Automotive Industry Update: Key Developments and Trends in Q3 2025

As the third quarter of 2025 unfolds, the automotive industry is witnessing significant developments in terms of technology, regulation, and market trends. Major players such as Foley & Lardner, GM, and Hyundai are navigating the complex landscape of import tariffs, trade agreements, and evolving consumer preferences. Meanwhile, autonomous technologies, electric vehicles, and low-emissions technology continue to shape the future of the industry.

Key Takeaways:

• Foley & Lardner will be among the speakers at the MEMA OE Digital Transformation in Mobility event on July 29, 2025, discussing advanced preparation strategies for manufacturers to survive and thrive during peak season.
• The American Automotive Policy Council expressed concern that Japanese automotive imports with minimal U.S. content could be subject to a lower tariff rate than certain imports originating in Mexico and Canada following the announcement of a new U.S-Japan trade deal.
• U.S. import tariffs have resulted in second-quarter 2025 profit losses attributed to U.S. import tariffs reaching $1.1 billion for GM and $606 million for Hyundai.
• Lear Corp. retained the No. 1 spot in Crain's most recent ranking of the largest OEM parts suppliers in the Detroit area.
• Over 50% of the GM vehicles sold in Mexico in the first half of 2025 were imported from China, according to data from INEGI.
• Ford is recalling nearly 700,000 Bronco Sport and Escape models due to a fuel injector defect that could lead to engine fires.
• Volvo will incur a $1.2 billion impairment charge in the second quarter resulting from U.S. tariffs and EV launch delays.
• The United States-Mexico-Canada Agreement's automotive rules of origin have helped to increase suppliers' profits, employment, and revenue, according to a study by the U.S. International Trade Commission.

Statistics:

• U.S. new vehicle inventory was estimated at 2.83 million units in June 2025, representing an 82 days' supply industrywide and a drop of 1.4% year-over-year.
• The new light-vehicle average transaction price (ATP) was slightly over $48,000 in June 2025, up 1.2% YOY and 0.4% month-over-month.
• Incentives represented 6.9% of ATP in June, up from 6.5% of ATP one year ago.
• China exported over 3 million vehicles globally in the first half of 2025, up 10% YOY.
• Autonomous Technologies and Vehicle Software:

+ Tesla intends to launch its driverless taxis in California and Arizona in the coming months.

+ Waymo will expand its robotaxi service territory in Austin, Texas to 90 square miles.

+ Lucid will offer hands-free driving features in the coming weeks for its Air sedans and Gravity SUVs.

• Electric Vehicles and Low-Emissions Technology:

+ First-half 2025 U.S. new EV sales increased 1.5% YOY to 607,089 units.

+ Second-quarter 2025 new EV sales fell 6.3% YOY.

+ An estimated 703 high-speed, public charging stations opened in the U.S. in the second quarter of 2025.

Sources:

• "MEMA OE Digital Transformation in Mobility event" (no date)
• "Ford, Stellantis tighten terms on suppliers as tariff costs add up" in Crain's Detroit (no date)
• "Battling Tariff Fraud Is a Little-Known Front in Trump's Trade War" in The Wall Street Journal (no date)
• "U.S. import tariffs on steel, aluminum, and copper" in Benchmark Minerals (no date)
• Cox Automotive analysis (no date)
• Automotive News (no date)
• "One Big Beautiful Bill Act" in Automotive News (no date)
• "Lear Corp. ranks No. 1 in Crain's most recent ranking of largest OEM parts suppliers in the Detroit area" (no date)
• Unnamed sources in Bloomberg (no date)
• "China exported over 3 million vehicles globally in the first half of 2025" in China Association of Automobile Manufacturers (no date)
• "Ford is recalling nearly 700,000 Bronco Sport and Escape models" in Automotive News (no date)
• "Volvo will incur a $1.2 billion impairment charge in the second quarter" (no date)
• Study by the U.S. International Trade Commission (no date)