Electric Cars

Lancia, a brand with a rich heritage in the automotive industry, recently faced a significant setback in its ambitious revitalization strategy. Despite launching the new Ypsilon in February 2024, marking its first new model in 13 years, the company witnessed a dramatic decline in sales throughout 2025. This downturn occurred even as Lancia expanded its presence into various European markets beyond Italy, including France, Spain, Belgium, Luxembourg, the Netherlands, and Germany, establishing 70 new showrooms.

According to data from the European Automobile Manufacturers' Association, Lancia's sales plummeted by 64 percent, totaling a mere 11,754 vehicles in 2025. This figure is strikingly low when compared to its performance a decade earlier, specifically in 2016, when the brand (including Chrysler sales) moved 67,225 units across the EU and EFTA regions. The current situation underscores the difficulties Lancia is encountering in reclaiming its market share. Analysts from Dataforce reported similar numbers, confirming that only a negligible number of Chrysler vehicles were sold, indicating that the decline is overwhelmingly attributable to Lancia itself.

Looking ahead, Lancia intends to introduce a new midsize model, the Gamma, in 2026, with the Delta also slated for a comeback later in the decade. However, the existing Ypsilon faces stiff competition from popular models like the Peugeot 208 and Opel Corsa, which are also part of the Stellantis group. The struggle of Lancia, coupled with a 22.5 percent drop in sales for sister brand DS Automobiles, raises questions about the long-term viability of some Stellantis brands, a concern reportedly under evaluation by Stellantis CEO Antonio Filosa.

The automotive industry is in constant flux, demanding perpetual innovation and strategic adaptation. Lancia's current struggles offer a poignant reminder that heritage alone cannot guarantee success in a fiercely competitive market. To truly thrive, brands must not only honor their past but also embrace the future with compelling products and a clear vision. The path to resurgence requires resilience, creative solutions, and a deep understanding of evolving consumer demands. For Lancia, the forthcoming models will be crucial in demonstrating its capacity for renewal and reclaiming a prominent position in the European automotive landscape.

The Enduring Appeal of the Wagon: A Future Resurgence?

Volvo's US Wagon Farewell: A Temporary Departure

Volvo's V60 Cross Country marks the conclusion of its wagon offerings in the United States, as the brand redirects its focus towards an expanded lineup of sport utility vehicles, crossovers, and electric vehicles. This move reflects a broader industry trend where SUVs have increasingly dominated market share, leading many manufacturers to scale back their traditional passenger car segments. The discontinuation of the XC70 name as a rugged wagon, reimagined instead as an extended-range SUV, further underscores this strategic shift by Volvo in the American market.

Why Wagons Maintain Relevance: A Global Perspective

Despite the strategic pivot in the US, Volvo's Chief Strategy and Product Officer, Michael Fleiss, has indicated that the company has not entirely dismissed the future of wagons. Wagons continue to be robust sellers in Europe, demonstrating their enduring popularity in key global markets. The advent of electric vehicle technology presents a compelling case for the wagon's resurgence, as their inherently lower and more aerodynamic profiles offer significant efficiency advantages over taller, bulkier SUVs. This aerodynamic efficiency is crucial for maximizing range in electric vehicles, making the wagon a potentially attractive option for future EV platforms.

Evolving Market Dynamics and Buyer Preferences

The automotive industry is undergoing a profound transformation, with buyer priorities shifting beyond traditional considerations like engine performance. As electrification becomes the norm, competition among manufacturers will increasingly revolve around vehicle platforms, overall efficiency, and intelligent packaging solutions. Volvo's new SPA3 EV platform offers the flexibility to explore a variety of body styles, including new interpretations of the wagon. Furthermore, emerging interest in wagons from markets previously unreceptive, such as China, combined with the continued strong demand in Europe, suggests a potential global realignment that could pave the way for wagons to make a comeback, even in the American market.

The American Wagon Renaissance: Performance Models Lead the Way

Interestingly, the US market is already witnessing a quiet revival of wagons, particularly in the high-performance segment. Models like Audi's RS6 Avant and BMW's M5 Touring have achieved remarkable success, demonstrating a strong consumer appetite for wagons that offer a blend of practicality and exhilarating performance. This trend indicates a growing appreciation for wagons as a sophisticated and dynamic alternative to SUVs, moving beyond their traditional utilitarian image. This renewed interest in performance-oriented wagons could lay the groundwork for broader acceptance and a future reintroduction of more mainstream wagon models in America.

Regulatory Shifts and the Future of Automotive Design

Beyond market demand, regulatory changes, such as new fuel-economy standards, could also play a pivotal role in the return of passenger car shapes, including wagons. These regulations may incentivize automakers to develop more aerodynamically efficient vehicles to meet stricter emissions and efficiency targets, thereby reducing the regulatory gap between cars and SUVs. While not a guarantee, such policy shifts could remove existing barriers, making it more feasible and attractive for manufacturers to invest in and reintroduce wagon designs. Combined, these factors suggest a promising outlook for the wagon, hinting that its story is far from over.