VW Reduces Another 50,000 Positions and May Eliminate a Brand: TDS
Julian Stratenschulte via Getty Images
Hello and welcome to The Downshift, or TDS for short, The Drive’s morning news summary featuring the most significant automotive headlines from across the globe.
The Downshift offers a brief recap of the news, complete with links to full articles for those interested in more details. Here’s your update for Friday, September 4, 2026. Happy Labor Day and enjoy the extended weekend!
🏭 Volkswagen’s supervisory board has finally ratified a plan to restructure the company, which includes an additional 50,000 job cuts. This raises the total planned reduction in workforce to 100,000, out of a global workforce of more than 650,000. Moreover, instead of shutting down four of its plants in Emden, Hanover, Neckarsulm, and Zwickau, VW will "seek alternatives" for their ongoing operation, which could involve selling them to other automakers. [Reuters]
👕 Apologies for the self-promotion, but we've teamed up with our friends at Blipshift to reintroduce five of our favorite t-shirt designs. They are available for purchase starting today and will be on sale until Thursday, September 17. Make sure to grab them while you can!
💺 A leaked document about VW's restructuring plan suggests that the company may phase out the Seat brand in the coming years, while allowing Cupra—the newer performance-oriented offshoot of the Spanish automaker—to continue. [Autoblog]
🔥 BMW has issued a recall for 190,000 older sedans in Germany, covering 2014 to 2020 model-year 3, 5, and 7 Series vehicles, due to starter relays that are inadequately protected against moisture, potentially leading to corrosion, a short circuit, and consequently, a fire. It's important to note that this recall has not yet been picked up by the NHTSA in the United States, so anyone who believes their vehicle might be affected should contact their local dealer. [BMW Blog]
📃 The Alliance for Automotive Innovation, a coalition of automakers that includes Ford, General Motors, Honda, Hyundai, Stellantis, Toyota, and Volkswagen, has sent a letter to Congress urging lawmakers to "enact a ban on Chinese vehicles, software, and hardware." This legislation would prevent manufacturers like BYD, Chery, and SAIC from obtaining approvals for U.S. sales, while notably allowing non-Chinese companies that already export cars from China, like Ford and GM, to continue doing so if they wish. [Reuters]
💪 The newly revived Jensen Interceptor, now powered by a Chevy small block, has been fully unveiled, sporting a design that somewhat resembles a recent Camaro. [CarBuzz]
🏁 Weekend races to catch (all times Eastern):
NASCAR O’Reilly Auto Parts Series at Darlington: Saturday at 7:30 p.m. on CW/ESPN
Formula 1 Italian Grand Prix: Sunday at 8 a.m. on Apple TV
World Endurance Championship 6 Hours of COTA: Sunday at 2 p.m. on truTV/Max
IndyCar at Laguna Seca: Sunday at 3 p.m. on Fox
NASCAR Cup Series at Darlington: Sunday at 5 p.m. on USA
NHRA Drag Racing US Nationals Finals: Monday at 12 p.m. on FS1
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VW Reduces Another 50,000 Positions and May Eliminate a Brand: TDS
Volkswagen's biggest restructuring initiative has expanded to include 100,000 job reductions and may lead to the discontinuation of one of its oldest brands.
