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

Analysis by Julie Dautermann, Competitive Intelligence Analyst

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

• �鶹��ý & Lardner provided an eight-article��series to help multinationals manage the aftermath of the Supreme Court’s IEEPA tariff decision. Topics include an assessment of IEEPA tariff refunds, and the Trump administration’s reinstatement of tariffs under new statutory authorities. For more information see �鶹��ý’s Tariff & International Trade Resources blog, or to register for notifications when new articles are published.

• The Office of the U.S. Trade Representative utilized Section 301 of the Trade Act of 1974 to initiate two new investigations on and over unfair trading practices by dozens of trading partners. The Section 301 investigations are expected to support the imposition of new tariffs that will replace the temporary Section 122 levies that were imposed for 150 days beginning on February 24.

• the U.S. and Mexico held the first round of bilateral discussions in preparation for the joint review of the United States–Mexico–Canada Agreement (USMCA). According to from Mexico’s economy ministry released earlier this month, Mexican businesses prefer to improve and strengthen the USMCA, rather than subject the trade agreement to a major renegotiation.

• Rising fuel prices are parts shipping costs and putting pressure on supplier profitability. Since the start of the U.S.-Israel conflict with Iran, the price of diesel has 34% to $5.04 per gallon, and regular unleaded gasoline has increased more than 27% to $3.79 per gallon.

• In addition to higher logistics costs, automakers and suppliers are the Iran conflict for potential supply chain disruptions, particularly for aluminum, as well as certain plastics and semiconductor materials.

• provided highlights from S&P Global Mobility’s annual supplier survey.

• The Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) hosted a to “provide updates and insights into ongoing and upcoming vehicle automation activities.”

• NHTSA announced pertaining to the modernization of Federal Motor Vehicle Safety Standard (FMVSS) No. 102 to accommodate vehicles equipped with automated driving systems (ADS). NHTSA is also on what it described as “the nation’s first-ever commercial deployment of a purpose-built robotaxi built by Zoox.”

• Major automakers have collectively announced in EV-related write-downs and restructuring charges, including ��DzԻ岹’s of up to $15.8 billion tied to revisions in its EV strategy.

OEMs/SUPPLIERS  

• Supplier profit pools are diverging, with growth increasingly driven by the shift to software‑defined and AI‑enabled vehicles, according to a from Boston Consulting Group. BCG forecasts high single‑ to double‑digit annual growth through the 2030s for advanced driver-assistance systems (ADAS), autonomous systems, and advanced E/E architectures, while “classic components” – including interior, body, exterior, and chassis – are expected to see low single‑digit growth. The report also found that 53% of suppliers expect industry conditions to deteriorate over the next 12 months, up from 26%in the 2024 study.

• Ford plans to increase its transparency to help strengthen trust with its suppliers, according to a report in .

• estimates U.S. import tariffs have cost automakers at least $35 billion since 2025.

• The Canadian government is an unnamed automaker to import a higher quota of U.S.-made vehicles without tariffs, because the company is selling and producing more cars in Canada than it previously expected.

• Kyoto-based semiconductor manufacturer Rohm that it will examine an acquisition it received from Denso, in regard to its current “stand-alone plan and other strategic alternatives.”

• Schaeffler is humanoid robots for certain functions in sites that include its existing auto parts factory in South Carolina.

MARKET TRENDS AND REGULATORY

• The Federal Trade Commission to 97 auto dealership groups nationwide about deceptive advertising and pricing practices, and stated the “prices they advertise must be the total price—including all mandatory fees—that consumers will be required to pay.”
• The Trump administration to block state regulations seeking to curb vehicle emissions and require the adoption of zero-emission vehicle fleets, contending that the rules conflict with federal law.
• reports the Windsor-Detroit Bridge Authority is moving forward with plans to open the Gordie Howe International Bridge this spring, despite recent threats from President Trump to halt the opening of the project.
• In February, the average new-vehicle manufacturer’s suggested retail price (MSRP) was . The MSRP rose 3.5% year-over-year to $51,440 in February, while the new-vehicle average transaction price (ATP) increased 3.4% YOY to $49,353. The average incentive package last month was 6.9% of ATP.

Autonomous Technologies and Vehicle Software

• Uber to launch robotaxis equipped with Nvidia autonomous hardware and software in 28 cities beginning in 2027.
• Amazon’s Zoox is with Uber to launch its purpose-built, steering-wheel-free robotaxis on the Uber app, beginning in Las Vegas this summer and expanding to Los Angeles in 2027.

HYBRID AND Electric Vehicles

• February new EV sales fell by 26.8% year-over-year to an 68,951 units. EVs accounted for 5.8% of total U.S. new vehicle sales last month.
• EV maker Lucid Group a new midsize vehicle platform with three models, as well as a purpose-built Lunar robotaxi concept.
• assessed the impact of EV policy revisions and restructuring on state incentive packages for EV and battery factories in Michigan.
• LG��Energy Solution $4.3 billion worth of batteries in��Lansing, Michigan��for��Tesla’s energy storage systems business. The cells will be made by LG at a plant that was formerly developed for a joint venture between the Korean battery giant and GM before the automaker revised EV production plans.
• Canada a percentage of China-built EVs for sale in the Canadian market to cost $35,000 or less until 2027. BYD, Chery Automobile, and Geely Holding are to be actively working toward selling EVs in Canada.
• Regulators in China have recently for technologies popular in the nation’s EVs, including yoke steering wheels, hidden door handles, and touchscreen-only commands for certain key vehicle functions.
• Chinese automakers are in China and other regions EV fast-charging that can be completed in five to nine minutes.