Vehicle dependability declines as software issues mount

Vehicle dependability is slipping as software-related issues and infotainment glitches continue to frustrate owners, according to the JD Power 2026 U.S. Vehicle Dependability Study. The study found the industry average rose to 204 problems per 100 vehicles, up 2 PP100 from 2025 and the highest level recorded since the study was redesigned in 2022. Infotainment systems remain the most problematic category at 56.7 PP100, followed by exterior issues at 27.5 PP100.

Source: CBT News

Reuters reports that the U.S. International Trade Commission just fired the starting pistol on what promises to be a marathon review of the automotive rules of origin under the United States-Mexico-Canada Agreement (USMCA). The probe, announced Thursday, will scrutinize the trade pact’s impact on the U.S. economy, the competitiveness of domestic automakers, and whether the current regulations make any sense given the rapid technological changes sweeping the industry. For the Detroit automakers and the sprawling supplier network that feeds them, this investigation isn’t academic – it carries multibillion-dollar implications for supply chains stretching from Windsor to Monterrey.

The current USMCA framework, which took effect in 2020, already tightens the screws compared to the old NAFTA. It mandates that 75 percent of a vehicle’s value originate in North America and introduces a Labor Value Content rule requiring 40-45 percent of that value to come from high-wage workers. But Washington signals that it isn’t enough. Senator Bernie Moreno (R-Ohio) made the administration’s ambitions crystal clear at the Detroit Auto Show. “The top priority from the U.S. government’s perspective is going to have more final assembly in the U.S., and that will happen,” Moreno stated flatly. “There is not even a question that there will be more requirements for U.S. final assembly in USMCA.”

Automakers, including General Motors, Ford, and Stellantis, have publicly urged the administration to extend the current agreement, calling it essential for American production. Behind the scenes, however, they wrestle with the potential for upheaval. Stellantis warned that if the U.S. doesn’t align rules for vehicles from elsewhere, American-made models “will continue to lose market share to Asian imports, to the detriment of American automotive workers.” The USITC plans a public hearing later this year, with a final report due by July 2027. Until then, the industry must plan its next moves while staring at a moving target. As Moreno put it, the push for certainty is urgent: “It’s important for us to get to an agreement that is passed by Congress to give the industry certainty.” But with the commission now digging into the details, certainty feels a long way off.

Source: GM Authority

Automotive industry analysts are forecasting that another microchip shortage could hit in the coming months, increasing the risk of production halts and rising costs. The concern centers on dynamic random-access memory, or DRAM, particularly DDR4 chips that support artificial intelligence (AI), infotainment, and advanced driver assistance systems in vehicles. Analysts say a boom in AI data center development is prompting chip manufacturers to prioritize higher-margin, next-generation memory products, leaving automakers and consumer electronics companies facing higher prices and potential supply constraints.

Source: CBT News

If Hyundai’s outgoing Santa Cruz compact pickup was its way to dip a toe into the American market, its incoming midsize replacement due around 2029 looks like a full immersion into a far tougher segment. It is a segment Toyota has long owned with the Tacoma. Ford launched the Ranger and Jeep the Gladiator in 2019, but they didn’t dent the Tacoma’s fenders or spark a surge in sales of midsize pickups. The seven nameplates in the midsize segment accounted for 639,251 sales in 2019, according to the Automotive News Research & Data Center. They had sales of 660,412 vehicles last year.

Source: Automotive News

TransUnion forecasts that auto loan originations, or annual growth, will fall by 1.5% this year, a lending category exception in its 2026 Credit Originations Forecast. According to the outlook, credit card, mortgage and unsecured personal loans are expected to increase. The information and insights company released the forecast in conjunction with its fourth-quarter Credit Industry Insights Report. The expected decline in auto loans comes after 2025 gains it says were driven by consumers motivated to finalize purchases before the end of the federal electric-vehicle tax credit and anticipated trade tariff price hikes. 

Source: F&I and Showroom

Stellantis is positioning the return of the Jeep Cherokee as a cornerstone of its effort to reverse declining U.S. sales and regain market share in the nation’s largest vehicle segments. The 2026 Jeep Cherokee is arriving in U.S. dealerships following a three-year hiatus. The midsize SUV reenters the compact and midsize crossover segments, which together account for the largest share of the U.S. market. It also marks Jeep’s first traditional hybrid model in the U.S. and the brand’s most fuel-efficient gas-powered vehicle to date.

Source: CBT News

General Motors is making a major change to its purchase agreements, joining its Detroit 3 competitors in attempting to tighten supply contracts for more operational flexibility as rising costs weigh on the industry. The automaker in recent weeks has inserted a new clause into its purchase orders giving GM the ability to extend contracts indefinitely — and dictate pricing adjustments, according to a Crain’s Detroit Business review and legal analysis. Crain’s Detroit Business is an Automotive News affiliate. The “Program Extension Clause,” which applies to all contracts amended on or after Sept. 20, states: “Buyer may, at its option, upon six months notice to seller, extend the term of this contract (which may include multiple subsequent term extensions).”

Source: Automotive News

On Wednesday (February 25), the British luxury automaker Aston Martin said it will cut its workforce by up to 20% as it strives to recover from the effects of US import tariffs and weak demand in China. The reductions, from a total workforce of around 3,000, are expected to deliver annualized savings of about 40 million pounds ($54 million). The company did not specify when the cuts will be implemented, but most of the savings are expected this year. The reductions also include a 5% cut announced last year.

Source: CBT News

U.S. and Canadian officials are preparing for a potential in-person meeting in Washington in the coming weeks as the Trump administration weighs changes to the United States-Mexico-Canada Agreement, a development closely watched by the auto industry. U.S. Trade Representative Jamieson Greer said Wednesday that he spoke with his Canadian counterpart and expects to meet in Washington “in a couple weeks.” A spokesperson for Canada-U.S. Trade Minister Dominic LeBlanc confirmed to Reuters that both sides have held several informal discussions in recent days about a possible meeting in the near future.

Source: CBT News

Three-year-old vehicles have long been considered the sweet spot for cost-conscious shoppers—but current model-year used cars became the value leaders in Q4, with older options spending more time on dealer lots. In Q4, 3-year-old used vehicles had an average transaction price (ATP) of $30,699 and spent an average of 45 days on dealer lots before selling—the longest Q4 selling time since 2017. 2025 model-year cars sold for an average of $6,370 less than new during the same period, and accounted for one-in-12 used vehicles sold, underscoring buyers’ interest in the newest used models.

Source: Car Dealership Guy