Auto industry update for May 2026

Ford & GM are still recovering from major EV related losses, but Ford is seeking to create a midsize EV pickup truck for $30k. Meanwhile, dealerships are struggling with supply shortages due to a lack of aluminum. Carmakers are really counting on tariff refunds and service revenue to carry them due to a lack of sales. Despite these issues, local mom-and-pop car dealerships continue to consolidate, grow, and thrive. Used car values are seeing their highest point since the summer of 2023 with used EV sales really surging. 1 in 3 car buyers are now underwater on trade-ins, with the average amount of negative equity reaching $7,214. The number of borrowers with negative equity has increased 42% over the last five years. A third of car buyers are reaching out 84 months to make the financing numbers work on new car purchases. Additionally, foreign automakers continue to dominate the sedan market and Amazon is pushing into car sales. This episode reviewed multiple articles from The Epoch Times, The Wall Street Journal, and CNBC.