Legacy Automakers in Transition: VW, Toyota, GM, Stellantis — 2026-10-11
Toyota is closing the gap on General Motors in the U.S. market, driven by a surge in hybrid sales while GM’s refusal to offer hybrids leads to a 5.5% sales drop. Meanwhile, Stellantis faces production cuts in Italy and France due to battery shortages and union forecasts, and Volkswagen Group has slashed its 2026 profit guidance amid a severe China downturn.
Legacy Automakers in Transition: VW, Toyota, GM, Stellantis — 2026-10-11
Top developments
GM Sales Drop as Toyota Surges on Hybrids
General Motors reported a 5.5% decline in Q3 U.S. sales, losing ground to Toyota, which saw an 8.4% volume increase in September alone. GM’s all-electric vehicle sales dropped across the board, while Toyota capitalized on strong hybrid demand, narrowing GM’s historical dominance in the U.S. market. Analysts note that GM’s lack of hybrid offerings may be opening the door for Toyota to become America's biggest automaker if the trend continues.
Stellantis Cuts Italy Output Forecast and Pauses French Plants
The Fim-Cisl labor union lowered its forecast for Stellantis’ 2026 vehicle output in Italy to 450,000 units, a 10% reduction from previous estimates, citing production stops at the Mirafiori plant. Additionally, Stellantis announced it will temporarily suspend operations at some plants in France next month due to a shortage of long-range electric-vehicle batteries and efforts to manage dealer inventory levels. These moves signal continued struggles in the group's European turnaround strategy.
Volkswagen Slashes 2026 Profit Guidance to 1%
Volkswagen AG has updated its guidance for the 2026 fiscal year, cutting its profit margin forecast to approximately 1%. The decision follows significant challenges in the Chinese market, additional restructuring costs, and a write-down related to the Porsche AG. German media reports indicate that despite some operational improvements, weak Chinese demand and tariff uncertainties are preventing a recovery in margins for VW, BMW, and Mercedes.
Honda Secures Pickup OEM Deal with Mitsubishi
Honda has finalized an agreement to receive OEM supply of Mitsubishi Motors’ "Triton" pickup truck, starting around 2028. This deal marks the first concrete outcome of collaboration negotiations between the two companies, aimed at strengthening ties within the broader Nissan-Honda-Mitsubishi alliance orbit. The move allows Honda to expand its pickup offerings in emerging markets without developing a new platform from scratch.
Local view
In Germany, financial media like Finanzen.net and Aktien4future highlight that the "befreiungsschlag" (breakthrough) for auto stocks is absent, with VW, BMW, and Mercedes facing structural stress from collapsing Chinese sales and margin cuts. In Japan, Yomiuri Shimbun reports on Honda’s strategic pivot to leverage Mitsubishi’s Triton platform, reflecting a pragmatic approach to product gaps in the alliance. Meanwhile, Nikkei notes that Toyota’s domestic strength continues to outpace rivals, solidifying its "one-strong" position in the Japanese market.
Context & numbers
U.S. new vehicle sales rose 4.4% in September, driven by Japanese and South Korean manufacturers’ hybrid offerings. Toyota’s September U.S. sales reached 201,306 units, up 8.4% year-over-year. In contrast, GM’s Q3 sales fell 5.5%, with EV sales declining across the board. Stellantis’ U.S. volumes remained flat at roughly 324,000 vehicles in Q3. The EU-China hybrid car deal is providing European automakers with breathing room from potential tariffs, though uncertainty remains.
On the radar
- Unifor Negotiations: With the Ford deal ratified, the Canadian union Unifor is now targeting investment commitments from GM and Stellantis, potentially influencing future North American production plans.
- GM Hybrid Rollout: GM has officially confirmed plans to add hybrids to its U.S. lineup, acknowledging customer demand shifts away from pure EVs. Details on specific models and timing are expected soon.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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