Senators Introduce Bipartisan Bill to Ban Chinese Vehicles and Auto Parts
A bipartisan Senate duo introduced a bill on Wednesday to ban the importation of Chinese-made vehicles and auto parts, weeks ahead of U.S. President Donald Trump’s planned sit-down with Chinese President Xi Jinping. According to NBC News,Sens. Bernie Moreno, R-Ohio, and Elissa Slotkin, D-Mich., introduced the Connected Vehicle Security Act, which would ban automobiles, parts and vehicle software made in China or in partnership with China, as well as other adversarial nations, from the U.S. market. The Commerce Department last year issued a rule that restricted such vehicles and parts from the U.S. market, but both Moreno and Slotkin spoke of the importance of codifying the effort into law. On Tuesday, more than 70 House Democrats signed a letter urging Trump to block Chinese automakers from the U.S. market ahead of his meeting with the Chinese leader next month. In January, Trump suggested an openness to allowing Chinese automakers into the U.S. market during a speech before the Detroit Economic Club. In an interview, Slotkin said Trump’s upcoming meeting with Xi was the impetus for introducing the legislation now. “We are watching very closely what deals come out of that summit,” she said. Click here for the full story.
Interest Rate Decision Leaves Used-Car Buyers, Low-Income Shoppers Facing Tougher Affordability Squeeze
Used-car buyers will bear the brunt of the Federal Reserve’s decision April 29 to leave interest rates unchanged, as high borrowing costs and rising gasoline prices create a double affordability squeeze for medium- and low-income households, industry experts say. The Fed’s decision to leave the federal funds rates at 3.5 to 3.75 percent comes as the Iran war continues to drive up fuel prices, compounding affordability challenges, reports Automotive News. “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the committee said in a statement. Car prices today are high and not likely to go down anytime soon, said Jessica Caldwell, head of insights at Edmunds. Interest rates, meanwhile, are one of the most flexible parts of the vehicle cost equation and also are at historic highs. In the midst of this affordability crisis, new-car buyers can get a bit of a break on rates and monthly payments from automaker incentives, Caldwell said. Used-car buyers, however, are “feeling more of the brunt of interest rates that are high and that are not changing because there is not that buffer,” she said. Click here for the full story.
The Hidden Sales Killer Most Professionals Don’t Even Notice
Several sales professionals and small business owners are losing potential customers way before the first conversation ever happens… and unfortunately, most don’t even realize it’s happening. At least that is the central warning from Matt Easton, Founder of Easton University, who argues that default voicemail greetings and AI-based call screening have introduced an unintended layer of friction between sales professionals and the buyers they are trying to reach, on today’s CBT Now episode.Drawing on data from more than 100 sales calls he personally makes each day, Easton found that 83 percent of salespeople either use AI call screening or have never recorded a personalized outgoing voicemail. Instead, Easton believes they default to generic, out-of-the-box greetings that signal indifference to incoming callers. The problem, Easton contends, is one of perception. When a prospective buyer encounters an AI screening prompt that requires them to state their name and reason for calling before being connected, the subconscious effect is one of rejection. Rather than feeling welcomed, the caller feels as though they must audition for the privilege of speaking with someone who is supposed to be earning their business. Click here for the full interview.
Carmakers Bank on $2.3 Billion in Future Tariff Refunds, Risking Trump’s Ire
Some automakers this week got a first-quarter profit boost – at least on paper – from future refunds of tariff payments they made to the U.S. government, risking potential ire from President Trump. Companies that were hit with import duties began applying for refunds last week, following a February U.S. Supreme Court ruling that struck down some of the Trump administration’s tariffs. A total of up to $166 billion in reimbursements is due to importers who paid tariffs in a process that could take several months, with the auto industry among the hardest-hit sectors by Trump’s tariff regime. This week, several car companies began recording that expected refund income on their books, totaling about $2.3 billion, becoming among the first companies to quantify what they are owed by the government, reports Reuters. Ford Motor told investors it is due to be reimbursed $1.3 billion that it paid under a 1977 law called the International Emergency Economic Powers Act, or IEEPA. General Motors anticipates recovering $500 million it paid in import taxes under that law. Mercedes-Benz also said it recorded an expected refund onto its first-quarter books. The companies logged the estimated refunds for accounting purposes, which increased their quarterly bottom lines. Click here for the full story.
Canada’s New Auto Lobby Sets USMCA Review as its Initial Focus
A new Canadian automotive industry association has been launched, and a review of the U.S.-Mexico-Canada Agreement will be its key initial focus. The Pacific Manufacturing Association of Canada will represent Toyota and Honda. The two brands have a significant presence in Canada: In 2025, 77 percent of vehicles made in Canada were assembled by either Honda of Canada Mfg. or Toyota Motor Manufacturing Canada, according to research by the Trillium Network.Toyota has three Canadian assembly plants, all in Ontario — two in Cambridge and one in Woodstock, making RAV4 and RAV4 hybrids, plus the Lexus RX 350 and the RX 350h and 500h, reports Wards. Honda’s two Alliston, Ontario, plants assemble the Acura CSX Sedan, Honda Civic Sedan, Si and Coupe, plus the Ridgeline truck, Honda Civic Sedan and Acura MDX SUVs. PMAC will be led by President and CEO Brendan Sweeney, the former managing director of Ontario’s Trillium Network for Advanced Manufacturing. He told WardsAuto the new association would focus on manufacturing and trade issues, as the July 1 deadline for reviewing the USMCA trade agreement looms large. Click here for the full story.
Carfax Used Car Index: Prices are Up, but There’s a Silver Lining
Prices for used cars on Carfax.com are up — way up. They jumped on average by 2.8% in April, by about $800. That’s a rare jump; prices typically only change by a percentage point or less. A 2.8% change is what we usually see for year-over-year changes.
Still, as we crunch the numbers, there is a silver lining for car owners who are thinking of selling: The average depreciation has actually dropped recently, meaning that those owners should get more money for their used car than they would have pre-pandemic.
Before Covid, a car usually lost about 20% of its value after 1 year, and about 50% after 5 years. Today, the loss is a lot less: A car’s value drops, on average, by 12.5% after 1 year, and about 34% after 5 years, based on used-car listings on Carfax. How that plays out:
- Before Covid, a 1-year-old vehicle sold for $50,000 would be worth $40,000 after 1 year, and $25,000 after 5 years.
- Today, a $50,000 vehicle is on average worth $43,750 after 1 year, and $33,000 after 5 years.
Get details here.
Around the Web
The $337,000 Range Rover SV Ultra Has No Leather and a Floor That Pulses to Music [Carscoops]
Add Some Joy to Your Commute: Great Fuel-Efficient Used Commuter Cars [Car and Driver]
The Revolutionary Genesis Feature You Never Knew It Had [Carbuzz]