VW Poised for US Leadership Shakeup, Report Claims: TDS

Welcome to The Downshift, or TDS for short, The Drive’s morning news roundup bringing you the biggest automotive headlines from around the world.

The Downshift recaps news briefly, with links to full stories for those seeking more info. We hope you had a fine weekend, and here’s your bulletin for Monday, August 31, 2026.

🪪 According to a new report, Volkswagen of America is about to undergo a major personnel shift, with current Audi sales chief Marco Schubert expected to take over the role of VW Group’s current top exec in the country, Kjell Gruner, who would depart the company. The automaker’s American branch had staked its hopes new Atlas SUV that went on sale this past summer, but it hasn’t performed to expectations yet, and insiders say it isn’t pulling the same profit margins as the previous generation did. [Automotive News]

🚙 Jeep has released a 17-second video teasing the upcoming Cherokee Trailhawk, showing it overcoming obstacles like dunes and rocks. [Carscoops]

⚡ In other Jeep news, the Recon EV is finally about to launch, and some have noticed that its spec sheet lists 20 more horsepower than it had previously, for a total of 670 hp. Unfortunately, range remains a paltry 230 miles. Dealers are already offering considerable discounts ahead of sale, as well. [Carscoops]

🍁 Toyota and Honda stand to lose out the most in the trade war between the U.S. and Canada, as the two companies combine for three quarters of all vehicles built up north. If the Trump administration’s proposed 50% tariffs on Canadian-built vehicles go into effect on January 1, some of their production lines could become casualties. [Reuters]

🤝 Nissan and Honda have announced that they planned to launch their jointly developed ECUs and software by 2029. [Reuters]

🏭 General Motors reached a tentative deal over the weekend with Canadian union Unifor to build the next-gen heavy-duty GMC Sierra at an Ontario plant. [Reuters]

🪖 Ford CEO Jim Farley stated during the company’s recent earnings call that it is pursuing more U.S. military projects, saying, “We already dominate in that market in the commercial world. We want to offer the U.S. government the same advantages that our commercial customers get.” [Ford Authority]

📱 35% of people who own a vehicle with a front-passenger touchscreen say it has never been used, according to a new study. [Motor1]

🍏 Lexus has announced another limited-edition IS for North America with a new “Envious Green” exterior color and black BBS wheels. Only 350 units will be sold. The third-gen IS originally hit the market for the 2014 model year. [Lexus]

🏁 Weekend race winners:

• WRC Rally Del Paraguay: Sami Pajari for Toyota
• NASCAR O’Reilly Auto Parts Series at Daytona: Ryan Sieg for RSS Racing
• IndyCar at Milwaukee: Pato O’Ward for Arrow McLaren (Races 1 and 2)
• NASCAR Cup Series at Daytona: Ryan Preece for Roush Fenway Keselowski Racing
• MotoGP Aragon Grand Prix: Marc Marquez for Ducati
• GT World Challenge America at Road America: Justin Rothberg and Robby Foley for Turner Motorsport

Got a tip or feedback for TDS? Reach out to tips@thedrive.com