Tariffs and R&D Expenses Halve Toyota's Quarterly Profit: TDS

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      Good morning and welcome to The Downshift, or TDS for short.

      As they say in the industry, TDS is tight, light, and right, scouring the Internet for the latest global automotive news and consolidating it into one summary. Stories are briefly recapped with links for those who wish to learn more. Happy Friday! Let's get started.

      📉 Toyota has announced a remarkable 49% decline in operating profit for its most recent financial quarter compared to the same quarter last year. This marks the fourth consecutive decrease, resulting in the company's lowest quarterly profit in nearly three years. Toyota attributes this downturn to “increases in investments in human resources and future-oriented initiatives, as well as the impact of U.S. tariffs.” The company does not foresee an improvement in the coming months, projecting that the ongoing situation in Iran will cost it $4.3 billion this year due to rising material expenses and diminished sales volume. [CNBC, Reuters]

      🛻 General Motors intends to boost pickup truck availability on dealer lots this year, as limited inventory has hampered sales and hindered the company from capitalizing on Ford’s recent supply challenges with its F-150 models. [Automotive News]

      👷 In truck news, Ford has introduced a Carhartt-branded Super Duty that features special branding reportedly influenced by the workwear company's design input. [Automotive News]

      🛑 GM has issued a recall for ACDelco brake and clutch fluid after discovering it contains sediment that could adversely affect performance. [GM Authority]

      🚲 Porsche is discontinuing three subsidiaries—Porsche eBike Performance, Cellforce, and Cetitec—and will be laying off approximately 500 employees to refocus on its core business. Cellforce was involved in battery development, while Cetitec specialized in automotive connectivity and networking technologies. [Reuters]

      📱 Mercedes-Benz is recalling 144,000 vehicles in the U.S. due to instrument panels that may go blank while in operation. This recall affects the 2024-2026 model-year C-Class, E-Class, SL, CLE, GLC, and AMG GT, requiring dealers to update the control unit software to address the issue—there’s no over-the-air fix available. [NHTSA]

      ⚡ Volkswagen is set to fully unveil the ID Polo GTI, the sporty version of its new budget-friendly electric city car—which will not be available in the U.S.—at the 24 Hours of Nürburgring next weekend. [Volkswagen]

      🏁 Weekend Races to Watch (all times Eastern):

      WRC Rally Portugal: All weekend on Rally.TV

      NASCAR Craftsman Truck Series at Watkins Glen: Friday at 4:30 p.m. on FS1

      WEC 6 Hours of Spa-Francorchamps: Saturday at 8 a.m. on HBO Max

      NASCAR O’Reilly Auto Parts Series at Watkins Glen: Saturday at 4 p.m. on CW

      IndyCar at Indianapolis Road Course: Saturday at 4:30 p.m. on FOX

      MotoGP French Grand Prix: Sunday at 8 a.m. on MotoGP Video Pass

      NASCAR Cup Series at Watkins Glen: Sunday at 3 p.m. on FS1

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