One Million New-Car Buyers Are Gone and They’re Not Coming Back Soon
The U.S. auto industry faces sobering new math: Some one million prospective buyers have defected from the new-car market since the start of the decade — and they aren’t expected back soon. Until recently, auto executives, analysts and economists believed that U.S. new-car sales were on a steady climb back to volumes last seen before the pandemic closed factories and scrambled global supply chains. That’s no longer the case. General Motors, Ford Motor, Toyota, and other automakers have said they are planning for sales of new cars to shrink or stagnate this year after consumers — stung by persistent inflation, rising fuel prices and high interest rates —are balking at prices that have risen to around $50,000 on average. According to The Wall Street Journal, Americans were buying around 17 million cars and trucks a year before 2020; industry analysts don’t expect the market to return to that level until the end of the decade or later. They now forecast total annual sales of about 16 million vehicles or fewer this year, and that outlook has grown even dimmer as the conflict in Iran keeps gas prices high. Click here for the full story.
US, Mexico Set Three Rounds of Trade Deal Talks Without Canada
The Trump administration’s trade agency said on Wednesday it will kick off the first of three negotiating rounds with Mexico this week to revamp the North American trade agreement, but made no mention of any talks with Canada. The U.S. Trade Representative’s office said in a statement that Deputy U.S. Trade Representative Jeffrey Goettman will lead bilateral talks in Mexico City on Thursday and Friday focused on “economic security and rules of origin for key industrial goods.” According to Reuters, USTR said the U.S. and Mexico will hold a second round of negotiations in Washington on June 16-17 focused on agriculture and “a level playing field,” with a third set of talks in Mexico City scheduled for the week of July 20. “The negotiations will focus on ensuring that the USMCA benefits U.S. manufacturers, farmers, ranchers, workers, and service suppliers, and businesses of all sizes, including our small and medium-sized enterprises,” USTR said in its statement. The first Trump administration held trilateral negotiating rounds with both Mexico and Canada to create the existing USMCA, which replaced the 1994 North American Free Trade Agreement in 2020. Click here for the full story.
Kelley Blue Book Says Affordability Squeeze Is Reshaping Used-Car Acquisition
Affordability pressures are reshaping the used-car market and creating new challenges for dealerships trying to source inventory, according to Micah Tindor, AVP of Consumer Vehicle Disposal at Kelley Blue Book. During the latest episode of CBT News’ Inside Automotive, Tindor said consumers are becoming more cautious as vehicle prices and interest rates remain elevated. He warns that affordability concerns, rising negative equity and shifting consumer expectations will likely create a more difficult second half of 2026 for dealers.“The market conditions are really starting to say affordability is setting in,” Tindor confirms, and adds, “It’s looking like it could be a challenging second half of the year.”According to Tindor, roughly 50 percent of consumers now report living paycheck to paycheck while facing near-record new-vehicle prices approaching $50,000 and elevated APRs. He says those pressures are reducing consumers’ ability to replace vehicles and slowing overall transaction activity. Tindor contends that the market is expected to see 14 percent fewer consumers selling vehicles between 2024 and the end of 2026. At the same time, the industry has already experienced four consecutive months of sales declines, with another projected 2 percent to 3 percent decline possible later this year. Click here for the full interview.
High Gas Prices Helping Honda Sell More Hybrids as It Chases 10% Share
American Honda is targeting more than 9 percent U.S. market share in 2026 and expects to outperform the broader industry. The Japanese automaker already has demonstrated strong momentum, reaching 10 percent share in April, sales chief Lance Woelfer told Automotive News. It had 8.7 percent of the market last year.“We believe 10 percent is an achievable direction for Honda over the next several years,” Woelfer said. “We see a clear opportunity to gain share as we move forward.”Meanwhile, Honda is sticking with its goal of growing sales 4 percent in 2026, to about 1.5 million vehicles, despite ending production of the Acura RDX and canceling several electric vehicles. Honda is positioned to achieve that target amid rising gasoline prices, EV market shifts and economic uncertainty, Woelfer said, thanks to its value pricing, “industry-leading” fuel economy and rapidly growing hybrid sales. In fact, gas prices have emerged as an unexpected tail wind for Honda by accelerating a shift toward hybrids. Hybrids accounted for nearly a third of the Honda brand’s volume in the first quarter. The company plans to build on that demand with higher production and targeted marketing for key hybrid nameplates, Woelfer said. Click here for the full story.
Manual Transmissions Disappear from VW Lineup
Volkswagen of America will soon have a manual transmission-free lineup. The sporty Jetta GLI compact sedan will no longer be offered with a six-speed manual transmission, a VW spokesperson confirmed.Only the seven-speed dual clutch automatic transmission will be available for the 2027 model year, reports Automotive News. The Jetta GLI was the last remaining VW in the U.S. lineup with a manual transmission after the automaker dropped the manual transmission on the Golf GTI and Golf R hot-hatch duo for the 2025 model year. VW said the company’s North American region worked hard to offer a manual transmission. “We know it matters to a small but passionate group of drivers who love being fully engaged and rowing their own gears,” VW said in a statement. “Even so, global demand continued to narrow to a point where the market can no longer sustain it. As much as it hurts, that reality meant making some tough choices.” U.S. sales of the Jetta totaled 11,565 in the first quarter, down 35 percent, after falling 24 percent to 54,291 in 2025. A VW spokesperson said GLI sales with manual transmissions tallied about 2,000 in 2025, or 3.9 percent of all Jetta deliveries. Click here for the full story.
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