The difference in price between regular and premium gasoline is increasing. Drivers are reacting accordingly: TDS.

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      Welcome to The Downshift, or TDS for short, The Drive’s morning news compilation featuring the top automotive headlines from around the world every day.

      The Downshift condenses news into brief summaries and provides links to the full articles for those who want to dive deeper. It’s Tuesday, July 7, 2026—here's what’s unfolding.

      ⛽ It’s common for drivers who usually fill up with premium gasoline to switch to mid-grade or regular during times of elevated prices, and that's occurring right now. According to a recent report, premium fuel sales dropped by 5% over a four-day stretch late last month, while mid-grade fell by 2%, and regular increased by 10%. Currently, premium gas is averaging 90 cents per gallon more than regular, with experts predicting that difference could grow to a dollar by the end of the year. However, this switch is not suitable for all vehicles; some manufacturers merely suggest premium for select models, while many high-performance cars necessitate higher-octane fuel, and using anything less repeatedly could damage the engine. [Bloomberg]

      🏭 Toyota is planning to establish a new 2.5-million-square-foot truck manufacturing facility in Texas, which will take over some Tacoma production currently being done in Mexico. The project is estimated to cost $3.6 billion and is set to open by 2030. [Reuters]

      🔧 Ford has issued two separate recalls for two distinct Mustang-badged vehicles. Approximately 68,000 units of the sports car (including the GTD) have been recalled due to windshield wipers that may malfunction in colder weather, functioning only at their highest speed. For the electric Mach-E, the issue is more critical; Ford is recalling nearly 43,000 SUVs over defective rear-differential pinion shafts that may break, causing loss of drive or preventing parking unless the parking brake is engaged. The automaker will replace all affected parts at no cost. [Reuters]

      💽 In other Ford news, the automaker has struck a deal with memory-chip manufacturer Micron to supply its vehicles, following a similar agreement announced by rival GM last week. [Reuters]

      🏛️ Rivian had a strong second quarter, exceeding analysts’ forecasts, but its sales fell by 9% on Monday after the company revealed a plan to sell 75 million shares. [Reuters]

      🌎 Leapmotor vehicles are now officially available for sale in Mexico, as announced by the Chinese automaker on Monday. The brand launches with its B10 electric SUV, which will be marketed through Stellantis’ dealer network in the country. [Automotive News]

      🚙 Land Rover may be considering transforming the next-generation Range Rover Velar into a high-riding sedan or liftback instead of a conventional SUV, which marks a surprising shift at a time when sedans are increasingly being redesigned as crossovers. [Autocar]

      ⚡ Bentley has revealed that its debut battery-electric vehicle will be named “Torcal,” set to make its first appearance on September 26 in London. [Automotive News]

      🧑‍🔧 McLaren Special Operations has refurbished the company’s inaugural road car, the M6GT, utilizing a mix of restored parts and new components crafted with original molds and designs. The chassis is derived from the M6A race car, and it is powered by a Chevy small-block engine. [McLaren]

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