Volvo’s Tariff Hit, Nissan’s EV Switch, Ford’s Generous Heart

Episode #1095: Volvo takes a $1.2B charge as EV costs and tariffs bite. Nissan shifts gears in Mississippi, shelving EV plans in favor of SUVs and pickups. And Ford steps up in Texas, donating $1.25M and deploying people and vehicles to aid flood victims.

Nissan’s $500M investment to build five EVs in Canton has stalled amid political uncertainty and loss of U.S. tax credits. The automaker is eyeing SUVs and pickups to keep the lights on.

• With EV plans delayed, Nissan is pivoting to body-on-frame vehicles, potentially doubling Canton’s output with models like the Armada and Infiniti QX80.
• A return of the rugged Xterra is also on the table — this time as a hybrid SUV riding on the Frontier truck platform.
• The shift could revive a plant running at half capacity and counter rising tariffs on imports from Japan.
• Nissan is even exploring a “what if” collaboration with Honda to build pickups, but one source called it “pie in the sky at this stage.”

Volvo Cars is taking a $1.2 billion charge in Q2 as it battles rising costs, tariffs, launch delays tied to its electric vehicle lineup and reduced profitability on two electric models, the EX90 SUV and ES90 sedan.

• The EX90 began production in June in South Carolina, but saw over a year of delays due to software issues and is launching without key features like lidar, ADAS tools, and bidirectional charging.
• The China-built ES90 sedan isn’t faring better—tariffs in the U.S. and EU have made it tough to sell profitably in Volvo’s key markets.
• The company is in the midst of deep cost-cutting, including layoffs impacting 3,000 jobs globally and 15% of its U.S. commercial staff.
• Volvo’s U.S. sales rose 6% in the first half of 2025, but global deliveries fell 9%, highlighting uneven momentum.

Ford and its dealer network are going all in to support Texans in the wake of devastating flash floods.

• The automaker, along with Ford Philanthropy and Texas dealers, is donating $1.25 million to local charities and disaster relief partners.
• Beyond dollars, Ford is supplying loaner vehicles to the American Red Cross to expand outreach in hard-hit areas.
• Ford’s new Extended Volunteer Paid Time Off policy allows trained employees to deploy with Team Rubicon for on-the-ground disaster relief.
• Volunteers will also be packing food boxes for families through the North Texas Food Bank and running shelters and reunification centers.
• “We’re standing alongside our Texas Ford Dealers… to ensure critical support gets to those who need it most,” said Elena Ford.

0:00 Intro with Kyle Mountsier and Michael Cirillo
0:30 Paul and Kyle were at the Beaver Golf Tournament yesterday
1:40 New Auto Collabs episode with John Sacco on recycled metals
2:20 Congrats to Ashley Cavazos on being the new President of WOCAN!
3:55 Nissan To Pivot Canton, Mississippi Plant

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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