JustAnotherCarDesigner / Wikimedia Commons, CC BY-SA 4.0
In today's issue:
Commerce Department shuts Polestar out of the U.S. market after MY2027, even the model it builds in South Carolina
GMC's redesigned Sierra arrives with two new V8s and no hybrid, as Toyota closes in on GM's U.S. sales crown
Fewer than 700 Nissan Versas remain on dealer lots. Once they clear, no new car in the U.S. costs under $20,000.
CONNECTED VEHICLE RULE
The Department of Commerce's Bureau of Industry and Security denied Polestar authorization under the Connected Vehicle Rule, blocking all new-model-year sales in the U.S. after MY2027, per Carscoops and Kelley Blue Book.
The rule targets connected vehicles with Chinese-origin software or hardware; Polestar is majority-owned by China's Geely, per InsideEVs.
Volvo, also Geely-owned, received the same authorization last month; Polestar did not, per Kelley Blue Book.
The Polestar 3 is assembled in South Carolina, meaning the rule's Chinese-ownership test overrides domestic assembly as a legal shield, per TechCrunch.
Existing Polestar 3 and 4 inventory can sell through until stock is exhausted; Polestar says it will refocus on Europe, per The Drive.
The Connected Vehicle Rule has its first confirmed kill: a brand that built its car on U.S. soil and still couldn't clear the ownership test. Volvo cleared the same rule last month. Geely owns both. Commerce is picking brands, not parent companies.
Also worth knowing
2027 GMC Sierra Debuts With 5.7L and 6.6L V8s, No Hybrid in Sight: GMC revealed the redesigned Sierra 1500 today with sixth-generation Small Block V8 options in 5.7L and 6.6L displacements, an articulating Denali Ultimate screen, and headrest speakers, per Automotive News and the GM pressroom. The truck arrives with no plug-in hybrid option, leaving GM with one hybrid in its entire lineup at a moment Cox forecasts hybrid sales rising 10% in H1 2026, per CBT News. #enthusiast
Honda Brings Back the Element as an Ohio-Built Hybrid, Targeting 100,000 Sales in Year One: Honda plans to revive the boxy compact crossover as a hybrid for 2029, with Ohio production and an annual target of nearly 100,000 units, per Automotive News and Car and Driver. Honda discontinued it in 2011; the hybrid relaunch comes as the company scales back its EV ambitions. #analyst
Fewer Than 700 Nissan Versas Left: The Sub-$20,000 New Car Is Effectively Gone: Fewer than 700 Versas remain on U.S. dealer lots, per CBT News. Once they clear, no new car in the U.S. will be available under $20,000, a collapse at the bottom of the market at a moment when the average new-vehicle transaction price sits at $49,220, per Kelley Blue Book. #market
Toyota Is 83,255 Units From GM's U.S. Sales Crown, and the Gap Is Closing: Cox Automotive projects hybrid sales up 10% and EV sales down 23.3% in H1 2026, narrowing the Toyota-GM gap to its tightest since 2021, per CBT News and The Drive. GM's two best-selling trucks debuted without a hybrid option. #analyst
IIHS: 30 Years of Crash Tests Have Saved an Estimated 48,352 Lives: To mark its 30th anniversary, IIHS staged a head-on collision between a 1996 and 2026 Chevrolet Blazer; the older truck's cabin collapsed while the new one held. The institute credits its program with saving roughly 48,352 lives and over $500 billion in costs since 1995, per Repairer Driven News and The Autopian. #news
The thread
GM is the OEM most exposed to the hybrid-beats-EV rotation, and today's Sierra reveal makes the position harder. Cox projects hybrid sales up 10% in H1 2026 with EVs down 23.3%. Toyota has closed to within 83,255 units of GM's U.S. sales crown, its tightest margin since 2021, because it has the hybrid lineup GM doesn't. Honda is reviving the Element as a hybrid, retreating from its EV targets. Today GMC debuted a redesigned Sierra with two new V8 options and no hybrid.
Reveals & culture
Morgan Built Nine Coupes With a Wooden Frame Because Nine Customers Asked: The Midsummer Coupe pairs a Pininfarina-designed glass roof with Morgan's ash wood frame and a BMW inline-six, limited to nine examples, all already sold, per Carscoops and Autocar. It's Morgan's first fixed-roof car in more than a decade; the entire run was commissioned by buyers before production was approved, per Autoblog.
Porsche Puts the 911 Into GT4 Racing for the First Time Since 2016: The $375,000 911 GT4 R takes the entry-level racing slot away from the discontinued 718 Cayman platform, carrying a 4.0-liter flat-six from the GT3 Cup car producing up to 513 hp, per Car and Driver and MotorTrend. It races starting in the 2027 season.
Recalls & legal action
Honda Recalls 880,000 SUVs and Pickups for Rear Suspension Corrosion: Honda is recalling approximately 880,000 SUVs and pickups sold in Midwest and Northeast states, where road salt exposure can corrode rear suspension components, per Wards Auto. → If you own one: Run your VIN through nhtsa.gov to confirm whether your vehicle is included, then contact a Honda dealer to schedule the free inspection and repair.
Quick links
Chinese Automakers on Pace to Top 1 Million European Sales in 2026: BYD and peers are forecast to exceed 1 million European units this year for the first time, with AlixPartners projecting a 16% European market share by 2030, per Automotive News Europe.
Hertz Cuts Q2 Guidance as Used-Car Softness Turns May Sales Negative: Hertz now expects Q2 adjusted EBITDA of $50 to $80 million, near the low end of its guidance range, as used-car softness pushed net depreciation per unit to roughly $300 a month in May, per CBT News.
Renault Plans 800 Engineering Cuts in France by End of 2027: Renault is trimming its French engineering headcount to compete with Chinese rivals that have more than tripled their European share in two years, per Automotive News Europe.
Yesterday's picks
$24,950 Slate Truck Arrives Without the Tax Credit That Made It Make Sense: The cheapest EV pickup loses the $7,500 subsidy that justified its bare-bones spec.
JLR Stop-Sale: Defender, Discovery, and Range Rover Grounded Over Driver's Airbag Defect: A voluntary stop-sale on three models due to an airbag defect found in internal testing.
California's Vehicle-Tracking Privacy Law Could Halt Car Sales July 1: Automakers warn a looming deadline could freeze new- and used-vehicle sales in the state.
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