In today's issue:
VW reportedly ends its €1.5 billion Bosch self-driving partnership and is already shopping for a new autonomy supplier
McLaren's W1 gets its first road-and-track reviews: 1,257bhp, £2 million, rear-wheel drive only
Negative equity now hits 29.5% of all June trade-ins as monthly payments reach a record high
OEM STRATEGY: CARIAD'S RECKONING
The Automated Driving Alliance (ADA) with Bosch launched in 2022 through VW's software unit Cariad to develop SAE Level 2 and Level 3 systems; VW invested roughly €1.5 billion in the project, per Electrive
The move is part of a broader restructuring push that includes cutting as many as 100,000 jobs and closing up to four German factories, per Just Auto
VW's works council has not been looped in on the 100,000-job proposal, per Automotive News Europe, with labor chief Daniela Cavallo publicly flagging the governance breakdown
The same week VW kills its self-driving partnership, Waymo registered a German legal entity in Munich, per Just Auto, positioning to enter the European market VW just vacated
VW didn't quit autonomy — it reportedly fired its supplier and is already shopping for a better one. Per Electrive, VW is in talks for a new autonomy partner with Mobileye among the candidates and a contract expected by September. The open question: whether VW can buy competitive autonomy faster than it could build it, and before Waymo occupies the European market it just vacated.
Also worth knowing
June Sales Up 3.6%, but 29.5% of Trade-ins Are Underwater: June new-vehicle sales are projected to rise 3.6% year-over-year to 1,363,800 units with SAAR at 16.5 million, per CBT News/J.D. Power, but Cox Automotive puts SAAR closer to 16.1 million and holds its full-year forecast at 15.8 million, per Digital Dealer. The buried number: negative equity now hits 29.5% of June trade-ins and monthly payments are at a record high, per CBT News, suggesting the headline volume gains are being financed by increasingly stretched buyers. #market
Bain: A "Perfect Storm" Could Shrink the U.S. Auto Market by 2 Million Units by 2040: Slowing population growth, half of 16-year-olds skipping licenses (down from 70% in 1966-84), and monthly payments up 30% in four years are converging into structural decline, per CNBC citing Bain & Company; buyers 55 and older already hold nearly half of all new registrations. With 450 nameplates competing for a shrinking pool, Bain partner Mark Gottfredson said competition will be "ferocious." #analyst
Ferrari Luce's 88-Unit China Allocation Sells Out Instantly Despite Online Backlash: Ferrari's controversial first production EV sold every one of its 88 Chinese allocations within hours of opening, per Autoblog and Electrek. The internet's verdict and the market's verdict are not the same. #market
The Car Talk the Wire Missed: a 1970 Suprona, a Beetle Bribe Ladder, and Veterans' "Boost Therapy": While the news cycle ran Polestar and DRAM chips, the automotive podcast world surfaced what press releases can't: a 1970 Toyota Corona rebuilt on modern Toyota subframes by the builder who cut the metal (Driven Radio Show); a dad's grade-based stereo reward system for his daughter's first car (Smith and Sniff); JDM cruises as a genuine veterans' mental-health outlet, per Right Hand Drive Guys. Our sister car-podcast platform Car Curious has the full recap across 237 episodes and 159 shows. #enthusiast
NHTSA Proposes Dropping the Brake Pedal Requirement for Driverless Cars: NHTSA has begun formal rulemaking to revise Federal Motor Vehicle Safety Standards and eliminate manual braking control requirements for vehicles designed exclusively for autonomous operation, per Car and Driver and Just Auto. #news
Reveals & culture
McLaren W1 First Drives: 1,257bhp, £2 Million, Rear Wheels Only: Three outlets published full drive reviews today: Autocar clocks "almost 1,300bhp" with a £2 million price tag and rear-wheel drive only; Hagerty records 2,205 pounds of downforce at 174 mph; Auto Express pins output at 1,257bhp from a 4.0-liter twin-turbo V8 that redlines past 9,000 rpm. Every competing hypercar in this price band routes power to all four wheels; McLaren sends it all to two.
Golf GTI Edition 50 Snatches the FWD Nürburgring Record Back From the Civic Type R: VW's anniversary GTI reclaimed the front-wheel-drive Nürburgring lap record from the Honda Civic Type R, per Jalopnik, a well-timed marketing win for a nameplate that VW recently cut from U.S. sales.
Recalls & legal action
Ford Bronco Sport Catches Fire After a Recall Repair: A Bronco Sport caught fire following a recall repair, with cracked fuel injectors cited as the likely cause, per Ford Authority. → If you own one: Contact your Ford dealer to confirm the recall work was completed correctly and watch for fuel smells after any recent service.
26,541 GM Vans Recalled for a Steering Defect That Can Cause Loss of Control: GM recalled 2025-2026 Chevrolet Express and GMC Savana vans over a steering gear defect that can cause drivers to lose control, per Autoblog. → If you own one: Schedule a dealer appointment immediately; commercial fleet operators should take affected vans out of service until repaired.
Land Rover Halts Sales of Defender, Discovery, and Range Rover Over an Airbag Defect: Land Rover paused new deliveries of three core model lines after discovering an airbag-related lubrication issue, per Carscoops. A simultaneous halt across the Defender, Discovery, and Range Rover points to a supplier-level problem rather than a single model defect.
Quick links
Slate's $24,950 Electric Truck Goes on Sale Without the $7,500 Credit It Once Needed: Slate opened preorders at $24,950 with 205 miles of range and more than 180,000 reservations already in hand, per GoodCarBadCar; the federal EV credit the company once needed to promise a sub-$20,000 sticker is gone.
The New Mitsubishi Pajero Is Bringing Back Its Classic Triple-Gauge Pod, Now in Digital Form: The Pajero's "Digital Multi Meter" revives the original's triple-gauge cluster in a modern digital housing, per Autoblog and Carscoops; the full reveal is still months away.
Lotus EVs Arrive in Canada Next Month Under a New Canada-China Deal: Geely-owned Lotus will deliver its first Canadian EVs in July, making them the first Chinese-manufactured vehicles sold in Canada under a new Canada-China deal, per Automotive News Europe.
EU Local-Content Rules Could Erase Automakers' Morocco and Turkey Cost Advantages: Renault, Stellantis, Toyota, and Ford have spent billions building lower-cost production bases in Morocco and Turkey; the EU's proposed "Made-in-Europe" rules could eliminate that economic advantage, per Automotive News Europe.
Yesterday's picks
Rivian Killed Its Cheapest R1T and R1S, Making Every Config $7,000 More Expensive: Rivian raised entry price by $7,000, narrowing buyer pool while clearing space for the R2.
Nissan Celebrated Its 1 Millionth Frontier Built in the U.S. While Q1 Retail Sales Ran 48% Above Last Year: 1 million Frontier milestone and 48% retail sales jump highlight strong midsize truck demand.
96,000 Hyundai Tucsons Recalled Over a Software Bug: Hyundai recalls nearly 100k Tucsons; owners should check VINs and schedule free software updates.
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