Ford is pulling some Lincoln production out of China as tariffs make the math impossible. Toyota’s plug-in hybrid sales are exploding in ways no one quite anticipated. Plus, our panel reacts to the $25 million lawsuit against Polestar that raises hard questions about how automakers manage market exits.

Aug. 15, 2026 | Weekend Drive: Lincoln pulls production out of China; Toyota's PHEV surge

Automotive News Daily Drive

Dealers, could there be untapped revenue on your lot? Protective Asset Protection works with dealers to unlock new revenue streams through reliable protection products across most vehicle types. Visit ProtectiveAssetProtection.com slash Automotive News to learn more. Welcome to this Automotive News Daily Drive edition of Daily Drive for the third week of August, 2026. I'm Kellen Walker in Las Vegas.

This week, Ford made a difficult call on Lincoln in China. Toyota is suddenly having a plug-in hybrid moment. And a Polestar dealer is taking the brand to court with a pretty striking accusation. With me today, Michael Martinez, who covers Ford and the UAW for us at Automotive News. Mike, welcome back to Weekend Drive. Thanks, Kel. And Larry Velaquette, who covers Toyota, Mazda, and Subaru for us at Automotive News. Lawrence Iliff, how you doing, sir?

Kel, I'm doing great. Good to see both you guys. All right, gentlemen, let's get started. So, Mike, Ford CEO Jim Farley told Reuters this week that the company plans to move production of some Lincoln models out of China and back to the U.S. by 2030. He called it difficult but necessary. The Lincoln Nautilus is the main vehicle affected. It's facing a 52.5% tariff on imports from China. What's the significance of this move?

And what does it tell us about how Ford is thinking about the tariff environment going forward? Well, it's a very significant move. And I think this whole episode is sort of a perfect encapsulation of the chaos we've seen around the second Trump administration and the new tariff policy because it was not that long ago that Ford moved Nautilus production from Canada to China.

Aug. 15, 2026 | Weekend Drive: Lincoln pulls production out of China; Toyota's PHEV surge

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Aug. 15, 2026 | Weekend Drive: Lincoln pulls production out of China; Toyota's PHEV surge

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.