Photo: Ethan Llamas / Wikimedia Commons, CC BY-SA 4.0
In today's issue:
Stellantis ships 1.6 million vehicles in Q2 as North America's 38% shipment surge runs well ahead of its 5.7% sales growth
A federal grand jury subpoenas the UAW's own corruption watchdog as the DOJ investigates whether Shawn Fain sought union benefits for his fiancée and her sister
Used hybrid prices hit a record $38,800 as the new-to-used gap widens to $21,000
TRUCK MATH
Stellantis' global Q2 shipments rose 10% to 1.6 million vehicles, led by a 38% surge in North America, roughly 122,000 more units, on the Ram 1500 with its reintroduced Hemi V-8 and ramp-ups of the new-generation Jeep Cherokee and Dodge Charger, per Automotive News and CBT News.
The catch: North America sales rose just 5.7% in the same quarter per the Automotive News Data Center, far slower than shipments, and Stellantis itself says the number partly reflects production pulled ahead of the planned summer shutdown, per Automotive News.
UBS analyst Patrick Hummel put the concern on the record: "Inventories have gone up quite a lot, and there is a concern in the market that they have overproduced in the first half, and specifically in the second quarter," per Automotive News.
The other growth engine is Chinese: Leapmotor shipped roughly 33,000 units against 8,000 a year ago, a gain of more than 300%, helping drive a 5% Europe increase alongside budget launches like the Fiat Grande Panda, per Automotive News and CBT News.
The regions Stellantis once called its "third engine" went the other way: South America fell 3% as Argentina declines offset Brazil, and Middle East/Africa fell 3% on regional conflict, per Automotive News.
The Hemi revival is real at the loading dock; whether it is real at the register is the open question. Shipments growing nearly seven times faster than sales either proves out as demand in the second half or comes back as an inventory problem, and Stellantis reports full first-half financials July 30.
Also worth knowing
VW CEO Confirms 50,000 More Job Cuts as Board Talks Stall: Oliver Blume publicly confirmed plans to eliminate an additional 50,000 jobs at VW Group even as the supervisory board failed to agree on the broader restructuring proposal, per the Financial Times. Separately, Automotive News reported VW is weighing building China-designed vehicles at underused German factories, a reversal that would preserve headcount while conceding that Chinese rivals have set the product agenda. #analyst
Used Hybrid Prices Hit a Record as the New-Car Gap Reaches $21,000: New car prices reached $50,900 in spring 2026, a 3.3% increase since December, pushing the gap between new and used to $21,000 and sending buyers firmly into the used market, per Digital Dealer. Used hybrid sales are up 34% year-to-date, with average list prices at what Digital Dealer calls an all-time high of $38,800. The CPI for new vehicles fell 0.3% in May 2026 per FRED data, meaning the sticker-price increase is running well ahead of the official index. #market
Polestar Exits the US, Leaving Owners Without Dealers or Clear Warranty Path: Polestar's US withdrawal has left existing owners in limbo on service, warranty coverage, and lease-end logistics, with some dealers refusing further service on the brand entirely, per The Verge. The company extended a charging partnership with Zaptec for two years in Europe this week, per Transport & Energy, underscoring that the abandonment is US-specific, not a global wind-down. #news
The EPA Proposes Killing Diesel Limp Mode When the DEF System Breaks: A new EPA proposal would eliminate the speed-restricting limp mode that currently activates when a diesel truck's diesel exhaust fluid system malfunctions, letting trucks run at full power with a broken emissions system, per The Autopian. Limp mode was installed specifically to incentivize DEF repairs; removing it trades emissions compliance for operator convenience. #news
Reveals & culture
Lanzante Made the 1,825-HP Bugatti Bolide Street Legal: The Bolide was built as a track-only hypercar running Bugatti's 8.0-liter W16 quad-turbo engine; Lanzante Limited, the UK specialist that previously road-registered McLaren F1 GTRs, has now converted one for public roads, per Motor1. It is the last W16-powered car Bugatti will build, which makes this the only one you can drive to a petrol station.
Recalls & legal action
A Grand Jury Just Subpoenaed the UAW's Own Watchdog to Investigate Fain: The DOJ opened a grand jury probe into whether UAW President Shawn Fain pressured a senior official to secure benefits for his fiancée and her sister, and the grand jury has subpoenaed the union's court-appointed monitor, the corruption watchdog installed after the 2020 scandal, per Automotive News and CBT News. No charges have been filed; Fain calls the allegations "false" and accuses the monitor of holding a political grudge over the union's 2024 Gaza ceasefire stance. The sharpest detail: Rich Boyer, the official the monitor's report says Fain retaliated against, is the challenger running against him for the presidency when ballots go out in late August.
UK High Court Clears Most Dieselgate Claims Against Five Automakers: The King's Bench Division rejected the bulk of UK diesel emissions claims against Mercedes-Benz, Ford, Nissan, Renault, and Stellantis's Peugeot-Citroën-DS division, per Just Auto. The ruling does not extinguish all claims and appeals are expected, but it substantially reduces the financial exposure UK courts were expected to impose on the five manufacturers.
Quick links
VW Jetta Owner Says an OTA Update Left Him With a $1,600 Repair Bill: An Ohio Jetta owner says a software update pushed remotely bricked a module and VW declined to cover the resulting repair cost, per Autoblog.
Hyundai Korea Workers Strike Over Bonuses and Robotics Safeguards: Production at South Korean plants is at risk after workers walked out over stalled bonus talks and demands for workforce protections against automation deployment, per CBT News.
Fiat Will Sell Its New Grizzly SUV and Fastback at Identical Prices: Both body styles debut October 12 at the Paris auto show at the same undisclosed price point, an unusual move that bets on body-style preference rather than trim-based upselling, per Automotive News.
Yesterday's picks
The EV Laggard Just Passed Ten Brands: Toyota's US EV Sales Are Up 136%: Toyota doubled EV sales while most rivals declined, cracking the top five US EV sellers without abandoning its hybrid hedge.
Denza Z: 1,584hp, £173k, and a Nürburgring Record Attempt Planned: BYD's premium brand enters the supercar segment with Chiron-level power at a fraction of the price, targeting a Nürburgring record.
Tesla's Profit-Per-Vehicle Lead Over Toyota Is Shrinking Fast: Tesla remains the most profitable automaker per vehicle for a fifth year, but Toyota's hybrid discipline has nearly erased the gap.
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