Greetings from The Downshift, or TDS for short, The Drive’s morning news summary featuring the top automotive headlines from around the globe.
The Downshift summarizes news succinctly, with links to full articles for those who wish to dig deeper. Here’s your update for Friday, July 10, 2026.
⏳ Toyota has postponed the introduction of its inaugural Highlander EV, initially set for release later this year. The timeline for when this model will finally arrive remains unclear, but in the interim, the gasoline and hybrid versions will continue to be produced. The company’s official statement indicates that it is making “additional modifications to the vehicle prior to launch.” [Cars.com]
👎 Volkswagen is said to be aiming to reduce half of its model lines across all of its brands as part of its extensive upcoming restructuring. However, the proposal made at the latest supervisory board meeting was rejected by labor representatives, 12-7. Union members and the state of Lower Saxony possess a majority on the company’s board. [Automotive News]
🌏 In the meantime, VW has announced an 8.6% decline in global deliveries during the second quarter. This decline is attributable to the usual culprit: weak demand in China. Sales in the region have dropped 20% compared to the same timeframe last year. The performance of traditional brands in this area has been deteriorating for so long that it’s almost astonishing they haven’t hit rock bottom already. [Reuters]
📈 Conversely, BMW enjoyed a robust Q2 in the U.S., with sales climbing 13% compared to the same period last year, driven by the popularity of the 3 Series, X3, and X5. Deliveries during the first half of the year are also up 4.7% in the U.S. [Automotive News]
⚡️ Lexus is showcasing its forthcoming LFA electric supercar at the Goodwood Festival of Speed, and it is reportedly “nearly complete” and still on schedule for a 2027 rollout, according to one of the vehicle’s designers. [Autocar]
🏭 General Motors seems to be heavily prioritizing the Corvette Grand Sport among all the various trims of the sports car for 2027, except for the base Stingray, based on purported production numbers that emerged on an enthusiast forum. [CarBuzz]
🛜 BMW has revealed that Verizon will provide 5G connectivity across all of its new models sold in the U.S., including those from Mini and Rolls-Royce. [BMW Blog]
🏁 Weekend races to keep an eye on (all times Eastern)
- NASCAR Craftsman Truck Series at Lime Rock Park: Saturday at 1 p.m. on FS1
- IMSA Michelin Pilot Challenge at Canadian Tire Motorsport Park: Saturday at 1:20 p.m. on YouTube
- NASCAR O’Reilly Auto Parts Series at EchoPark Speedway: Saturday at 7 p.m. on CW
- MotoGP German Grand Prix: Sunday at 8 a.m. on FS1
- FIA WEC 6 Hours of Sao Paulo: Sunday at 10:30 a.m. on truTV
- IMSA SportsCar Championship at Canadian Tire Motorsport Park: Sunday at 2 p.m. on Peacock
- NASCAR Cup Series at EchoPark Speedway: Sunday at 7 p.m. on TNT
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**Toyota’s Electric Highlander Plans Encounter Delays**
Toyota, a frontrunner in the automotive sector and a pioneer in hybrid innovations, has unveiled plans to shift its popular Highlander SUV to an all-electric model. However, recent developments suggest that these ambitions are experiencing considerable delays, prompting concerns about the company’s approach in the swiftly changing electric vehicle (EV) arena.
The Highlander, recognized for its dependability and family-oriented attributes, has been a cornerstone in Toyota’s portfolio since its debut in 2000. As buyer preferences increasingly gravitate towards electric options, Toyota is seeking to realign its offerings with market tendencies by replacing the Highlander with a completely electric version. This transition fits into a larger strategy aimed at electrifying its range and achieving global emissions objectives.
Despite these ambitious intentions, various elements have led to the postponements of the Highlander’s electric successor. A major obstacle is the worldwide semiconductor scarcity, which has impacted production across the automotive landscape. This deficit has hampered Toyota’s capacity to obtain the required components for the upcoming electric model, delaying development and manufacturing timelines.
Additionally, Toyota has faced internal hurdles linked to its transition towards electric vehicles. The company has historically emphasized hybrid technology, and while it has made progress in developing battery electric vehicles (BEVs), there exists a substantial gap in its EV lineup compared to rivals such as Tesla, Ford, and General Motors. This discrepancy has attracted heightened scrutiny from both investors and consumers as Toyota strives to catch up in the EV market.
Furthermore, the organization’s approach has come under fire for being slow and overly cautious. Toyota has highlighted a diversified strategy towards electrification, encompassing hybrids, plug-in hybrids, and hydrogen fuel cell vehicles, which some analysts argue may weaken its focus on fully electric models. This conservative strategy could be contributing to the delays in launching the Highlander’s electric successor.
In reaction to these challenges, Toyota has revealed plans to increase investments in battery development and production. The company intends to establish new battery facilities and broaden its research and development initiatives to bolster its EV capabilities. This investment is pivotal for ensuring that the electric Highlander can compete effectively in a market that is rapidly becoming congested with both newcomers and established competitors.
Despite the obstacles, Toyota remains resolute in its electrification ambitions. The company has established a goal for a significant portion of its global sales to derive from electrified vehicles by the mid-2030s. As part of this commitment, the electric Highlander is anticipated to be a central element in Toyota’s offerings, providing consumers with a sustainable and groundbreaking option in the SUV category.
In summary, although Toyota’s plans to transition the Highlander to an electric vehicle are encountering delays due to supply chain complications and strategic issues, the company is actively working to address these challenges. As the automotive environment continues to evolve, Toyota’s ability to adapt and innovate will be crucial in maintaining its status as a key player in the industry. The future of the electric Highlander remains uncertain, but Toyota’s ongoing investments in electrification underscore its resolve to meet the demands of an ever-changing market.