Lamborghini Good morning! It's Thursday, May 28, 2026, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around. In this morning's edition, Lamborghini's CEO is feeling damn good that the company dropped its Lanzador EV following the Ferrari Luce's miserable reception, Stellantis is turning to Silicon Valley to modernize its vehicle software, Toyota is dealing with yet another month of sliding sales and U.S. auto safety regulators are probing nearly 115,000 Rivians for a rear toe link issue. 1st Gear: Lambo CEO says killing EV was the right choice Lamborghini If you're the type of person who reads a website like Jalopnik, then you're very aware that the Ferrari Luce has received a less-than-warm reception from the general public. Do you know who else is aware of this fact? Lamborghini boss Stephan Winkelmann, and it's made him quite happy about his company's decision to kill the all-electric Lanzador and refocus on plug-in hybrids. In an interview, the CEO called Lambo's decision to end its EV program "the right way to go" for the automaker, but he did add that "every brand, every company has to decide for themselves." Lamborghini was one of the countless automakers around the world that decided to pull back on its EV strategy because of weak demand. From CNBC: "Our decision to go from [traditional internal combustion engine] to plug-in was a very important one for us, and it worked out," Winkelmann exclusively told CNBC during a virtual interview. "We don't speak about our competitors ... but everybody has their own strategy." [...] "By observing the market ... we saw that the acceptance curve [of EVs] for our type of customers is not increasing, and that therefore we decided to move away from a full-electric car into a plug-in hybrid," he said. [...] Shares of Ferrari fell about 8% on Tuesday in Milan and dropped 5.3% in New York after the unveiling of the Luce on Monday in Italy. Analysts said the stock reaction was partially due to "design hate." "Ultimately many fans are disappointed that Ferrari is embracing the EV concept, believing it dilutes the supercar brand, which has modelled itself around classic design and raw, combustion-engine power," Michael Field, chief equity strategist at Morningstar, told CNBC earlier this week. If you were hoping for a direct take from Winkelmann on the Luce, keep dreaming. The 61-year-old declined to comment, instead saying that "innovation is paramount" to success, but it shouldn't be made just for innovation's sake or forced upon customers." While I totally understand where Winkelmann is coming from, I can't help but think the response to a production Lanzador would have been much warmer than what the Luce received. I mean, just look at the concept car. It was sick as hell, and the Luce is, well, the Luce. 2nd Gear: Stellantis wants Silicon Valley's help with modernizing software Stellantis As part of the company's FaSTLAne 2030 strategy, Stellantis is turning to Silicon Valley startups to help it better compete in an ever-more software-defined world. It's part of the $70 billion investment plan we told you about last week that'll bring with it 60 new vehicle launches and 50 refreshes by 2030 as well as an (unfortunate) heavy emphasis on AI meant to accelerate software and autonomous driving development. To get that done, Stellantis is partnering with a California-based company called Applied Intuition, which focuses mainly on vehicle software. Under the new agreement, which is a continuation of a previous deal that was inked toward the end of 2025, Applied Intuition will help Stellantis develop and scale its next-generation "STLA Brain' software architecture. Before the announcement, the company was already working on Stellantis' AI-powered infotainment software, called Smart Cockpit. From the Detroit Free Press: STLA Brain, billed as an "intelligent vehicle" technology system that can be used in all of Stellantis' vehicles, has been in development since 2021. It handles things like over-the-air updates, software integration and vehicle electronics.Now, Stellantis has handed its Brain to Applied Intuition. In signing that deal — and others with Uber, Nvidia, Qualcomm and Wayve — Stellantis is leaning on AI startups in lieu of internal technology research to develop its software-forward slate of future products. According to Younis, the CEO of Applied Intuition, Silicon Valley startups can do it better. "Speed, scalability and quality are critical as we bring new technologies to our vehicles," Stellantis Chief Engineering and Technology Officer Ned Curic said in a statement announcing the deal. The scalability Curic referenced is especially critical to a company like Stellantis, which maintains a 14-brand portfolio. Younis hopes his technology can be implemented in all of the company's brands — though it's his hope that drivers won't have any idea that it is Applied Intuition who made the product. For Stellantis, the partnership reflects a broader shift underway across the global auto industry: Traditional automakers increasingly rely on specialized software companies to build the digital backbone of their vehicles. [...] "We already have an ongoing working relationship with a company from the, you know, from the most senior level, all the way to the working level," he said. "And this work is like double, tripling, quadrupling down on that work." In fact, Applied Intuition employees frequent the Auburn Hills office and are regularly in close contact with Stellantis tech leaders. Applied Intuition started working with Stellantis on in-vehicle infotainment and cockpit systems more than a year ago, Younis said. The expanded agreement now stretches into core vehicle software, parking autonomy and integration work involving other technology partners, including Qualcomm and British autonomous driving startup Wayve. [...] Younis said that automotive software development resembles the broader tech industry, where companies build shared platforms and tools rather than developing every component internally, like open source code for vehicles. [...] Comparing the Chinese automotive market to the U.S. market is an uneven comparison, Younis said, but if you're going to make it, he believes that Silicon Valley is still the leader of advanced automotive technology. The question of profit becomes the hangup. Stellantis' betting on a Silicon Valley startup to control its in-vehicle software definitely feels like a bit of a gamble, to say the least. I suppose if it works out, it could be a real breakthrough for a company that has been lagging behind the industry for some time now, but it could also end up being a real mess if things go boom. 3rd Gear: Toyota sees third month of sales declines Jonathan Weiss/Shutterstock Toyota has found itself in a rare spot: the world of declining sales. It just posted its third straight month of year-over-year sales declines, thanks in no small part to the U.S. and Israel's war with Iran and broader ripples throughout the Middle East. Exports in the region are down more than 90%. In April, global sales for Toyota and subsidiary Dihatsu fell 3.7% from a year earlier to 902,015 vehicles, and that's despite the fact that production actually rose 3.4% to 933,685 vehicles. I wonder if Akio regrets wearing all that MAGA stuff now. From Bloomberg: Toyota has weathered the conflict better than other carmakers, keeping factories running despite disrupted routes through the Strait of Hormuz. A longer squeeze fueling shortages would test that resilience, exposing how deeply global automakers rely on Gulf-linked supplies for parts, materials and energy. While demand remains strong, with customers waiting months for some models in major markets, Toyota's sales also fell compared to last year when they were bolstered by a buying rush ahead of tariffs and the rollout of a new RAV4 sport utility vehicle model. Sales in China, where market conditions remain challenging for Japanese carmakers, shrank 25%. [...] Toyota's exports to the Middle East slumped 92% year on year to 2,418 vehicles. At Toyota's earnings announcement earlier this month, accounting chief Takanori Azuma said the manufacturer exports roughly 500,000 to 600,000 vehicles annually to the Middle East, and that it was assuming slightly less than half of that volume would be affected. At the time, Toyota forecast a surprise drop in profit for the fiscal year through March 2027 as it braces for higher raw material costs due to disruptions caused by the war in Iran. The outlook for ¥3 trillion ($18.8 billion) in operating income fell short of analyst estimates, as well as the ¥3.8 trillion posted in the prior 12-month period. There could be more trouble on the horizon for Toyota, as well. Some suppliers have warned that they're beginning to see shortages because of our war with Iran. The automaker says it will be difficult to offset the resulting $4.2 billion hit to its bottom line caused by the war. 4th Gear: NHTSA has its eyes on Rivian Hapabapa/Getty Images Nearly 115,000 Rivian R1S crossovers and R1T pickup trucks are under the microscope at the National Highway Traffic Safety Administration because of an issue with their rear toe link. Two owners have apparently said it can separate while driving, and when that happens, the EV can swerve across multiple lanes of traffic. That's, uh, less than ideal. From Reuters: One incident resulted in a collision with an adjacent vehicle and roadside barrier, NHTSA said. The probe will assess the sensitivity of the rear toe link joint to foreseeable road and service conditions and evaluate Rivian's current toe link repair procedure, among other steps. Back in January, Rivian recalled nearly 20,000 previously serviced R1S and R1T EVs because of an incorrectly assembled rear toe link. At the time, it replaced the rear toe-link bolts free of charge. It's not clear if this new probe is the same issue or a different one. Reverse: Oh, childhood memories History.com As a kid, there were really few things that were more fun than having a massive Super Soaker fight with all of your friends on a hot summer day. Yeah, yeah, yeah, I know we can get into the whole "gun culture" thing, or whatever, but I just can't be that woke at 10 a.m. on a Thursday, because now I'm nearly 30 and I want a new Super Soaker. Have you guys seen what these things look like now? The technology is incredible. Being a kid now seems so sick. Anyway, if you want to learn more about the original Super Soaker and its brilliant inventor, Lonnie Johnson, head over to History.com. The Fuel Up Scott Olson/Getty Images Gas prices have continued to tumble down across the U.S., which is certainly good, but they still remain massively elevated over where they were before the war with Iran first broke out. There's also still a worry that this tightrope of a peace deal could fall apart at any moment, as the U.S. and Iran continue to trade air strikes. Additionally, WTI Crude Oil futures and Brent Crude remain elevated, currently sitting at $91 and $94, respectively, at the time of publication. Here's where national average prices stand right now, according to AAA: AAA All of this is to say that the average price of a gallon of gas dropped another 3 cents overnight to $4.43, according to AAA. It means we're now down 13 cents from the 2026 record that was set back on May 21, when gas hit $4.56 per gallon. Let's just hope this trend continues, because it cost me $111 to fill the tank of a Ford Bronco over the weekend in Pennsylvania, and I thought about walking into the Schuylkill River because of it. On the radio: Bruce Springsteen - 'I'm Goin' Down' Obviously, the entire "Born in the U.S.A." album is brilliant, but I feel like "I'm Goin' Down" is sort of forgotten in a cascade of other greats. I mean, hell, there were seven singles from this album released over a year and a half. That's so nutty. Bruce really does it like no one else, man. There's a real argument this is the greatest album of all time. Just look at this tracklist: "Born in the U.S.A." Cover Me" Darlington County" Working on the Highway" Downbound Train" I'm on Fire" "No Surrender" "Bobby Jean" I'm Goin' Down" "Glory Days Dancing in the Dark" My Hometown" Nobody does it like Bruce, man.
+58 others
