In today's issue:
VW's supervisory board voted and the outcome is grim: up to half its models gone, 1 million units of capacity cut, 100,000 jobs at risk
462,869 Kia Tellurides recalled for a fire-prone seat motor, and this is the second campaign for the same defect
Toyota's replacement Highlander EV slips at least two months, meaning the gas and hybrid models stay alive through year-end
WOLFSBURG ON FIRE
Following up on last week's supervisory board preview: VW Group confirmed after the July 9 vote that it will slash its model lineup by up to half, cut production capacity by roughly 1 million units per year, and reduce options by up to 75%, per Automotive News Europe.
The pressure is threefold: China retail sales for VW-aligned brands slid sharply as the broader Chinese passenger car market contracted 23% year-on-year to 1.602 million units in June, per Just Auto; US tariffs are compressing margins on European-built vehicles; and domestic German labor costs remain the highest in the industry.
VW said the lineup cut is aimed at simplification, not just savings, but Reuters, cited by Paul Tan, notes the company provided no model-by-model breakdown, leaving Audi, SEAT, Skoda, and Cupra all exposed to cuts.
The VDA's chief Hildegard Müller, speaking to Bloomberg Television, said Europe's automakers as a whole face more job losses and plant shutdowns, per Just Auto, signaling VW's restructuring is not an isolated event.
VW's public announcement confirms the scale but deliberately omits specifics on which brands, plants, and models survive. The gap between "up to half the lineup" and no named models is the most important information missing, and dealers carrying those nameplates are now in an indefinite wait.
Also worth knowing
Toyota's Highlander EV Delayed at Least Eight Weeks: The 2027 Highlander EV was supposed to reach US dealers by year-end 2026; Toyota cited "additional adjustments," pushing production start to 2027 in a slip confirmed by Car and Driver, MotorTrend, and Autoblog. The gas and hybrid Highlander will continue building through December as planned, meaning the model that was supposed to be retired keeps earning. #analyst
BMW Posts 13% US Luxury Sales Jump in Q2, Volvo Snaps Three-Quarter US Slide: BMW US deliveries rose 13% to 102,713 units in Q2, extending its Lexus lead to more than 17,000 vehicles, per Automotive News. Volvo Car USA, separately, rose 9% to 34,228 units in Q2, driven by XC60/XC90 recovery, per Volvo's own Q2 sales report — its first year-over-year gain after a weak start to 2026. BMW Group globally saw China demand fall 20.4% to 261,773 units in H1, per BMW Blog. Strong US numbers are masking a China hole that keeps widening. #market
Used EV Wholesale Prices Up 12% Year-Over-Year as Iran War Lifts Gas Prices: Wholesale used EV prices jumped 12% year-on-year in June against just 1.7% for non-EVs, per CBT News citing Manheim data. CNBC ties the acceleration to elevated gas prices driven by Hormuz-area hostilities, with Brent crude at $76.60 per barrel as of July 10, per OilPrice.com. The gap between EV and non-EV wholesale appreciation is now 10 percentage points. #market
Senate Commerce Committee Votes July 15 on Bipartisan Chinese Automaker Ban: The bill, introduced by Republican Senator Bernie Moreno and Democratic Senator Elissa Slotkin, would codify into statute the existing executive-order barriers blocking Chinese-brand vehicles from US retail, per CBT News and Just Auto. The committee vote is scheduled for July 15. Ford has publicly backed the legislation, per Ford Authority. #news
Reveals & culture
Mercedes-AMG CLA 45 EV: What's New Since Yesterday's Reveal: Following yesterday's 671-hp reveal, two new specifics: DC fast-charging up to 330 kW adds 325 km of range in 10 minutes, per the Batteries Included podcast, and Car and Driver confirms the US won't get it, calling it forbidden fruit directly.
Lightning McQueen Drove Up the Goodwood Hill Climb for Real: A full-scale, drivable Lightning McQueen, built for the 20th anniversary of Pixar's Cars, completed a run up Lord March's driveway at the 2026 Goodwood Festival of Speed, per The Drive. No word on lap time. The car is fully functional and not a trailer float. #culture
Recalls & legal action
Kia Recalls 462,869 Tellurides for Seat Motor Fire Risk, Second Campaign for the Same Defect: Model years 2020-2024 are affected; the front power seat motor can overheat, melt components, and cause a fire whether the vehicle is parked or in motion, per Carscoops and Autoblog. This recall replaces a June 2024 recall for the identical issue, with at least 7 seat fires documented, per CarComplaints. → If you own one: Park outside and away from structures until your dealer completes the repair; check your VIN at NHTSA.gov now.
Ford Recalls 66,000 Hybrid SUVs for Missing Pedestrian Warning Sounds: A software error can prevent the federally required low-speed acoustic vehicle alert from playing, per WardsAuto. This expands an October 2025 recall for the same underlying software fault. → If you own one: Contact your Ford dealer for an OTA or service-bay software update; check NHTSA.gov for your VIN.
Quick links
Nissan Tekton Debuts in India at Rs 10.49 Lakh on Renault Duster's Platform: The Tekton, built at Nissan's Chennai facility and headed to 50-plus markets, shares the CMF-B platform with the Renault and Dacia Duster, starts at roughly $11,000 equivalent, and scored a 5-star Bharat NCAP rating, per Carscoops and Autocar India.
Porsche H1 Sales Off 16% as China Slides 32%: Porsche delivered 122,306 vehicles globally in H1 2026, down 16% year-on-year, with China alone contracting 32%, per ChinaEVHome.
1994 Bugatti EB110 GT Factory Prototype Sells for $3.625M, Up 73% From Its 2022 Hammer Price: The car sold at RM Sotheby's in March 2022 for $2.1 million; it just sold on duPont REGISTRY Live for $3.625 million, a $1.5 million gain in four years, per The Daily Vroom.
Canada's Auto Industry Is Six Months Into Tariff Shock With No End in Sight: US import tariffs on Canada-built vehicles, plus steel and aluminum duties, are still in force with no USMCA renewal in sight, per Automotive News; the US declined a 16-year USMCA extension, leaving the industry on annual reviews through 2036.
Yesterday's picks
Ford Killed Its Electric Truck, GM Can't Sell Its Own, and Ram Never Launched One At All: Q1 EV deliveries fell 27% industry-wide, per Cox Automotive data, as all three US truck makers abandoned or stalled their flagship electric pickup programs.
NHTSA Tells Robotaxi Companies to Stop Blocking Emergency Vehicles: NHTSA formally warned driverless-car developers that blocking emergency vehicles constitutes a public danger and plans meetings before month's end.
Honda Odyssey Recalled Again for the Camera It Already Recalled in 2020: 325,588 Odysseys are re-recalled after Honda's 2020 camera fix failed, and the same water-corrosion fault persists across 2018-2020 models.
Suspension is the daily email that makes you the most informed car person in the room.