Cox Automotive Executive Analyst Erin Keating pushes back on the conventional wisdom that new cars are unaffordable and makes the case for why fixed operations may be the most underutilized profit engine at dealerships right now. Volkswagen Group is planning to slash its 150-model lineup by up to half. Plus, a look at why the Infiniti QX65 might be the brand’s most important model in 2026.

July 10, 2026 | Cox Auto’s Erin Keating on the real affordability story; VW to cut half its lineup

Automotive News Daily Drive

Welcome to Daily Drive for Friday, July 10, 2026. I'm Jake Neer in Detroit, in for Kellen Walker. Today on the show, Volkswagen plans to cut its model lineup by up to half, Toyota's move out of Mexico is rattling the country's entire auto sector, and the nation's top auto safety regulator says steering wheels may not belong in driverless cars.

Plus, Cox Automotive's Erin Keating says the affordability crisis isn't quite what you think it is, and dealers may be sitting on a bigger profit opportunity than they realize. Put them in the right car that gets them where they want to go. You know, ask them do they really need that third row, right? Ask them if they really need the height. Let's run through all the news you need to know to keep up in the auto industry.

Volkswagen Group is planning to slash its roughly 150 model lineup by up to half, and cut production capacity from 10 million vehicles a year to 9 million. The move comes as the automaker faces eroding profits from Chinese competition, U.S. tariffs, and high costs at home. Those factors helped cut profit margins in half between 2021 and 2025.

But analysts from Bloomberg Intelligence and Bernstein say the plan is short on specifics, and VW's own supervisory board voted down a deeper restructuring proposal 12 to 7. Toyota's decision to move Tacoma production from Mexico to Texas is sending shockwaves through the Mexican auto industry, and it may just be the start. With President Trump opting for annual USMCA reviews instead of a long-term renewal,

July 10, 2026 | Cox Auto’s Erin Keating on the real affordability story; VW to cut half its lineup

Read the full transcript

The candid version is on a podcast,
not the earnings call.

July 10, 2026 | Cox Auto’s Erin Keating on the real affordability story; VW to cut half its lineup

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.