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With 2 days left in January, that means there are only 2 days left to get discounted tickets to ASOTU CON! Today, we’re talking about VW potentially bringing manufacturing to the US to avoid tariffs, Honda planning to introduce a sub $30K EV in the US, and how iPhones can now text on the SpaceX Starlink satellite network.

Show Notes with links:

• Volkswagen Group is exploring plans to build Audi and Porsche models in the U.S. if President Donald Trump imposes high tariffs on vehicle imports from Europe and Mexico. This proactive move aims to safeguard the brands from potential trade barriers that could significantly impact profitability.
  • Unlike the VW brand, which already has U.S. production, Audi and Porsche models sold in the U.S. are currently imported, making them vulnerable to tariffs.
  • VW’s Chattanooga plant, which produces the VW Atlas and ID.4, has excess capacity and could be expanded for luxury models.
  • Another option is VW’s upcoming South Carolina plant for the Scout brand, which could also accommodate Audi production.
  • A 10% tariff on European imports could reduce VW Group’s profits by 5-10%, while a 25% tariff on Mexican imports could result in a 15% hit, according to Moody’s.

• Honda is stepping into the affordable EV space with a sub-$30,000 electric vehicle that could hit U.S. dealerships as early as 2026. A third of Honda’s global sales are EVs and it aims to boost its U.S. EV presence.
  • The new EV will be locally built in Ohio, starting with battery production, to reduce costs.
  • It will be a part of the new Honda 0 Series and will follow Honda’s higher-end 0 Series SUV and sedan, expected to cost $50K–$60K.
  • Honda sold over 33,000 Prologue SUVs last year, outperforming the Chevy Equinox and Cadillac Lyriq, despite sharing GM’s Ultium platform.
  • The affordable EV could compete directly with GM’s next-gen Chevy Bolt, also slated for a 2026 launch at a similar price point.

• Apple's latest iPhone update gives T-Mobile users access to SpaceX’s Starlink network, marking a new era of connectivity.
  • iOS 18.3 introduces support for SpaceX and T-Mobile’s direct-to-cell satellite texting, meaning text messaging via satellite in areas without cellular coverage
  • The feature was previously limited to select Android devices, including Samsung models.
  • Beta testers have begun receiving texts confirming access to satellite messaging.
  • Future updates aim to add voice and data capabilities for complete off-grid connectivity.

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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