Electric Cars

Recent rumors suggesting a groundbreaking partnership between Mercedes-Benz and BMW for engine sharing have been unequivocally refuted by Mercedes-Benz. The speculation, which arose last month, indicated that Mercedes-Benz might adopt BMW's B48 2.0-liter turbocharged four-cylinder engine for its future plug-in hybrid vehicles, particularly targeting smaller models. This hypothetical collaboration was believed to mitigate development costs, ensure compliance with stringent Euro 7 emissions regulations, and potentially circumvent trade tariffs. However, Mercedes-Benz executives, during the IAA Mobility Show in Munich, firmly dismissed these claims, emphasizing their commitment to internal engineering and a diversified product roadmap, ensuring their continued autonomy and innovation in the automotive sector.

The circulating reports in August suggested an imminent agreement between the two German automotive giants, a development that would have marked a significant shift in their long-standing competitive dynamic. The proposed engine supply deal centered around BMW's B48 unit, a well-regarded powerplant, destined for Mercedes' smaller hybrid offerings with a projected production start around 2027. Such a move would have been unprecedented, given the fierce rivalry between the two brands, yet it was posited as a pragmatic solution to shared industry challenges like escalating emissions standards and rising development expenditures.

Markus Schaefer, the Chief Technology Officer and a board member at Mercedes-Benz Group, explicitly addressed the matter, stating the reports were unfounded. He clarified that Mercedes-Benz possesses its own advanced internal combustion engine family, known as FAME (Family of Modular Engines). This modular design is versatile, encompassing configurations from four-cylinder to twelve-cylinder units, meticulously engineered to satisfy future global emissions mandates without external reliance.

Schaefer further articulated Mercedes-Benz's strategy to maintain a comprehensive range of internal combustion engines, notably including new V8 and even V12 powertrains. He highlighted that the FAME engines are thoroughly modernized and fully equipped to adhere to the most rigorous international environmental standards. For its entry-level models, Mercedes has established a distinct partnership, with the upcoming CLA-Class adopting a hybrid system developed by Horse, a joint venture between Geely and Renault, a collaboration entirely separate from any dealings with BMW or the FAME architecture.

Beyond its engine development, Mercedes-Benz has an ambitious product pipeline. The company recently offered a glimpse of a G-Class Cabriolet, signaling the return of the convertible version of the iconic off-roader, last seen almost a decade ago. This model is anticipated to launch around the 2026 model year, featuring the characteristic boxy shape with a retractable soft top. Furthermore, a "Baby G" is currently under development, expected to be a more compact iteration of the G-Wagen, likely built on a bespoke platform rather than a truncated G-Class chassis. While powertrain details for the "Baby G" remain undisclosed, both conventional combustion and electric variants are considered possibilities.

At the more accessible end of its lineup, the GLA-Class, which stands as Mercedes' most budget-friendly offering in the US, is slated for a significant update. This refresh will bring revised aesthetics, enhanced technological features, and a novel hybrid powertrain. These diverse initiatives underscore Mercedes-Benz's strategic intent to expand its vehicle portfolio, adeptly balancing the burgeoning electric vehicle market with its enduring legacy of traditional automotive excellence.

In a dynamic automotive market characterized by escalating vehicle prices and tightening consumer budgets, the Hyundai Motor Group, encompassing Hyundai, Genesis, and Kia, has defied expectations by achieving remarkable sales figures in August. This robust performance is largely attributed to the sustained demand for crossovers and SUVs, coupled with an extraordinary surge in electric vehicle (EV) adoption across all three brands. The consistent growth positions the group for a potentially record-setting year, showcasing their ability to navigate market challenges and capture consumer interest with diverse and competitive offerings.

Hyundai Motor Group Records Impressive August Sales Performance

In August 2025, the Hyundai Motor Group celebrated a period of significant growth, with its brands Hyundai, Genesis, and Kia, collectively achieving stellar sales results. Hyundai North America's President and CEO, Randy Parker, reported an exceptional month for the main brand, highlighting retail and overall sales that surpassed all previous August records. Hyundai itself saw an impressive 12% increase in sales compared to the previous year, moving over 88,000 units. This surge was significantly driven by its popular crossover and SUV models, including the Santa Fe, Palisade, and the groundbreaking Ioniq 5 electric vehicle.

While the 2025 Hyundai Tucson, with its refreshed design and enhanced infotainment, remained Hyundai's best-selling model at over 17,900 units, its year-over-year sales saw a 19% dip. Conversely, the Palisade, capable of seating up to eight passengers, enjoyed a substantial 39% increase in sales, while the more budget-friendly Elantra saw a 6% rise. The Santa Fe also contributed strongly with a 26% sales boost, selling 12,840 units.

The electric vehicle segment was a standout performer for Hyundai. The Ioniq 5 recorded an impressive 61% year-over-year sales increase, with more than 7,700 units sold in August, pushing its year-to-date sales up by 65%. The redesigned 2026 Ioniq 6 sedan also experienced a healthy 30% increase, and the newly launched 2026 Ioniq 9 electric SUV quickly gained traction, selling over 1,000 units in its debut month. Despite the overwhelming success, the Nexo FCEV, Hyundai's hydrogen fuel cell vehicle, only sold two units this year, down from 87 in the previous year, primarily due to its limited availability in California's nascent hydrogen infrastructure.

Genesis, Hyundai's luxury arm, also celebrated a record-breaking August. According to Tedro Mengiste, COO of Genesis Motor North America, the brand sold 7,925 vehicles, marking a 7% year-over-year increase. The 2026 GV70 led these sales with 3,210 units. Not to be outdone, Kia, another sister brand, achieved its best sales month ever in August 2025, selling over 83,000 models—a 10.4% increase. The Sportage crossover was Kia's top seller, with over 18,000 units, contributing to a year-to-date total nearing 120,000. Steady growth was also observed for the Kia Telluride SUV, Carnival minivan, and the all-electric EV9 SUV.

The impressive August sales across Hyundai, Genesis, and Kia underline a strategic success driven by competitive pricing, comprehensive standard features, and robust powertrain warranties. As the automotive landscape continues to evolve, particularly with the increasing emphasis on electrification, the Hyundai Motor Group's performance offers a compelling case study in adaptability and market leadership. It will be fascinating to observe how these brands sustain their upward trajectory amidst ongoing market shifts and rising consumer expectations.