Hybrids are taking an increasingly larger share of new-vehicle sales. On average, monthly payments for hybrids are lower than those for fully electric or internal combustion engine models. The trend is among those highlighted by Experian’s State of the Automotive Finance Market report for Q2 2026, and it suggests that hybrids are being assisted at some level by OEM incentives. According to Experian, hybrids accounted for 16.8% of new-vehicle financing in the quarter, up from 13% in Q2 2025, while the EV share of new-vehicle financing declined to about 8.2%, from 9.2% a year ago. The average monthly payment for hybrids was $566 in Q2, and $602 for ICE vehicles, while the average monthly payment for EVs was $641.

Source: WardsAuto

Canadian Prime Minister Mark Carney pushed back Thursday against a claim from U.S. Commerce Secretary Howard Lutnick that Canada abandoned trade talks for political reasons, according to CNBC. Carney said Canada remains willing to negotiate a mutually beneficial agreement with the United States, adding that Canada will resume talks “when the Americans are ready.” The dispute marks another escalation in an already strained North American trade relationship. Negotiators walked away from the table last month after failing to reach a deal before President Donald Trump’s Aug. 22 deadline, when new 50% tariffs on roughly $20 billion worth of Canadian imports took effect. Canada responded with dollar-for-dollar tariffs on U.S. goods, which are scheduled to take effect Sept. 8.

Source: CBT News

Volkswagen announced on Thursday it was exploring new SUV and pickup offerings for North America, the latest example of how automakers are increasingly relying ‌on region-specific strategies to confront trade tensions and varying consumer appetites. "The brand will explore opportunities in the highly popular body-on-frame B-segment, including robust SUVs and pickup trucks, as a potential component of Volkswagen's future product portfolio," the company said in a release. VW ‌will ⁠look to expand hybrid offerings for U.S. customers, too, with the company stating it "will focus on those segments that show the strongest market demand and best meet the needs of customers and dealers in the region." ⁠

Source: Reuters

Fifty-six percent of drivers say gas prices have raised their interest in EVs, according to HERE Technologies and SBD Automotive's annual survey. Why it matters: As gas prices remain high, drivers increasingly see EVs as a way to save money. Charging availability is becoming less of a deterrent, too. 47% of drivers — up from 28% in 2025 — say there's a good number of public chargers; 85% of EV owners agree. Yes, but: Higher purchase prices are holding back two of every five EV buyers, according to the survey. Kelley Blue Book says Americans paid $56,126 for a new EVs in July — $6,200 more than the average car.

Source: Axios

Cadillac’s U.S. dealers, already grappling with plummeting sales this year, are bracing for a rocky transition as the brand backtracks from a plan to go fully electric by 2030 after starting to phase out gasoline models. “Cadillac has had great success with their electric vehicles, but they still have clientele that will expect to have a gas-powered vehicle well into the 2030s,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. “Finding a way to get there is the tough part, and because of the way Cadillac’s lineup is set up, there’s going to be this space in gas-powered sedans and some crossovers where they don’t have a vehicle in production to fill that space.”

Source: Automotive News

Volkswagen Group has confirmed it plans to halve its global model lineup and refocus its North American operations around SUVs, pickups and what it terms “rugged vehicles.” It’s part of a far-reaching restructuring program described as the most extensive in the German automaker’s 89-year history. For North America, the restructuring plan points to a more market-specific model strategy. An internal resolution document obtained by WardsAuto says the company will reposition its namesake brand with a stronger U.S. focus, while Audi will strengthen its role as a premium SUV brand. The newly resurrected Scout brand, which plans direct sales in the U.S. that bypass VW’s traditional franchises, is also identified as a key part of the North American region’s future growth strategy.

Source: Wards Auto

U.S. Transportation Secretary Sean Duffy blasted Ford Motor Co. over its business ties with major players in China’s auto industry, drawing a fiery response from the leading US car manufacturer. In a letter to Ford CEO Jim Farley, Duffy said his department “remains deeply alarmed” by Ford’s use of technology licensed from China’s Contemporary Amperex Technology Co. to produce batteries at a plant in Marshall in south-central Michigan. Meanwhile, Ford’s recent joint venture with Chinese automaker Geely in Spain “helps strategic adversaries secure a vital foothold in Western markets,” Duffy said in the letter.

Source: Bloomberg via Automotive News

As used inventory remains in demand, the number of vehicles in operation in the “sweet spot”, 6- to 12-years-old, declined slightly in the past year. But those vehicles from model years 2015 to 2021 still make up more than a third of the share, according to Experian’s Automotive Market Trends Report for Q2. Driving the news: Experian’s aftermarket sweet spot is for 6- to 12-year-old models, which are aged out of general OEM warranties and likely need replacement parts. 

Source: Car Dealership Guy

General Motors is expanding its Security Recording and Surround Vision Recorder features to more models in its 2027 lineup, which can capture footage for theft protection and accident documentation. Both systems are opt-in and require a USB drive that the driver supplies to save recordings. The automaker has stated that it does not store or access the recorded footage. The Security Recording feature automatically captures 30 seconds of interior and exterior footage when the vehicle’s alarm sounds, using four exterior cameras and one interior camera. Meanwhile, the Surround Vision Recorder captures exterior camera footage in two-hour loops, overwriting older footage once the loop is complete. This technology can help document accidents, vehicle tampering and potential theft.

Source: CBT News

Jaguar Land Rover has confirmed it will lose as many as 4,000 employees over the next two years in a bid to bolster its competitiveness, as the industry faces “significant challenges.” JLR currently employs nearly 40,000 people globally so its proposed cutbacks amount to about 10% of staff. The automaker is recovering from a devastating cybersecurity attack last year, and is contending with U.S. import tariffs and increasing competition from China-made electric vehicle products. Going forward, JLR is committed to launching five new vehicles over the next 12 months with a renewed focus on North America exports. 

Source: Wards Auto

The affordability conversation isn’t going away. Higher interest rates, rising vehicle prices, elevated insurance costs, and tighter household budgets continue to reshape the automotive retail landscape. Consumers are taking longer to make purchasing decisions, monthly payments remain a primary concern, and dealerships are feeling increased pressure to maintain profitability in a more challenging market. For many retailers, the days of relying solely on strong front-end grosses are giving way to a renewed focus on operational efficiency.

Source: CBT News