Smart will launch the replacement for the electric Fortwo in 2026
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Smart will launch the replacement for the electric Fortwo in 2026
- It wasn't initially planned, but the Smart brand (50% owned by Mercedes and 50% by Geely) will indeed launch a replacement for the old electric Fortwo in the fall of 2026. In fact, the sales results of the current range (#1, #3, #5) have fallen far short of expectations, both in China and Europe. The carmaker's management decided it was wise to complement this range, considered too expensive and too different from the original one, with a small electric model in the A-segment, given that the old Fortwo – both its combustion engine and electric versions – had been produced in Europe in 2.2 million units between 1998 and 2024.
- Geely, which produces the electric Smart #1, #3, and #5 in China, is reportedly looking for a production site in Europe to assemble its upcoming small electric car, to be called the #2. The Chinese carmaker currently faces tariffs of over 25% in Europe on its imports from China, and producing the model in Europe would allow it to avoid these tariffs. This is important because the Smart #2 will be primarily intended for the European market. Geely has reportedly already contacted Renault, among others, about producing the Smart #2 at one of its factories in Spain.
- Another important piece of information is that the Mercedes A-Class, which will be discontinued in 2028, will indeed have a replacement, but it will be a Smart that could be called Smart #4 or #6. This one will of course be a battery electric vehicle like all current Smart models.
- This future Smart, to be launched in 2027/2028, will be an hatchback sedan as the A-Class and will attempt to attract former owners of the Mercedes B-segment model, of which 4.7 million units were produced between 1998 and 2024.
SAIC and FAW are producing fewer and fewer Volkswagens in China
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SAIC and FAW are producing fewer and fewer Volkswagens in China
- Since 2020, Chinese carmakers SAIC and FAW, which produce Volkswagens in China, have had to stop operations in several factories dedicated to the production of these cars, due to the constant decline in Volkswagen sales on the Chinese market, which have fallen from 4 million vehicles in 2019 to 2.6 million units in 2025.
- This loss of 1.4 million vehicles resulted in the shutdown of production at three plants, with a fourth (Nanjing) scheduled to close by the end of 2025. These four plants have a combined capacity of one million vehicles. Other plants have seen their production reduced or are being converted to the production of electric vehicles.
- The Volkswagen Group, which was the leader in the Chinese market for several decades, has therefore de facto confirmed that it will never again reach the sales volumes of the years 2015-2019 by reducing its capacity to 3 million vehicles per year in China.
- This is especially true since this initiative is accompanied by a strategic transition of the German carmaker towards battery electric, even if Volkswagen will have to make very significant efforts to be able to compete against Chinese carmakers already well established in the electric market such as BYD, Geely, Leapmotor, Nio, Xiaomi or XPeng.
- Despite the repurposing of some sites, Volkswagen maintains a significant industrial footprint in China, its second-largest market worldwide after Europe. The group is accelerating the conversion of several plants to electric vehicle production, including models in the ID range and future vehicles developed in partnership with the Chinese company Xpeng.
Japan Mobility Show 2025: Mercedes
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Japan Mobility Show 2025: Mercedes
- Mercedes has announced that it will exhibit its state-of-the-art concept car, the AMG GT XX, at JMS 2025. This experimental vehicle is built on the AMG.EA platform, which was developed specifically for BEVs. It uses three axial motors, one at the front and two at the rear, and is powered by a high-performance battery specially developed by AMG.
- The new fully electric Mercedes CLA will be launched on the Japanese market with the JMS 20225. Inovev has already analyzed this model in issue 2025-07-6.
- The new fully electric Mercedes GLC was unveiled at this year's IAA in Munich. Now it is to be presented to Japanese customers at the JMS. Inovev has already analyzed this model in issue 2025-18-4.
- To introduce its new platform, the Van Electric Architecture (VAN.EA), which is set to play a greater role in Mercedes vans from 2026 onwards, Mercedes has unveiled an extremely futuristic concept car, the Vision V, which will also be on display at JMS 2025.
- Mercedes is also exhibiting a monogram version of the Maybach SL, an AMG GT 63 sports car, and an AMG G63 SUV. The latter, however, is said to have been artistically and luxuriously upgraded.
Audi is considering building a factory in the United States
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Audi is considering building a factory in the United States
- Following the tariff agreement between the European Union and the United States, Audi is reviewing its American strategy.
The German premium brand is considering building an assembly plant in the United States to avoid the 15% tariffs imposed on European cars imported into that country.
The German premium brand is considering building an assembly plant in the United States to avoid the 15% tariffs imposed on European cars imported into that country.
- Currently, Audi does not have an assembly plant in the United States but does have one in Mexico (San Jose Chiapa) where, since 2017, the Audi Q5 SUV (D segment) has been produced at an average rate of 150,000 units per year, a third of which are exported to the United States. This represents approximately 50,000 vehicles annually shipped from Mexico to the United States out of a total of 200,000 Audi vehicles sold annually in the US market, with the remaining 150,000 vehicles being imported from Europe.
- But since 2024, Audi sales have been declining significantly in this market: -14% in 2024 and -14% expected in 2025. This decline in sales will not improve with the new taxes imposed by the Trump administration, for example 15% for cars from Mexico and 15% for cars from Europe.
- This is why Audi wants to build an assembly plant in the United States, ideally near Volkswagen's Chattanooga plant in Tennessee. The four-ring brand is aiming for a capacity of 150,000 to 200,000 vehicles per year. Construction of the plant would take two years. This plant would allow Audi to avoid tariffs on cars currently produced in Europe and Mexico.
Japan Mobility Show 2025: BMW/ Mini
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Japan Mobility Show 2025: BMW/ Mini
- As at the IAA, BMW will also be presenting its new iX3 at the JMS 2026, the first official model featuring the new class design. This new version of the fully electric D-segment SUV is set to hit the Japanese market in summer 2026. See Inovev Analysis 2025-18-2.
- The luxurious Speed Top concept car, which was unveiled in May 2025, is likely to serve as an eye-catcher. It is possible that this extravagant sedan may one day be available as a strictly limited edition. At the moment, however, it still appears to be a design study for marketing purposes.
- The M2 CS exhibited by BMW, with its M TwinPower Turbo inline 6-cylinder engine, is more likely to be music to the ears. With an output of 530 hp (390 kW) and a top speed of up to 302 km/h, it is a racing machine, which may even not be available in Japan.
- The BMW X7 “Nishiki Lounge” concept vehicle is a kind of homage to Japanese tradition and craftsmanship. It is a BMW X7 that has been luxuriously redesigned. The two-tone paintwork is particularly striking. Japanese artists have creatively designed the interior. The vehicle is not intended for sale.
- The BMW iX5 Hydrogen is a more experimental exhibit and therefore not intended for sale. It has two hydrogen tanks with a total capacity of 6kg. The engine has a maximum output of 295 kW (401 hp) and a range of up to 504 km according to the WLTP cycle.
- BMW has teamed up with motorcycle racer Valentino Rossi to create a strictly limited-edition version of the M4, the M4 CS VR46. Only 92 units will be produced worldwide, two of which will be sold in Japan.
- BMW will also be exhibiting the fully electric iX1 SUV and the long version of its luxury 5 Series sedan to promote these models in Japan.
- The British BMW subsidiary Mini will be exhibiting its current range. A special project with designer Paul Smith is set to be unveiled at JMS 2025.