In today's issue:

Toyota dropped two driver's-car updates in 24 hours while simultaneously canceling its flagship EV. The message on the combustion side is unambiguous; the message on the EV side is elsewhere in this issue.

Lexus Scraps the LF-ZC as Japan's EV Retreat Widens: Toyota has canceled the production Lexus LF-ZC electric sedan, which was set to launch this year as the centerpiece of a push to sell 1 million EVs annually and to debut gigacasting and hyperautomated factories, per Automotive News and Car and Driver. Toyota blamed "fluctuations in market demand," and the move follows Honda, Mazda, and Subaru, all of which have canceled or postponed EV programs as demand cools. #analyst

SAIC's MG Will Build Its First European Factory in Spain: MG Motor will invest around €200 million ($232.9M) to open a Galicia plant targeting 120,000 vehicles per year by 2028, per Just Auto and Automotive News Europe. The Galician regional government has granted the project strategic industrial status. Building inside the EU is SAIC's direct answer to the bloc's tariffs on Chinese-assembled cars. #analyst

VW Locked Owners Out of Their Car Data, Just as Washington Fights Over Who Owns It: A backend API change at Volkswagen cut off the third-party integrations owners used to monitor charging status and route surplus solar power to their cars, per Carscoops and Electrive. It lands amid a widening fight over who controls vehicle-generated data: a coalition of fleets, repair shops, and insurers is pressing Congress for broader access, per the Automotive News "Shift" podcast, while Canadian officials warn connected-car data "can have intelligence value" to adversaries, per Automotive News. Washington has already moved to ban Chinese connected-car software from 2027 models, granting Volvo a special waiver to keep selling, per Automotive News. #news

Kia Posts Best-Ever Retail Month; Hyundai Hybrids Jump 90%: Kia logged best-ever any-month retail sales in May 2026, up 11% year-over-year, and its highest year-to-date volume in company history, per Kia Media. Hyundai's hybrids rose 90% while total sales climbed 3.5% to 87,468 units, per Automotive News. Both brands had declined in March and April. #market

Mitsubishi Plans a Nissan-Based U.S. Pickup and a Pajero Revival: Mitsubishi will build a new midsize pickup for the U.S. on the body-on-frame platform Nissan is developing for the next Frontier and Xterra, putting it up against the Toyota Tacoma, Ford Ranger, and Chevy Colorado, per Car and Driver and Automotive News. The truck is one of 13 new models Mitsubishi has committed to over six years, a lineup that also revives the Pajero (sold here as the Montero) as a ladder-frame flagship SUV, per Carscoops. #news

The FTC Named All 97 Dealers It Warned Over "Deceptive" Pricing: The agency published the full list of 97 dealerships it warned back in March to stop deceptive pricing practices, names it had withheld until now, including AutoNation, Hendrick Automotive Group, and Lithia, the largest dealer group in the country, per The Drive and CBT News. #analyst

McLaren Builds 10 Artura 1000GPs for Its F1 Millennium: McLaren Special Operations built exactly 10 examples of the Artura 1000GP to mark the team's 1,000th Formula 1 start at Monaco this weekend, the same venue where Bruce McLaren made the team's debut in 1966, per Carscoops and Motorsport.com. The road car carries 690 hp and a livery pulled directly from the MCL40 race car. McLaren is only the second team in F1 history to reach 1,000 starts, after Ferrari in 2020.

Ford Issues "Do Not Drive" Order for 4,653 Bronco Sports and Mavericks: Ford is telling owners of select 2021-2026 Bronco Sport and Maverick models to park immediately because the lower control arm ball joint can separate from the wheel knuckle, causing loss of steering control, per Carscoops and MotorTrend. A "do not drive" designation is among the most severe recall classifications NHTSA issues.

Honda Recalls 98,892 Vehicles Over Airbags That Deploy When They Shouldn't: A cracked front passenger seat weight sensor can trigger front and knee airbag deployment in a crash even when a child or infant is seated and suppression is required, covering 13 model lines including the 2016-2022 Accord, 2019-2024 Acura RDX, and 2017-2020 Acura MDX, per Kelley Blue Book and Car and Driver.

NHTSA Opens Probe Into 115,000 Rivian Vehicles for Rear Suspension Failure: The agency's Office of Defects Investigation opened a formal probe after two reports of rear toe link separation while driving on R1S SUVs, including one crash, per WardsAuto. No recall has been issued yet; an investigation at this stage typically precedes a formal defect determination.

Europe BEVs Hit 23% Market Share in April, Up 42% Year-Over-Year: Close to 385,000 plug-in vehicles were registered in Europe in April, with 262,000 of those being pure BEVs, per CleanTechnica; The Driven reported May numbers also surged.

Mazda Gives the ND Miata Its First Green Paint After 11 Years on Sale: Zinc Green Metallic, with blue metallic flakes, debuts on both the 2027 soft-top MX-5 and RF, making it the first shade of green offered on the current-generation Miata across roughly 80 greens in the nameplate's history, per Road & Track and Carscoops.

Ram Drops the Mild-Hybrid From More Hemi V8 Trucks: Ram CEO Tim Kuniskis told The Drive the automaker is dropping the divisive 48-volt eTorque mild-hybrid setup from the 5.7-liter Hemi V8 beyond the Rumble Bee, filtering the simpler, non-electrified V8 into other trims.

California Moves to Regulate Tire Rolling Resistance: The California Energy Commission is advancing a replacement-tire efficiency rule that would force aftermarket tires sold in the state to meet rolling-resistance targets modeled on factory tires, which could pull many high-grip enthusiast tires off shelves, per Motor1 and Autoblog.