharply over the past decade.

Two-Wheeler Growth: Honda Motorcycle & Scooter India is targeting 6 million domestic sales in FY27 and plans to lift annual capacity to 8 million by 2028. Software and Autonomy: Toyota aims to make every model software-defined by 2030. Mercedes-Benz and NVIDIA are expanding work on automated driving, with Level 4 vehicles in view. Safety Alerts: Hyundai is recalling more than 94,000 U.S. vehicles over a power-seat fire risk and advises owners to park outside. Volkswagen is also recalling several thousand EVs over a battery flaw, while Toyota recalled about 31,000 RAV4 plug-in hybrids over possible power loss. India Investment: Hyundai inaugurated its Pune plant as part of a $15.5 billion India investment plan through 2032, including four planned EVs. Electric Performance: Mercedes-AMG unveiled its first in-house SUV, an all-electric model with up to 1,153 horsepower and 710-kW charging.

Automated Driving: GM is using immersive simulators to study driver reactions as it develops “eyes-off” systems, beyond today’s hands-free assistance. Hyundai’s India Push: Hyundai is stepping up its robotics and physical AI efforts amid Chinese competition, while expanding in India with a new Pune plant and a $15.5 billion investment plan through 2032. Its Creta has passed 1.5 million sales in India. Safety and Quality: Volkswagen is recalling several thousand EVs over a battery-cell flaw that could raise fire risk. Hyundai’s U.S. recall covers more than 94,000 vehicles over overheating seat motors. Software Shift: Toyota aims to make all roughly 50 models software-defined by 2030, expanding its Arene platform to millions of new vehicles. Motorsport: Toyota starts Barcelona’s six-hour WEC race on the front row with a chance to clinch titles, while Mercedes says it would welcome Sepang’s return to the F1 calendar.

Electric Performance: Mercedes-AMG unveiled its first SUV developed in-house, an all-electric GT with up to 1,153 hp. U.S. sales are due in summer 2027. Rallying: Toyota swept the Rally Italia Sardegna podium as Elfyn Evans claimed his first drivers’ title, completing the team’s sweep of the 2026 WRC championships. China Strategy: Toyota plans to build the next Corolla in China from 2028, using a platform that can support multiple powertrains. Workforce: BMW is offering generous voluntary redundancy packages as it targets up to 8,000 job cuts; applications were paused after strong employee interest. India Expansion: Hyundai plans to invest $15.5 billion in India through 2032, while Audi launched its new Q3 there at ₹5.199 million. Safety: Hyundai is recalling more than 94,000 U.S. vehicles over a power-seat fire risk and advises owners to park outside.

Safety Recalls: Hyundai will recall 94,622 Genesis vehicles in the U.S. over a power-seat switch that could overheat and cause a fire; owners are advised to park outside while a repair is developed. Toyota is also recalling about 31,000 RAV4 plug-in hybrids over software that could cause power loss. India’s Car Market: Renault launched the Duster Strong Hybrid E-Tech 160 from Rs 16.99 lakh, claiming 29 kmpl fuel economy. Audi’s new Q3 arrives from Rs 51.99 lakh, locally assembled as the brand targets a larger share of India’s luxury market. Investment and Technology: Hyundai Motor Group plans to invest $15.5 billion in India through 2032, spanning manufacturing, R&D and future mobility. Separately, Foxconn parent Hon Hai agreed to buy half of Mitsubishi Electric Mobility for $728 million, combining expertise in powertrains, software and vehicle controls. European Auto Rules: France and Germany agreed on a proposal for EU-made vehicles to qualify for public support, with a possible path for Britain but not Türkiye; the plan still needs wider EU approval.

Safety Recalls: Hyundai warned owners of 94,622 Genesis sedans to park outside because power-seat motors could overheat and start a fire. Volkswagen is also recalling several thousand EVs over battery-cell defects and advises owners to limit charging to 80%; Toyota recalled about 31,000 RAV4 plug-in hybrids over a software fault that could cut power. Software Shift: Toyota plans to make all 50 models software-defined by 2030, using its Arene platform and over-the-air updates. India Expansion: Hyundai committed $15.5 billion to India through 2032, including a Pune plant expansion and plans for four EVs by 2029. Global Competition: Mexico clarified that its new tariff break on imported car parts applies only to automakers already producing locally, while BYD used the Paris Motor Show to promote new models and plans for 3,000 European fast-charging stations by 2027. Ownership Deal: Penske Automotive agreed to go private in a deal valuing the company at about $16.3 billion.

Safety Recalls: Toyota is recalling nearly 31,000 2026 RAV4 plug-in hybrids after a software fault was found that could cut power or shut the vehicle down at speed. Volkswagen is preparing recalls for electric cars with faulty battery cells that could overheat and catch fire; Hyundai is recalling more than 94,000 US vehicles over a power-seat motor fire risk. Autonomous Driving: Mercedes-Benz and Nvidia are expanding their partnership on driver-assistance and automated-driving systems, including technology for the CLA and an L4-ready architecture for the S-Class. Toyota’s Software Push: Toyota aims to make all its models software-defined by 2030, using its Arene platform, and plans to add 100,000 units of annual capacity at its Bidadi campus from 2027. India Investment: Hyundai has opened its Pune plant and plans further investment to raise capacity, with AI and other new businesses also part of its broader India expansion. Labour Tensions: Stellantis workers in Canada will vote on strike authorization this weekend amid stalled contract talks and uncertainty over the Brampton plant.

Dealer Deal: Penske Automotive accepted a buyout by Penske Corp. and Mitsui for the shares they don’t own, valuing the dealer group at $16.3 billion. The $212-a-share deal is expected to close in early 2027. Safety Recalls: Toyota is recalling about 31,000 RAV4 plug-in hybrids over software that could cut power or shut down at speed. Hyundai is recalling 94,622 vehicles over front seat motors that may overheat and catch fire. India Expansion: Hyundai opened its Pune plant and plans to invest $15.5 billion in India through 2032, including capacity growth and new models. Stellantis also plans ₹4,000 crore in investment and 12 Jeep and Citroën launches or updates. Europe Policy: Germany and France are pushing to soften the 2035 combustion-engine phaseout while tightening “Made in Europe” rules for incentives and public contracts. China Headwinds: Volkswagen’s third-quarter deliveries fell 14% as sales weakened in China, adding pressure on the group’s restructuring.

India Expansion: Hyundai opened its Pune plant and plans a further ₹4,000 crore investment there by 2030, while its wider India programme totals $15.5 billion through 2032. The group plans new EVs and hybrids, and will direct part of its spending to AI and other businesses. Production Plans: Toyota plans to add 100,000 vehicles of annual capacity at its Karnataka plant from early 2027, as it works to shorten waits and prepare for new models. Recalls: Hyundai is recalling 94,622 Genesis and G80 vehicles in the US over power-seat motors that could overheat and cause a fire; owners are advised to park outside until repairs are available. Toyota is also recalling about 31,000 RAV4 plug-in hybrids over a fault that could cause power loss at speed. New Models: Toyota launched the Glanza facelift in India from ₹6.99 lakh, adding features including ventilated seats and Level 2 driver assistance. Audi’s redesigned Q3 is due to launch in India on October 16, while Honda has set a December 2 debut for its 0 Alpha electric SUV.

India Investment: Hyundai Motor Group will invest $15.5 billion in India through 2032, expanding manufacturing, R&D and local supply chains. An additional ₹4,000 crore will lift capacity at its Pune plant to 320,000 vehicles a year, supporting plans for new models and electrification. New Models: Hyundai’s redesigned Bayon small SUV adds a full-hybrid option in 2027, while Toyota has unveiled a Tamaraw-based jeepney for the Philippines. Safety: Volkswagen is recalling 22,524 ID.4 electric SUVs over a battery fire risk. Industry Policy: Spain’s Valencian Community will lead Europe’s automotive regions alliance from 2027, with priorities including targeted investment, competitiveness and worker retraining.

India Expansion: Hyundai Motor Group will invest $15.5 billion in India through 2032, expanding manufacturing and R&D as it builds the country into a global export hub. A new Pune plant takes Hyundai’s annual Indian capacity close to one million vehicles. Sales Pressure: Volkswagen deliveries fell 14.3% in the third quarter to 1.89 million, with China sales down 38.5% as weakness across key markets weighed on results. Trade and China: BMW chairman Milan Nedeljkovic urged open markets and stronger China-Europe dialogue, saying competition on technology and value drives innovation. Europe Production: China approved Geely’s 34% stake in Ford’s Spanish subsidiary; the partners plan to build two electric SUVs at Ford’s Valencia plant through a joint venture. Safety Recall: Mercedes-Benz is expanding a brake-hose recall to cover more than 30,000 S-Class vehicles.