GM Reports That Rising Gas Prices Accelerate Shift Towards Small Cars Sooner Than Anticipated: TDS
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Welcome to The Downshift, or TDS for short, The Drive’s morning summary providing the major automotive headlines from around the globe.
The Downshift offers concise news summaries, with links to full articles for those looking for more details. Here’s your update for Wednesday, June 17, 2026.
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🛢️ New car purchasers are moving away from larger, less efficient SUVs and trucks at half the rate General Motors anticipated due to the conflict in Iran. Duncan Aldred, the president of GM’s North America operations, remarked, “I’m not going to claim it’s permanent yet, but we are observing a decline in pickup trucks, full-size utilities, and some of the heavier vehicles, alongside an uptick in the more budget-friendly segments of the market.” [Automotive News]
📉 BMW issued a bleak profit forecast on Wednesday, leading to a 7% drop in its shares. The company now anticipates an operating profit between 1% and 3%, down from the previous projection of 4% to 6%. [Reuters]
📒 In more positive news for BMW, the company has opted to open orders for the i3 sedan sooner than anticipated in Europe—starting tomorrow instead of the fall, due to strong demand. [Automotive News]
⚙️ Ford has announced a recall affecting 2015-2018 Focus and 2013-2016 Fusion models that have the 1.0-liter Fox engine and manual transmissions, as the clutch is particularly susceptible to slipping, which increases the risk of overheating and fire. [Autoblog]
♦️ Mitsubishi dealers in North America have been given a glimpse of the forthcoming Montero SUV and the Nissan Frontier-based midsize pickup, and they are reportedly quite enthusiastic, with one retailer describing the upcoming lineup as “a vast improvement over the current offerings.” [Automotive News]
🪪 Rivian, which employed just over 15,000 people at the close of last year, is laying off less than 2% of its workforce. [Automotive News]
⬇️ Jaguar Land Rover has lowered its profit margin forecast to 4%. Along with the difficulties many European automakers are confronting, JLR’s cyberattack last fall is thought to have cost the company around $2.6 billion. [Reuters]
🏁 In motorsport news, Porsche, which exited the World Endurance Championship after last season and did not participate in last weekend’s 24 Hours of Le Mans, stated that the rulemakers' aim to integrate LMH and LMDh cars into a unified formula would be a “substantial step” towards its return to the event. [Motorsport]
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GM States That Rising Gas Prices Have Accelerated the Shift to Small Cars More Rapidly Than Anticipated: TDS
According to a GM executive, car buyers are rejecting larger models in favor of more affordable and efficient options, and this shift is occurring more rapidly than the company has ever observed.
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GM Reports That Rising Gas Prices Accelerate Shift Towards Small Cars Sooner Than Anticipated: TDS
According to a GM executive, car purchasers are rejecting larger models in favor of more economical and efficient options, and this shift is occurring more rapidly than the company has ever observed.