Trump Policy Whiplash Could Slam Japanese Carmakers for $40 Billion on Tariffs, EVs, Emissions
Policy whiplash under the Trump administration has cost Japan’s carmakers $28 billion and counting, as they lick wounds from U.S. tariffs, electric vehicle headwinds and emissions rollbacks. By March 2027, the cumulative costs could exceed $40 billion.The bigger the player, the harder they are hurting.Toyota Motor Corp. expects its impact to total $17.22 billon over the two fiscal years ending March 31, 2027, from tariffs alone, according to a review by Automotive News.Honda Motor Co., Japan’s No. 2 automaker, foresees costs at $15.23 billion. Nissan Motor Co., also highly exposed to the U.S., could approach $3.12 billion. The pain is coming from multiple fronts, including tariffs imposed by the U.S. last year not only on Japan, but on Mexico and Canada, where Japanese automakers have substantial production. Last year’s repeal of a federal tax credit, which sharply curtailed demand for EVs in the U.S., also forced a reassessment of electric vehicle portfolios, with several Japanese automakers dropping models or delaying plans, triggering write-downs. Meanwhile, relaxed U.S. emissions regulations compounded the accounting headaches for automakers that had budgeted funds for stricter rules or had already spent the money. Click here for the full story.
Trust Gap Continues to Slow Autonomous Vehicle Adoption, JD Power Finds
Consumer awareness of fully automated, self-driving vehicles is rising, but confidence is not keeping pace, according to the JD Power 2026 Mobility Confidence Index. The index found that while more consumers correctly identify full automation, they remain hesitant in regards to safety, performance, and real-world reliability, reports CBT News. According to the index, JD Power found: In 2026, 58 percent of consumers recognized full automation, which is up from 43 percent in 2024. Fewer than 25 percent are comfortable riding in fully self-driving vehicles. Fifty-four percent express comfort with food pickup services, compared to 31 percent for transporting children. Sixty percent cite personal safety as their top concern. Fifty-eight percent worry about how emergencies will be handled. Fifty-one percent have concerns about performance in adverse weather and traffic conditions. Despite growing awareness, the overall Mobility Confidence Index held steady at 39 on a 100-point scale in 2026, essentially unchanged from 39 in 2024 and 37 in 2023. Click here for the full story.
Retaining Top Talent Adds Dealership Value After Acquisitions
Regional consolidation is certainly a theme in the dealership buy-sell world, but dealers are also making acquisitions far outside of their home markets. Running the new stores themselves, or even visiting them frequently, is difficult for these absentee owners. It’s where management talent enters the equation, and it’s a key factor in making such ownership possible.Take the acquisition of 12 dealerships in Maryland by Kansas-based Brandon Steven Motors. Absorbing such a large acquisition would have been nearly impossible had Steven followed the frequent practice of replacing the top management at the various stores.But he kept all of the stores’ management, Steven told WardsAuto on a Zoom call.“I’m just elated with the team,” Steven said. “The team is awesome. It’s just incredible.” Steven also owns eight dealerships in Southern California, spread between Long Beach and Ventura County, including a Honda store in downtown Los Angeles. To be sure, regional consolidation is occurring. Kerrigan Advisors’ The Blue Sky Report, for 2025, said 60 percent of acquisitions in 2025 were located within buyers’ existing markets, “demonstrating buyers’ preferences for geographic density and/or regional market share growth.” Click here for the full story.
Everyone Loves Chinese Cars, Except the Chinese
The world is applauding the latest Chinese vehicles and sales are surging almost everywhere the cars are available. The one exception: China itself. According to The Wall Street Journal, new-car sales in China, the world’s largest new-vehicle market, fell 22 percent in May compared with the same month a year earlier to around 1.5 million vehicles. That was the eighth straight month of year-over-year declines, according to the China Passenger Car Association. Year-to-date car sales are running nearly 20 percent below last year, hitting profits at the country’s leading carmakers. The troubles at home are pushing Chinese carmakers—including foreign brands that manufacture there—into an even more aggressive expansion overseas. The Chinese auto industry shipped 784,000 cars abroad in May, according to the association, 75 percent more than in the same month last year. In January, Beijing halved a tax exemption for plug-in vehicles and reduced subsidies when people trade in an old vehicle for an electric vehicle, hitting EV sales. Then, in March, the Iran war led to rising gasoline prices, hurting sales of traditionally powered cars as well. Click here for the full story.
Indiana-Built Subaru Ascent Headed to Japan as Allowed by New Trade Certification
Subaru is expected to begin exporting the Ascent three-row crossover from the U.S. to Japan later this year, joining Toyota in sending a larger crossover to the island nation where the diminutive kei car is otherwise ubiquitous. Subaru Corp. said June 6 it is weighing the move and “plans to leverage the certification system implemented by Japan’s Ministry of Land, Infrastructure, Transport and Tourism following Japan-U.S. trade agreement. ”Under new streamlined guidelines negotiated between the two countries, passenger vehicles produced in the U.S. and certified for safety in the U.S. are now accepted for sale in Japan without additional testing, reports Automotive News.The Ascent plan reflects Subaru’s effort to tap new markets for a slow-selling model and capitalize on revised trade terms between the U.S. and Japan. It also follows a broader industry shift: American-made vehicles returning to the Japanese market after decades of one-way exports. The three-row Ascent, which has been assembled in Indiana since its 2018 debut, is Subaru’s fourth-bestselling model in the U.S., but sales pale in comparison to the brand’s two-row Crosstrek, Forester and Outback lines. Click here for the full story.
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