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Key Legal Insights from �鶹ֱ��’s Automotive Team

Analysis by Julie Dautermann, Competitive Intelligence Analyst

�鶹ֱ�� is here to help you through all aspects of rethinking your long-term business strategies, investments, partnerships, and technology. Contact the authors, your �鶹ֱ�� relationship partner, or our Automotive Team to discuss and learn more. 

AUTOMOTIVE KEY DEVELOPMENTS

• Mobility Global, a spin-off of S&P Global Mobility, U.S. new light-vehicle sales will reach 15.8 million units in 2026 and 15.6 million units in 2027, with “affordability remaining a key determinant of consumer purchase timing and powertrain choice.”
• GM up to $4.5 billion worth of critical parts through a deal with inventory management firm Procura Auto Parts. GM will pay Procura interest and certain fees in advance to buy components from suppliers, with payment for the parts due when they are needed, or no later than July 31, 2029. The automaker did not disclose which parts it will target.
• New light-vehicle inventory at the start of August was at 2.73 million units, representing a 75 days’ supply industrywide. This is similar to inventory levels at the same time last year.
• Automotive assembly jobs increased in the last year, amid an overall decline in auto parts manufacturing jobs, according to an analysis of the latest Bureau of Labor Statistics jobs report in .
• International Energy Agency shows global EV sales rose 35% in Q2 2026 from the prior quarter, supported by stronger demand in markets including Australia, Brazil, India, Korea, and Vietnam. With gasoline prices remaining elevated, the IEA expects EVs to account for 29% of global new-car sales in 2026, up from 25% last year. The report also highlights China’s accelerating role in global EV supply, with Chinese EV exports up 120% in the first half of 2026 compared to the same period last year.

TRADE/TARIFFS

• �鶹ֱ�� & Lardner LLP partner Gregory Husisian shared insights with����and the����on the recent surge in tariff refund litigation, ongoing uncertainty surrounding timelines, and how companies are navigating the financial impact of tariff repayments.
• President Trump paused to impose 50% tariffs on certain Canadian imports ahead of the August 19 deadline, citing progress toward a trade deal that could on Canadian automobiles, steel, and aluminum.
• During recent U.S.-Mexico-Canada Agreement (USMCA) negotiations, the Mexican government proposed applying tariffs only to the value of vehicle components produced outside North America, according to unnamed sources in . This is reported to be a counterproposal to the Trump administration’s goal to require in vehicles.
• The U.S. Court of International Trade a Michigan-based automotive parts distributor, upholding the Trump administration’s elimination of the “de minimis” tariff exemption for low-value imports. The decision found that the International Emergency Economic Powers Act (IEEPA) authorized President Trump to revoke the duty-free exemption, even though the Supreme Court has ruled the act does not authorize the president to impose tariffs.
• U.S. Customs and Border Protection will implement enhanced enforcement procedures to verify the accuracy of importer of record information submitted on CBP Form 5106. According to �����’s , importers of record and customs brokers must ensure that Form 5106 information is complete and accurate by September 18, 2026, or risk potential penalties and disruption of importing activity.
• The Trump administration is developing an AI-enabled “Detective Border” tool to improve �����’s ability to distinguish legitimate nearshoring and foreign investment from illegal pass-through trade, according to a focused on tariff evasion via transshipment. The administration has identified more than 40 trading partners – including Mexico, Canada, the European Union, India, Japan, and South Korea – ��as having elevated illegal transshipment risk.
• The Trump administration granted the Commerce Department����to ban exports of recoverable critical minerals under the Defense Production Act. The Commerce Department subsequently that would require 100% of U.S. sales of black mass and scrap tungsten to be allocated to U.S. persons as of August 27, 2026, “unless an adjustment or exception is obtained in advance.” The agency defines “black mass” as shredded lithium-ion battery scrap that contains cathode material (such as lithium, cobalt, nickel and manganese), anode material (graphite and silicon), or other residual battery cell materials.

OEMs/SUPPLIERS  

• Ford to move production of certain Lincoln models from China to the U.S. beginning in 2030.
• Stellantis that the next-generation Jeep Cherokee SUV will be built on the automaker’s new STLA One platform at its Belvidere, Illinois, assembly plant.
• Honda has outsourced development of a new, multi-powertrain vehicle platform for undisclosed markets to India-headquartered Tata Technologies Ltd.
• Geely’s External Collaboration Research Institute offers turnkey vehicle development, technology licensing, and engineering services to customers that include major . Launched in 2021, it currently has in progress with a��dozen clients.
• Nexteer Automotive a new High Mount Direct Drive Steer-by-Wire Hand-Wheel Actuator (HMDD) intended to give automakers greater cockpit design freedom for software-defined vehicles.
• Daimler Truck North America plans to establish a new U.S. manufacturing facility that will begin production in 2029. DTNA is evaluating multiple sites, and it expects construction to start later this year.
• GM ��350 employees at two Lansing plants��as a part of a previously announced $1.25 billion investment for Cadillac sedan production.

AUTONOMOUS TECHNOLOGIES AND VEHICLE SOFTWARE

• The relatively short support cycles of smartphones and computers have raised questions about how software-dependent vehicles will age, according to a report by . Sam Fiorani, senior vice president of vehicle forecasting for AutoForecastSolutions, stated, “We honestly don’t know how long these vehicles will last. We’re already seeing problems with hardware not being able to deal with new software.”
• provided an update on the projected market growth of over-the-air (OTA) updates.
• provided an overview of automakers’ strategies to deploy artificial intelligence assistants in vehicles. Most recently, Ford announced it is its in-vehicle AI-powered assistant to eight million more eligible vehicles, following an initial launch that started earlier this year.
• Tokyo-headquartered autonomous-driving software developer Turing to establish a U.S. office within the next year that will initially focus on research and development.

MARKET TRENDS AND REGULATORY

• Automakers have over 20 million vehicles due to faulty backup cameras since the U.S. mandated the safety system eight years ago. JD Power indicates that the camera systems have been among the top 10 most-problematic vehicle features every year since 2022. Most recently, Stellantis announced it nearly a million vehicles – mostly Chrysler, Dodge and Jeep models in the U.S. – due to potentially faulty rearview cameras.
• A federal judge warned that allowing the U.S. Environmental Protection Agency to submit California emissions waivers for congressional review more than a decade after they were granted could have far-reaching consequences for oversight of agency rulemaking, reported.
• The California Energy Commission new rules that will phase out the sale of replacement tires that do not meet certain energy efficiency standards beginning in 2029.
• Mexican production of heavy-duty commercial vehicles by more than 50% year-over-year in July, with truck and bus exports rising 67% YOY.

HYBRID AND ELECTRIC VEHICLES

• Tesla exhausted its share of California’s MyFirstEV rebate program within five days. The offers $3,500 rebates to first-time buyers of new EVs, and it is funded equally by the state and automakers.
• LG Energy Solution provided an on plans to produce batteries for energy storage systems and EVs at a Lansing, Michigan factory that was once intended to be a joint venture with GM.
• Samsung SDI �Ҳ�’s 49.99% stake in��a planned $3.5 billion EV battery joint venture plant in Indiana. �Ҳ�’s decision to sell its stake in the SynergyCells battery plant��follows similar actions by Ford and Stellantis to dissolve battery JVs in North America in response to market conditions.
• Ford its upcoming electric pickup, Fathom, will have a starting price of less than $30,000 and it will be available for preorders in early 2027. This will represent the first vehicle to be built using Ford’s “Universal Electric Vehicle” platform.
• Specialty EV upfitter Grounded it closed a $5 million seed round��and opened a new 50,000-square-foot manufacturing facility in Detroit.
• Boston-headquartered Cabot Corp. to establish a $50 million battery materials plant in Wayne County, Michigan.��
• Customer satisfaction with DC fast chargers rose 12 points to 666 (on a 1,000-point scale), while satisfaction with public Level 2 chargers declined 12 points to 595 from the same period a year ago, according to the . The study also notes that “satisfaction is highest among DC fast chargers located at hotels (692), gas stations/convenience stores (689) and restaurants (688), while chargers located at dealerships (570) and stand-alone parking lots/garages (606) are among the least satisfying experiences for owners.”