The ‘Power of Dreams’ brand is reconsidering its course of action

Japanese automotive giant Honda is reassessing its strategy for electric vehicles as it navigates challenges stemming from the high costs of EV development, flattening EV demand, and the impact of U.S. tariffs.

In the first quarter of its 2025-2026 fiscal year (April 1 to June 30, 2025), Honda took a one-time charge of ¥113.4 billion (~$780 million) related to its EV-related troubles. In total, the impact of the EV charge and its exposure to tariffs took a toll on Honda’s operating profit during the quarter, as earnings fell to ¥244.1 billion (~$1.69 billion) from ¥484.7 billion (~$3.35 billion) just one year ago.

During a press conference on August 6, Tokyo time, Honda Managing Executive Officer Eiji Fujimura attributed the nearly $780 million charge regarding EVs to its mistakes, adding that they aren’t “optimistic” about the future of electric vehicles.

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Honda is struggling to sell EVs profitably

Although Honda still plans to launch its 0 Series line of EVs in the U.S. in 2026, the company has delayed product development and investment in a Canadian EV production hub. However, it struggles to come to terms with the loss of the U.S. federal tax credit incentive and the cooling growth in EV demand. Currently, Honda sells two EVs in the States, the GM Ultium-based Honda Prologue and Acura ZDX crossovers, which, so far, have had admittedly healthy sales numbers. Through June, American Honda moved 16,317 Prologues, while Acura sold 10,335 ZDX; numbers that were only possible with heavy incentives.

According to industry marketing promotion data from Motor Intelligence cited by Automotive News, Honda spent an average of more than $12,000 on each Prologue and $21,000 on each ZDX it moved during the April-June quarter.

In addition, Honda’s attempts to break into the mecha-competitive Chinese EV market with its line of locally developed EVs have not been a fruitful experiment for the automaker. In remarks, Fujimura noted that Honda’s Chinese-market EVs were too expensive amidst a sea of local brands competing in local price wars, and that their cars lacked important connected car technology features that Chinese consumers found on less costly models.

“We are struggling with EVs there,” he said. “We are underachieving against the initial plan.”

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Trump Admin.—Japan trade deal saved $1.38B from Honda’s tariff outlook

In addition to its EV woes, U.S. tariffs are taking a significant toll on the Power of Dreams brand’s finances. However, Honda officials believe that the recent trade deal between the Japanese government and the Trump Administration in the U.S., which reduced tariffs on automobiles and auto parts from 25% to 15%, will have a slight positive impact on its financial performance in the foreseeable future. Previously, the automaker projected that tariffs would hurdle a full fiscal year blow of ¥650.0 billion ($4.49 billion) at a minimum; however, its latest outlook shows that the new policy would save ¥200 billion ($1.38 billion), down to ¥450.0 billion ($3.11 billion).

However, to further mitigate the impact of U.S. tariffs, Honda says it will increase prices and adjust its supply chain to produce more domestic vehicles for the U.S. market. Fujimura hinted that the automaker may expand its two-shift operation at U.S. plants to three to keep up with demand, requiring more coordination with suppliers.

“We might change it to a three-shift operation in the States, so that we can increase production volume without spending too much on capital investment,” Fujimura said.

Final thoughts

Notably, Honda remains vulnerable to potential trade issues with Mexico and Canada, as a formal agreement with these countries has not yet been finalized. For the full fiscal year to March 31, 2026, Honda estimates that it will incur approximately ¥190 billion ($1.31 billion) in tariff costs on complete vehicles imported to the U.S., with the majority of this amount coming from the USMCA nations.

Honda sources a third of its vehicles from tariff-targeted Mexico and Canada, including popular models such as the compact HR-V crossover, the Acura ZDX, and Honda Prologue EVs from GM’s Ramos Arizpe plant, as well as select units of the Civic and CR-V from Alliston, Ontario.

AMG GT XX Concept Spawning An SUV

Next year, the Mercedes EQS SUV will be replaced with something that is styled a little less differently than its gas-powered alternative, the GLS. But for those who want the pinnacle of performance, the AMG division is working on an EV of its own. Well, technically, two, though both are on the same platform. The one pictured here will be a new entrant to the segment of super SUVs, while the sedan we spied last week will be the effective replacement for the $198,950 AMG GT 63 S E Performance 4-Door. But is a high-performance all-electric SUV a good idea?

Rivals Are Anticipating Growth In The EV Niche

SH Proshots/Autoblog

Mercedes is lagging far behind BMW in the sales race, and its slow-selling EVs are having incentives thrown at them from every direction, but Mercedes is doubling down and working hard to improve. A few days ago, CEO Ola Källenius said that Mercedes would launch 18 new vehicles by 2027, half of which would be electric, and although he admits that many “top-end [customers] still choose the Swiss watch of cars with a combustion engine,” he must also see evidence that demand for EVs will increase by the end of the decade, when Mercedes intends to offer “the choice of an electric powertrain” in all “relevant” Mercedes-Benz models.

Bentley is working on a smaller-than-Bentayga electric crossover, and Ferrari has its sights set on an EV by the end of the decade, too, as does Lamborghini. Admittedly, each of these manufacturers has delayed their respective all-electric projects at least once, with Sant’Agata even considering making the Lanzador a hybrid instead, but they would not continue development if they did not see demand spiking soon. Even Porsche, which has already experimented with the Macan, is still pursuing an electric Cayenne. Particularly in Europe, where emissions continue to be strictly monitored, these EVs will eventually be luxury brands’ bread and butter.

What We Can See From Spy Shots

SH Proshots/Autoblog

Spotted on the Nürburgring, this AMG SUV was reportedly lapping the entire circuit on 285/40ZR22 XL tires on the front wheels and 325/35ZR22 XL rubber on the rear. That means the rear wheels will be over 12 inches wide, and the fronts will be close to 11 inches in width, indicating a lot of power through each axle. With the AMG.EA platform under this behemoth, we expect in the region of a thousand horsepower and fake V8 noises. As for the styling, this prototype closely resembles a lifted variant of the early AMG GT electric sedan development mules we saw last year, which means it’ll soon look like the Taycan-rivaling sedan that the AMG GT XX concept foreshadows. A sloping roofline and a Kamm-tail-like rear end give Aston Martin DBX vibes from some angles, but with three-part round lighting units on either side of the tailgate rather than the ever-popular full-width lightbar, AMG’s super SUV should have a unique overall aesthetic.

Manual Transmission Cars Available in 2026: From affordable commuters to high-end sports cars and SUVs, here’s what’s left for the three-pedal faithful.

It wasn’t that long ago when manual transmission versions of several vehicles were available as a base, or performance option. Many cars, trucks, and SUVs had stick-shift transmissions available, and they were once considered the most efficient transmissions for many production vehicles. Now, things have changed.

There are still a few automakers that offer many manual transmission options, but others have killed them off completely. There are a slew of exotic sports cars that no longer offer a manual transmission as well. In fact, only Porsche offers the option in a few of their vehicle while Lamborghini, Ferrari and Maserati have removed the option altogether.

Currently, the overall take rate for manual transmission vehicles in the United States stands at approximately 4 percent. While it is a shame that so many have abandoned the option, there still are a few automakers offering vehicles with a manual transmission. Here’s a list of the ones offering a manual transmission for 2026.

Acura

Acura Integra Type S

High-performance hatchback, standard 6-speed manual on Type S trims. This is the only Acura currently available with a manual transmission. Available with the 200 horsepower A-Spec and standard in the 320 hp Type-S.

BMW

BMW M2 and BMW M2 CS

Manual offered on select trims through 2026. The BMW M2 CS is a high-performance, limited-edition version of the BMW M2 coupe, and both are available with a manual transmission.

BMW M3

The BMW M3 continues to offer a manual transmission. The standard M3 comes with a six-speed manual transmission. The M3 Competition is exclusively offered with an eight-speed automatic transmission.

BMW

BMW M4

Yes, both trims have a 6-speed manual option. The BMW M4 offers two transmission choices: a 6-speed manual and an 8-speed automatic. The standard M4 is available with a 6-speed manual transmission, while the M4 Competition is exclusively equipped with an 8-speed automatic transmission.

BMW

BMW Z4 M40i

The little roadster comes with a 6-speed manual transmission. BMW’s M40i trim is available with a 6-speed manual transmission through the “Handschalter” package, while an 8-speed automatic transmission is standard. 

Cadillac

Cadillac CT4‑V Blackwing

The Cadillac CT4-V Blackwing offers two transmission options: a standard six-speed manual transmission and an optional 10-speed automatic transmission. Both transmissions are paired with a 3.6-liter twin-turbo V6 engine that makes 472 horsepower.

Cadillac

Cadillac CT5‑V Blackwing

668-hp V8 and 6‑speed manual in 2026 lineup, GM’s most powerful car with a manual option. Unusually, the six-speed manual transmission comes standard, while the 10-speed automatic transmission is optional.

Ford Bronco

Like its main rival, the Jeep Wrangler, there is a manual transmission option for the big Bronco. Several Ford Bronco trim levels are available with the 7-speed manual transmission, but only when paired with the base 2.3-liter EcoBoost engine. 

Ford Mustang GT and Mustang Dark Horse

Yes, the Mustang GT and Ford Mustang Dark Horse come with a 6-speed manual transmission. Only the V8 Mustangs have a 6‑speed manual option; the turbocharged 4-cylinder (now) only comes with a 10-speed automatic.

Honda

Honda Civic Si

The gutsy 1.5-liter turbo comes with a 6‑speed manual as standard equipment. This is one of the few cars on this list that does not offer an automatic transmission option, along with its larger sibling below.

Honda

Honda Civic Type R

With a turbocharged, 315 horsepower 2.0-liter engine, it’s one of the most powerful front-wheel drive vehicles to come with a 6-speed manual transmission currently. No other transmission is offered.

Hyundai Elantra N

Producing 276 horsepower and 289 lb-ft of torque from its turbocharged 2.0-liter four-cylinder, the Hyundai Elantra N offers serious performance bang for your buck. For die-hard enthusiasts, a 6-speed manual transmission comes standard, but an 8-speed dual-clutch automatic gearbox is also available as an optional upgrade. With its variable exhaust system and electronically-controlled suspension system, the Elantra N offers serious fun both on and off the racetrack.

Jeep

Jeep Wrangler

Yes, the V6 Wrangler is still available with a six-speed transmission; however, Jeep has removed that option from the Jeep Gladiator, which now comes standard with an 8-speed automatic. Additionally, the 4Xe and 392 versions come only with an 8-speed automatic transmission.

Kia Forte GT

The 6‑speed manual is still available in some markets for 2025. The Forte will be discontinued for the 2025 model year; however, a few models remain on dealership lots as of this writing.

Lotus

Lotus Emira (V6)

A 6-speed manual is available with the Toyota‑sourced supercharged V6, but changes are afoot. A 6-speed automatic transmission is available as an option on the V6. The AMG-sourced 2.0-liter turbocharged inline-4 is paired with an 8-speed dual-clutch automatic transmission.

Mazda

Mazda 3 Hatchback 2.5 S Premium

Only this trim offers a manual, and it’s the non-turbo FWD model. Any other trim, any other configuration and any turbocharged offering will come with a 6-speed automatic transmission as the only option.

Mazda

Mazda MX‑5 Miata

Still in a class of its own, the rear-wheel drive roadster comes standard with a manual transmission on all trims. A 6-speed automatic transmission is optional. Interestingly, other vehicles like the Morgan Super 3 and Polaris Slingshot auto-cycles have a Mazda MX-5 Miata-sourced 6-speed manual transmission.

Nissan Z

Twin‑turbo V6 coupe with 6‑speed manual option is only available on the Sport and Performance trim, but not on the Nismo Z. Additionally, it will be the only Nissan product sold in the United States that has a manual transmission option.

Porsche

Porsche 718 Cayman and Boxster

Available on the Base, T, S, GTS and Spyder RS, many trims are available only with 6‑speed manual. A 7-speed PDK (Porsche Doppelkupplung) dual-clutch automatic transmission is available. Both transmissions are offered with various engine options across the 718 lineup.

Porsche

Porsche 911 Carrera T and 911 GT3

These are the only variants with true manual gearboxes in the 2026 model year. All other 911 models, including the new GTS with its hybrid powertrain, come standard with the 8-speed PDK.

Subaru Impreza Base

6‑speed manual is still available on lower trims, and AWD is standard. The other transmission offering is a continuously variable transmission (CVT).

Subaru

Subaru BRZ

RWD coupe with 6‑speed manual offered across trims. The other available transmission is a 6-speed automatic transmission with paddle shifters.

Toyota

Toyota GR Corolla

Rally-bred AWD hatch with 6‑speed manual standard, and now offers an automatic option. This is an 8-speed “GAZOO Racing Direct” automatic transmission. Both transmissions are still bolted to a 300 hp 3-cylinder turbocharged engine.

Toyota

Toyota GR86

Mechanically similar to the Subaru BRZ, it comes standard with a 6-speed manual transmission, with a 6-speed automatic transmission with paddle shifters as an option.

Volkswagen

Volkswagen Jetta GLI

With the discontinuation of the GTI’s manual option, the GLI is the last Volkswagen sold in the United States to offer a manual transmission. An optional seven-speed dual-clutch automatic (DSG) is available.

Mazda

Final thoughts

Manual transmission lovers took a big hit this year as MINI pulled all of their stick-shift vehicles, making all of them use a 7-speed dual-clutch automatic transmission. Additionally, I did not include the Toyota Tacoma, which is the last pickup truck to offer the option (non-hybrid Tacomas only), as it’s a truck. Still, despite the paltry list, there are some options for those who want to grind their own gears and play with three pedals.

What makes this 1997 McLaren F1 hold a value in excess of $23 million

Oracle co-founder Larry Ellison’s former 1997 McLaren F1 is set to head to auction at RM Sotheby’s block during Monterey Car Week. The model, chassis no. 62 is one of just seven McLaren F1s exported to the U.S., and its odometer has just under 6,500 miles. McLaren built 106 road F1s at its Woking, U.K. headquarters, and the model up for sale is believed to have never been modified to meet federal safety and emissions approval.

The vehicle is described by the design leader of McLaren’s F1 racing teams, Gordon Murray, as the world’s first ground-effect road car. Its aerodynamic design mirrored aspects of the 1971 Ferrari 312P sports racer, including its low frontal area without excess wing. The interior contains a center driver’s seat, flanked by two passenger seats, which Murray said aimed to “give the driver the panoramic feel of a single-seater,” according to RM Sotheby’s. The car also doesn’t contain any electronic driving aids to appeal to true enthusiasts.

Courtesy of RM Sotheby’s

Legendary BMW engineer Paul Rosche designed the F1’s engine, a naturally aspirated 6.1-liter quad-cam V-12 producing 627 bhp and 479 lb-ft of torque. These powertrain specs translate to a 0-62 mph time of 3.2 seconds. Rosche was responsible for designing engines for several high-performance BMWs, such as the 2002 Turbo’s M31 and the E30 M3’s S14. The transmission is a six-speed manual transverse gearbox, and 16 grams of gold foil lining the engine bay reflected heat to protect the all-composite monocoque chassis F1, which contained carbon fibre and Kevlar.

This McLaren’s unique design placed it at a premium price point from the get-go. Upon its launch at the Monaco Sporting Club during the 1992 Monaco Grand Prix, the F1 was priced at $1 million, not including taxes, or about $2.3 million at today’s rate. The F1 would go on to become the world’s fastest normally-aspirated road car by hitting a speed of 242.95 mph at Volkswagen’s Ehra-Lessien test track—a record that it retains for its engine type.

Other notable McLaren F1 owners and chassis no. 62’s upgrades 

The Beatles’ George Harrison, Pink Floyd’s Nick Mason, fashion designer Ralph Lauren, and Tesla CEO Elon Musk were among the exclusive McLaren F1’s group of owners. Musk, who had an F1 delivered to him gently used in 1999, drove the model daily, logging over 11,000 miles in his first year of ownership. Musk totaled his uninsured F1 and repaired the car out of pocket.

Larry Ellison logged less than 2,600 miles in the F1 that’s being auctioned by RM Sotheby’s. While chassis no. 62 had three owners, they all kept the car in the San Francisco Bay Area. The vehicle is equipped with several McLaren Special Operations post-production upgrades in areas such as air conditioning, radiators, sports exhaust, and the aluminum fuel tank. Chassis no. 62 also still contains its original magnesium wheels, matte black-finished spare, owner’s manuals, and luggage set. This example is one of seven road-legal McLaren F1s in California.

Courtesy of RM Sothebys

Final thoughts

There are several reasons why significant auto enthusiasts like George Harrison and Ralph Lauren were drawn to the F1. The model is the first example of a manufacturer successfully creating a vehicle striking an ideal balance between iconic design, record-breaking performance, and an unmatched driving experience. Key elements helping form this combination include its lightweight carbon-fiber monocoque, BMW-sourced V12 from legendary engineer Paul Rosche, and center-positioned driver’s seat. Chassis no. 62 is especially valuable with its low-mileage journey through three owners, all of whom kept it in the same geographical region.

A Muscle Car Lineup Without a V8

Dodge’s muscle car portfolio has been without its most defining feature since the start of 2025. The discontinuation of the last-generation Charger and Challenger brought an end to the brand’s Hemi V8 offerings, replaced by the all-electric Charger Daytona and a new combustion-powered Charger Sixpack that falls short of two cylinders.

While the Daytona EV signals Dodge’s future ambitions, early sales figures suggest hesitation from traditional buyers. Through the first half of 2025, Dodge has sold just over 4,000 Charger Daytonas – nowhere near enough to fill the void left by the V8-powered models. The Charger Sixpack, available in two high-output inline-six variants, still lacks the visceral appeal of a V8 for Dodge loyalists.

Interestingly, the company has already reversed course in its truck lineup, recently reintroducing the Hemi V8 in the Ram 1500 after a leadership shakeup and a regulatory rollback. It stands to reason the muscle car lineup could be next, and Dodge seems to have chosen a symbolic date for it.

Dodge

8/8 Could be More Than Just Another Friday

Dodge is scheduled to reveal “its newest muscle” during the opening day of Roadkill Nights Powered by Dodge on Friday, August 8, 2025. The timing—8/8/2025—offers a memorable anchor for what could be a high-profile comeback. Though the company hasn’t confirmed what the new car will be, the context of the reveal and the marketing language strongly hint at something aligned with Dodge’s performance roots.

Roadkill Nights, now in its 10th year, has become a marquee event in the American performance calendar. Held the weekend before the Woodward Dream Cruise, it draws a national audience of muscle car fans and drag racing enthusiasts. With Dodge at a crossroads and still reeling from a nearly 50% year-on-year sales drop, this event gives the brand a focused, enthusiast-friendly platform to reassert its identity.

Dodge

Roadkill Nights Stacked with Fan-Favorite Activities

Beyond the potential Hemi-related announcement, Roadkill Nights 2025 is packed with activities that target the brand’s core audience. Attendees can expect thrill rides in the next-generation Charger, a Direct Connection Grudge Race, and 12,000-horsepower burnout exhibitions by NHRA stars Matt Hagan and Leah Pruett. Plus, racing legend Tony Stewart will appear alongside Dodge Badassadors – new brand reps who will interact with fans throughout the event.

The main event on August 9 will also feature car shows, simulators, a showcase of Direct Connection parts, and special Dodge and Ram displays. For those who don’t have the time to attend physically, the August 8 reveal and August 9 main program will both be streamed online.

Dodge