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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. 

KEY DEVELOPMENTS

• �鶹��ý & Lardner Partners Vanessa Miller and Nicholas Ellis, as well as Associate William Kalas, assessed the ramifications of the Michigan Supreme Court’s decision to dismiss the appeal of FCA US LLC v. Kamax Inc., “a case of considerable importance to manufacturers—particularly automotive suppliers—that commonly utilize requirements contracts to govern long-term supply arrangements.”

• �鶹��ý & Lardner announced the launch of the 2026 AI in Manufacturing & Supply Chain Series, a new initiative to help industry participants identify and manage the legal risks and business strategies arising from the profound shifts and innovations reshaping manufacturing and supply chain operations. Subscribe to get updates about new articles in this series.

• �鶹��ý & Lardner Partners Vanessa Miller and Nicholas Ellis, as well as Senior Counsel Robert Okonowski and Associate Leighton Allen, will be among the speakers at �ѷ��Ѵ�’s to be held May 13, 2026 in Pontiac, Michigan.��

• �鶹��ý & Lardner provided an overview for multinationals to consider regarding filing for IEEPA tariff refunds under the U.S. Customs and Border Protection’s (CBP) Consolidated Administration and Processing of Entries (CAPE) system. �鶹��ý & Lardner partner Gregory Husisian was also featured in multiple news outlets that included and discussing recent developments in the initial phase of processing and distributing IEEPA tariff refunds.

• Top U.S. and EU trade negotiators are expected��to in response to President Trump’s�� to raise U.S. import tariffs��on European cars to 25% from 15%.
• Certain Canadian and Mexican steel and aluminum producers that establish new U.S. domestic production capacity commitments for “key products” can apply to have the 50% U.S. import tariff on the metals temporarily reduced to 25%, according to an April 23 from the U.S. Department of Commerce and a report by . stated the adjustment “applies to companies that supply, directly or indirectly, U.S. automobile or medium- and heavy-duty vehicle manufacturers.”

• U.S. Trade Representative Jamieson Greer Mexican business leaders the renegotiation of the U.S.-Mexico-Canada Agreement (USMCA) will not result in the elimination of U.S. import tariffs on automobiles, auto parts, steel, and aluminum. Mexico will begin its bilateral negotiating round with the U.S. the week of May 25, 2026 in Mexico City.

• Canadian trade officials the need for “some mutuality” from the U.S. in recognition of “significant” concessions made to address certain trade concerns of the Trump administration, as well as on automobiles, steel, and aluminum. At the time of this newsletter publication, bilateral negotiations between the U.S. and Canada have not been announced.

• Last week the Office of the United States Trade Representative (USTR) pertaining to Section 301 investigations into dozens of nations regarding unfair trade practices and forced labor. The outcome of the investigations could result in new and more durable levies that help to replace IEEPA tariffs invalidated by the U.S. Supreme Court.

• U.S. new light-vehicle sales are projected to reach a SAAR of 16 million units in April 2026, representing a decline of 7.3% year-over-year, according to a from JD Power and GlobalData. The analysis notes that year-over-year comparisons remain challenging, as April 2025 results were impacted by consumers’ “tariff‑driven rush to retail lots.”

• The auto industry faces tight aluminum supplies and sharply higher prices due to the Iran war, U.S. import tariffs, and a major supplier outage, according to a report in .
• Certain Toyota suppliers in Japan have that supply disruptions caused by the Iran war could halt vehicle production “within weeks” due to material shortages that include aluminum, resin and naphtha.

• Global average air-cargo spot rates have increased by 40% in the eight weeks after the start of the Iran war, according to . Reduced exports of jet fuel have in California, and and are at-risk for potential jet fuel shortages by the end of May amid in the��Strait of Hormuz.

• The California Department of Motor Vehicles updated autonomous vehicle regulations that include permitting criteria, new authority for law enforcement to issue citations, and guidelines for the testing and deployment of heavy-duty autonomous vehicles on certain public roads.

OEMs/SUPPLIERS  

• The Q1 2026 Automotive News Auto Industry Confidence Index revealed growing pessimism among surveyed and , due to mounting concerns that included consumer demand, tariffs, and elevated input costs.
• The Detroit 3 automakers collectively to receive over $2 billion in IEEPA-based tariff refunds.

• reported foreign carmakers may pull low-cost vehicle models from the U.S. market due to profit losses attributed to import tariffs and higher operating costs.
• Certain automakers are to be considering adding sedans to their model lineup, amid increased consumer interest in lower-cost vehicles.

• Forvia its automotive interiors business to Apollo Global Management in a deal valuing the unit at about $2.13 billion.
• Toyota record global sales of 10.4 million vehicles in fiscal 2025, and its U.S. sales rose 7.7% YOY to 2.5 million units.

• GM will invest approximately $1.3 billion across its existing plants in , and to support increased production of gas-powered trucks and SUVs. The automaker is to have indefinitely paused its full-size electric truck program.
• To support its turnaround strategy, Stellantis to prioritize resources and investment to four core brands: Jeep, Ram, Peugeot, and Fiat.

• Honda may extend the life cycles of certain to mitigate the impact of $15.8 billion in EV-related impairments.
• A Canadian automotive industry association, the Pacific Manufacturing Association of Canada, will initially focus on the review of the USMCA. The association will represent Toyota and Honda, which collectively assembled approximately 77% of vehicles made in Canada in 2025.

• Ford recently had discussions with Chinese automaker Zhejiang Geely Holding Group regarding a potential partnership in Europe, according to a report in . CEO Jim Farley recently that Ford intends to expand partnerships with Chinese manufacturers in to improve its competitive position. Along with BYD, Geely is often ranked among ��󾱲Բ�’s top domestic automakers due to its in competing across a wider variety of powertrains.

Autonomous technologies and vehicle software

• Software-defined vehicles (SDVs) may expose the automotive supply chain to higher cost pressures, according to from Moody’s.
• Autonomous vehicle startups raised a record $21.4 billion across 34 deals globally between January 1 – April 15, 2026, according to from Crunchbase. The bulk of the funding was captured by Waymo, Shield AI, and Wayve. This compares to $5.9 billion raised across 99 investments globally in all of 2025, and $12.1 billion raised across 127 deals in 2024.
• provided an update on certain automakers’ approaches to implementing in-car AI-based assistants.
• provided an overview of the current operations and expansion plans of robotaxi companies in the U.S.
• As autonomous vehicles in Texas, certain local officials have called for stricter oversight. A statewide framework taking effect May 28, 2026�� robotaxi companies to maintain active authorization from the Texas Department of Motor Vehicles.
• EV maker Lucid Group $750 million in new funding that will help support its commercial robotaxi service that it plans to launch in the San Francisco Bay Area later this year. This follows Lucid’s earlier this year of a jointly developed “global robotaxi” project with Uber and autonomous technology developer Nuro.
• BMW and Mercedes-Benz are development of , or “eyes-off,” autonomous driving systems in Europe due to challenges that include development costs. The automakers plan to focus instead on developing advanced driver assistance systems (ADAS).

MARKET TRENDS AND REGULATORY

• Ransomware attacks in the auto industry more than doubled in 2025, according to data from cybersecurity company Halcyon featured in .
• A bipartisan U.S. Senate bill, the , would ban from the U.S market the “importation, integration, manufacture, sale, and resale of connected vehicles, software, and hardware linked to China or other foreign adversaries.” The bill’s sponsors, Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D‑Mich), the importance of codifying related from the Commerce Department into law.
• In an April 28 , U.S. House lawmakers urged the Trump administration to prohibit Chinese vehicles manufactured and titled in Canada and Mexico from Chinese automakers collectively had an estimated 11% market share in Mexico as of , and their combined first-quarter sales were up 25% YOY. Canada recently announced plans to open its market to limited volumes of imported at a reduced 6.1% tariff.
• AlixPartners Chinese automakers will nearly triple overseas production to 3.4 million vehicles by 2030, “with Europe and Latin America emerging as a key battleground.”
• BYD is to be in discussions to join the European Automobile Manufacturer’s Association (ACEA). The Chinese EV maker expects to begin production in the second quarter of this year at its first European plant in Hungary.
• An 30% of U.S. car buyers who traded in vehicles in the first quarter of 2026 had negative equity, and the average amount of negative equity carried on a vehicle has risen by over 40% since 2021.

HYBRID AND Electric Vehicles

• Tesla $22.4 billion in revenue for Q1 2026, up 16% from the first quarter of last year. The company stated its will exceed $25 billion – compared to $8.5 billion in 2025 – to support production of Optimus humanoid robots, AI initiatives, and the autonomous Cybercab.
• Samsung SDI a multi-year agreement to supply Mercedes-Benz with high-energy, nickel manganese cobalt batteries for its future EVs.
• Nissan announced it a prototype all-solid-state EV battery pack, in support of a goal to begin production in fiscal 2028.
• ��󾱲Բ�’s Contemporary Amperex Technology (CATL) announced its third-generation Shenxing lithium iron phosphate (LFP) EV battery can be in just under seven minutes.
• Rivian Automotive plans to increase initial production capacity by 50% at its future plant in Georgia.
• The assets of failed EV truck startup Bollinger Motors are at a court-ordered online webcast auction on May 13.