Earlier this week: California dealers sued VW and Scout Motors to block the direct sales model, seeking $35 million in penalties. GM confirms Mexican EV production will continue despite tariffs. Ford halts U.S vehicle exports to China as tariffs hit 150%. CATL unveils an EV battery with a 323-mile range that can be charged in 5 minutes. The Presidio-NCM report reveals that dealer profit climbs 3.7%, reaching post-pandemic highs. Tesla stumbles in Q1 as auto revenue drops 20%. Toyota to invest $88M in West Virginia plant amid U.S. tariff pressure.
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
1. CA dealers sue VW and Scout Motors to block direct sales model, seeks $35M in penalties
The California New Car Dealers Association (CNCDA) has filed a lawsuit against Volkswagen Group and its electric vehicle startup, Scout Motors Inc., seeking to block the company’s plans to sell vehicles directly to consumers in California. The complaint, filed on April 21 in San Diego County Superior Court, alleges Scout’s retail model violates a newly amended state law requiring affiliated manufacturers to sell through franchised dealerships. Read More
2. GM confirms Mexican EV production will continue despite tariffs
Despite the uncertainty surrounding President Trump’s tariffs on the automotive industry, which could raise costs by thousands of dollars per vehicle, General Motors (GM) continues to produce its Ultium-based electric vehicles in Mexico. Read More
3. Ford halts U.S vehicle exports to China as tariffs hit 150%
Ford has stopped shipping high-end pickup trucks, SUVs, and sports cars from the U.S. to China as tariffs on American vehicles soar to as much as 150%, the latest fallout from the Trump Administration’s escalating trade measures. Last week, the automaker halted exports of several popular models—including the F-150 Raptor, Mustang, Bronco, and Lincoln Navigator—due to recent retaliatory tariffs imposed by China, according to individuals familiar with the matter. Read More
4. CATL unveils EV battery with 323-mile range on 5-minute charge
Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle battery maker, has introduced a new generation of batteries capable of delivering up to 520 kilometers (323 miles) of range with just five minutes of charging. The innovation, revealed Monday at CATL’s annual Tech Day event in Shanghai, aims to address consumer concerns about EV charging time and durability. Read More
5. Presidio-NCM report reveals dealer profit climbs 3.7%, reaching post-pandemic highs
In the first quarter of 2025, franchised U.S. auto dealerships saw a significant rebound in earnings, marking a potential turning point after nearly three years of declining profitability. According to the latest Presidio-NCM Average Dealership Performance Benchmark, the average dealership posted a 3.7% increase in net pretax profit compared to Q1 2024, indicating a recovery from the pandemic-related volatility. Read More
6. Tesla stumbles in Q1 as auto revenue drops 20%
Tesla is having a rough start to the year and reported dramatic declines in both its gross and net revenues for the first quarter of 2025 on Tuesday. The company’s bread-and-butter automotive revenue dropped by 20%. Tesla pointed to production disruptions, lower average selling prices due to higher incentives, and shifting U.S. trade policies as key contributors to the shortfall. Read More
7. Toyota to invest $88M in West Virginia plant amid U.S. tariff pressure
Toyota Motor Corp. will invest $88 million into its Buffalo, West Virginia, plant to increase production of hybrid transaxles by late 2026, reinforcing its U.S. manufacturing footprint amid looming import tariffs under the Trump administration. The Japanese automaker announced Wednesday that the investment will support the assembly of sixth-generation hybrid transaxles, a key component that transfers power between the engine, electric motor, and wheels in hybrid electric vehicles. Read More
8. Dave Kelleher warns tariffs will raise prices, cut jobs across U.S. retail market
As the Trump administration weighs significant tariff increases on imported goods, Dave Kelleher, president of David Auto Group, is sounding the alarm on what he sees as a ripple effect of economic consequences. In an exclusive interview on Inside Automotive, Kelleher shared with host Jim Fitzpatrick how proposed tariff changes could hurt car buyers, squeeze retailers, and ultimately lead to layoffs across the U.S. dealership network. Watch the full segment here.
9. Amberly Allen drives dealership savings with compliant surcharge programs
As credit card processing fees continue to cut into dealership profits, Amberly Allen, founder and managing partner of Dealer Merchant Services, is offering a lifeline. On this episode of Driving Solutions, Allen shares how her company has become the nation’s leading provider of compliant surcharge programs, helping more than a thousand dealerships reduce costs while staying legally and operationally sound. Watch the full segment here.
10. Kia showcases bold future at Milan Design Week with EV concepts and innovation with Lauren Fix
CBT News’ correspondent Lauren Fix brings us on location at the Milan Design Week, where design takes center stage across every industry—from luxury interiors to next-generation mobility. For the third year in a row, Kia made a strong statement at the international event, unveiling a lineup of electric vehicle concepts that push the boundaries of both form and function. With models like the EV2, PV5, and the highly adaptable Weekender Concept, Kia is proving that innovative design isn’t just about aesthetics—it’s about rethinking how we live, travel, and interact with the vehicles of tomorrow. Watch the full segment here.
11. CMDA’s Mitch Mitchell on why minority dealerships aren’t just DEI—they’re ‘great’ business
On the latest episode of Diversity in Automotive, Bridget Fitzpatrick sits down with Mitch Mitchell, Executive Director of the Chrysler Minority Dealers Association (CMDA), who reflects on his 30-year journey in the automotive industry and the CMDA’s ongoing mission to elevate minority dealership ownership. As the organization nears its 40th anniversary [in 2026], Mitchell shares the CMDA’s multi-pronged approach to advocacy, development, and mentorship—while sounding the alarm over threats to diversity initiatives and dealership access. Watch the full segment here.
