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Volkswagen Group Sales Slump Forces Major Global Restructuring

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Volkswagen Group is facing mounting pressure after declining global sales, prompting the automaker to cut its model lineup, reduce production capacity and streamline operations worldwide.

Volkswagen Group is entering one of the most significant restructuring periods in its history after reporting weaker global sales during the second quarter of 2026. While some regions continue to deliver positive results, sharp declines in China have forced the German automaker to rethink its global strategy.

As part of its response, Volkswagen Group plans to reduce its vehicle lineup, simplify production and focus on its most profitable products.

China remains Volkswagen Group’s biggest challenge

The largest setback for Volkswagen Group sales came from China, where deliveries fell sharply during the second quarter.

The automaker reported:

  • 36.6% decline in second-quarter sales in China
  • 25.9% decline year-to-date
  • Overall 8.6% global sales decrease during the quarter

Despite launching new electric vehicles developed specifically for the Chinese market, Volkswagen has struggled to keep pace with intense competition and slowing market demand.

China continues to be Volkswagen Group’s most challenging global market.

North America and Latin America show stronger performance

While China remains difficult, Volkswagen achieved more encouraging results in several other markets.

North American sales increased 7.7% during the second quarter, led by strong demand for the Volkswagen brand in the United States.

Key highlights include:

  • Volkswagen U.S. sales up 24.9%
  • Tiguan sales surged 152.5%
  • Golf GTI sales increased 17.2%
  • Golf R sales climbed 12.5%
  • ID. Buzz deliveries more than doubled

Latin America also delivered solid growth, while most European markets continued posting moderate gains.

However, premium brands faced additional pressure, with Audi reporting lower sales and Porsche continuing to experience declining deliveries across much of its lineup.

Volkswagen’s U.S. business posted strong growth during the second quarter.

Volkswagen begins one of its largest restructuring efforts

In response to changing market conditions, Volkswagen Group recently announced an aggressive restructuring strategy.

The company plans to:

  • Reduce its global model lineup by up to 50%
  • Cut available vehicle configurations by up to 75%
  • Lower annual production capacity to 9 million vehicles
  • Focus investment on its highest-volume and most profitable products

Industry reports have also suggested additional factory closures and workforce reductions could follow, although Volkswagen has not officially confirmed those measures.

Volkswagen Group is simplifying its portfolio to improve long-term profitability.

The restructuring marks a major shift for Volkswagen Group as it adapts to changing global demand and increasing competition, particularly in the electric vehicle market. By streamlining its product portfolio, reducing manufacturing complexity and prioritizing profitable models, the company hopes to strengthen its long-term competitiveness while navigating one of the most challenging periods in its recent history.

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2027 Mitsubishi Pajero Returns With Body-on-Frame Platform

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Mitsubishi will unveil the fifth-generation Pajero on September 2, bringing back body-on-frame construction, S-AWC, and a tougher off-road focus.

Mitsubishi is bringing back the Pajero with a major change in philosophy. The fifth-generation SUV will make its global debut on September 2, 2026, and will return to a body-on-frame architecture aimed at giving it significantly stronger off-road credentials.

The new SUV will also use Mitsubishi’s Super All-Wheel Control (S-AWC) system, while hybrid power remains one of the major unanswered questions ahead of its reveal.

The Pajero returns to a body-on-frame chassis

The biggest mechanical change is the move away from the unibody construction used by the previous-generation Pajero.

The new model will use a ladder-frame chassis, putting Mitsubishi back into the same fundamental territory as other traditional off-road SUVs.

The new Mitsubishi Pajero will return with body-on-frame construction for its fifth generation.

The September 2 event is now confirmed as the vehicle’s global premiere.

Mitsubishi has released several teaser images, but the company has not yet revealed the full dimensions, trim lineup, or interior.

The new architecture could allow the Pajero to compete more directly with rugged SUVs such as the Toyota Land Cruiser Prado.

S-AWC brings proven Mitsubishi technology

The new Pajero will also feature Super All-Wheel Control, Mitsubishi’s integrated system for managing torque, braking, and vehicle stability across different surfaces.

S-AWC first appeared on the Lancer Evolution X and is now used on the Triton pickup, giving Mitsubishi an established system for the new SUV.

Super All-Wheel Control will give the new Pajero advanced torque and stability management for on- and off-road driving.

Regional reports have suggested that S-AWC could be paired with Mitsubishi’s Super Select 4WD-II system.

That combination could potentially provide multiple drive configurations and low-range capability, although Mitsubishi has not officially confirmed the pairing yet.

A more extreme Pajero Ralliart version has also been rumored, which would push the SUV further toward serious off-road competition.

Hybrid power remains the big unknown

Mitsubishi has hinted at electrified versions of the new Pajero, but the company has not yet disclosed the battery size, electric range, or specific engine combinations.

A key question is whether the SUV will use a hybrid system derived from the hardware and architecture shared with the Triton.

Hybrid power is expected to play a role in the new Pajero lineup, although Mitsubishi has not revealed the technical details.

For now, the powertrain lineup remains one of the biggest unknowns ahead of the September reveal.

Mitsubishi’s broader plans could also include a Montero-badged version for North America, although that possibility has not been finalized.

Pajero could become a wider SUV family

The return of the Pajero may represent more than the arrival of a single flagship SUV.

Mitsubishi is reportedly considering smaller Pajero variants with hybrid technology for the 2028-to-2030 period, potentially turning the nameplate into a broader family of SUVs.

That would give Mitsubishi a way to compete across multiple segments rather than relying on one large off-road model.

For now, attention is firmly on September 2, when the new Pajero will finally be revealed in full.

The 2027 Mitsubishi Pajero represents a major return to Mitsubishi’s off-road roots, combining body-on-frame construction with S-AWC and a potentially electrified powertrain strategy.

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Hamilton Questions Ferrari’s Team Orders After Zandvoort

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Lewis Hamilton believes Ferrari should have used team orders at Zandvoort, arguing that Charles Leclerc cost him valuable time during the Dutch Grand Prix.

Hamilton wanted Ferrari to act

Hamilton moved up to fifth after overtaking Oscar Piastri on lap 35. He then found himself behind a slower Leclerc, which prevented him from maintaining his progress.

Lewis Hamilton became frustrated after getting stuck behind Charles Leclerc during the Dutch Grand Prix.

The Ferrari driver eventually complained over the radio, sarcastically criticizing the amount of time being lost.

Leclerc remained ahead until he made his pit stop on lap 43, finally freeing Hamilton to continue his recovery.

Hamilton later compared Ferrari’s approach with Mercedes, which instructed George Russell to give second place to Kimi Antonelli with seven laps remaining.

Mercedes’ decision influenced Hamilton’s frustration

Mercedes made the decision because Antonelli had significantly fresher tires and could potentially challenge Lando Norris for the lead.

Although Norris ultimately won, both Mercedes drivers accepted the decision and finished second and third.

Hamilton pointed to Mercedes’ decision to swap Russell and Antonelli as an example of more effective team management.

Hamilton believes Ferrari could have acted similarly when Leclerc was slowing his progress.

He said he wants to win and finds it difficult when he sees another team making an immediate strategic decision while Ferrari does not react in the same way.

Hamilton also said he intends to discuss the matter with Ferrari when he returns to the team.

Lost time behind Leclerc hurt Hamilton’s podium hopes

Hamilton eventually had a chance to fight Russell for third place, but a late Virtual Safety Car made the opportunity even harder.

The British driver said he was getting close to the Mercedes when the VSC was deployed on lap 70.

Hamilton believes the time lost behind Leclerc ultimately reduced his chances of challenging Russell for the final podium position.

He also pointed to Ferrari’s lack of straight-line speed.

Hamilton estimated Ferrari was losing around four tenths of a second per lap on the straights compared with Mercedes and McLaren.

That made overtaking particularly difficult and increased the importance of avoiding traffic.

Hamilton wants more engine performance from Ferrari

Despite his criticism, Hamilton praised Ferrari for bringing an upgrade to Zandvoort.

The seven-time world champion believes the team is moving closer to Mercedes, but he also thinks Ferrari must address its power deficit.

Hamilton praised Ferrari’s latest upgrade but believes the team still needs more engine performance to challenge Mercedes.

According to Hamilton, Ferrari has spent much of the season giving away performance on the straights.

He believes finding additional engine power is essential if Ferrari wants to close the gap and fight Mercedes consistently.

For Lewis Hamilton Ferrari, Zandvoort therefore produced a mixed result. The fourth-place finish was solid, but Hamilton believes Ferrari’s handling of team orders and its remaining power deficit prevented an even stronger result.

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Toyota’s Secret V6 Hot Hatch Was a 280-HP Sleeper

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The Toyota Blade Master G packed a 3.5-liter V6, front-wheel drive, and a luxury-focused cabin into an understated hatchback that remains remarkably rare.

Toyota has built plenty of memorable performance cars, from the Celica and Supra to today’s GR Corolla. But one of its most unusual efforts has largely disappeared from the spotlight.

The Toyota Blade Master G was a Japanese-market hot hatch that paired an understated body with a 3.5-liter V6 producing 276 horsepower. It was front-wheel drive, automatic, and far more luxurious than the typical performance hatchback.

A V6 Hidden Under an Ordinary Hatchback

The Blade was positioned as a more upscale alternative to the Toyota Auris. It was never sold new in the United States, and the model remained exclusive to Japan.

Toyota launched the Blade in 2006 with a 2.4-liter four-cylinder. One year later, the company created something much more unusual.

The Toyota Blade Master G looked understated but packed a 3.5-liter V6 producing 276 horsepower.

The 3.5-liter 2GR-FE V6 transformed the compact hatchback.

The engine produced 276 hp and 254 lb-ft of torque, figures that were substantial for a small front-wheel-drive car at the time.

Unfortunately for enthusiasts, Toyota paired the engine with a six-speed automatic transmission rather than a manual.

The other unusual decision was the drivetrain. The Blade Master G sent all of its power to the front wheels.

That combination could have created significant torque steer and understeer, but Toyota made extensive chassis changes to compensate.

Toyota Reworked the Chassis Around the V6

Toyota knew that simply installing a large V6 in a front-drive hatchback would not create a convincing performance car.

The Blade Master G therefore received significant chassis upgrades.

The rear suspension used a double-wishbone setup rather than the torsion-beam arrangement found on the standard model. Toyota also fitted stiffer springs and larger brakes.

The Blade Master G received a double-wishbone rear suspension, larger brakes, and wider performance tires.

Factory equipment included 225/45R17 tires, ventilated front and rear brake discs, and lightweight five-spoke alloy wheels.

The car weighed around 3,241 pounds, only about 150 pounds more than the standard Blade despite the much larger engine.

The result was surprisingly quick.

The Blade Master G could reach 60 mph in roughly 5.8 seconds, beating several more obvious performance hatchbacks from the same era.

A Luxury Interior Made It Different

The Blade Master G was not stripped down or aggressively styled like many hot hatches.

The standard Blade was marketed as a more premium hatchback, and the Master G retained that character.

Inside, buyers could find leather- and suede-effect materials, a more upscale dashboard, and a cabin designed around comfort as much as performance.

The Blade Master G combined performance with a more luxurious cabin featuring suede-style materials and upscale finishes.

That approach made the Toyota fundamentally different from today’s GR Corolla.

The current GR model prioritizes performance, lightweight engineering, all-wheel drive, and a manual transmission. The Blade Master G instead attempted to create something more comfortable and discreet.

It was essentially a luxury sleeper.

One of Toyota’s Rarest Hot Hatches

Toyota discontinued the Blade in 2012 without developing a direct successor.

Approximately 2,880 Blades were produced, although reliable production figures specifically for the Master G are difficult to verify.

That makes the V6 version particularly unusual today.

Despite its rarity, examples on the Japanese used market can still be relatively affordable compared with modern collector cars, with prices typically cited in the $6,000-to-$12,000 range depending on condition.

The Blade Master G therefore represents one of Toyota’s most overlooked performance experiments.

A Forgotten Predecessor to Today’s GR Models

The Blade Master G did not directly create Toyota’s modern GR performance renaissance, but it demonstrated something important about the company’s engineering philosophy.

Toyota was already willing to take an ordinary hatchback, install a much larger engine, reinforce the chassis, and create something genuinely fast while keeping the exterior relatively anonymous.

That same idea can still be seen today in models such as the GR Corolla and GR Yaris.

The difference is that the Blade Master G went in a completely different direction. It offered 276 horsepower, front-wheel drive, an automatic transmission, and a premium interior instead of maximum aggression.

For enthusiasts searching for unusual Japanese performance cars, the Toyota Blade Master G deserves far more attention. It is one of the strangest and most interesting V6 hot hatches Toyota ever built.

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