Key Developments

• Following the announcement that Japan will pay a 15% “reciprocal” tariff as part of a new U.S – Japan trade deal, the American Automotive Policy Council expressed concern that Japanese automotive imports with minimal U.S. content could be subject to a lower tariff rate than certain imports originating in Mexico and Canada. 
• Automotive News provided an update on recent vehicle production delays and revisions, and the corresponding impact on suppliers and product-planning cycles.
• Benchmark Minerals provided estimates on the average vehicle production cost impact that may result from U.S. import tariffs on steel, aluminum and copper. 
• Last week China imposed export restrictions on certain technologies that are critical to the production of EV batteries. The restrictions include “battery cathode production technology for the making of lithium iron phosphate (LFP) batteries,” as well as certain technologies necessary for the “processing, refinement and extraction of lithium.”
• On July 17, the U.S. Commerce Department announced antidumping duties of 93.5% on certain Chinese imports of graphite anode active material (AAM), a key material contained in lithium ion batteries, as part of a preliminary determination that affirmed the materials had been unfairly subsidized. This could result in an effective tariff rate of 160% for AAM when factoring in other existing import duties, according to the American Active Anode Material Producers. The Commerce Department expects to issue a final determination by December 5, 2025. 
• U.S. new light-vehicle inventory was estimated at 2.83 million units in June 2025, representing an 82 days’ supply industrywide and a drop of 1.4% year-over-year, according to analysis from Cox Automotive. Brands with the lowest inventory in June included Toyota at 39 days’ supply and Honda at 61 days’ supply. Brands with the highest inventory last month included Dodge at 118 days’ supply, and Audi at 133 days’ supply.
• The new light-vehicle average transaction price (ATP) was slightly over $48,000 in June 2025, up 1.2% YOY and 0.4% month-over-month. The average manufacturer’s suggested retail price (MSRP) in June rose for the third consecutive month to $51,124, up 2.3% YOY. Incentives represented 6.9% of ATP in June, up from 6.5% of ATP one year ago.
• China’s exports of rare-earth magnets to the U.S. were nearly three times higher in June 2025, compared to levels in May 2025, but remained significantly lower compared to the same period one year ago. 
• Automotive News provided an overview of how the One Big Beautiful Bill Act may affect battery production and costs. 

OEMs/Suppliers

• Second-quarter 2025 profit losses attributed to U.S. import tariffs reached $1.1 billion for GM and $606 million for Hyundai.
• Stellantis estimated that costs associated with U.S. import tariffs comprised $350 million of the $2.7 billion net loss in its preliminary first-half 2025 financial results.
• Lear Corp. retained the No. 1 spot in Crain’s most recent ranking of the largest OEM parts suppliers in the Detroit area.
• Wheel supplier Superior Industries will be acquired by a group of its term loan investors, including Oaktree Capital Management. 
• Adient will invest $8 million to establish a new facility in Normal, Illinois.
• Tesla will hold its next annual shareholder meeting November 6, 2025. 
• Over 50% of the GM vehicles sold in Mexico in the first half of 2025 were imported from China, according to data from INEGI. 
• GM will temporarily suspend production of Chevrolet Silverado and GMC Sierra pickup trucks at its Silao, Mexico plant for undisclosed reasons during a number of weeks in August. This follows a production shutdown at the same plant during the first two weeks of July.
• Nissan is reported to be evaluating plans to close two production plants in Mexico by 2027.
• Ford is recalling nearly 700,000 Bronco Sport and Escape models due to a fuel injector defect that could lead to engine fires. The automaker is also recalling more than 850,000 vehicles across nearly a dozen models due to low-pressure fuel delivery module (FDM) failures that may cause engines to stall while driving. Ford has issued 88 safety recalls through the first half of 2025, exceeding any prior full-year total for an automaker.
• Volvo will incur a $1.2 billion impairment charge in the second quarter resulting from U.S. tariffs and EV launch delays. The automaker indicated it is unable to sell a planned China-made ES90 large electric sedan in the U.S. due to the cost of the levies.

Market Trends and Regulatory

• The United States-Mexico-Canada Agreement’s automotive rules of origin have helped to increase suppliers’ profits, employment and revenue, according to a study by the U.S. International Trade Commission.
• Unnamed sources in Bloomberg speculated on the timetable for new tariffs that may result from Section 232 investigations in sectors that include copper, lumber, semiconductors, heavy trucks, and critical minerals.
• The National Highway Traffic Safety Administration will reduce its headcount by over 25% to roughly 555 employees.
• China exported over 3 million vehicles globally in the first half of 2025, up 10% YOY, according to data from the China Association of Automobile Manufacturers.

Autonomous Technologies and Vehicle Software

• Automotive News provided an update on robotaxi plans and deployments by key players.
• Tesla intends to launch its driverless taxis in California and Arizona in the coming months, following an initial launch in Austin, Texas.  
• Waymo, through its partnership with Uber, will expand its robotaxi service territory in Austin, Texas to 90 square miles, up from a previous limit of 37 square miles. 
• As part of a partnership announced July 17, at least 20,000 Lucid Gravity SUVs equipped with the Nuro Driver autonomous technology will be deployed on the Uber ride-hailing platform in select cities beginning in 2026. 
• China will prohibit automakers from “exaggeration and false promotion” of assisted-driving features, amid broader efforts to tighten guidelines and safety requirements for assisted-driving technology in the nation. 
• Lucid will offer hands-free driving features in the coming weeks for its Air sedans and Gravity SUVs through a software update for vehicles equipped with the DreamDrive Pro system.

Electric Vehicles and Low-Emissions Technology

• First-half 2025 U.S. new EV sales increased 1.5% YOY to 607,089 units, according to analysis from Cox Automotive. Second-quarter 2025 new EV sales fell 6.3% YOY.
• U.S. new EV sales in June 2025 fell 3.5% YOY to 103,945 units. New EVs were estimated to have a 125 days’ supply in June, down 14.8% YOY, and ATP dropped 2.8% YOY to $56,910. 
• An estimated 703 high-speed, public charging stations opened in the U.S. in the second quarter of 2025, according to data from the Department of Energy. Analysis from Bloomberg indicated the deployments were “mostly driven by the private sector.”
• Analysis from the Government Accountability Office released on July 22 estimated that less than 400 EV charging ports were built in the U.S. through April 2025 under the National Electric Vehicle Infrastructure (NEVI) Formula Program. The Trump Administration suspended funding for the NEVI program in February. 
• Suppliers to certain Chinese EV makers have encountered delayed payments and requests for price reductions, according to a report in The Wall Street Journal. 
• First-half 2025 sales of new-energy vehicles in China — which include battery-electric, plug-in hybrid and extended-range electric cars — reached 5.5 million units and represented just over 50% of the period’s total vehicle sales, according to data from China’s Passenger Car Association.
• GM is among the entities that have supply agreements to receive rare-earth magnets from the largest rare earth producer in the U.S., Texas-based MP Materials. 
• GM and LG Energy Solution will upgrade production lines at their joint venture plant in Spring Hill, Tennessee to produce low-cost lithium iron phosphate battery cells by late 2027. 
• Unifor members at the Stellantis – LG Energy Solution joint venture EV battery plant in Windsor, Ontario ratified a one-year collective bargaining agreement.
• California-based Mullen Automotive announced the consolidation of Mullen and Bollinger Motors operations in Oak Park, MI. The commercial EV manufacturer will be renamed Bollinger Innovations. 
• Rivian plans to establish a new East Coast headquarters in Atlanta, ahead of new factory construction that is expected to begin in 2026. 
• Panasonic opened a $4 billion EV battery manufacturing plant in De Soto, Kansas. 
• Jeff Bezos-backed electric truck startup Slate Auto displayed a prototype of its two-seat compact pickup truck at the Reindustrialize conference in Detroit this month. Production is expected to begin in Indiana by late 2026.
• Stellantis discontinued its hydrogen fuel-cell technology development program due to high capital requirements, as well as the expectation significant adoption will not be feasible before the end of this decade.

Analysis by Julie Dautermann, Competitive Intelligence Analyst