Happy Chinese New Year! Hopefully, you haven’t washed your hair or swept any of your luck out of the front door. I’m wearing my only piece of red clothing, which is a novelty t-shirt that says “I WIRD BHSET OF AWL” [Editor’s Note: what does this mean? – JT] given to me by everyone’s friend Zack Klapman. China does a pretty banging New Year, but it doesn’t make a lot of one kind of car.
It’s the old “hit ’em where they ain’t” philosophy of car production, and it comes from a not-so-surprising source if you’re a regular reader of The Morning Dump. Not everyone is so combative with China, as Canada seems to be on a path to embracing Chinese cars and Chinese production, although I don’t think it’s just going to be China that benefits.
You know who might benefit most from used EVs? The same people who weren’t all that interested in buying new EVs. That would be a weird outcome, but it makes sense. An EV-only Alpine A110 is less of a weird outcome, though it is a bit of a bummer.
Let’s Dump!
Stellantis Figures Out It Can Just… Build Diesels
Volkswagen wasn’t the only company finding creative (illegal) ways to tweak its diesel cars to be more competitive with hybrid vehicles, but it’s the one everyone thinks about when Dieselgate is mentioned.
Here’s a fun fact: In 2015, roughly half of the cars sold in Europe were diesel-powered. Last year? That number crumbled to just under 8%. Some of this is the adoption of electric cars and hybrids, but a lot of this has to do with major European automakers suddenly deciding that they were going to begin the transition to electric cars when “diesel” became a bit of a bad word.
With European regulators in the process of revising emissions standards to more closely conform to reality, there’s an opening for automakers that Stellantis seems to be ready to take advantage of in the short term, as Reuters reports:
Stellantis began in late 2025 to reintroduce diesel versions in Europe for models ranging from passenger vans to the Peugeot 308 and DS 4 hatchback, according to company statements and dealer listings reviewed by Reuters.
[…]
“We have decided to keep diesel engines in our product portfolio and — in some cases — to increase our powertrain offer,” Stellantis said. “At Stellantis we want to generate growth, that’s why we are focused on customer demand.”
To be clear, it’s not like Stellantis is going to suddenly start developing a bunch of new diesel powertrains. At this point in time, it probably doesn’t make a lot of sense. But Stellantis is great at just continuing to build old things until the market eventually tires of them.
And, crucially, your average diesel car is still a lot cheaper than your average electric car. For instance, in the UK, a Citroën Berlingo EV costs about $42,500. The diesel manual version? Closer to $33,500. That’s a big difference, and even undercuts Chinese EVs.
The plan for now is for Stellantis to extend out some models from brands like Alfa Romeo and DS, as well as start reintroducing certain diesel models back to the fold for any of its 900 other brands (Opel, Peugeot, Fiat, Matra…). It’s probably not a huge market, but it’s one where there’s almost zero chance of competition from Chinese EV automakers.
That isn’t to say Stellantis doesn’t compete there, either, as the company also owns most of the Chinese brand Leapmotor, which now makes cars in Europe. This is the EU version of the Stellantis plan to bring the Hemi V8 back to the RAM and otherwise recycle or extend existing powertrains.
What Is Canada Supposed To Do, Exactly?
This is another hot topic around here, but Canada does seem ready to decouple its industrial policy from the United States. I don’t think this is just theater. This is probably bad, long-term, for both Canada and the United States.
Why?
Both countries are like puzzle pieces that fit nicely together. We can use their cheap energy to process metals that we can cheaply acquire and recycle in the United States, which then become cars built either here or there. They send us their hockey-based TV shows (new season of Shoresy on Hulu this week!), and we send them Marvel movies.
If you’re stubborn enough, you can saw off pieces of a puzzle and make them fit, but it’s never quite the same. I don’t want to get into the back-and-forth of who started what, although it’s kinda obvious that claiming we didn’t need Canada and that maybe Canada should be the 51st state wasn’t exactly endearing.
Bloomberg has more on the conscious decoupling that’s happening:
The companies sometimes called the Detroit Three — GM, Stellantis and Ford Motor Co. — used to dominate the Canadian automotive industry. But last year, they were responsible for just 23% of the cars and light trucks made in the country, according to an Ontario research group, down from 56% a decade ago. Two Japanese giants, Honda Motor Co. and Toyota Motor Corp., are now the firms that matter most.
And inside Prime Minister Mark Carney’s government, there’s a growing belief that if the big US automakers are slowly abandoning Canadian factories, there’s no longer any reason to do them favors.
[…]
The Detroit automakers “rode their history for long enough that people still kind of thought, ‘Oh yeah, they make cars here,’” said Brendan Sweeney, managing director of Canada’s Trillium Network for Advanced Manufacturing. “And now we’re realizing that, no, they’ve kind of taken advantage of the situation and they’ve largely served Canada from elsewhere without really investing.”
While Canada’s move to potentially allow some Chinese cars in is getting all the attention, the reality is that Canada can actually pivot harder to Japanese and European cars if it wants to right now. Is this an opportunity for an automaker like Renault to expand on the continent? That’s what I’m thinking.
Oklahoma And West Virginia Are Great Places For Used EVs
When I wrote about the huge number of off-lease EVs about to hit the market this year, I didn’t think about it regionally. Then I read this little tidbit from Cox Automotive about a discussion from the NADA conference earlier this month:
The off-lease EV surge dominated multiple sessions, with data painting a clear picture: off-lease EV volume will jump 185%, from 106,000 to 300,000 vehicles in 2026, with EVs representing 12% of all off-lease maturities compared to just 5% in 2025.
Patrick Janes, AVP of vAuto, challenged dealers to rethink their EV strategies. His team’s analysis revealed unexpected pockets of used EV opportunity in states like Virginia, Ohio, Kentucky, and Oklahoma, markets with affordable used EVs under $25,000. “Dealers are begging to find under $25,000 ICE vehicles, right?” Janes emphasized. “A used EV has lower cost of ownership…that is a great opportunity to introduce another vehicle into the fleet.”
The selling of used EVs in places like California and New York isn’t going to be much of an issue, as there’s already a market. These are also states where people have above-average incomes and can generally afford more cars. What about markets where affordability is a huge challenge?
It’ll be fascinating to watch used EVs potentially increase adoption in these places.
An EV Alpine A110 Will Reportedly Be Built On The Crazy Renault R5 Turbo 3E Platform
I’m a huge fan of the Alpine A110 and consider it to be one of the best sports cars for sale right now anywhere in the world. I don’t love that it’s becoming an EV, but there’s not much I can do about it. At least, per Autocar, it’ll be built on a cool platform:
Both the third-generation A110 and the 5 Turbo 3E will use a new aluminium chassis structure called the Alpine Performance Platform (APP), which places a 70kWh battery pack behind the occupants to give an uncompromised driving position.
The new A110 will therefore be similar in height to the present one, said Krief. As such, he expects it to have an even sportier driving position than today’s car, with the driver’s feet raised, Formula 1-style, and the seat very reclined.
Power output for the EV is expected to surpass the 345bhp of the current A110’s run-out R Ultime special.
At launch, power will be supplied by two rear-mounted electric motors, but the door is still ajar for the new A110 to be offered with in-wheel motors – the solution used by its Renault platform-mate.
I’m not hugely enamored with fast EVs, which sometimes feel like they offer all of the completion with none of the climax. If anyone can make it fun, though, maybe it’s Alpine.
What I’m Listening To While Writing TMD
How old do I feel? Well, The Knife’s “Silent Shout” turns 20 this week. That’s how old I feel.
The Big Question
If we’re just going to pretend for a minute that environmental regulations don’t exist, which powertrain would you like to see come back?
Top photo: Stellantis
