In today's issue:

Twenty-one outlets covered the reveal in a single morning window, making it the most-covered story in our source set this week. The production question is settled: BMW will sell an electric M3, the debate now is whether the four-motor setup can replace the inline-six's driver feedback without the sound-design workaround becoming the whole conversation.

Japan's Automakers Have Already Absorbed $28B in U.S. Policy Costs. The Tab Reaches Nearly $40B by March 2027.: Trump administration tariffs, EV-credit rollbacks, and emissions-mandate changes have already cost Japan's six largest automakers a combined $28 billion, per Automotive News; CBT News puts the full exposure at nearly $40 billion by March 2027, with the largest players absorbing the deepest hits. The bigger the North American footprint, the bigger the bill: Toyota leads exposure, but all six brands are being pushed to reevaluate where they build and what they price. #analyst

New-Car Average Cools to $49,220 in May; Used Cars Top $30K for First Time Since 2023: The average new-vehicle transaction price slipped in May to $49,220 and rose just 1.2% year over year, per Kelley Blue Book/Cox Automotive via Digital Dealer; separately, the CarGurus May Intelligence Report found used vehicle prices crossed $30,000 for the first time since August 2023, per CBT News. Affordability and financing costs continue to limit how far demand can run. #market

Stellantis Put a Solid-State Battery in a Dodge Charger Daytona and Drove It on Public Roads: Stellantis and Factorial Energy have integrated Factorial's FEST solid-state cells into a Charger Daytona development vehicle, the first North American automotive road test of the technology, per Car and Driver and CBT News. The pack charges from 15% to 90% in 18 minutes, per Carscoops; Factorial's investor list includes Hyundai, Kia, Mercedes, and Stellantis, meaning the technology's commercial path runs through several competing brands simultaneously. #analyst

UAW and Dauch Corp. Reach Deal at GM Axle Supplier: 36% Wage Gain Over Four Years: The ten-day strike at the Three Rivers, Michigan plant supplying GM full-size and midsize trucks ended with production workers gaining $30/hour by 2030, per CBT News. The speed of settlement reflects how exposed GM's most profitable truck lines were to even brief supply chain disruption at a single-source plant. #labor

Genesis Brought a Mid-Engine V8 Supercar and a GT3 Racer to Le Mans. Neither Is Hypothetical Anymore.: Genesis debuted both a refined Magma GT concept, a mid-engine V8 production supercar candidate with an analog interior now revealed, and the Magma GT3 Concept race car at Le Mans, where the brand's GMR-001 Hypercar is already competing, per Car and Driver, Autoblog, and Carscoops. The GT3 concept signals a customer racing program to sit below the Hypercar effort, a two-tier motorsport push targeting BMW M and Mercedes-AMG's competition footprint directly.

The Last Manual Cadillac CT5-V Blackwing Gets a Final Test, and the Numbers Are Grim in the Best Way: MotorTrend ran a farewell test of the 2026 Cadillac CT5-V Blackwing Precision Package, Cadillac's 668-hp, six-speed manual sedan before it disappears from the lineup, per MotorTrend. A 668-hp manual American super-sedan is not a product category with a long shelf life, and this one is now counting its final months.

Ford Recalls 548,000 Expeditions After Chrome Trim Creates Razor Edges, Injures 65 People: Ford is recalling 548,000 Expedition SUVs because peeling chrome center-console trim can produce razor-sharp edges capable of cutting occupants; Ford has confirmed 65 injuries and one crash tied to the defect, per Carscoops and Autoblog. → If you own one: Avoid touching or leaning against the center console trim and contact your Ford dealer immediately to schedule the free replacement.

Trump Says U.S. Won't Renew USMCA Ahead of July 1 Deadline; Automakers Warn Entry-Level Vehicles at Risk: Non-qualifying vehicles already face a 25% tariff, and automakers told CBT News they cannot profitably sell entry-level vehicles without a deal; Canada's trade minister said he expects bilateral arrangements to run alongside any USMCA extension, per Automotive News.

2027 Nissan Z Goes Deeper Retro: Bigger Shocks, Manual NISMO, Updated Styling: Arriving summer 2026, the refreshed Z gets larger-diameter shock absorbers on Performance trims and, for the first time, a manual transmission option on the Z NISMO, per AutoGuide and Autoblog.

Audi Q5 and SQ5 Owners Sue Over Hidden Structural Rust They Say Costs Thousands Out of Pocket: A class action alleges Audi concealed a corrosion defect on Q5 and SQ5 models that quietly destroys the vehicle's underbody structure, per Autoblog.

Corvette ZR1 ZTK Owners Discover the Downforce Package Damages Their Own Paint: The 1,064-hp C8 ZR1's optional ZTK track package generates enough downforce that the aerodynamic components are reportedly abrading paint on the car's own bodywork, per Autoblog.

1.3 Million Jeep Wranglers and Gladiators Recalled Over Fire Risk: Stellantis recalls 1.3M Jeeps for fire risk even when parked and off, per Carscoops; owners told to park outdoors until repairs available.

Rivian's $45K R2 Compact EV Starts Deliveries; Reviews Call It Refined but Less Luxe Than R1S: Price cut shows in the features, per Car and Driver.