A bipartisan amendment to the Motor Vehicle Modernization Act of 2026 could effectively bar Mercedes‑Benz from selling or producing vehicles in the United States because of its equity links to Chinese entities. The provision — advanced in the House in late May and attached to a broader transportation funding bill introduced Feb. 5 — would prohibit manufacturers with an average 15% or greater ownership stake by a listed “foreign adversary” (including China, Russia and North Korea) from importing, selling or delivering vehicles in the U.S. Mercedes’s largest individual shareholder, BAIC, holds 9.98% and Geely founder Li Shufu holds 9.69%, which together total about 19.67% and would exceed the threshold if the language is applied cumulatively. The measure includes narrow exemptions for companies that have manufactured in the U.S. for five years, but those exemptions may not apply if an automaker has any direct or indirect equity interest held by a foreign‑adversary government. Mercedes says it is engaging with lawmakers to resolve the issue. Industry groups warn the current drafting could unintentionally ensnare established global manufacturers and disrupt U.S. plants, suppliers and jobs in Alabama and South Carolina while the bill moves toward further amendment and possible Senate consideration.

Bentley has unveiled a refreshed Flying Spur for the 2027 model year, aligning its four‑door saloon’s front end with the fourth‑generation Continental GT by adopting single headlamps — the first Bentley saloon to do so since the S2 ended production in 1962. The facelift also brings a revised bumper and grille integration, new trunklid and taillamp treatment, fresh 22‑inch wheel designs and optional Blackline exterior detailing on the revived S trim. All Flying Spurs are plug‑in hybrids powered by a twin‑turbo 4.0‑litre V8 paired with an electric motor; standard and S trims produce about 671 hp (0–60 mph ~3.6s) while Speed and Mulliner variants can be boosted to about 771 hp. EPA electric range is around 30 miles. Bentley is offering a bespoke Virtuoso/Mulliner audio upgrade — a 21‑speaker Naim system priced at roughly £25,000 — and extensive personalization. Production is scheduled to start in September 2026 at Bentley’s Crewe plant, with deliveries and customer cars expected later in the year; starting prices are likely to exceed $250,000.

BMW has introduced the first-ever all-wheel-drive variant of its compact M2 sports coupe for the 2027 model year, adding the M xDrive system while retaining the twin-turbo 3.0-litre inline-six. Output remains at 473 hp and 443 lb-ft of torque; BMW quotes a 0-60 mph time of 3.6 seconds for the xDrive model (manufacturers and outlets report a 3.3-second figure with a one-foot rollout). The AWD hardware adds about 121 lb, bringing curb weight to roughly 3,988 lb, and the xDrive M2 is offered only with the eight-speed automatic (the six-speed manual remains on rear-wheel-drive cars). The car keeps the Active M differential, can be switched to rear-wheel drive with stability control off, and gains new M Ignite pre-chamber combustion tech for Euro 7 compliance. BMW will begin production in Mexico in August 2026 and plans summer on-sale timing, with pricing positioned in the mid-$70,000s in the U.S. and about £74,255 in the U.K. New paint options, including Borusan Turkish Blue, and optional M Driver packs are available.

Data published on June 1-2 show Tesla Inc. registering a sharp rebound in European sales in May alongside record output from its Shanghai gigafactory. Registrations rose year-on-year by 655% in France to 5,446 and by 29% in Norway to 3,345, with double- and triple-digit gains reported in Denmark (1,750), Spain (1,690), Portugal (1,463) and Sweden (858). Italy was a notable exception, down 23.5% to 654 vehicles. The European rise comes as overall electrified vehicle registrations climbed about 21% in April, according to ACEA and national compilers cited by Reuters. Separately, Tesla’s Shanghai plant delivered a monthly record — reported at over 85,000 vehicles in May — helping feed demand in Asia and exports to Europe. Investment houses and market trackers noted the sales momentum has lifted investor sentiment: Tesla shares and option activity showed positive trading momentum, even as valuation metrics (P/E ratios around 380–386x and GF Value comparisons) and recent insider sales (about $21.5m) underscore investor caution. Analysts warn the bounce may reflect pricing moves, model mix (Model Y strength) and catch-up demand rather than a guaranteed sustained market-share recovery.

MULHOUSE, France, June 2 — Stellantis said it will invest €1 billion to develop and build three new electric and hybrid Peugeot models at its Mulhouse plant, with production due to start in 2029. The package includes €400 million for factory upgrades and about €500 million for research and development, mainly to fund the new STLA One platform. STLA One is scheduled to launch in Spain in 2027 with the new Peugeot 208 and is designed to underpin a new range of C‑segment electrified vehicles; the group expects to build up to 2 million cars a year on the platform by 2035 and targets roughly 20% cost savings versus current architectures. The move is part of Stellantis’ broader FaSTLAne 2030 turnaround and follows recent restructuring and a large EV-related write‑down. French president Emmanuel Macron has backed the plan, which aims to secure local jobs and strengthen European competitiveness against lower-cost Chinese entrants.

Toyota Motor Corp. has paused plans to bring the Lexus LF‑ZC electric-sedan concept into production, multiple reports said on June 1-2, 2026. The LF‑ZC, unveiled in 2023 as Lexus’s potential electric flagship, was expected to debut around 2026 and introduce technologies such as steer-by-wire controls, lighter construction, gigacasting production methods and more power-dense battery packs. Automotive News and Nikkei Asia reported the suspension, citing Toyota communications to suppliers that blamed fluctuating EV demand, manufacturing workload and a company-wide review of vehicle development projects. Lexus has not publicly confirmed an outright cancellation but said it routinely evaluates product plans; the company also noted it will continue developing next-generation EV technologies and may transfer LF‑ZC learnings to other programmes, including solid-state battery research. The decision follows a broader industry pullback as several automakers reassess EV rollouts amid rising costs and softer-than-expected market growth. Lexus recently launched the electric TZ SUV on a conventional modular platform, a lower-cost route compared with the bespoke LF‑ZC architecture.