Key Legal Insights from Foley’s Automotive Team

Analysis by Julie Dautermann, Competitive Intelligence Analyst

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Automotive Key Developments

• Stellantis is assessing costs to move certain pickup truck production from Mexico to Michigan, as reported by Crain’s Detroit.
• The Alliance for Automotive Innovation has called on Congress to impose a permanent ban on the sale, import, and manufacture of Chinese connected vehicles by the end of the year.
• President Trump has indicated openness to Chinese automakers building in the U.S., contingent on hiring American workers, while maintaining a stance against vehicle imports from China.
• U.S. diesel prices have risen to a record high of $6.31 per gallon, a 70% increase from last year; gasoline prices have also surged.
• Goldman Sachs predicts oil prices could exceed $120 per barrel due to instability in the Middle East.

Trade/Tariffs

• Foley & Lardner has provided five best practices for manufacturers to prepare for tariff volatility.
• Attorneys Gregory Husisian, Kate Wegrzyn, and Lindsey Zirkle were featured in International Trade Today for insights on tariff refund disputes and customs enforcement changes.
• The Department of Justice memo highlights new priorities for fraud investigations, affecting trade and customs.
• In reaction to Canadian counter-tariffs, President Trump announced a ban on certain Canadian goods, including motorcycles, and modified tariff scopes.
• Analysts warn that escalating U.S.-Canada trade tensions may hinder regional efforts against Chinese automotive expansion.
• The U.S. and Mexico aim to reach a trade agreement before the upcoming midterm elections in November.
• Secretary of Commerce Howard Lutnick indicated a forthcoming broad tariff on semiconductors, potentially with exemptions for U.S.-manufacturing commitments.

OEMs/Suppliers

• Ford’s CEO Jim Farley dismissed claims of excessive reliance on Chinese firms, emphasizing existing joint ventures in Spain and China.
• Chinese automakers’ sales outside China surged to 38% of total retail sales in August 2026.
• Hyundai has increased its local supplier sourcing target in North America to 80% by 2030.
• Ford plans a $1 billion investment in its Kentucky Truck Plant.
• Hansae Mobility USA will invest over $93 million to expand its Michigan operations.
• Volkswagen estimates up to €16 billion costs from restructuring initiatives, planning to cut 100,000 jobs globally by 2030.
• Stellantis signed an agreement for the potential sale of its Brampton Assembly Plant to Roshel.

Autonomous Technologies and Vehicle Software

• Automotive News reports success stories from smaller suppliers using AI technologies to enhance manufacturing.
• Hyundai is delaying its proprietary driver-assistance software launch to 2029, relying on Nvidia in the meantime.
• May Mobility plans to go public through a SPAC merger valued at approximately $1.4 billion.
• PlusAI is also planning a public listing in a SPAC deal valued at $800 million.
• Ford is using AI-enabled sound detection for quality control before shipping vehicles.

Market Trends and Regulatory

• The NHTSA proposed delays in testing vehicle safety features.
• The FTC issued new guidelines for dealerships on complying with price advertising rules post-deceptive practices warnings.
• Infotainment issues accounted for 25% of vehicle complaints, seeing a year-over-year decline.
• In August, global air freight prices rose 24% to $3.13 per kilogram.
• The Consultative Shipping Group warns that global conflicts and trade restrictions are disrupting supply chains.
• Mexico–U.S. trucking rates have risen due to tighter U.S. scrutiny of foreign drivers.

Hybrid and Electric Vehicles

• China aims for 70% of new vehicle sales to be electric or hybrid by 2030.
• Ford, Hyundai, and Stellantis plan to introduce extended-range EVs in late 2026.
• Companies like Tesla and LG Energy are leveraging EV battery production for revenue growth in energy storage.
• Honda invested in Niron Magnetics to develop rare earth-free magnets for electric vehicles.
• Google is partnering to deploy 25 electric semi-trucks in Texas with Nevoya.

This summary synthesizes key insights and developments affecting the automotive industry, focusing on legal, trade, and technological aspects relevant to stakeholders.