Inflation Is Up. Consumer Confidence Is Down. Why Are Auto Sales Remaining Steady?
U.S. auto sales are holding steady despite inflation hitting a three-year high and consumer confidence declining — a disconnect that has experts monitoring for signs the industry’s luck may be running out. But while high gasoline prices, tariffs, trade instability and war weigh on the economy, economists and other auto industry stakeholders say the auto industry’s sales figures may be relatively insulated from the chaos for the moment, reports Automotive News.“I think that the American consumer is going to be doing what they do best, and that’s spend money,” said Patrick Manzi, NADA’s chief economist. “We’re just in a unique industry here, and people love to buy cars.”Yet, there are “a lot of big macro indicators that aren’t too hot,” Manzi said.Several key economic indicators are flashing warning signs: April’s Consumer Price Index rose 3.8 percent year over year — the fastest inflation growth in three years — while the Conference Board’s Consumer Confidence Index dipped roughly a percent in May, the Cox Automotive Dealer Sentiment future market index fell 16 percent from the first quarter, and slow hiring has left job seekers on the sidelines. Click here for the full story.
Trump Weighs in On Right-To-Repair Debate After Meeting with Automakers, Dealers
President Donald Trump met with senior automotive industry leaders this week to discuss the ongoing debate over right-to-repair legislation, which signals renewed attention to a long-running dispute between automakers, dealers and independent repair shops. During the meeting, Trump spoke with executives from major automakers, dealer representatives, and industry groups. Notable participants included GM CEO Mary Barra, Ford executive Andrew Frick, officials from NADA, the Alliance for Automotive Innovation, and Ohio Senator Bernie Moreno, reports CBT News. Trump expressed surprise at the industry’s resistance to expanding access to repairs, noting that automakers seem to prefer that consumers not repair their own vehicles. A House committee recently approved legislation to formalize existing industry agreements governing access to vehicle repair information. This legislation would empower the Federal Trade Commission FTC to enforce these agreements. Proponents, however, argue that the measure would enhance oversight while maintaining the current frameworks for repair access. Additionally, the Alliance for Automotive Innovation states that automakers have been providing repair instructions, diagnostic codes, and tools to dealers and independent repair facilities since 2014. Click here for the full story.
Big Auto Retailers’ Growth Strategy Includes Selling Dealerships
Giant dealership acquisitions get headlines, but the big dealership groups like Penske Automotive also selectively sell a fair number of dealerships. In the first quarter of 2026 and late 2025, there were several examples of this among the publicly traded dealer groups, reports WardsAuto.“We will continue to prune the portfolio. We are still in the acquisition business,” said Roger Penske, chair and CEO of Penske Automotive Group, Bloomfield Hills, Michigan. Penske Automotive announced a big acquisition in November 2025, buying the former Penske Motor Group from a related business. Penske Motor Group included one Toyota store in Texas and three dealerships in California. The California dealerships were two Lexus stores, and Longo Toyota in El Monte — the biggest-selling Toyota dealership in the United States. The flip side was, Penske Automotive also did some selling as part of the grand plan. In connection with the Penske Motor Group transaction, Roger Penske said Penske Automotive also sold two Lexus stores — one in Warwick, Rhode Island and one in Madison, Wisconsin. Roger Penske said selling the Lexus stores in Rhode Island and Wisconsin “gave us the opportunity to buy” the Penske Motor Group dealerships. Click here for the full story.
Vehicles, Many Auto Parts Exempt from Trump’s Latest Tariff Proposal
Vehicles and parts already subject to auto tariffs would be exempt from new duties on 60 U.S. trading partners the Trump administration proposed June 2. The administration said it plans to place tariffs of 10 percent or 12.5 percent on countries including Canada, Mexico, Japan, South Korea, China and the United Kingdom, as well as the European Union, reports Automotive News.The proposed tariffs, which could take effect in July, stem from an investigation under Section 301 of the Trade Act of 1974. The administration contends those countries have not effectively stopped the trade of goods made with forced labor, a claim U.S. trading partners denied.The proposal includes a wide range of carve-outs, including all products subject to sectoral tariffs implemented under Section 232 of the Trade Expansion Act of 1962, the Office of the U.S. Trade Representative said in a Federal Register notice. Those include vehicles and many auto parts, as well as steel, aluminum and copper imports. Products that comply with rules of origin under the United States-Mexico-Canada Agreement, which specify the amount of vehicle content that must come from North America, also would be exempt from the new tariffs, the trade representative’s office said. Click here for the full story.
You Auto Know
In 2024, international nameplate dealerships employed 566,803 people in the United States. Click here to learn more in the 2025 Economic Impact Report.
Around the Web
Volvo XC60 Plug-In Hybrid Could Top 100 Miles Of Electric Range [Autoblog]
Hyundai Teaches a Robot to Play Soccer for World Cup Campaign [Automotive News]
What You Really Need To Know About Leasing Vs Buying A Car [Carbuzz]
Tesla FSD Trainers Say They Would Not Trust It To Drive Them [Autoblog]