By now, it's no secret that extremely cold temperatures have a negative impact on the range of EVs, which is precisely why most now come with a heat pump that helps mitigate those losses. This includes the Ford Mustang Mach-E, which - before that component arrived - was subjected to multiple studies that found it lost around 31 percent of its range in very cold temps, as well as 30 percent when driving in freezing temps between 20-30 degrees when compared to a 70-degree day. Now, a new study sheds some more light on this phenomenon.

This new study comes to us from AAA, which tested six hybrids and EVs in cold, hot, and moderate temperatures (20, 75, and 95 degrees Fahrenheit), all on a chassis dynamometer with the HVAC set at 72 degrees. In hot temps, it found that hybrid vehicles lost 12 percent in terms of fuel efficiency, while EVs experienced a 10.4 percent reduction in efficiency and an 8.5 percent loss of driving range when compared to 75 degree temps.

In cold temperatures, hybrids lost 22.8 percent in fuel economy, while EVs lost 35.6 percent in efficiency and 39 percent in terms of driving range. As for how this translates to expenses, hybrid fuel costs grew by $28.44 per 1,000 miles in cold temps, or $13.02 in hot weather. EVs experienced an increase in operating costs of $32.11 per 1,000 miles when charged at home, and $76.93 when using public charging in cold weather. In hot temps, those figures came in at $6.78 and $16.25, respectively, meaning that it's important for owners to factor these variances into their budget.

“EVs are efficient in moderate temperatures but lose significant range in the cold,” said Greg Brannon, director of automotive engineering and research at AAA. “We expected this from our previous research, but were surprised by the 23 percent reduction in fuel economy for the hybrids in cold temperatures. Drivers should consider climate, energy costs, and driving patterns when choosing a vehicle that best fits their lifestyle.”

Source: AAA and Ford Authority

As Deeper Cuts Loom…
Volkswagen Group’s top leadership concluded that the automaker’s long-standing business model is no longer sustainable, setting the stage for deeper restructuring, capacity reductions and a sharper shift toward local production in key markets. VW Group’s management and supervisory boards reached the conclusion during a meeting on April 27, according to people familiar with the matter. While no formal decisions were taken, the conclusion underscores mounting pressure on the group to adapt to a more fragmented global trade environment and faster technological change. Source: Automotive News

VW Warns of More Cuts As Dealers Brace For Potential Supply and Pricing Shifts
Volkswagen is warning it may need to make additional cost cuts, as analysts praise the automaker’s efforts to stabilize its financial footing. The details: The potential reductions follow weaker-than-expected first-quarter profits, which Volkswagen attributed to higher U.S. tariffs and intensifying competition from Chinese brands, CNBC reported.

Source: Car Dealership Guy

After First-Quarter Results Announced
Shares of auto giant Stellantis fell sharply on Thursday after the company reported a near tripling of its adjusted operating income in the first three months of the year, supported by improved sales in its key North American market. The multinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, posted first-quarter adjusted operating income of 960 million euros ($1.12 billion).

Source: CNBC

The St. Catharines plant will build GM V-8 engines for trucks and SUVs
General Motors says it will spend $691 million on its St. Catharines Propulsion Plant to support production of its latest V-8 engines for full-sized trucks and SUVs. The automaker says the updates will make St. Catharines its third plant to produce the sixth generation of the engine, with production also based in Buffalo, N.Y., and Flint, Mich.

The investment comes as tariffs imposed by the U.S. government have raised concerns about the future of Canada's automotive sector.

GM Canada president Jack Uppal says in a news release that the investment confirms St. Catharines' role in one of its core vehicle programs for years to come. The automaker has also been investing in its plant in Oshawa, Ont., that produces pickup trucks, though the company also moved the plant from three shifts to two at the end of January.GM's CAMI assembly plant in Ingersoll, Ont., is sitting idle after it ended production of its electric delivery van last year.

Trevor Longpre, Unifor Local 199 plant chair for the GM powertrain plant, told CBC Niagara that the investment is a huge vote of confidence in the plant and its workforce after a year of turmoil in the auto sector. "This investment is a signal that this plant makes great quality products for their highest-demand and best-selling vehicles, so we take that as an encouraging sign," he said. It's also a sign that General Motors St. Catharines is a part of the company's footprint in Canada for the long term, said Longpre. What it will mean exactly for the workforce, which currently has just under 500 active workers with about 150 workers on layoff, isn't clear just yet, he said. But Longpre said after a year of uncertainty spurred on by tariffs imposed on the automotive sector in Canada by U.S. President Donald Trump and his demands that automotive manufacturing be moved to the U.S., it's good news. "Considering the uncertainty that's all throughout the auto industry right now, news like this is the first positive news we've heard since the tariffs were enacted last year. So, this is very encouraging to hear for us and especially for our community."

Source: CBC

The forecast for light vehicle (LV) sales globally continues to deteriorate, with Automotive World revising its estimate down 0.5pts. This brings the full-year total to 88.6 million units, or a 1.1% decline from the previous year. China continues to see a sharp cooling in domestic demand following the expiry of subsidies at the end of 2025. Meanwhile, the North American market is battered by high vehicle prices, a straining auto finance sector, and the lingering effects of US tariffs. Despite the gloomier outlook, Europe and India have gathered momentum.

Source: Automotive World

For Texas Ford dealer Sam Pack, the F-150 and Super Duty trucks aren’t just important vehicles—he says they are the “foundation” of his business. That is why Pack, who owns four stores in the Dallas-Fort Worth area, is a little nervous right now. Pack’s truck supply is limited because of a shortage of aluminum that is roiling the entire auto industry. He has about 42 days’ worth of F-150 inventory, down from the 60 days he normally maintains. “We’d love to have more,” he said.

Source: Wall Street Journal

April was a tough month for new car buyers. CDK Global’s Ease of Purchase Scorecard fell to 81%, the lowest April reading in three years. The CDK report blames shrinking inventory and sinking consumer confidence for the drop. The score dropped from 88% in March and fell well below the 87% to 90% range of previous Aprils. Fewer than half of all buyers, 44%, found the vehicle they wanted in stock. That’s down from 57% in March and four percentage points below the April 2023 low of 48%. Inventory shortages forced buyers to work harder and make more compromises.

Source: CBT News

Sales of the Ford Mustang family - comprised of the ICE-based Ford Mustang Fastback Coupe and Convertible plus the all-electric Ford Mustang Mach-E crossover - decreased in the United States during the first quarter of 2026. 

Sales Numbers - Mustang Family - Q1 2026 - USA

Model	Q1 26 / Q1 25	Q1 26	Q1 25
Mustang	+50.09%	14,074	9,377
Mustang Mach-e	-60.37%	4,600	11,607
Total	-11.01%	18,674	20,984

Cumulative deliveries of the Ford Mustang family in the United States decreased 11 percent to 18,674 units in Q1 2026, comprised of:

• 14,074 units of the Ford Mustang, an increase of more than 50 percent compared to 9,377 units delivered in Q1 2025, and
• 4,600 units of the Ford Mustang Mach-E, a decrease of over 60 percent compared to 11,607 units sold in Q1 2025

Sales Numbers - Mustang Family - Q1 2026 - Canada

Model	Q1 26 / Q1 25	Q1 26	Q1 25
Mustang	+0.33%	904	901
Mustang Mach-e	+2.27%	2,116	2,069
Total	+1.68%	3,020	2,970

Cumulative deliveries of the Ford Mustang family in Canada increased 48 percent to 3,640 units in Q2 2025, comprised of:

• 942 units of the Ford Mustang, an increase of nearly two percent compared to 924 units sold in Q2 2024, and
• 2,698 units of the Ford Mustang Mach-E, an increase of over 76 percent compared to 1,530 units delivered in Q2 2024

Sales Numbers - Mustang Family - Q1 2026 - Mexico

Model	Q1 26 / Q1 25	Q1 26	Q1 25
Mustang	+20.11%	215	179
Mustang Mach-e	+83.33%	22	12
Total	+24.08%	237	191

Cumulative deliveries of the Ford Mustang family in Mexico increased 43 percent to 181 units in Q1 2026, comprised of:

• 172 units of the Ford Mustang, an increase of more than 42 percent compared to 121 units sold in Q1 2025, and
• 9 units of the Ford Mustang Mach-E, an increase of 50 percent compared to 6 units delivered in Q1 2025

Two very different vehicles and three very different markets.

Source: Ford Authority

The nation’s auto dealers spent a record $9.96 billion on advertising last year as higher tariffs and an uneven economy did little to dampen their marketing efforts. The National Automobile Dealers Association reports the year over-year-increase was relatively small, as spending climbed just 0.4% from 2024. But it was enough to mark a continuation of a dealer ad spending recovery since the pandemic upended the market. The 2025 total also was sufficient to beat the previous record of $9.82 million set in 2016. It also marks a $2.48 billion increase since the low point in advertising was recorded in 2020.

Source: Insider Radio

New-vehicle inventories fell to 2.85 million at the start of May as elevated fuel prices drove demand for hybrids and electric vehicles to record levels while supplies of such models dropped, data firm Catalyst IQ said. The latest tally of light-vehicle inventory represented a 2.7 percent decline from the beginning of April but was 1.2 percent higher than the same point a year ago. The industrywide 76 days’ supply, calculated using the most recent rate of sales, was down from 80 days the previous month, but up seven days from where it stood a year earlier, the data and analytics firm said.

Source: Automotive News