Happy Monday! It's August 25, 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 an investigation into a line of text in the proposed U.S./EU trade deal that could give us European-spec cars, as well as a Honda engine failure investigation. We'll also look into Mercedes' pension divestment from Nissan, and a new system for U.S. auto parts makers to add tariffs on more foreign parts.
Read more: These Are The Most Forgettable Cars
1st Gear: U.S./EU Tariff Deal Could Give Us Euro-Spec Vehicles
You know how Europe gets cooler cars than us, with better headlights and more power? Well, under a framework trade deal between the United States and the European Union, we may start to get those Euro-spec vehicles on our shores. From Automotive News:
One sentence in the United States-European Union's framework for a trade agreement could usher in some of the biggest changes the auto industry has seen this century.
"With respect to automobiles, the United States and the European Union intend to accept and provide mutual recognition to each other's standards," according to a joint statement published Aug. 21.
The implication of the language in Article 8 of the statement has divided industry experts.
Some believe that, if enacted, the new rules would allow imported vehicles from each other's regions to be sold on both sides of the Atlantic without meeting the same safety and emissions standards.
Others said automakers would still be required to tailor vehicles to each market. But the potential changes could push the regions to accept the other's safety, emissions and fuel economy test results.
The changes are likely aspirational. The intention to recognize each other's standards is not a commitment, said Jennifer Smith-Veluz, international trade attorney at Butzel.
This is just a framework, not complete legal language, but maybe we can finally hold ourselves to EU standards for emissions. That would maybe be the funniest way to undo the Trump administration's gutting of the EPA, though it would be just as easy for Europe to adopt lax American standards and plunge us all into climate change hell even faster. Let's hope that one doesn't happen.
2nd Gear: NHTSA Is Looking Into 1.4 Million Hondas For Potential Engine Failure
Honda's 3.5-liter V6 is in seemingly every third car you see out on the road, and now it's the subject to an investigation from the National Highway Traffic Safety Administration. The agency is looking into 1.4 million TLXes, MDXes, Pilots, Odyssies, and Ridgelines, with an eye towards a crankshaft fault that may cause connecting rod bearings to seize. From Reuters:
The National Highway Traffic Safety Administration is opening a probe into more than 1.4 million Honda vehicles sold in the United States over concerns that connecting rod bearing failures in their engines could lead to complete engine failure.
In a letter dated August 20, the regulator said it received 414 reports of the issue in various Honda and Acura vehicles' 3.5-liter V6 engine.
The investigation covers 2018-2020 model year Acura TLX, 2016-2020 Acura MDX, 2016-2020 Honda Pilot, 2018-2020 Honda Odyssey, and 2017-2019 Honda Ridgeline vehicles.
Is it just me, or are recalls getting weirder? When a first-year car comes out and has some electrical gremlins that's one thing, when a tech doesn't apply proper torque to a couple bolts that's another, but it feels like we keep getting recalls for problems that should be long since solved. We know how to make crankshafts.
3rd Gear: Even Mercedes' Pension Plan Is Getting Out Of Nissan
Nissan has had better days. The company's been in a bit of a rough patch, and it's made investors concerned — including Mercedes-Benz's pension trust, which is selling off $346 million worth of shares out of fear they'll fall even further. From Reuters:
The pension trust of Mercedes-Benz will sell off its roughly $346 million shareholding, a 3.8% stake, in Nissan Motor, a spokesperson for the German carmaker said on Monday, adding to pressure on the Japanese automaker's share price.
Japan's third-largest automaker has been hit by U.S. tariffs, restructuring and lower sales volumes that have contributed to a 24% slide in its share price this year.
The sale indicates investor concern over the prospects for Nissan's turnaround plan that includes shutting production at some plants in Japan and overseas to slash costs and restore profitability.
Car company pensions investing in other car companies feels like a conflict of interest, but I guess it's better than active employees of Mercedes making their money off Nissan. Retirees only.
4th Gear: U.S. Auto Parts Makers Can Tell The Government To Tariff More Parts
Do you make auto parts in the good ol' U.S. of A? Are you sick of those damn foreigners sending their auto parts over here, and competing with your homegrown product? Well, never fear: The United States now has a snitch line for you to get car parts added to the tariff list. From Automotive News:
While some companies in the auto industry are struggling to handle the cost burdens of tariffs enacted by President Donald Trump, others might want to see the tariffs expanded to protect their market niche.
Now, that group is about to get the chance, a development that highlights the dynamics at play for different parts of the automotive value chain.
The federal government established a process in June for companies to request to apply the tariffs to additional auto parts. The Federal Register notice has yet to be posted, delaying submission timelines. But parts manufacturers will be able to suggest additional goods be subject to the 25 percent Section 232 tariffs, designed to protect national security.
This has big "reminding the teacher you had homework" energy, and just know that if you do reach out to this tip line I'll judge you as such.
Reverse: No One Mourns The Wicked
I come from a big "Wizard of Oz" family (my grandfather knew the original Wicked Witch, Margaret Hamilton) and I accordingly love "Wicked" a totally normal amount. I've had the Broadway lottery page for it open on my computer for weeks now, and I desperately want to see it on stage again.
On The Radio: They Might Be Giants - 'Erase'
It's so nice to not spend an August putting one box on the sidewalk, then returning with the next and the first one's gone. I always end up moving in August, and I'm glad I'm not doing that this year.
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