If there’s one thing I’ve come to appreciate about The Autopian audience is that y’all either have a van or greatly appreciate the vans other people have. If 2024 was “brat summer” then 2026 is “van summer.” You know else is having van summer? Well, if you read the headline and don’t have the answer to this question go grab another cup of coffee.
It’s Mercedes! The automaker has done the German thing of having over-invested in EVs and underestimated the downturn in Chinese demand. Thankfully, Mercedes does one thing consistently well: Vans. It also has a great looking EV van coming out. Vans!
What Mercedes doesn’t sell here (yet) is a small car. The President was in Michigan trying to build excitement ahead of the midterm elections and a random part of his pitch was tiny cars again. Tiny cars! This isn’t a terrible plan, as tiny cars are how BYD is hoping to break into the Chinese market. On the topic of Japan, our thoughts are with the people there facing another devastating earthquake which, again, is potentially going to disrupt the car market.
Mercedes Slumps After Weakness In China, Vans Come To The Rescue
Things have not been gut in Stuttgart, with historic automaker Mercedes-Benz taking it in die shorts due to various geopolitical issues, EV investments not yet panning out, and the weakness in the Chinese market.
As Bloomberg reports, this has meant a weak Q2 and a write-down due to the business in China not working out:
For the second quarter, adjusted operating earnings from carmaking slumped 26% from a year earlier to €909 million ($1 billion). The average selling price fell by 4.4% to €64,700 from a year earlier, underscoring the pressure from weaker pricing and product mix.
The worsening outlook in China also prompted Mercedes to take a €704 million write-down on investments in businesses there.
That’s not great. As Bloomberg points out, there is one part of the business that’s making up for some of the weakness in automotive and it starts with V and it rhymes with P and that stands for, uh, vans. I guess.
Vans! As Mercedes-Benz pointed out in its Q2 financial release:
With an adjusted RoS of 10.2%, Mercedes-Benz Vans once again achieved double-digit results in the second quarter of 2026. Adjusted EBIT increased by 3% to €454 million compared with the second quarter of 2025, driven by higher sales outside of China, positive contributions from aftersales and the leasing portfolio. At the same time, the results reflect net pricing pressure and product mix effects as well as the ramp-up efforts for the new Van Architecture. Mercedes-Benz Vans is currently executing its largest product investment programme in its history.
Mercedes-Benz Vans recorded second-quarter sales of 94,075 units, reflecting stable overall global demand with a strong performance in North America (+23%) and Europe (+5%) along with significant sales growth for eVans (+46%) compared to the second quarter of 2025.
I do love a Mercedes van. In fact, the eSprinter is maybe my favorite electric vehicle. The company knows how to make a van, and the new VLE looks kind of incredible. Mercedes has apparently improved its game when it comes to its latest generation of EVs, and if I ever get to drive one again I’ll let you know how that goes.
It’s a great time for vans, and Millennials (like myself) are apparently making vans cool again. Or at least trying according to CNN. What’s wild is that, per a report in Manager Magazin, CEO Ola Källenius almost stopped the development of gas and diesel vans entirely:
Källenius staked almost everything on one card. AMG, the company’s in-house supercar division from Affalterbach, was to focus exclusively on building electric vehicles. The then-head of the van division, Mathias Geisen (48), developed the VAN.EA platform for all battery-powered vans, while existing gasoline and diesel variants like the Sprinter were to be extended. Mercedes simply refused to develop a new platform for combustion engines. This plan is likely to prove one of Källenius’s biggest failures. While the company had long made enormous profits from vans, the new platform unfortunately had to be converted to accommodate combustion engines at great expense. This billion-dollar debacle is likely to soon be reflected in the company’s financial results.
Vans!
I Don’t Really Know What President Trump Means Here
Like many of us, President Trump seems obsessed with kei cars, and talks about approving the production of them all the time. What does that mean? I have no idea, but President Trump spoke in Michigan at a rally at a GM’s Milford Proving Grounds, and there was a lot of political talk and then… an appreciation of small European cars.
“And today I’m giving all American car companies the right to build what are called tiny, little, tiny cars. Because I go to Europe and I see these little cars all over the place. I say ‘Why aren’t we making some?” Trump explained. “Sean Duffy, the Secretary of Transportation, has just cleared it. I was with him in the plane and I said ‘Sean, did you clear that?’ and he said ‘No sir, not yet,’ and I said ‘I want it done now’ [and he said] ‘Oh, it’s done sir.”
He then said Sec. Duffy was “very smart” while laughing for some reason. Addressing GM CEO Mary Barra, he said:
“It’s a tiny little beautiful little car. I’m not sure I want to get hit by one of your Silverados or one of your Cadillacs, but you’ll make them as safe as possible, right? You put a cocoon, you put a little cocoon around them.”
I have reached out to the Department of Transportation on clarification of what this all means, because I haven’t seen anything in the Federal Register today that explains what any of this means. President Trump did talk about affordability, and this seems to stem from an understanding that vehicles are expensive, and an unwillingness to connect that reality to tariffs.
BYD Is Going After Japanese Small Cars
BYD needs exports, so why not try to crack into Japan’s notoriously walled off market? The Chinese automaker’s first big attempt is an electric kei car called the Racoo, which is the Japanese word for sea otter. It costs about $13-15k and returns almost 200 miles of range (on their test), which is more than any other Japanese mini EV.
It’s also the first car developed by a Chinese automaker solely for a single export market, as Nikkei Asia reports:
“When I visited regional parts of Japan, I often heard people say that kei cars are an integral part of daily life and ask whether BYD could introduce one as well,” Liu Xueliang, president of BYD Japan, said at a launch event. “Contributing to the growth of local communities is at the very root of BYD,” he said, explaining its decision to develop a kei EV from the ground up.
It marks the first time the Chinese automaker has developed a passenger vehicle specifically for a single country. “No overseas brand had ever taken on the challenge before, but BYD decided to do so … we are fully committed to Japan,” added Liu, who is also vice president of BYD.
I’m looking forward to seeing one in action in Godzilla Plus One.
Japanese Earthquake Could Impact Production
The large earthquake that hit the Kumamoto region of the island of Kyushu this afternoon in Tokyo could impact an area that has a large amount of car production as Automotive News reports:
Toyota Motor Corp. and Nissan Motor Co. have automaking hubs in the northern part of Kyushu, about 150 kilometers (93 miles) from the quake’s epicenter.
Toyota suspended second-shift operations at its Lexus assembly plant, its Kanda engine plant and its Kokura hybrid powertrain plant in the region.
“Due to the impact of the earthquake, considering safety, logistics, and supplier status, we have suspended operations for the 2nd shift,” a spokesman said.
Toyota aims to resume work from the first shift on July 29, pending evaluation of the supply and quake aftermath, the spokesman said.
Japanese automakers are experienced with these kinds of disruptions and the plans are to resume production tomorrow.
What I’m Listening To While Writing TMD
The Kacey Musgraves video for “Mexico Honey” is out and it’s very literal, with a bit of a karaoke theme. And parrots!
The Big Question
What’s your favorite van?
Top photo: TMD
“It’s a tiny little beautiful little car. I’m not sure I want to get hit by one of your Silverados or one of your Cadillacs, but you’ll make them as safe as possible, right? You put a cocoon, you put a little cocoon around them.”
I try to live for today but this shit makes me want to skip the next 2.5 years.
Don’t skip election day!
Regarding TBQ: Mine.
Favorite Van: 1985 8-passenger Chevy Beauville with two-tone brown paint.
I thought the Ford Transit Connects looked cool and maybe fun? I’ve never even sat in one, let alone driven one. In the 90s as a TV news photographer, I put a lot of miles on Ford Econoline microwave vans. Sometimes, to get enough elevation for a clear line-of-sight path to a distant microwave receiver, we had to go up some gnarly forest service roads and the Fords never broke. And they absorbed enough stuff going on underneath that the Sony tape decks and monitors in back didn’t shake themselves to death.
Some stations also used them and Mercedes Sprinters as the basis for satellite uplink trucks. I have never seen a RAM ProMaster in either use case.
Televisa in Mexico City had a couple of BMW GS bikes kitted with microwave gear for getting to and going live quickly in congested parts of the city. Much as drones have largely replaced multi-million helicopters for aerial shots, microwave transmission has largely been replaced by bonded-cellular equipment that all fits in a small backpack. Satellite trucks have been kept on hand for remotes from areas that have no or inadequate cellular phone coverage.
Transit Connects are awesome to drive, we had 2 in my last company for smaller deliveries often to rural areas in England and they were great fun to throw round corners. Basically a Focus carrying air! And some stuff…
I think I have to go Daihutsu hijet probably the last two generations. The mid to late 90s Subaru sambar with the retro styling I always thought were neat looking. Current gen Suzuki Every is up there too.
I admire the Citroen C15 as a cockroach of a vehicle that can do just about anything you ask of it. I also don’t hate the modern transits or the idea of them just think like everything at ford the MSRP got away from reality.
Japans market is interesting as it’s changing in ways many thought it wouldn’t. Chinese brands and products have taken over everyday life just like almost everywhere else. Korean brands are probably a close second at least for now. So many Japanese brands have exited the consumer market. It turns out Japanese consumers are like consumers everywhere. Bring a strong value argument and it probably doesn’t matter much where it’s made. BYD certainly does that.
LOL you call Japan a walled-off market? We’re the ones with the 25% jealousy tax on trucks, different-but-not-better standards, and a 25-year embargo. The US is the walled-off market.
Japan literally allowed a British kei car to make 80 hp because that’s how it’s certified in the UK (the Caterham 7). They were going to detune it to 63hp, but Japan said to keep it as is. Also, Japan uses the international UNECE standards like almost every other country. Since they use RHD, it should be very easy for more British kei cars to be sold in Japan.
Too bad MB never brought the nicer V-Class/Viano over here. We got the basic Vito, under the name Metris, but it didn’t have as many features as you could get in other markets. The Metris seats don’t even fold! However, it’s possible to install the folding seats in a Metris, and a few companies sell them in the US. People pay 60k for a Sienna or Carnival, so 70k for a MB van shouldn’t be a problem at all 🙂
Thank you for the anti-clickbait headline! Seriously.
I assume this was supposed to be Japanese market.
Huh?
Most relatable thing he’s ever done in his entire life.
As someone who has been some degree of disappointed in all of the modern Godzilla movies from Hollywood, Godzilla Minus One was a delightful surprise.
I guess that’s my answer. Godzilla Minus One is my favorite van.
What? It makes as much sense as saying “van” rhymes with “P”. 😛
It is my pleasure to introduce you to The Music Man
Ya Got Trouble https://share.google/2I4o2u8psu7Ut5T5V
Ah, so it’s a bad paraphrasing of a song lyric. The line in the article should have been “It starts with ‘V’ and that rhymes with ‘P’ and that stands for…” Actually, I take it back, that just doesn’t work. But at least I get it now. 🙂
TBQ:
DAJIBAN!!!!
My Autotrader search for a 2026 tiny, little, tiny car had no results. I didn’t even get a chance to filter out ones that were not surrounded by a cocoon.
TBQ:
After thinking about this one, I concluded there are a surprising amount of vans I think are cool. If I had to pick a favorite, it would be the second-generation VW hippie van. I have wanted one of those for decades, and I think my next vehicle purchase will be one of these.
I have also genuinely considered a new Sprinter van to replace my F250. I would go with a standard length/roof height 4×4 passenger van with the high output diesel. I would get it in metallic black or grey, put some black wheels on it (yeah, I know no one else likes black wheels), and remove most of the rear seats. This would be a great road trip/camping/cargo van, but would have windows and none of the the “free candy” vibes you often see with cargo vans used as DIY campers. I’m not ready to sell my truck, but in a few years I might trade it in for a van like this.
As for other vans I like, the list is lengthy and includes the first generation VW hippie van, the VW Eurovan, the ’60s Econoline and Corvair vans, any custom van from the ’70s, the Aerostar, the first-generation Chrysler minivans, and the Astro/Safari. I’m probably forgetting a few as well.
If you ain’t a vanner, you ain’t shit!
I liked the Transit Connect and even looked into one, but felt they were overpriced for what they were. The size, volumetric efficiency, and relative economy were all good for someone like me. Also, the Econolines were simple and relatively tough, if bigger and thirstier than I’d want.
That’s not how any of this works. The reason there’s no detail on the Federal Register is because he legitimately believes that he can just dictate things into law and it becomes reality, then is offended to find out that there’s a whole constitutional order of how laws and regulations are made and executed.
It’s (probably) harmless when it’s a demented old fool who thinks he’s going to dictate kei cars into every American garage – less so when the same demented old fool thinks he can dictate terms of global shipping and geopolitics.
As for favorite van – Gotta be my 2013 Mazda5. I wish it had a stick, but it’s been such a loyal friend that I don’t hold that against it.
He can definitely do this. All someone has to do is tell him he can’t or that pickup trucks are DEI, or something.
Just arbitrarily apply a 50% tax on all non kei cars. Then amend the kei car formula with the addition of a 12mpg fuel economy limit.
We are lucky that he is about the talking point or press release and not the actual work of writing regulations and governing. That and that he surrounds himself with incompetent yes men that know nothing about their jobs.
A lot of what the EPA tried to do in the first term got thrown out in court because the administration didn’t follow the law when writing regulations. I have to image that quite a few EPA employs “maliciously” just did what they were told knowing that it would get the new regulations tossed.
To me the Brubaker Box is the coolest van of all time, and it’s made even better because I have no idea what drivetrain is in it, so I get to assume it’s roughly equivalent to a Raptor R or TRX.
That is a good song. Also, the anaconda–not subtle.
TBQ: The Ford Transit Connect our friends loan as whenever we need it. It’s in front of my house right now.
The Mini Clubvan counts, right? That’s my favorite.
Mercedes needs to expand the line. We’re gonna need a nice subcompact VLA.
TBQ: 2016 Ford Transit Connect XL Cargo LWB; modified to RallyCross, of course
I mean, I can’t say anything other than the Chrysler I have parked so close that it could be listening. Sooooo, my Chrysler van? It has been solid and supremely useful the past 3+ years.
The real answer is the Aerostar though. And no, I don’t have a good reason for this.
TBQ: The A-team van
Second place: turbo Chrysler minivans that can do 12-sec 1/4 miles.
Third place: Mazda5
Honourable mention: Chrysler NS minivans because I learned to drive in one.
Fave van – my 86 Vanagon Westy. Though if I were to do it all over I’d get a Weekender instead because you can fit more passengers and I already had all the camping gear. I had to remove the propane tank from the Westy after I was denied entrance to a tunnel in Boston.
Boston just needs to change their laws.
My favorite van?
Halen!
I also rather enjoy Morrison.
Rule change: Looser emissions and safety regs for small light vehicles.
Expected outcome: Small affordable kei type vehicles but in the US.
Actual outcome: What is effectively a road legal Polaris RZR.
A tubular roll cage, 5pt harnesses, and helmets are effectively what you’d need to make a small, light, car safe enough at highway speeds in the US. A 2 seat RZR XP1000 is limited to 75-80 mph and runs $20k MSRP.
Street tires, turn signals, and a moderately aerodynamic body wouldn’t be half bad.
Road legal RZR is just fine. They’re already road legal for a number of places in the US. Making them nationally legal would be the logical next step. Making car levels of safety stuff like lights/signals/horn mandatory, along with compulsory seatbelt use when on road is plenty legal. Oh, mandatory liability insurance and big penalties for not having it. Like, getting the vehicle impounded right then and there for no insurance. It’s a cheaper way to get around but rules need to be in place to protect folks not driving them.
Not sure what the problem is…
I’m not necessarily upset with this outcome, I just know American consumer preferences would swing towards something like this instead of a small city car. I also do not think that these would be affordable, but I do think they would sell.
Oh, yeah, they’d definitely sell. Honestly, I could see them getting a lot of people who would otherwise be driving their bro-dozers to the mall into something slightly more practical instead. RZRs are a stupid amount of fun, a street legal version would be fantastic.