The Bottom Line For the first time in more than a decade, federal vehicle greenhouse gas standards have been repealed, fundamentally altering the compliance environment that automakers and dealers had been preparing for. Rather than simply returning to pre-standards norms, the industry must stay flexible on product mix. The EV revolution in still being driven my global markets, corporate strategy and state-level standards. Policy swings are far more likely than policy certainty in the near future. Dealers should plan as best they can for this volatility and remain as adaptable as they have proven to be for decades. creating compliant vehicles while balancing consumer demand. Dealers want to carry what consumers want to buy but struggle to maintain inventory that aligns with demand. 1. Inventory Mix Volatility: The outcome of litigation with the EPA, or a change in administration, could drastically impact ICE vs. EV allocations. 2. Used Vehicle Market: While the latest movements may stabilize the residual values of ICE vehicles in the near future, state-level standards could lead to deviations in the longer term. 3. F&I and Service Opportunities: Slower EV penetration into the market will sustain traditional parts and warranty revenue and could delay disruption to fixed ops. However, dealers that have made significant investments in EV service training and parts may see a delayed return on their investment. 4. Facility Investments: Dealers planning for EV charging stations, tools and training are left wondering to what extent they should continue their phased investments. It is advisable that they monitor the situation closely. 5. Political and Legal Uncertainty: 2026 could prove to be a transitional year. As dealers plan for 2027 and beyond, they should include contingency scenarios for varied emissions standards. Even if the federal standards remain repealed, state-level standards could impact all 50 states. Advocacy and engagement will remain critical as the litigation and policy arguments play out. For franchised dealers, the challenge isn’t just understanding the rules — it’s preparing for uncertainty and potential policy reversals that could affect product mix, pricing and long-term investment decisions. “ WWW.KYADA.COM 13
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