Happy Wednesday! It's October 1, 2025, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around.
In this morning's edition, we're looking at the end of the EV tax credit and Ford's thoughts on what it'll do to our market, as well as ZF's future in the space. We'll also look at how the ending of the credit affected last quarter's sales, and a new recall — from BMW this time, not Ford.
Ford
The electric vehicle tax credit is dead, and with it may go the hopes of an electric future for American roads. At least, Ford CEO Jim Farley seems to think so — he predicts the EV market will be cut in half as the incentive ends. From CNBC:
Ford Motor CEO Jim Farley said he expects demand for all-electric vehicles to be slashed in half next month following the end of federal tax incentives on Wednesday.
Farley on Tuesday said he "wouldn't be surprised" if sales of EVs fell from a market share of around 10% to 12% this month — which is expected to be a record — to 5% after the incentive program ends.
"I think it's going to be a vibrant industry, but it's going to be smaller, way smaller than we thought, especially with the policy change in the tailpipe emissions, plus the $7,500 consumer incentive going away," he said during a Ford event about promoting skilled trades and workers in Detroit. "We're going to find out in a month. I wouldn't be surprised that the EV sales in the U.S. go down to 5%."
We red-blooded, god-fearing Americans demand the freedom to choke on fumes. Sure, EVs may be quickly becoming the norm in other parts of the globe, but this here's 'Murica — we don't need any of that commie BS like "breathable air."
SNEHIT PHOTO/Shutterstock
ZF, makers of everything from transmissions to driver-assist systems, also has an entire wing of the company dedicated to EV drivetrains. That wing is about to get a lot smaller, as the company cuts 7,600 EV jobs to save money. From Reuters:
ZF Friedrichshafen will cut around a quarter of its workforce in its electrified powertrain technology unit by 2030 under a restructuring deal reached with its works council and labour union IG Metall, the German auto supplier said on Wednesday.
The move is part of a broader plan announced by ZF Group last year to eliminate up to 14,000 positions in Germany as the auto industry struggles with weak electric vehicle demand and global trade tensions. ZF also has a high debt burden from past acquisitions.
So ZF can go around buying up other companies, and when the bill comes due it's the workers who end up paying. Great system we've got here.
Hyundai
The ending of the EV tax credit was well-telegraphed, which gave buyers plenty of time to get in and get themselves an electric car before the cash ran out. Plenty of those buyers made a beeline for their nearest Hyundai dealer, it seems, because EV sales skyrocketed at the Korean automaker last month. From Automotive News:
A sharp increase in sales of electric vehicles and hybrids helped Hyundai and Kia post double-digit gains last month as consumers rushed to take advantage of an expiring federal tax credit toward EV purchases.
September U.S. sales rose 14 percent to 71,003 at Hyundai, with retail volume up 7 percent, and 11 percent to 65,507 at Kia, the companies reported Oct. 1.
It was the 12th consecutive monthly sales gain for Hyundai and third-straight increase for Kia, capping record third-quarter results for both brands.
Hyundai said its EV sales surged 153 percent last month, led by the Ioniq 5, up 152 percent to 8,408.
The Ioniq 5, and the Kia EV6 with which it shares a platform, are fantastic cars. Unfortunately, their prices skyrocketed as of today.
BMW
It's recall time! For once, though, it's not Ford issuing the notice. This time, owners of BMW 340is, X5s, and X7s need to bring their cars in for repair, lest their starter motors burn their cars to a crisp. From Reuters:
BMW is recalling over 145,000 vehicles in the U.S. as an overheated starter could increase the risk of a fire, the U.S. National Highway Traffic Safety Administration said on Wednesday.
The issue affects vehicles across 2020 340I, X7, and X5 models, the auto safety regulator said.
Ford, no! Sorry, force of habit.
It's nice to hear something that you didn't specifically put on, to listen to a DJ as they introduce you to new music. Long live radio.
Happy October! Rabbit rabbit!
