Afeela Is Dead, But Sony And Honda Are Still Pretending They're Automotive Partners

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Happy Tuesday! It's April 21, 2026, and this is The Morning Shift — your regular roundup of nan apical automotive headlines from astir nan world, successful 1 place. This is wherever you'll find nan astir important stories that are shaping nan measurement Americans thrust and get around.

In this morning's edition, we're looking astatine nan decease and undeath of Afeela, arsenic good arsenic targeted pricing for nan caller Nissan Xterra. We'll besides look astatine Volkswagen downsizing production, and China reasoning German cars are retired of style. 

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The Afeela sedan and SUV are dead. Yes, they were only 2 products from nan associated task Sony Honda Mobility, but astatine a institution that only had 2 products, that was rather a lot. Sony and Honda are now taking their workers back. From Automotive News: 

Honda and Sony said April 21 they will standard backmost operations of their ill-fated Sony Honda Mobility electrical conveyance task and sorb labor backmost into nan genitor companies, a period aft canceling plans for 2 Afeela models bound for North America.

The automotive and exertion partners will reappraisal nan existent building to find an "optimal shape of collaboration," Sony Corp. and Honda Motor Co. said successful a associated statement.

...

"Going forward, while taking into relationship nan changing business environment, nan 3 companies expect to proceed discussions connected nan optimal shape of collaboration betwixt them, pinch nan purpose of bringing caller worth to nan personification acquisition done package successful anticipation of an era wherever precocious driver assistance systems go mainstream," nan companies said.

Sony Honda Mobility has astir 400 employees, Japan's Nikkei reported.

So we now person a institution that exists arsenic a collaboration betwixt 2 companies connected a product, who are nary longer collaborating aliases making a product. The institution will soon commencement shedding its fewer employees. In what meaningful measurement does Sony Honda Mobility still exist?

Nissan

The Xterra is coming back, successful afloat glorious yellow. It seems Nissan is really barking up nan correct character here, because nan institution wants to make nan car cheap: Less than $40,000 for a guidelines model. That's a scheme I tin get behind. From Automotive News: 

Nissan is betting connected body-on-frame construction, affordability and affectional entreaty to reclaim mislaid crushed successful nan off-road SUV segment.

By reviving nan iconic Xterra and building an full family of related models, nan marque intends to reconstruct nan tough, fun-to-drive characteristic that erstwhile defined it.

At a media arena successful Japan, Nissan executives outlined their strategy for nan upcoming body-on-frame lineup, which includes a caller Xterra slated for a precocious 2028 motorboat and a three-row midsized SUV. Infiniti besides will person variants of nan Xterra.

"The Xterra represents nan DNA of Nissan: affordable, durable and precocious quality," Nissan Americas Chairman Christian Meunier told Automotive News this month.

"We don't want to overengineer it and make it overly analyzable aliases expensive," Meunier said.

Nissan is targeting a starting value for nan SUV of little than $40,000 successful a marketplace wherever affordability has go a awesome barrier.

Nissan is looking to move 50,000 Xterras per year, which shouldn't beryllium a problem astatine that price. Have you seen what a Wrangler costs nowadays? Just don't spell parking it connected piles of leaves. 

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Volkswagen builds cars, millions of them, worldwide. You mightiness opportunity they're thing of a manufacturing powerhouse, but its CEO is now wondering: Is this car institution possibly making excessively galore cars? From Reuters: 

Volkswagen plans to trim its accumulation ​capacity by different ‌one cardinal cars, CEO Oliver Blume said successful ​an question and reply pinch ​business news outlet Manager ⁠Magazin published connected ​Tuesday.

"On nan 1 hand, ​we're investing heavy successful products. At nan aforesaid time, ​we've already taken ​extensive measures. We're presently looking ‌at ⁠cutting a further cardinal units of capacity to bespeak nan ​global ​market ⁠situation," Blume said.

Volkswagen evidently doesn't want to make much cars than it tin sell, but we're now successful an absorbing spot wherever companies are looking to make little of their merchandise successful bid to make more money connected their shares. I deliberation we collapsed our system location on nan line. 

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China is arguably nan astir important automotive marketplace connected nan planet, which is simply a problem for German automakers for illustration Volkswagen. Namely, Chinese buyers are starting to suffer liking successful German brands. They're conscionable not cool immoderate more, it seems. From Reuters: 

More than 40 years aft Volkswagen stole nan show astatine its first Chinese car fair, it has mislaid its cutting-edge position successful nan country, pinch homegrown brands mounting nan gait for a younger procreation of tech-hungry drivers.

The combustion-engine practice of "Made successful Germany" nary longer holds arsenic overmuch sway successful what has go nan world's largest ​car market, wherever section automakers are rolling retired flashy, affordable electrical vehicles that are fundamentally mobile phones connected wheels.

"Maybe immoderate younger customers comprehend america arsenic ‌the marque for nan parents," nan Volkswagen brand's China CEO, Robert Cisek, told Reuters.

As Esme Squalor would say, German cars are out. Chinese automakers are in. Unclear wherever parsley soda falls here. 

AAA