Auto Body Shops NAICS 811121

Dec 19, 2025 - Automakers Urge Lawmakers to Boost Restrictions on China

• Major US and global automakers - including General Motors, Ford, Toyota, Volkswagen, Hyundai, and Stellantis - warned lawmakers that expanding Chinese auto and battery producers pose a “clear and present threat” to the US auto industry, urging restrictions on Chinese plants and maintaining bans on certain technology imports. Tariffs on Chinese vehicles and components have added supply-chain pressures, raising costs for manufacturers and suppliers, which can affect repair shops that rely on parts. From an auto repair perspective, increased competition and political tensions may influence parts availability and pricing: Chinese EVs and vehicles could enter US markets at lower costs, creating demand for new repair knowledge and specialized parts. Shops may face challenges sourcing components if automakers push suppliers to relocate production and reshuffle supply chains. Overall, policy, tariffs, and competitive pressures are likely to affect repair operations, parts inventory, and service strategies.
• Vehicle calibrations now appear in 35% of collision repair estimates, according to CCC Intelligent Solutions, reflecting rapidly rising complexity in modern vehicles due to embedded electronics and driver-assistance systems). The trend is reshaping repair work as diagnostics and calibrations become routine rather than specialized tasks. At the same time, total loss frequency (vehicles that can’t be repaired) is set to end 2025 at about 22%, which would break 2024’s already record year. Fewer cars are entering the repair stream, but those that do require more intricate procedures, specialized workflows, and longer labor times, putting pressure on collision shops and insurers alike. These shifts stem from both the evolving vehicle mix (including more hybrids and EVs) and broader market dynamics such as used-car values, parts supply, and insurer cost/repair decisions.

• Collision repair shops are increasingly turning to AI to make their operations more efficient and profitable. For example, after a crash, only about 57% of interested customers actually receive an estimate, and shops typically convert just 56% of those estimates into jobs, per Autobody News. AI can help close that gap by automating follow-ups and reminders. Many shops, around 91%, don’t follow up on written estimates at all, leaving potential revenue on the table. Customer referrals are also extremely low, with only 1.56% of repaired customers referring someone else to the same shop, which is another area where AI can make a difference by nurturing relationships. Beyond sales, AI dramatically reduces labor: tasks that once took 4 hours per customer can now take as little as 30 seconds, freeing staff to focus on higher-value work.
• Increased passenger vehicle weights and the further integration of automated safety control systems is having an impact on how the auto body repair industry operates, according to industry experts at a recent seminar hosted by the Collision Industry Electronic Commerce Association. Weights are increasing in cars, trucks, and SUVs and added heft generates more force in crashes and causes more damage. The seminar noted a 1995 Ford Ranger weighed 3,200 pounds, while a 2025 model of the same truck weighs 4,000 pounds. Most of the weight gains are attributed mainly to luxury features such as all-wheel drivetrains, turbocharged autos with higher speed, and EVs, which are significantly heavier than gas-powered vehicles. Technology features like automatic emergency braking systems are not reducing the number of collisions, but it is making them less dangerous yet more costly to repair.