Chairman’s Blog: The Darrow Difference
The Need for USMCA Renewal
Chairman Mike Darrow is back with a new blog post. Last week, I traveled to Capitol Hill to meet with a number of lawmakers on issues that matter to dealers and our industry. Many issues were discussed, including preventing the sales and manufacturing of Chinese vehicles in our country, opposition to the proposed Right To Repair legislation, and the current regulatory environment. One of the most pressing issues revolved around the renewal of the US-Mexico-Canada trade agreement. In 2017, the Trump Administration began the process of renegotiating NAFTA, and in 2020 its replacement, the U.S.-Mexico-Canada Agreement (USMCA), was born. Now all three countries must agree to renew the pact for an additional 16-year term. If any of the countries decline to renew, the agreement will be subject to annual review for the next ten years. Although undesirable, complete withdrawal is also an option. Mexican and Canadian authorities have expressed confidence in the agreement’s future. America’s auto dealers should do the same. Click here to read the full blog post.
Trump Signs Memo Backing Americans’ Right to Repair Their Own Cars
President Donald Trump signed a presidential memorandum Monday supporting Americans’ ability to repair their own vehicles. The order is titled “Lowering the Cost of Living by Promoting the Freedom to Fix.” It directs federal agencies to expand access to aftermarket parts, lower repair costs and support independent shops. According to CBT News, the memo directs the EPA to clarify within 30 days which emissions repairs owners may perform. It also seeks to curb California’s authority to regulate aftermarket parts nationwide. The Alliance for Automotive Innovation has said roughly 75 percent of post-warranty repairs already happen at independent shops. Automakers argue current agreements give shops the access they need while protecting cybersecurity and proprietary data. NADA opposes broader right-to-repair legislation. The dealer group warns it could let aftermarket suppliers reverse-engineer parts and produce knockoffs. It has also cautioned the change could give insurers more sway over repair decisions. The memo arrives as Congress weighs its own action. The House Energy and Commerce Committee advanced the Motor Vehicle Modernization Act of 2026 by a 48-1 vote in May, codifying existing repair-information agreements and naming the FTC as enforcer. Click here for the full story.
USMCA Talks Formally Begin July 1 as Trump Administration Seeks Stricter Auto Content Rules
Formal negotiations among the United States, Mexico and Canada will kick off July 1 as the three countries begin a first-of-its-kind review of the North American trade pact underpinning regional automotive trade. This year’s mandatory United States-Mexico-Canada Agreement review will begin with a virtual meeting among trade representatives from the three countries. They’re tasked with determining whether to extend the USMCA, set to expire in 2036, and what changes they could make to the pact, which went into effect in 2020.The U.S. is pursuing major changes to the agreement, including much stricter content requirements for vehicles made in North America. Negotiations could drag on for months, casting a cloud of uncertainty over long-term trade rules in the region.Automotive News breaks down what will happen July 1 and what’s at stake for the auto industry. The USMCA requires representatives from the three countries to meet and review the agreement July 1. It is the first major trade agreement that features a mechanism forcing the countries to meet and discuss whether to continue with the agreement or make changes to it. They can agree to extend it for 16 years through 2042. Click here for the full story.
How Dealers Can Stay Ahead of Carvana, Direct-Sales Rivals, Chinese Brands
Dealers are confronting new competitive threats from automakers pushing direct sales and other retail models. That will require them to lean into customer relationships and prioritize the service lane to compete with emerging rivals, experts say.“You need to be adaptive and flexible to change and ready to compete with a variety of competitors,” said David Whiston, senior equity analyst for Morningstar. According to Automotive News, U.S. regulations and high tariffs largely block Chinese auto brands from the U.S. market.NADA and dealers have voiced support for the Trump administration’s efforts to bar Chinese vehicles from the U.S. market over concerns related to national security, data privacy and unfair competition, said Mike Stanton, the trade group’s president. But if Chinese brands eventually sell their vehicles here, Stanton said he thinks they will work with franchised dealers.“Many [dealers] would take a BYD, even if they didn’t want it,” Stanton said. “They would take it just to keep their competitor down the street from taking that.”Chinese brands would want to use franchised dealerships because they are mostly unknown to U.S. consumers, said Erin Keating, executive analyst at Cox Automotive. Click here for the full story.
Polestar’s U.S. Setback Leaves Owners Asking: Who Will Service My Car?
When Ryan Rodriguez landed a great deal on a model year 2024 Polestar earlier this month, he did not anticipate the brand would soon be in trouble in the United States. Last week Polestar, which is majority-owned by China’s Geely Holding, said it was denied an authorization to sell new models in the U.S. under a federal rule that restricts cars with Chinese-linked connected-vehicle technology, beginning with the 2027 model year. According to Reuters, the news shocked Polestar drivers and dealers, prompting concerns over the resale value of their models, and the future viability of the brand’s service network in the U.S. “I’m trying to stay optimistic,” said Rodriguez, who said he might have considered purchasing a different model had he known about the ban. He’s excited to drive the Polestar when he receives the EV this week but worries about future warranty-related issues. “Five years down the road, what’s the plan?” he said. The connected-vehicle rules were adopted in January 2025 under President Joe Biden, based on national security concerns linked to the ability of vehicles to collect sensitive data on American owners, and have been kept in place under the Trump administration. Click here for the full story.
Around the Web
Your Windshield Sunshade Barely Cools The Air, But It Saves Your Steering Wheel [Carscoops]
Which Cars Cost Us the Most and the Least to Maintain, and Why? [Car and Driver]
California Just Found A New Way To Keep EV Sales Moving [Autoblog]
Unlocking Hidden Income in a Dealership’s Reinsurance Program [CBT News]