July 6, 2026

Automotive Weekly


Automotive Weekly
Image: Shutterstock

Toyota production cuts increased

Toyota has widened its overseas production cuts to approximately 100,000 vehicles through February 2027, up from an earlier target of roughly 83,000 units across June to November, as Strait of Hormuz disruption and sustained high gasoline prices continue to suppress consumer demand across the MENA region and East Asia. Affected models include internal combustion engine variants of the RAV4 and Avalon, as well as the bZ3X, bZ7 and Camry for the Chinese market. The RAV4 presents a specific complication in the US market: production of the hybrid-only 2026 model only recently restarted at the Georgetown, Ky. plant following retooling delays. Toyota previously estimated the shortage will cost it approximately 55,000 U.S. sales this year.

Source: Automotive World

Toyota global sales fall for fourth straight month, EV sales rise 170%

Toyota Motor Corp. reported its fourth consecutive monthly decline in global sales in May. Worldwide sales fell 7.4% from a year earlier to 885,207 units, according to the company’s May sales report. The drop extends a slide that ran through the spring, including declines reported in March and April. Toyota blames weak demand in China, the conflict in Iran and the changeover to the all-new RAV4 for the declines. US sales slipped just 0.6% to 238,800 units in May. The market held firm through the changeover to the all-new RAV4, helped by rising demand for hybrid and electric models.

Source: CBT News

VW plans to cut 15% of its workforce & close four German plants 

Auto giant Volkswagen is planning to cut 100,000 jobs and end production at four German plants over the coming years, according to a report from Manager Magazin, in a move that would represent the most radical overhaul in the firm’s 89-year history. The plan, reported on Friday, would see Europe’s largest automobile manufacturer shed roughly 15% of its workforce as it seeks to counter intensifying competition from Chinese car brands. 

Source: CNBC

Polestar being pushed out of the U.S. market

Electric luxury car brand Polestar is retreating from its ambitions in the U.S. market after confirming it will not receive authorization to sell vehicles in the country from model year 2027 onward. Polestar is primarily owned by the Chinese automaker Geely and an investment firm controlled by Geely’s founder and chairman, which complicates the brand’s relationship with the U.S. The Swedish EV brand said the U.S. Department of Commerce’s Bureau of Industry and Security denied its request for approval under the current Connected Vehicle Rule. As a result, Polestar will continue selling existing inventory of the Polestar 3 and Polestar 4 in the U.S., while maintaining customer support and service access, but it will not introduce future model-year vehicles in the market. Despite Polestar’s kinship with Volvo, Volvo’s connected car tech is U.S.-approved.

The decision marks a major shift for a company that positioned itself as a premium electric rival to established automakers, including General Motors. Polestar entered the U.S. market with vehicles aimed at buyers seeking alternatives to EVs like the Chevy Blazer EV, Equinox EV, and Cadillac Lyriq, but changing regulatory conditions have forced the company to adjust its strategy. Polestar said Europe now represents nearly 80 percent of its retail sales volume and will become the company’s primary growth region. The automaker also plans to localize production of future vehicles, including the upcoming Polestar 7 compact SUV. “Automotive industry is entering a new phase, based on regional dynamics,” Polestar CEO Michael Lohscheller said. “Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe.” The company noted that 94 percent of its retail sales volume during the first quarter of 2026 came from markets outside the U.S. That figure highlights how quickly Polestar’s global footprint has shifted away from North America, where it never gained a significant foothold against the likes of Tesla and legacy automakers.

Despite the setback, Polestar plans to continue expanding its lineup. The company said deliveries of the Polestar 5 will begin during the summer, while a new Polestar 4 variant is expected in the second half of the year. A redesigned Polestar 2 is scheduled for 2027.

“Polestar continues to challenge bigger, more established players thanks to our impressive cars and growing model line-up,” Lohscheller said. For GM and other established automakers, Polestar’s U.S. exit removes one small competitor from an increasingly crowded EV segment. 

The move also shows how government policies and regional strategies continue to influence the global electric vehicle market. 

Source: GM Authority

Ford rehires human engineers after AI fails to match quality checks 

Ford says it has hired back some human engineers after AI failed to match their skills and experience. In a bid to reap the benefits of the tech, which developers claim can cut costs and boost productivity, the US carmaker adopted it across some parts of its operations including for quality checks. But, according to Bloomberg, its executives said the firm has rehired more than 300 "veteran" quality inspectors in recent years to make up for the pitfalls of automated systems. 

Source: BBC

A ‘perfect storm’ points to a much smaller U.S. auto market by 2040

Ten years ago, a record 17.6 million cars, trucks and SUVs were sold in the U.S. Some forecasts say the country might not come close to that number again. Analysts at consulting firm Bain & Company said several signs indicate the market is about to shrink even more. Falling birth rates, behavioral changes, high car prices and a growing array of alternatives could drive sales down by more than 2 million units by 2040, according to their analysis.

Source: CNBC

Charger Daytona is transformed into a solid-state battery test bed

Stellantis and battery developer Factorial have officially moved solid-state battery technology onto the street, announcing that a Dodge Charger Daytona development vehicle is now undergoing testing with advanced solid-state battery cells. The milestone marks the first integration of Factorial’s FEST (Factorial Electrolyte System Technology) solid-state batteries into a Stellantis vehicle and the first automotive application of the technology in North America.

The companies said the Charger-based prototype is being tested in a calibration program designed to evaluate battery performance, safety, durability and reliability under real-world driving and charging conditions. Solid-state batteries are widely viewed as one of the most promising next-generation EV technologies because they could deliver greater energy density, faster charging, safer everyday use, and lower costs than the lithium-ion batteries currently found in most electric vehicls. In 2025, Stellantis and Factorial demonstrated FEST cells capable of 375 Wh/kg energy density, charging from 15 percent to 90 percent in just 18 minutes, while operating in temperatures ranging from -22 degrees F to 113 degrees F.

Stellantis said integrating the cells into a production-based vehicle required significant engineering work. The automaker had to develop a patented battery-pack architecture designed specifically to accommodate the solid-state cells while maximizing their performance. Engineers also modified battery controls and pack systems to meet automotive safety and durability standards. “Battery development is a balancing act,” said Stellantis Chief Engineering and Technology Officer Ned Curic. “This milestone shows we are bringing solid-state batteries closer to our customers with the potential for longer range, faster charging and lower costs.”

The Charger test vehicle is the first step in a previously announced multi-stage development program between Stellantis and Massachusetts-based Factorial, which counts Stellantis, Mercedes-Benz, Hyundai, and Kia among its strategic investors and partners. The companies said the road-testing phase will help validate the technology as they continue working toward future production applications. 

Source: Autoweek

Touchscreen backlash forces automakers to rethink vehicle controls

Consumer rejection of touchscreen-dominated vehicle interiors is forcing automakers to reverse course on deleting tactile buttons and knobs. It’s also affecting how native and third-party infotainment apps are being developed. But the big center console screens represent valuable real estate within a vehicle. App developers are looking to monetize that space while pushing software that sucks up a growing amount of bandwidth. The inconvenient truth: Vehicle occupants could be more comfortable using their smartphones. 

Source: Automotive News

U.S. auto industry faces more uncertainty without extension of USMCA trade deal 

The U.S. automotive industry is entering a new phase of uncertainty as the USMCA trade agreement between the United States, Mexico and Canada is not expected to be extended by Wednesday, triggering what could be a yearslong review process or an expiration of the pact if no deal is reached by 2036. The United States-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement, was established during President Donald Trump’s first term in 2020, but the administration has soured on the deal that governs roughly $2 trillion annually in goods and services between the three countries.

Source: CNBC

Ford Says UEV Battery Pack Cells Cannot Be Replaced 

Ford has tasked a special skunkworks team with developing its all-new, low-cost Universal Electric Vehicle (UEV) platform for the past several years, which will eventually underpin a variety of future models - starting with a mid-size pickup due to debut later this year before production begins at the Louisville Assembly plant in 2027. Ford recently revealed that this new all-electric hauler will be easy to repair, in spite of its unicastings, but it doesn't seem as if the battery packs will be fully serviceable.

In a recent question and answer session revolving around UEV, Ford was asked if the battery cells in those models can be individually replaced, which is the case with certain packs these days. "The battery pack is serviceable, but individual cells cannot be replaced due to the dual structural function they serve," FoMoCo stated. "We are using software to detect and constantly monitor the life of every individual cell. It will allow us to understand cell performance over time and optimize the charging, discharging, temperature, and health to improve performance of its life."

This is notable because in some cases, EV owners have been able to replace individual cells that are defective, rather than the entire pack - a process that saves a ton of money. Regardless, that doesn't seem to be in the cards for future UEV models, which is unfortunate for folks that will own those models and experience a single cell failure out of warranty. Those same UEV models will utilize a 400-volt architecture rather than the 800-volt alternative that facilitates faster charging speeds, as that would have added around 20 percent of additional cost to the project, though the automaker also states that this system has been designed for optimum charging efficiency.

The mid-size pickup will be the first Ford EV to come with a native North American Charging Standard (NACS) port, though a number of adapters will also be included, ensuring that owners will be able to charge up anywhere

Source: Ford Authority

Ford CEO wants level playing field with Toyota, GM imports as USMCA trade talks reopen

As negotiations officially reopen for the USMCA North American trade deal, Ford Motor CEO Jim Farley is clear about what the automaker wants under the new talks: a more level playing field. He told CNBC he wants automakers such as Ford that largely produce their vehicles domestically to be awarded under the deal. Along with that, Farley said other automakers — such as General Motors and Toyota Motor — that may produce here but also heavily rely on imported vehicles should get more penalties. 

Source: CNBC

Smart phones on wheels… with all the glitches

Modern cars have basically become smartphones on wheels. Unfortunately, that means that they seem to have also inherited the bugs, too—or at least that's what J.D. Power's 2026 Initial Quality Study has found. The annual study measures how many problems new-vehicle buyers experience in their first 90 days of ownership across 10 categories. Overall, people are seeing fewer problems than they did last year, and results improved in every category. The only area where buyers are seeing more problems than before is infotainment. In total, 44.4 out of every 100 vehicles in the mass-market segment saw infotainment-related complaints

Source: Inside EVs