Cold Weather Takes a Bigger Toll on EVs and Hybrids Than Expected
New research from AAA shows that both electric vehicles and hybrids lose fuel efficiency in extreme temperatures, especially in cold weather. While hybrids handle freezing temperatures better than EVs because they still use gas engines, researchers were surprised by how much efficiency they still lost. In AAA’s testing, hybrids lost about 23 percent of their fuel economy at 20 degrees Fahrenheit, while EVs lost up to 39 percent of their driving range. In hot weather, hybrids also performed slightly worse than EVs, with fuel efficiency dropping around 12 percent at 95 degrees Fahrenheit.
The study found that cold weather affects both types of vehicles because their batteries become less efficient in low temperatures. However, hybrids can reuse heat from their engines to warm the cabin, giving them an advantage over fully electric vehicles. Automakers are continuing to improve battery performance and climate control systems to balance comfort with efficiency. Researchers also said drivers can help reduce energy loss by preheating their vehicles while plugged in and using heated seats instead of warming the entire cabin.
Automakers Work to Balance Inventory as New Vehicle Market Stabilizes
The U.S. new-vehicle market remained mostly stable in April, but automakers are making strategic moves to manage inventory more carefully. Industry data showed available inventory fell slightly to 2.86 million vehicles, while days’ supply dropped to 78 days, down from nearly 95 days earlier this year. A major reason for the shift is that automakers are working quickly to clear out 2025 model-year vehicles before newer 2026 models fully take over. By the end of April, about 93 percent of inventory consisted of 2026 vehicles, showing that manufacturers are slowing production and keeping supply more in line with demand.
USMCA Review Could Reshape North American Auto Trade
The United States-Mexico-Canada Agreement (USMCA) is facing a major review this year, and the outcome could have a big impact on the North American auto industry. The trade agreement, which replaced NAFTA in 2020, allows goods to move between the three countries without tariffs as long as they meet certain requirements. For automakers, that means at least 75 percent of a vehicle’s parts must come from North America, and a large portion of production must involve workers earning at least $16 an hour. Automakers also must source most of their steel and aluminum from the region to qualify for lower trade costs.