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

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

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      Welcome to The Downshift, or TDS for short, The Drive’s morning news summary that brings you the top automotive headlines from around the globe.

      The Downshift provides brief news recaps, with links to full articles for those who wish to delve deeper. This is 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 a pace twice as fast as General Motors anticipated due to the conflict in Iran. Duncan Aldred, GM’s president of North America operations, stated, “I’m not ready to say it’s permanent yet, but we are witnessing a decrease in demand for pickup trucks, full-size utilities, and some heavier vehicles, along with a rise in the more economical segments of the market.” [Automotive News]

      📉 BMW issued a dismal profit forecast on Wednesday, leading to a 7% drop in its stock price. The company now anticipates an operating profit of between 1% and 3%, down from previous predictions of 4% to 6%. [Reuters]

      📒 On a positive note for BMW, the company has decided to open the order books for the i3 sedan sooner than expected in Europe—tomorrow instead of in the fall as initially planned—due to strong demand. [Automotive News]

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

      ♦️ Mitsubishi dealers in North America have been given sneak peeks of the new Montero SUV and a midsize pickup based on the Nissan Frontier, and they are reportedly very enthusiastic, with one dealer describing the upcoming lineup as “a complete departure from the current offerings.” [Automotive News]

      🪪 Rivian, which had just over 15,000 employees at the end 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 car manufacturers are encountering, JLR's cyberattack last fall is estimated to have cost the company around $2.6 billion. [Reuters]

      🏁 In racing updates, Porsche, which exited the World Endurance Championship after last season and did not participate in last weekend’s 24 Hours of Le Mans, mentioned that rulemakers’ goal to merge LMH and LMDh cars into a single formula would be a “significant step” towards rejoining 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

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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.