Industry

Volkswagen Group, Mercedes-Benz, BMW and Porsche all lost China sales in Q2 2026, led by a 36.6% drop for VW Group and 28% for Porsche, as buyers shift to faster-moving domestic EV brands.

Hainan, a Chinese island province of about 10 million people, has restated its plan to end sales of new petrol cars by 2030 - a target first floated in 2020 and formalized in 2022. Private buyers will be required to choose a new-energy vehicle; public and commercial fleets face a 100% clean-energy rule, excluding special-purpose vehicles. No other Chinese province has set a comparable hard date.

Oliver Blume told staff in an internal memo that Volkswagen Group may need to cut 50,000 more jobs on top of the 50,000 already agreed, potentially reaching 100,000 total. He cited costs roughly 20% above competitors, weak China sales, US tariffs, and underused European plants.

From 7 July 2026, every new car and van registered in the EU must carry a camera-based system that tracks the driver's gaze and warns them when they look away from the road for too long. New model types have had it since 2024. This deadline catches the older models still in production.

Ford expects to collect $1.3 billion back after the Supreme Court struck down the IEEPA tariffs. A proposed class action argues that the buyers who paid the tariff-inflated prices are owed a share, and that keeping both would be a windfall.

Slate Auto has confirmed it will not sell its sub-$25,000 electric pickup or SUV conversion in Canada. The company has not given an official reason, but a 25% retaliatory tariff on US-built cars would push the truck's Canadian price to roughly $44,500 CAD ($31,100 equivalent before conversion), undercutting the model's entire value pitch.

China has approved new rules requiring physical buttons or switches for safety-related vehicle controls, reversing the touchscreen-only trend led by Tesla and Chinese EV makers. The rules take effect July 1, 2027.

Volkswagen Group wants to cut its roughly 150 model lines by up to 50% and trim configuration options by up to 75%, while lowering annual production capacity to 9 million cars from a pre-pandemic target of 12 million. The Touareg, Touran, and T-Roc Cabriolet are among the models already leaving.

After the Connected Vehicles Rule blocked future US sales, Polestar is discounting its remaining 2026 inventory - up to $25,000 off the Polestar 4 and $23,000 off the Polestar 3 for cash buyers, with 0% APR financing and leases from $399 a month.

The recall covers the Ford F-150 (2021), Explorer (2020-2021) and Expedition (2018-2021), plus the Lincoln Aviator (2020-2021) and Navigator (2018-2021). A transmission fault can let the parking mechanism fail after the vehicle is shifted into P, allowing it to roll. Dealers will apply a free software update and replace damaged parts as needed.

Hyundai Motor America sold a record 450,568 vehicles in the first half of 2026, up 3%. Hybrids grew 67% year-to-date and now outpace EVs as the brand's main growth engine, echoing Toyota's playbook.

Kia sold 405,785 vehicles in the US in the first half of 2026, its best half ever, with June and Q2 also setting records. Hybrid versions of the Sportage, Sorento and Carnival drove the gain, while the EV6 was one of only two models to fall.

According to Reuters, Volkswagen is considering closing factories in Hannover, Zwickau, Emden and the Audi site in Neckarsulm, with group-wide job cuts potentially reaching 100,000. The supervisory board meets on July 9. Falling European sales, Chinese competition and US tariffs are cited as the main causes.

The three Japanese makers are in final talks to standardize the electronic control units (ECUs) that run their next-generation hybrids and EVs. The shared modules would cover autonomous driving, infotainment and powertrain control, with cars expected from 2029-2030. The aim is to cut costs against Chinese rivals and Tesla.

The Commerce Department has denied Polestar authorization to sell its 2027 and later model-year cars in the United States, citing the Connected Vehicle Rule and Geely's controlling stake. The ban even covers the Polestar 3, which is built in South Carolina. Existing dealer stock can still be sold.

The Polestar 4's signature feature is a solid tailgate with no rear window, fed by a camera and a digital mirror. Dutch outlet AutoWeek found the camera and parking sensors react too slowly to stop owners from creasing the metal, and published photos of several cars with dented tailgates.

Chery Jaguar Land Rover slashed the Range Rover Evoque L's price in China by 229,800 yuan (about $33,945), and dealers are now selling it from around 200,000 yuan (about $29,545). The cut comes as the joint venture prepares to end production by late 2026 and shift to its new Freelander brand.

Tata Motors will unveil the electric Sierra on June 30, reviving one of India's most nostalgic nameplates as a modern EV. Built on the Acti.ev platform, it is expected to offer 60-something kWh battery options, around 500 km of range, and rear- or all-wheel drive, with prices reported in the 18-25 lakh rupee range (about $21,000 to $29,000).

Apple is broadening CarPlay in iOS 27, turning it from a navigation-and-music tool into a fuller in-car media platform. New features include video apps via AirPlay while parked, a redesigned Siri interface, a music mini-player, audio scrubbing in Now Playing, and a Liquid Glass visual refresh. It is in beta now, with a public release this autumn.

BMW opened order books for the electric i3 50 xDrive months ahead of schedule after demand outran plans. The First Edition starts at 75,340 euros (about $86,400) in Germany, with up to 912 km WLTP range. Days earlier, BMW was reported to be discontinuing three China-built EVs in July to clear capacity for the Neue Klasse.