What is going on today in the automotive industry? - Oregon Vehicle Dealer Association

August 6, 2025

Several notable developments are shaping the automotive industry, based on recent news and trends:

Tesla’s Innovations: Tesla has secured a U.S. patent for an active aerodynamic system using fans and deployable skirts to enhance downforce, improving grip, cornering, and braking across various speeds. This technology could debut in the next-generation Tesla Roadster, signaling advancements in performance EVs. Additionally, Tesla is advancing its Tesla Semi program, with beta builds undergoing durability testing and mass production equipment being installed at its Nevada factory.
Custom and Niche Vehicles: Forgeline, an Ohio-based manufacturer, showcased a custom Chevrolet Camaro with lightweight forged aluminum wheels, highlighting the ongoing demand for personalized, high-performance vehicles. Meanwhile, a modified 1965 Volkswagen Type 2 is set for auction, potentially fetching up to $125,000, reflecting strong interest in classic and custom automotive markets. A 2006 Range Rover previously used by Queen Elizabeth II is also up for sale, emphasizing the appeal of vehicles with unique histories.
Tariff and Trade Impacts: The U.S. has implemented new tariffs, including a 40% duty on goods suspected of transshipment to evade duties, effective August 7, 2025. These tariffs are reshaping automotive strategies, with companies like Ford planning price hikes of up to $2,000 on Mexico-produced models and General Motors cutting shifts at its Oshawa plant due to tariff-related demand shifts. German automakers like Volkswagen, Porsche, and Mercedes-Benz have lowered 2025 profit outlooks due to tariff pressures, while BMW maintains its guidance despite a 32% Q2 earnings drop.
Electric and Autonomous Vehicle Trends: The industry continues its push toward electrification and autonomy. In Europe, battery-electric vehicles (BEVs) hold a 15.4% market share year-to-date through May 2025, with hybrid-electric vehicles leading at 35.1%. However, overall EU car registrations are down 0.6% compared to 2024, reflecting mixed adoption rates. In the U.S., battery-electric vehicle sales are estimated at 7% for June 2025, with automakers balancing hybrid and EV offerings amid regulatory uncertainty and tariff costs. Autonomous driving advancements are also notable, with Waymo planning a robotaxi service in Dallas by 2026 and Aurora Innovation expanding nighttime autonomous freight operations in Texas.
Global Market Dynamics: In China, the Shanghai Auto Show 2025 showcased cutting-edge innovations like flying cars and AI-powered ecosystems, underscoring China’s lead in EV and smart vehicle technology. Meanwhile, Western automakers like BMW, Mercedes, and Audi presented minor EV updates, highlighting competitive gaps. In the U.S., July sales rose 7.5% year-over-year to 1.37 million units, but June saw a 5.6% decline due to fewer selling days and tariff-related slowdowns, particularly for import-heavy brands.
Industry Challenges: Automakers face rising costs from tariffs, supply chain disruptions, and regulatory shifts. For instance, Rivian reported higher-than-expected quarterly losses due to rare earth metal supply issues, and Mazda cited a $319 million operating loss linked to tariffs. Additionally, consumer hesitancy around connected car services has grown, with only 68% willing to pay for such features in 2025, down from 86% in 2024, due to cost and privacy concerns.

These developments reflect a dynamic industry navigating technological advancements, economic pressures, and shifting consumer preferences, with a strong focus on electrification, autonomy, and strategic responses to global trade policies.

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