Auto Dealerships NAICS 441110

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 ripple down to dealers. For auto dealers, intensifying competition and political tensions may affect inventory and pricing: Chinese EVs and vehicles could enter US markets at lower costs, increasing competitive pressure and potentially shifting customer demand. Dealers may face challenges in sourcing popular domestic models if automakers push suppliers to relocate production and reshuffle supply chains. Overall, policy, tariffs, and competitive pressures are likely to influence vehicle availability, pricing strategies, and dealer operations.
• Auto collision repair trends in 2025 are shaping new car dealerships’ service, warranty, and customer retention strategies, according to CCC Intelligent Solutions. Persistently high new-vehicle prices and interest rates are keeping consumers in older cars longer, slowing turnover but increasing the diversity of vehicles serviced on dealership lots. The rising prevalence of advanced driver-assistance systems, hybrids, and electric vehicles is driving more complex post-collision repairs, including diagnostics, scans, and calibrations. This increases service lane labor, parts requirements, and repair cycle times, impacting warranty fulfillment and customer satisfaction. Supply chain volatility and tariff-driven parts cost swings add further operational challenges. For new car dealers, these trends reinforce the value of well-equipped service departments, trained technicians, and efficient claims coordination with insurers, as dealerships increasingly serve not only as sales outlets but as essential hubs for maintaining advanced vehicle technology and protecting long-term customer relationships.

• Automakers importing vehicles into the US are bracing for higher logistics costs after new federal port fees increased charges on foreign-built vessels. Much of the industry relies on roll-on/roll-off (Ro-Ro) ships - large carriers designed for wheeled cargo like cars, SUVs, and trucks that are driven on and off the vessel rather than lifted by cranes. With fees rising from $14 to $46 per net ton, shipping companies estimate an added $200-$300 per vehicle, a cost that ultimately pressures automakers’ pricing, margins, and import strategies. Wallenius Wilhelmsen, one of the world’s largest Ro-Ro operators, has paused its 2025 financial outlook and expects as much as $100 million in new costs this quarter alone. The uncertainty around how these fees interact with other trade measures adds further complication. If absorbed into supply chains, these increases could push automakers to adjust sourcing, renegotiate shipping contracts, or pass higher costs to consumers.
• Subprime auto loan delinquencies in 2025 have hit a record of more than 6%, according to Fitch Ratings, as lower-income borrowers struggle to make payments. The percentage of new-car buyers with credit scores below 650 rose to nearly 14% in September, per JD Power, the highest level since 2016. Stagnant wages and rising unemployment have led many consumers to purchase used cars with extended loans, resulting in average monthly payments of $750, with nearly 20% of loans surpassing $1,000 a month. (Not coincidentally, Cox Automotive notes that car repossessions increased to 1.73 million last year, the most since 2009.) Wall Street continues to invest in subprime auto loan-backed bonds despite the risks, citing stricter underwriting standards. Automakers like Ford and General Motors are also adjusting strategies to address the financial strain on consumers, including offering lower rates to risky borrowers and focusing on making more affordable vehicles.