In today's issue:

The math is demanding: BYD has to simultaneously reverse a home market slide, ramp a brand-new European factory, and grow in regions where it faces tariff walls and no established dealer network. The infrastructure spending is real, but the volume target requires a pace of international growth no Chinese automaker has ever sustained.

F1 Agreed to Scale Back Its 2026 Electric Power Rules, Just One Season In: The FIA and all power unit manufacturers agreed to a two-step change to the controversial 2026 power unit spec: ICE output rises from 400 kW to 420 kW in 2027, then 450 kW in 2028; the overtake power stays at 350 kW, while the harvesting ceiling increases to 375 kW in 2027 and 400 kW in 2028, easing energy-management demands on drivers, per The Race and Autoweek. The 2026 rules were sold to manufacturers as a landmark electrification push; within months of racing, drivers including Max Verstappen publicly demanded changes, and the FIA agreed to scale back starting 2027. #analyst

Oil Shock Is Lifting Used EV Values and Order Books in Europe: Used EV values are rallying as gas prices drive demand, per WardsAuto, with gasoline-electric hybrids already turning faster than any other powertrain amid high fuel prices, per Automotive News; in Europe, Renault Group CEO Francois Provost told Automotive News that the Iran-conflict oil spike pushed EV order books up 50% in France and Germany. The oil shock is accelerating EV demand on both sides of the Atlantic, but differently: used inventory is repricing in the U.S. while fresh orders are stacking in Europe. #market

GM Is Quietly Walking Away From LFP Batteries: GM is increasing investment in lithium-manganese-rich (LMR) batteries and may drop its LFP plans entirely, per Reuters and CBT News; LMR matches LFP on cost while delivering higher energy density, GM says. A shift would separate GM from Tesla, Ford, and Rivian, all of which use LFP chemistry to keep EV costs down, making this a meaningful divergence from the industry's cost-reduction playbook. #analyst

Porsche Built Woody, Buzz, and Jessie Their Own One-Off 911s: Porsche's Sonderwunsch division created three bespoke 911s to celebrate Toy Story 5's 30th anniversary: Woody's Carrera T uses real denim pressed into the bodywork (a Sonderwunsch first), Buzz Lightyear's car gets space-suit white and purple accents, and Jessie's goes full rodeo, per The Autopian and AutoGuide. All three will be auctioned for charity, with proceeds benefiting Big Brothers Big Sisters of America, the American Red Cross, and Starlight Children's Foundation, per Stuttcars. #culture

The New Toyota MR2 Is Going AWD, and Toyota Is Actually Racing a Prototype to Prove It: Toyota is using a mid-engined, AWD version of the GR Yaris as a development mule for the new MR2, running it in competition to stress-test the platform, per Carscoops and Motor1; the production car will use a 2.0-liter turbo four and take visual cues from the FT-Se concept. The original MR2 was mid-engine and rear-wheel-drive only; adding AWD to a car that defined purity of handling is the sharpest departure in the nameplate's history. #enthusiast

Honda Recalls 880,000 Pilots, Ridgelines, Passports, and Acura MDXs Over Rusting Subframes: NHTSA recall 26V365 covers 2016-2022 Honda Pilots, 2017-2023 Ridgelines, 2019-2023 Passports, and 2014-2020 Acura MDXs sold in 22 salt-belt states and Washington D.C.; road salt intrusion can corrode the rear subframe mounting points until they fracture, causing rear suspension failure and potential loss of control, per Car and Driver and Autoblog. An additional 136,260 vehicles in Canada are also affected, per Driving.ca. → If you own one: Check NHTSA.gov for recall 26V365 and contact your Honda or Acura dealer to schedule an inspection; if subframe damage is confirmed, the vehicle should not be driven until repaired.

Don't Charge Your 2020-2022 Chrysler Pacifica Hybrid Until It's Fixed: About 18,500 Chrysler Pacifica Hybrid minivans with certain battery packs are recalled for a fire risk that can occur during or after charging; Stellantis is telling owners to park outside and away from structures until repairs are made, per CarComplaints. → If you own one: Stop charging the vehicle immediately, park outdoors and away from buildings, and contact your Stellantis dealer for repair scheduling.

The Denza Z Will Have Up to 1,582 HP and Weigh as Much as a BMW X5: BYD's premium Denza brand confirmed the flagship Z sports car's homologation specs: 1,582 hp from three motors, a 217-mph top speed, and a curb weight in BMW X5 territory, per Carscoops; launch is scheduled for July 2026, per CarNewsChina.

REPAIR Act Clears a Key House Committee: The House advanced an amended REPAIR Act as part of a vehicle modernization package; the bill would codify automakers' obligation to share diagnostic and repair data with independent shops, per CBT News.

Mercedes GLC EV Gets Cheaper Entry Variants to Fight the BMW iX3: Mercedes-Benz is adding lower-priced GLC EV models to compete with the BMW iX3, which won World Car of the Year 2026, per Autoblog.

Yesterday's picks

1.3 Million 2021-2025 Jeep Wranglers and Gladiators Recalled: Fire Risk Even When Off: Stellantis recalls 1.3M Jeeps over fire risk; owners told not to park indoors.

Rivian's R2 Is Delivering Today. The Press Embargo Just Lifted. Here's What Reviewers Actually Found.: Rivian's $45K R2 hits the road; reviews call it refined but less luxurious than R1S.

UAW Strike at GM Axle Supplier Enters Second Week With No Deal: UAW strike at GM axle supplier threatens truck production with two weeks of inventory.

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