Automakers Are Beginning to Worry About AI Disrupting the Memory Supply Chain: TDS

      Adam Ismail

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      Good morning and welcome to The Downshift, or TDS for short, which is The Drive's daily news summary highlighting significant automotive updates from around the world.

      The Downshift presents news items in a brief format, along with links for more details. Here’s the news for Thursday, June 4, 2026.

      💾 Several industry trade groups and lobbyists, including the Alliance for Automotive Innovation, representing many manufacturers, have sent a letter to the U.S. Treasury and Commerce departments warning about the global shortage of memory chips due to the development of AI data centers, and its ongoing effects on consumer prices. Policymakers have some options to address this, but increasing domestic manufacturing will take years. [Bloomberg]

      ⛐ Toyota is set to deliver “fewer than 500 units” of the new, more performance-oriented GRMN Corolla to the U.S., as noted in a marketing email from the company.

      🔌 Kjell Gruner, CEO of Volkswagen of America, has emphasized that the ID4 and electric vehicles, in general, will be a key part of the automaker’s U.S. offerings, stating, “What’s important—because sometimes that was a bit misunderstood—is that the ID4 will remain in the market. It’s very important. We will have EVs available. Not just one, but at least two. For now, that will include the ID4 and its successor.” [Automotive News]

      🚕 Tesla has launched unsupervised robotaxis in Austin, Texas, operating around 50 vehicles in the area, compared to Waymo’s 250. [Reuters]

      ⛽ Canadian fuel economy figures for the upcoming C8 Corvette with the larger LS6 engine suggest that the new V8 should not use significantly more fuel than the current LT2. [GM Authority]

      ⚡ Rolls-Royce has enhanced the electric Spectre for 2027 with improved range and power, as well as the addition of a NACS charging port. [Automotive News]

      💰 Carvana reportedly received the option to buy shares in the new electric truck company Slate Auto last year, although it’s unclear if the automotive retailer took advantage of this opportunity. [TechCrunch]

      🤖 Additionally, Uber is said to have invested nearly $500 million in self-driving tech startup Nuro so far, matching the same amount it has invested in EV manufacturer Lucid. The rideshare company aims to integrate both companies to deploy Lucid Gravity robotaxis in its fleet. [Reuters]

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