GM Reports That Rising Gas Prices Have Accelerated the Shift to Small Cars More Rapidly Than Anticipated: TDS

GM Reports That Rising Gas Prices Have Accelerated the Shift to Small Cars More Rapidly Than Anticipated: TDS

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      Welcome to The Downshift, commonly referred to as TDS, your morning news summary from The Drive that highlights the top automotive stories from across the globe.

      The Downshift provides brief news recaps with links to full articles for those who wish to dive deeper. Here’s your update for Wednesday, June 17, 2026.

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      🛢️ Buyers are moving away from larger, less efficient SUVs and trucks quicker than General Motors anticipated due to the conflict in Iran. Duncan Aldred, the president of GM's North America division, stated, "I’m not going to claim it's permanent yet, but we are witnessing a decline in pickup trucks and larger vehicles, alongside an increase in more affordable vehicle segments." [Automotive News]

      📉 BMW issued a concerning profit warning on Wednesday, leading to a 7% drop in its stock prices. The company now predicts an operating profit of 1% to 3%, down from the previous forecast of 4% to 6%. [Reuters]

      📒 On a more positive note for BMW, the company has chosen to open orders for the i3 sedan in Europe sooner than anticipated—starting tomorrow instead of in the fall, due to strong consumer demand. [Automotive News]

      ⚙️ Ford has announced a recall for 2015-2018 Focus and 2013-2016 Fusion models that have the 1.0-liter Fox engine with manual transmissions, as the clutch is particularly susceptible to slipping, raising the risk of overheating and fire. [Autoblog]

      ♦️ Mitsubishi dealers in North America have been previewed on the upcoming Montero SUV and a midsize pickup based on the Nissan Frontier, generating notable excitement, with one dealer describing the future lineup as “a dramatic improvement over the current models.” [Automotive News]

      🪪 Rivian, which had over 15,000 employees at the end of the previous year, is laying off less than 2% of its workforce. [Automotive News]

      ⬇️ Jaguar Land Rover has reduced its profit margin forecast to 4%. Alongside challenges faced by many European automakers, the cyberattack on JLR last fall is estimated to have cost the company around $2.6 billion. [Reuters]

      🏁 In motorsport updates, Porsche, which exited the World Endurance Championship after last season and consequently did not take part in the recent 24 Hours of Le Mans, commented that the regulatory goal to merge LMH and LMDh vehicles into a single category would be a “significant move” towards returning to the race. [Motorsport]

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GM Reports That Rising Gas Prices Have Accelerated the Shift to Small Cars More Rapidly Than Anticipated: TDS

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GM Reports That Rising Gas Prices Have Accelerated the Shift to Small Cars More Rapidly Than Anticipated: TDS

According to a GM executive, car buyers are turning away from larger models in favor of more economical and efficient options, and this shift is occurring more rapidly than the company has ever witnessed.