Trump Says U.S. Won’t Renew USMCA, Dealers Left in Limbo
President Donald Trump said Wednesday he does not plan to renew the United States-Mexico-Canada Agreement (USMCA), pushing North American trade into a prolonged renegotiation with direct consequences for auto dealers. Speaking to reporters in the Oval Office, Trump said he is “not looking to renew” the agreement ahead of its mandatory July 1 review deadline. “USMCA did one thing that I loved. After six years, it comes up for renewal. I don’t know that I’m going to renew it,” Trump said. “It was a great deal for one reason. It gave the right to terminate.”If any party declines to confirm renewal, the pact enters a cycle of annual reviews and expires in 2036, according to the Center for Strategic and International Studies. The deal stays in force for now, but long-term planning becomes harder for dealers and automakers, reports CBT News.U.S. Trade Representative Jamieson Greer told Congress in December 2025 that a simple extension was off the table. “A rubberstamp of the Agreement is not in the national interest,” Greer said in a briefing to the House Ways and Means and Senate Finance committees.Click here for the full story.
Used EV Values Are Rallying, And the Timing Is Right for Dealers
Used-vehicle values at dealer-only auctions were up a substantial 3.6 percent last month versus May 2025, according to the latest Manheim Used Vehicle Value Index. The increase is likely a function of a couple of factors, driven directly or indirectly by affordability, according to Jeremy Robb, chief economist for Cox Automotive.The Manheim Index, a proprietary benchmark for U.S. used-vehicle pricing weighted for a changing mix of product segments and mileage, was at 212.6 for May — corresponding to a seasonally adjusted average price of $19,448. It has signaled year-over-year increases in 17 out of the last 18 months, reports WardsAuto. One driver of higher used car prices, Cox pointed out in a weekly summary, is that some new-car shoppers are turning to used vehicles instead. That growing “substitution” effect is driving up used-car prices at the wholesale level, which is passed along to retail customers. In a similar vein, some used-vehicle shoppers are downsizing to smaller vehicles, also to avoid higher sticker prices. “Some of the most affordable segments are showing the highest gains so far this year, with compact cars higher by 12.3 percent in non-adjusted values since December, the highest of any major segment,” Robb said. Click here for the full story.
New-Vehicle Inventories Stay Largely Flat at 2.89 million
U.S. new-vehicle inventories ticked up only slightly last month to start June at 2.89 million vehicles, as gasoline-electric hybrids continued to turn at faster rates than other powertrains amid high fuel prices, data firm Catalyst IQ said. The latest stockpile count represents a 75-day supply at current selling rates, down one day from the previous month, Catalyst IQ said. It is up about 1.8 percent over the same point a year ago but continues a long-term trend of industry practice to keep levels near or below 3 million to best maintain pricing discipline. Hybrids continued to be the fastest-turning powertrain option and had the lowest days’ supply for the second consecutive month at 63 days, though the days’ supply of electric vehicles contracted sharply last month and began June at 68 days, Catalyst IQ said. U.S. new light-vehicle deliveries are down 5 percent through May, and the market is underperforming many forecasts, prompting some analysts to cut their full-year sales outlook, reports Automotive News.Analysts cite the Middle East war that has driven up gasoline prices, weak consumer confidence, concerns over job security and affordability for the weaker market this year. Click here for the full story.
Dealership Buy-Sell Database Updates: AutoNation Buys Toyota Store, Ken Garff Buys VW Dealership in Deals Across 8 States
AutoNation Inc. and another top 150 dealership group bought stores in Automotive News’ latest tracked dealership buy-sell transactions, among deals across eight states involving 13 stores. AutoNation on June 8 bought Toyota of Newnan in Georgia from Tameron Automotive Group, owned by Danny Braden and Rob Gallik. The publicly traded auto retailer renamed the store AutoNation Toyota Newnan.The dealership represents about $200 million in annual revenue and an estimated 4,900 retail new- and used-vehicle sales annually, AutoNation said in a statement.AutoNation, of Fort Lauderdale, Fla., ranks No. 3 on Automotive News’ list of the top 150 dealership groups based in the U.S., retailing 259,264 new vehicles in 2025. Ken Garff Automotive Group also June 8 bought Volkswagen SouthTowne in South Jordan, Utah, from Susan Watkins. The group renamed the store Ken Garff Volkswagen Southtowne. Ken Garff Automotive, of Salt Lake City, ranks No. 9 on the top 150 list, retailing 63,324 new vehicles in 2025. In another notable transaction, large private auto retailer Sewell Automotive Cos. on June 1 bought Mercedes-Benz of Selma in Texas from Kollective Auto Group. The buyer renamed it Sewell Mercedes-Benz of Selma. Click here for the full story.
Inflation Hits 3-Year High at 4.2% As New Car Sales Rise
Inflation hit its highest level since April 2023 in May, at 4.2 percent, according to new data from the Bureau of Labor Statistics on Wednesday, as new vehicle sales began to rebound despite higher interest rates and prices. Inflation continues to rise again, jumping from 3.9 percent in April to 4.2 percent in May. The rise from 2.4 percent in February is primarily attributed to the surge in energy costs since the start of the conflict in the Middle East, reports CDG. Gasoline prices increased 8.6 percent in May. The index for gas is up 40.5 percent on an annual basis. Gas prices have retreated from their high point of $4.52 per gallon to $4.15, according to AAA. Housing and food prices also saw modest gains in May. The inflation news arrives a week ahead of the Federal Open Market Committee’s first meeting with new Federal Reserve Chairman Kevin Warsh. After seeing inflation rise and last week’s strong labor report showing 172,000 jobs added in May and unemployment not moving at 4.3 percent, Cox Automotive Chief Economist Jeremy Robb is not expecting interest rate cuts on the horizon, with inflation remaining high throughout the summer due to higher gas prices. Click here for the full story.
CARFAX: Top 5 Vehicles Targeted by Recent Catalytic Converters Thefts
New CARFAX data estimates more than 137,000 catalytic converters were stolen in 2025, with thousands more estimated stolen at the start of this year. CARFAX data shows the Ford F-150 was the most frequently targeted vehicle for catalytic converter theft nationwide, followed by the Hyundai Tucson, Ford Explorer, Ram 2500 and Chevrolet Silverado. “Most of these are pickup trucks and SUVs, which tend to sit higher off the ground, making it easier for thieves to get in and out,” said Patrick Olsen, Editor-in-Chief at CARFAX. Several factors may be contributing to continued catalytic converter thefts, including rising precious metal prices. Rhodium, one of the metals found in catalytic converters, has more than doubled in value over the past year, reaching about $11,000 per ounce in March. Prices today remain below the peak of roughly $30,000 per ounce reached in 2021. Some law enforcement tells CARFAX they’ve seen a resurgence in catalytic converter thefts, including a recent incident in Maryland where the Sykesville Police Department confirmed at least two drivers were victimized just weeks ago. “Thieves stripped these catalytic converters in a matter of minutes, leaving the car owners to face thousands of dollars in out-of-pocket repair bills,” said Cpl. Annelise Barrett of the Sykesville Police Department. “We are seeing a noticeable bump in these incidents, not only in our area, but in the surrounding cities as well.” Barrett says the best way to protect a vehicle is to park indoors when possible. Click here for the full story.
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