China Pauses All Self-Driving Permits After Outage – Jalopnik

Happy Wednesday! It’s April 29, 2026, and that is The Morning Shift — your each day roundup of the highest automotive headlines from world wide, in a single place. This is the place you may discover crucial tales which are shaping the best way Americans drive and get round.

In this morning’s version, we’re taking a look at China’s pause on self-driving, and the prevalence of Chinese automobiles across the Mexican border. We’ll additionally have a look at Volkswagen reconsidering its German manufacturing base, and Mercedes’ less-than-stellar first quarter outcomes. 

Back in March, Baidu’s fleet of Apollo Go robotaxis stopped lifeless throughout town of Wuhan, China. This involved regulators, who’ve now determined to take motion: China has halted all new autonomous driving permits within the nation. From Bloomberg:

China has suspended issuing new licenses for autonomous autos, in accordance with individuals accustomed to the matter, after dozens of Baidu Inc.’s Apollo Go robotaxis out of the blue stopped in Wuhan final month, stranding passengers and disrupting site visitors.

The incident alarmed authorities, and three businesses together with the Ministry of Industry and Information Technology convened a gathering earlier this month with officers from cities which have robotaxis or autonomous-driving pilots, the individuals mentioned. Regulators referred to as for native governments to conduct a full self-review and improve security monitoring to forestall related incidents, mentioned the individuals, who declined to be recognized as a result of they are not approved to talk publicly.

The suspension of latest licenses prevents self-driving corporations from including new robotaxis to their fleets, beginning a brand new take a look at mission or increasing to a brand new metropolis, the individuals mentioned. It’s not clear how lengthy the suspension will final, the individuals mentioned.

Can you think about having regulators that truly get involved when robotaxis malfunction? Pshh, China, that is not the way you compete on the world stage. Oh, wait, we’re already dropping to you? Well then. 

All alongside the Mexican facet of the U.S. border, streets are stuffed with one thing you not often see right here: Chinese-made and branded automobiles, from corporations like Geely or Great Wall Motor. On the opposite facet of the border, individuals appear to like these cheap rides, as former Jalop Ryan Felton explains within the Wall Street Journal:

CIUDAD JUÁREZ, Mexico—Just 5 miles from the U.S. border, a bustling industrial strip right here gives the buzzy Chinese automotive manufacturers at present blocked from the American market.

A Geely dealership options the all-electric EX2, a smooth compact that begins at solely round $20,000. A cumbersome hybrid pickup truck sits subsequent to a charger outdoors a BYD dealership. Great Wall Motor boasts some beefy gas-powered sport-utility autos, one marketed with the slogan “Be More Tank.”

Luis Hernandez, a Geely salesman, mentioned he has poached many longtime Ford and Chevrolet homeowners drawn to the inexpensive sticker costs and whiz-bang Chinese know-how. He not too long ago offered two Geely Emgrand sedans, which begin at round $17,000, to a Mexican household for his or her two daughters to commute to varsity in El Paso, the place the sleekest Chinese automobiles are actually attracting consideration.

“If they were allowed to be sold in the United States,” Hernandez boasted of the Chinese fashions, “they would destroy the American car market.”

U.S. automotive executives do not totally disagree. Without a transparent plan to cope with Chinese rivals, a few of them mentioned in interviews, the arrival of inexpensive, high-tech Chinese automobiles might upend a U.S. trade that contributes $1.3 trillion to the financial system every year.

China could make higher automobiles for much less cash than we are able to. Will we ever attain some extent in our present inflation the place the American individuals merely have a lot political will in direction of low cost automobiles that politicians cannot maintain throwing bans round? 

Volkswagen needs to earn more money, as corporations typically do. The downside is, it primarily makes its automobiles in Germany — not an inexpensive labor market. Now, the corporate is seeking to transfer its labor base elsewhere. From Automotive News: 

Volkswagen Group’s prime management concluded that the automaker’s long-standing enterprise mannequin is not sustainable, setting the stage for deeper restructuring, capability reductions and a sharper shift towards native manufacturing in key markets.

VW Group’s administration and supervisory boards reached the conclusion throughout a gathering on April 27, in accordance with individuals accustomed to the matter. While no formal choices had been taken, the conclusion underscores mounting strain on the group to adapt to a extra fragmented international commerce surroundings and sooner technological change.

For a long time, VW relied on growing autos in Germany and exporting them or producing localized variations overseas. That mannequin is more and more strained by U.S. tariffs, EU-China commerce tensions and the capital-intensive shift to electrical autos, which requires new platforms and battery manufacturing.

Executives are actually engaged on measures to revive profitability, together with increasing native manufacturing in main markets and implementing structural adjustments that transcend conventional cost-saving applications. Initial steps are anticipated to be outlined after the summer time, alongside a long-delayed plan for allocating manufacturing throughout the group’s factories.

The piece mentions native manufacturing, however how lengthy till we begin seeing Chinese-made Volkswagens on each avenue nook?

This has been a bizarre yr for automakers thus far. We’ve had tariffs, we have had large gross sales drop-offs in China, and now there is a warfare affecting the prices of metals and fuel. Mercedes, it appears, is not proof against the weirdness. From Reuters: 

BERLIN, April 29 (Reuters) – Mercedes-Benz reported a pointy drop in working revenue initially of 2026, a yr set to deliver larger uncooked materials prices and additional tariff pressures, weighing on the German carmaker because it overhauls its mannequin lineup to ​enhance gross sales.

The Middle East battle has pushed up international trade prices, compounding strain on European automakers ​already hit by excessive U.S. import tariffs.

Mercedes, like German friends Volkswagen and BMW, can also be ⁠battling falling gross sales in China, as home manufacturers like BYD and Nio encroach on the premium section after ​conquering the mass market with low cost, tech-laden EVs.

Mercedes reported on Wednesday earnings earlier than curiosity and tax (EBIT) of ​1.9 billion euros ($2.22 billion) within the first quarter, down 17% on the yr.

First-quarter margins slipped to 4.1%, down from 7.3% a yr earlier, however inside the anticipated full-year vary of 3-5%.

This has been a troublesome yr, so I do not fault Mercedes for being down a bit bit. I’m additionally not a shareholder, although. 

Gun to my head, I might’ve guessed this occurred 4 years later. 

This is over 11 cents per gallon larger than the final time I did this — which was simply Monday. Prices are actually skyrocketing. 

We love Michelle Zauner, do not we people?