What’s at Stake for Automakers, Suppliers as U.S., Mexico Prepare for USMCA Talks
Top U.S. and Mexican officials will meet next week to discuss the future of North American trade, likely focusing on automotive rules of origin and tariff rates that could have a major impact on the future of manufacturing in the region. According to Automotive News,the meeting is scheduled for the week of July 20 in Mexico City, about three weeks after the Trump administration said it would not renew the United States-Mexico-Canada Agreement, initiating annual reviews of the agreement that could last through 2036. The trilateral deal, which underpins regional automotive trade, is scheduled to expire that year unless the three countries agree to extend it in the meantime.An extension would likely include significant changes as the U.S. pursues stricter regional content requirements and Mexico and Canada advocate for the reduction or elimination of U.S. auto and metals tariffs on their goods.Automakers and suppliers are pushing for a quick resolution to USMCA talks. The deal is crucial to the regional auto industry’s global competitiveness, and prolonged uncertainty could disincentivize companies from investing in the region, they said. Click here for the full story.
EV Adoption to Recover as Range Anxiety Eases, But U.S. Affordability Still a Headwind, McKinsey Says
Range anxiety is rapidly fading as a barrier to U.S. electric vehicle adoption as automakers boost driving distance with bigger batteries, according to a new consumer survey by consulting firm McKinsey. While high EV prices and charging worries remain obstacles to switching from gasoline vehicles, more U.S. consumers say a battery-electric vehicle is on their shopping list, McKinsey said.“We’re going to see sort of a gradual increase in adoption,” said Philipp Kampshoff, a senior partner at McKinsey. “I don’t think it’s going to be a radical increase, like we see in other markets, particularly in the absence of really affordable, really cheap battery electric vehicles.”If automakers in the U.S. introduce more battery-electric models priced similarly to gasoline vehicles, the EV upswing could be stronger, Kampshoff said.According to Automotive News,in the 2026 McKinsey survey, 18 percent of U.S. consumers cited EV range as an obstacle to switching from a gasoline vehicle, compared with 44 percent three years earlier. Range anxiety fell to the No. 7 reason for EV reluctance from No. 2 in 2023. Click here for the full story.
The Niello Company Shifts Focus on Used Cars, Pricing, and Fees with Record Results
Car dealers are grappling with shrinking margins and a widening affordability crisis. At the same time, AI tools are reshaping how customers shop, often letting them skip a dealership’s website altogether. One dealership group is adapting to these challenges by shifting focus. Instead of chasing new-car volume, The Niello Company is leaning harder into used vehicles, tightening its F&I process and building a system to buy more cars out of its service lanes. The California-based dealership group says the shift is showing results with record months of F&I performance. Joining us on this episode of CBT News’ Inside Automotive is Dennis Gingrich, Sales and Finance Director at The Niello Company. Gingrich says dealers need to change along with consumer habits. That’s why his stores shifted to a one-price model for used cars, and he says the move is steadying the business while also addressing FTC pricing concerns. At The Niello Company, new-car volume fell from about 500 units per month last year to roughly 350 in June. Gingrich blames the decline on automakers resetting their lineups after overinvesting in EVs, as well as growing affordability concerns. To offset the drop, Gingrich says his finance managers sharpened their focus on used car transactions. Click here for the full interview.
Gas Prices Might Help Offset Glut of Off-Lease EVs
Although demand for new electric vehicles has slowed, used EVs are shaping up to be the segment for dealers to watch in the second half of 2026 and beyond. According to WardsAuto,that potential of the used EV market to take off was underscored in findings from the latest Manheim Used Vehicle Value Index report.“The driver is supply,” said Jonathan Gregory, senior director, Economic and Industry Insights for Cox Automotive, in a webinar, to announce the Manheim Index for June and for the first half of 2026.That is, the supply of 3-year-old used EVs coming off-lease is about to skyrocket, according to Cox Automotive estimates. Lease maturities in general, not just for EVs, are set to rise, reflecting a comeback in leasing which began in 2023. Most leases are for 36 months. What’s true for off-lease volume in general goes double for used electric vehicles. Used EVs represent a growing share of all lease maturities, at least through 2028. Not only that, more off-lease vehicles — and particularly more off-lease electric vehicles — are expected to reach wholesale, dealer-only markets in the next few years, instead of being purchased by the first owner, or by the originating dealer. Click here for the full story.
Survey Finds That OEM Execs Predict Fewer Dealers, Steady Buy-Sells
A swatch of OEM executives expect their dealer networks to shrink, buy-sell activity to stay busy, and that they, not dealers, will bear the brunt of tariffs, according to a recent survey. About 150 manufacturer executives were surveyed from December 2025 to June 2026 for the fourth-annual Kerrigan OEM Survey 2026.The survey targets manager-level executives and up, Erin Kerrigan, managing director of Kerrigan Advisors, told CDG News. “Our database has every single OEM, and we get about 155 responses,” Kerrigan said. “It’s anonymous, but I’d venture to guess that virtually every non-Chinese OEM is represented.” Nearly half of the executives expect to have fewer dealers in their networks in five years. OEMs’ planned use of the right of first refusal (ROFR) nosedived from last year: Only 8 percent plan to ROFR more than 25 percent of transactions, down from 2025. Kerrigan said the drop could be attributed in part to pricing, especially because the “the top franchises are getting so lofty.” “It’s harder for them to execute a ROFR, because they have a harder time finding a buyer willing to pay the same level of dollar amount, in my experience…,” Kerrigan said. Click here for the full story.
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