Cox Automotive forecasts Toyota will narrow its US sales gap with GM to just 83,255 vehicles through the first half of 2026, the closest the two automakers have been since Toyota briefly topped GM in 2021. The divergence stems from powertrain strategy: Toyota's long-standing hybrid lineup is thriving as hybrid sales rise ~10%, while GM's heavy EV bet is backfiring as EV sales fall over 23% following the expiration of the $7,500 federal tax credit and new 25% import tariffs. Analysts note GM lacks a hybrid bridge to weather the EV slowdown, while Toyota never abandoned hybrids. The broader US auto market is down ~3% through June, with Tesla, Ford, and GM facing the steepest declines.
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Volkswagen reportedly plans to cut around 100,000 jobs — about 15% of its global workforce — and close several German plants including Hanover, Zwickau, Emden, and the Audi plant in Neckarsulm. The move would be the largest restructuring in the company's 89-year history. The cuts stem from weak EV demand, the end of German EV subsidies in 2023, pressure from cheaper Chinese rivals, and US tariffs. The plan would break a late-2024 agreement with unions that promised no deeper cuts or plant closures before 2030. IG Metall and the General Works Council have vowed to fight the plan, and the state of Lower Saxony — a major shareholder — adds political weight to the opposition. The situation reflects broader struggles across Europe's auto industry as the EV transition stalls and competition intensifies.