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Welcome in, today is Monday, October nineteenth, and we begin with the Franco-German accord on the European Union's twenty thirty-five rules, reported by Automotive News.
Following our earlier report on France and Germany moving to ease the European Union's twenty thirty-five carbon dioxide targets, the two capitals have now struck that accord, according to Automotive News. The same reporting says it would also open the door for Britain to benefit from Made in Europe rules. Automotive World reports the deal promises European factories will not become mere assembly plants, but requires only ten percent local battery content. Just Auto reports the British and European industries had argued that excluding UK manufacturers would disrupt highly integrated supply chains. No effective date appears in that reporting. That ten percent floor is the number to watch, because it sets how much of the battery value chain has to sit in Europe to count. Industry reaction splits on whether a softer target slows electrification at all, and a recurring concern in the trade is that the industrial side of the bargain is defined loosely enough to be gameable.
Also today, Stellantis will build small electric vehicles at its Pomigliano plant in Italy, using an EV platform being developed with its Chinese partner Leapmotor. That is Chief Technology Officer Ned Curic, per Automotive News. The same reporting says Stellantis engineers are working with Leapmotor colleagues on the small-EV program, and that one of the planned models is expected to be a revival of the Citroën two C V. That model detail is not confirmed. Pairing a Chinese-developed platform with Italian assembly puts a cost structure inside the tariff wall that European small-car programs have struggled to match. Industry reaction leans skeptical on brand authenticity, with some in the trade reading a jointly developed platform as a Chinese car wearing a European heritage nameplate, and others noting that shared platforms routinely yield genuinely distinct vehicles.
Separately, Toyota will take its Arene software-defined vehicle platform from two models today to fifty nameplates and ten million vehicles by twenty thirty. Automotive News reports the ramp-up is aimed at heading off digitally driven rivals from China and Silicon Valley, and that Toyota later intends to share the software with partners, an announced intention rather than a confirmed deal. Arene first deployed on the redesigned RAV4 in twenty twenty-five, per that same reporting. A fifty-nameplate footprint is the kind of number suppliers, dealers and software partners plan against years before the launch dates. Industry reaction leans skeptical on feasibility, with some in the trade treating the jump from two models as a steep execution bet, and a recurring owner-level complaint about slow, rarely updated infotainment as the credibility gap any over-the-air strategy has to close.
Now, an update on a story we carried Friday. Stellantis is laying the groundwork to import electrified Jeeps to Canada from China, Automotive News reports, after scrapping plans to build the next-generation Jeep Compass at the idled Brampton Assembly plant in Ontario, a site it aims to sell to a local defence contractor. Lv Haitao, general manager of Dongfeng Stellantis Automotive Technology, says the target export markets for the electric Jeep include Canada but not the United States, per that account, which also carries Unifor calling the plan entirely unacceptable. Brampton has not built a vehicle since twenty twenty-three, so the open question for suppliers and bargaining units is where Canadian-market Jeeps get built at all. The plan is described as a target, not a confirmed program.
Now, a few more headlines moving the trade today. Volkswagen says parts-sharing across four new small EVs saved six hundred million euros and drew nearly one hundred fifty thousand orders, Automotive News reports, though brand chief Thomas Schäfer still wants EU credits to protect thin margins. Waymo will begin mapping Toronto streets with human-driven vehicles, targeting autonomous rides in twenty twenty-eight, per Digital News Report, which says Ontario regulatory requirements remain unresolved. Subcompact SUVs overtook full-size pickups as Canada's second-most-popular retail segment in the third quarter, with lower-priced EVs selling faster than the overall market, according to Automotive News. And finally, GlobalData has revised its world vehicle sales forecast down, with China the drag and the picture outside China brighter, Just Auto reports.