March 19, 2026

Foley Automotive Update - March 2026 - 2

Nicholas Ellis, Vanessa Miller, Ann Marie Uetz Foley & Lardner LLP + Follow Contact LinkedIn Facebook X Send Embed

Key Legal Insights from Foley’s Automotive Team

Analysis by Julie Dautermann, Competitive Intelligence Analyst

• The Office of the U.S. Trade Representative utilized Section 301 of the Trade Act of 1974 to initiate two new investigations on March 11 and March 12 over unfair trading practices by dozens of trading partners . The Section 301 investigations are expected to support the imposition of new tariffs that will replace the temporary Section 122 levies that were imposed for 150 days beginning on February 24.

• This week the U.S. and Mexico held the first round of bilateral discussions in preparation for the joint review of the United States–Mexico–Canada Agreement (USMCA). According to analysis from Mexico’s economy ministry released earlier this month, Mexican businesses prefer to improve and strengthen the USMCA, rather than subject the trade agreement to a major renegotiation.

• Rising fuel prices are increasing parts shipping costs and putting pressure on supplier profitability. Since the start of the U.S.-Israel conflict with Iran, the national average price of diesel has risen 34% to $5.04 per gallon, and regular unleaded gasoline has increased more than 27% to $3.79 per gallon.

• In addition to higher logistics costs, automakers and suppliers are monitoring the Iran conflict for potential supply chain disruptions, particularly for aluminum, as well as certain plastics and semiconductor materials.

• Automotive News provided highlights from S&P Global Mobility’s annual supplier survey.

• The Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) hosted a National AV Safety Forum **** to “provide updates and insights into ongoing and upcoming vehicle automation activities.”

• NHTSA announced proposed rulemaking pertaining to the modernization of Federal Motor Vehicle Safety Standard (FMVSS) No. 102 to accommodate vehicles equipped with automated driving systems (ADS). NHTSA is also seeking public comment on what it described as “the nation’s first-ever commercial deployment of a purpose-built robotaxi built by Zoox.”

• Major automakers have collectively announced nearly $70 billion in EV-related write-downs and restructuring charges, including Honda’s projected loss of up to $15.8 billion tied to revisions in its EV strategy.
  OEMs/SUPPLIERS

• Supplier profit pools are diverging, with growth increasingly driven by the shift to software‑defined and AI‑enabled vehicles, according to a 2026 Global Automotive Supplier Study from Boston Consulting Group. BCG forecasts high single‑ to double‑digit annual growth through the 2030s for advanced driver-assistance systems (ADAS), autonomous systems, and advanced E/E architectures, while “classic components” – including interior, body, exterior, and chassis – are expected to see low single‑digit growth. The report also found that 53% of suppliers expect industry conditions to deteriorate over the next 12 months, up from 26%in the 2024 study.

• Ford plans to increase its transparency to help strengthen trust with its suppliers, according to a report in Crain’s Detroit.

• Automotive News estimates U.S. import tariffs have cost automakers at least $35 billion since 2025.

• The Canadian government is allowing an unnamed automaker to import a higher quota of U.S.-made vehicles without tariffs, because the company is selling and producing more cars in Canada than it previously expected.

• Kyoto-based semiconductor manufacturer Rohm stated that it will examine an acquisition proposal it received from Denso, in regard to its current “stand-alone plan and other strategic alternatives.”

• Schaeffler is deploying humanoid robots for certain functions in sites that include its existing auto parts factory in South Carolina.
  MARKET TRENDS AND REGULATORY

• The Federal Trade Commission sent warning letters to 97 auto dealership groups nationwide about deceptive advertising and pricing practices, and stated the “prices they advertise must be the total price—including all mandatory fees—that consumers will be required to pay.”

• The Trump administration sued California on March 12 to block state regulations seeking to curb vehicle emissions and require the adoption of zero-emission vehicle fleets, contending that the rules conflict with federal law.

• Crain’s Detroit reports the Windsor-Detroit Bridge Authority is moving forward with plans to open the Gordie Howe International Bridge this spring, despite recent threats from President Trump to halt the opening of the project.

• In February, the average new-vehicle manufacturer’s suggested retail price (MSRP) was above $50,000 for the 11 th consecutive month. The MSRP rose 3.5% year-over-year to $51,440 in February, while the new-vehicle average transaction price (ATP) increased 3.4% YOY to $49,353. The average incentive package last month was 6.9% of ATP.
  Autonomous Technologies and Vehicle Software

• Uber plans to launch robotaxis equipped with Nvidia autonomous hardware and software in 28 cities beginning in 2027.

• Amazon’s Zoox is partnering with Uber to launch its purpose-built, steering-wheel-free robotaxis on the Uber app, beginning in Las Vegas this summer and expanding to Los Angeles in 2027.
  HYBRID AND Electric Vehicles

• February new EV sales fell by 26.8% year-over-year to an estimated 68,951 units. EVs accounted for 5.8% of total U.S. new vehicle sales last month.

• EV maker Lucid Group announced a new midsize vehicle platform with three models, as well as a purpose-built Lunar robotaxi concept.

• Crain’s Detroit assessed the impact of EV policy revisions and restructuring on state incentive packages for EV and battery factories in Michigan.

• LG Energy Solution will produce $4.3 billion worth of batteries in Lansing, Michigan for Tesla’s energy storage systems business. The cells will be made by LG at a plant that was formerly developed for a joint venture between the Korean battery giant and GM before the automaker revised EV production plans.

• Canada will not require a percentage of China-built EVs for sale in the Canadian market to cost $35,000 or less until 2027. BYD, Chery Automobile, and Geely Holding are reported to be actively working toward selling EVs in Canada.

• Regulators in China have recently established new safety standards for technologies popular in the nation’s EVs, including yoke steering wheels, hidden door handles, and touchscreen-only commands for certain key vehicle functions.

• Chinese automakers are rolling out in China and other regions EV fast-charging that can be completed in five to nine minutes.
  [View source.]

Send Print Report

Related Posts

• Foley Automotive Update - March 2026
• Foley Automotive Update - February 2026 - 2
• Foley Automotive Update - February 2026

Latest Posts

• Cybersecurity in the Age of AI: Best Practices for Employee Benefits Administration
• Meritless Lawsuits No Longer Fly Free in Texas See more »

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
Attorney Advertising.

©
Foley & Lardner LLP

Written by:

Foley & Lardner LLP Contact + Follow Nicholas Ellis + Follow Vanessa Miller + Follow Ann Marie Uetz + Follow more less

PUBLISH YOUR CONTENT ON JD SUPRA

• ✔ Increased readership
• ✔ Actionable analytics
• ✔ Ongoing writing guidance Join more than 70,000 authors publishing their insights on JD Supra

Start Publishing »

Published In:

Automotive Industry + Follow Electric Vehicles + Follow International Trade + Follow NHTSA + Follow Section 301 + Follow Supply Chain + Follow Tariffs + Follow United States-Mexico-Canada Agreement (USMCA) + Follow US Trade Policies + Follow USTR + Follow International Trade + Follow Science, Computers & Technology + Follow Transportation + Follow more less

Foley & Lardner LLP on:

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra: Sign Up Log in ** By using the service, you signify your acceptance of JD Supra's Privacy Policy.* - hide - hide