This week in auto news: Mexico’s automotive market accelerates EV growth with VEMO’s US$1.5 billion investment and the launch of the Playground de Electromovilidad. Kavak reports record profitability, while increased automation adoption strengthens manufacturing performance. USMCA compliance requirements and US truck tariffs test the industry’s resilience.
Globally, Stellantis reintroduces diesel models as EV demand moderates, and cross-border industrial shifts underscore nearshoring and sustainability as core business drivers.
Drivers, start your engines — this is the week in Automotive!
Automation Needed to Thrive in the Modern Automotive Landscape
The Mexican automotive sector is several steps ahead of other domestic industries in automation maturity. Unlike 20–25 years ago, when the technological gap with industrialized countries was substantial, that gap has now narrowed considerably. This has enabled rapid adoption of advanced control technologies and reduced barriers to introducing Beckhoff solutions.
USMCA in 2026: What Companies Need to Have on Their Radar
One of the most complex aspects of USMCA compliance in 2026 is that many risks are not immediately visible but can have severe operational consequences. Customs delays caused by origin verifications, additional costs derived from documentary corrections, supply chain interruptions, and even the loss of trust from international clients are all potential outcomes of weak compliance structures.
Kavak Raises US$300 Million as Profitability Turns
Kavak secured US$300 million in fresh capital in a funding round led by Andreessen Horowitz, in what the company described as the US venture firm’s largest single investment in a Latin American company to date. The raise follows a year in which the Mexico-founded used-car platform increased annual transactions by 40% and recorded its first full month of consolidated global profitability in December 2025.
VEMO to Invest US$1.5 Billion in Mexico EV Expansion
VEMO said it will invest more than US$1.5 billion over the next five years to expand electric vehicle charging infrastructure and scale its operations, as Mexico’s electric mobility market shifts from rapid expansion to consolidation. The company plans to deploy approximately 23,000 connectors across its public and private charging network by 2030 and add about 55,000 electric vehicles to its fleet. The strategy aligns with a market that posted a 38.5% annual increase in electric and plug-in hybrid vehicle sales in 2025, according to industry data.
Mexico Truck Exports Drop 50% After US Tariff
Mexico’s heavy vehicle industry began 2026 facing one of its sharpest contractions in more than a decade after the United States imposed a 25% tariff on Mexican truck exports, cutting production and exports by more than half 50% in key operational indicators and accelerating job losses across the sector. Industry representatives say the downturn reflects the combined impact of new trade barriers and distortions in the domestic market.
Sweden-Mexico: From Industrial Transformation to Real Business
What began as a response to global supply chain disruptions has evolved into a structural shift: manufacturing is relocating closer to end markets, industrial parks are expanding at record pace, and sustainability is becoming a commercial requirement rather than a policy ambition.
Stellantis Brings Back Diesel as EV Demand Slows
Stellantis has begun reintroducing diesel versions of at least seven passenger car and van models across Europe, signaling a recalibration of its electrification strategy as electric vehicle demand underperforms earlier projections. The decision, previously undisclosed, comes as regulatory momentum behind combustion engine phaseouts slows in both Europe and the United States. Company statements and a review of dealer listings confirm the return of diesel variants across multiple brands, spanning light commercial vehicles and compact passenger cars.
Mexico Unveils Platform to Speed EV Adoption
Mexico has launched Playground de Electromovilidad, a platform designed to improve coordination and decision-making to accelerate the adoption of medium- and heavy-duty electric vehicles (EVs). The initiative is a joint effort by Sostenibilidad Global, CalSTART and The Climate Group.