Lax Fuel Economy Rules Are Hurting Rivian

Rivian

Happy Friday! It's August 16, 2025, and this is The Morning Shift — your regular roundup of nan apical automotive headlines from astir nan world, successful 1 place. This is wherever you'll find nan astir important stories that are shaping nan measurement Americans thrust and get around.

In this morning's edition, we're looking astatine really nan nonaccomplishment of substance system credits is hitting Rivian, arsenic good arsenic Stellantis' plans for EVs successful China. We'll besides look astatine Toyota's extremity to bring EVs to South Africa, and Ford's latest recall. 

Rivian

It's unfastened play for substance system successful nan United States, pinch automakers now allowed to build immoderate makes them nan astir money pinch zero respect for its effect connected nan planet. This is bad for anyone who plans connected continuing to unrecorded connected this planet, but it's peculiarly bad for automakers for illustration Rivian that trust connected trading substance system credits to less-efficient automakers. From nan Wall Street Journal: 

Electric motortruck shaper Rivian says nan rollback of substance system rules successful nan U.S. is holding up $100 cardinal of revenue, a motion of really changes to automotive argumentation nether nan Trump management are starting to wounded nan electric-vehicle industry.

Rivian and its rivals person generated hundreds of millions of dollars successful gross trading credits tied to nan nation's substance system rules. But aft nan Trump management removed penalties for violating those standards, nan nation's apical automotive regulator stopped issuing paperwork basal to finalize those credits, leaving EV makers successful nan lurch.

The National Highway Traffic Safety Administration said nan alteration was portion of moves to overturn Biden-era EV rules and reside Corporate Average Fuel Economy standards, known arsenic CAFE. "NHTSA is focusing connected fixing CAFE standards to make cars much affordable again," a NHTSA spokesperson said. "When that process is complete, we will return to issuing compliance letters to manufacturers."

Most of america are astir apt acquainted pinch these credits from nan days erstwhile Tesla made its money connected them. It took years for that institution to really spot a fiscal 4th successful nan achromatic without nan assistance of those credits, and now Rivian's successful nan aforesaid spot — only, suddenly, without nan credits. 

Michael M. Santiago/Getty Images

Newly minted Stellantis CEO Antonio Filosa is making nan world rounds, shaking hands and kissing babies to guarantee each of nan company's important contacts tin spot his look to his name. This included a travel to China recently, wherever a section charismatic asked Filosa to please get Stellantis' ass successful cogwheel astir electrification successful nan country. From Automotive News:

A apical authorities charismatic successful cardinal China's Hubei state is urging Stellantis CEO Antonio Filosa to velocity up nan company's modulation to electrified vehicles successful China.

Filosa, who was named CEO of Stellantis June 23, visited Hubei's provincial superior of Wuhan successful precocious July, according to a merchandise from nan Hubei provincial government.

In a July 31 gathering successful Wuhan pinch Filosa, Wang Zhonglin, caput of nan Chinese Communist Party for Hubei, expressed dream that Stellantis tin put much successful Hubei to accelerate its displacement to intelligent and connected electrified vehicles, nan Hubei authorities said successful nan merchandise connected its website.

Stellantis operates a associated task pinch Chinese automaker Dongfeng, arsenic each automakers that entered nan state earlier 2022 had to, but that associated task only sells a azygous EV. That's simply not capable successful China's electrification-hungry market. 

Tramino/Getty Images

Toyota's been slow connected nan EV uptake, having been lapped by everyone from EV upstarts for illustration Rivian to lumbering, accepted behemoths for illustration General Motors connected really getting electrical cars into user hands. It seems nan institution has learned its instruction pinch nan U.S. market, though, because it seems loath to repetition nan aforesaid correction successful South Africa. From Reuters:

Toyota plans to present 3 fully-electric models successful South Africa successful 2026, a elder executive said connected Thursday, entering a nascent EV marketplace wherever Chinese rivals specified arsenic BYD are already competing pinch European carmakers.

Volvo currently dominates EV income successful South Africa, followed by BMW and Mercedes-Benz, but Chinese EV makers are starting to flood nan marketplace excessively arsenic they activity caller markets amid restrictions connected exports to nan United States and Europe.

...

"We're launching artillery electrical vehicles astatine nan opening of 2026, truthful we will person 3 caller artillery electrical vehicles," Toyota South Africa CEO Andrew Kirby told Reuters connected nan sidelines of an car components conference, without providing further details.

Those "three caller artillery electrical vehicles" could simply beryllium caller to nan South African market, but possibly they'll beryllium wholly clean-sheet vehicles added to Toyota's world lineup. It remains to beryllium seen whether we'll ever spot them, though — this full South Africa push is meant to circumvent U.S. tariffs by simply looking astatine different markets. If only personification had predicted that this would happen. 

Ford

I'm not judge what's happening complete astatine Ford, but nan institution conscionable issued its 102nd callback truthful acold successful 2025. The institution makes up 40% of each NHTSA recalls successful nan United States for nan year, and it's good up of nan full recalls from second-place automaker Stellantis (sitting astatine 21). This latest callback concerns 21,000 Mustangs, Mustang Mach-Es, and Lincoln Nautiluses, which whitethorn person issues pinch their caput aliases tail lights. From USA Today: 

Ford has issued a callback for complete 21,000 vehicles owed to an rumor that whitethorn origin headlights to malfunction, expanding nan consequence of a crash.

Impacted conveyance models see nan 2025 Lincoln Nautilus, 2025 Mustang Mach E and 2025 Mustang vehicles, Ford said successful an announcement connected nan National Highway Traffic Safety Administration (NHTSA) website.

According to Ford, which owns Lincoln, nan LED Driver Modules whitethorn incorporate a instrumentality that tin origin nan low-beam and high-beam headlights, daytime moving lights, beforehand position lights and beforehand move signals to malfunction.

If you're playing nan Ford Recall Drinking Game, thing I presume exists, I'm now concerned for 2 reasons. The first is that there have to beryllium much absorbing things to do drinking games about, but nan 2nd is elemental interest for your beingness health. I certainly haven't had 102 drinks this year. 

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