THE TOP 20 TRENDS in U.S. Auto Distribution for 2026 By Scali Rasmussen This is our first annual edition of the “Top 20 Trends in U.S. Auto Distribution,” where we review what happened in 2025 to identify ongoing and anticipated trends in U.S. auto distribution for the remainder of 2026. We do this with an eye toward identifying expected legal challenges and opportunities facing franchised auto dealers. Last year was challenging for dealers from a legal perspective, with continued ramp up and adoption of EVs, new market entrants threatening the existing distribution model, shifting regulatory goal posts for EV adoption and infrastructure, and new laws impacting how dealers advertise and sell cars following the death of the proposed rulemaking on the FTC’s Cars Rule last January after a successful challenge by the National Auto Dealers Association and the Texas Automobile Dealers Association. Finally, U.S. tariff policy under the Trump administration continues to threaten some brands, and factories’ attempts to deal with tariffs put a bigger squeeze on dealer profits as incentive programs are modified to pass the expense of the tariffs to the dealer body. Staying informed about these industry issues and being proactive, either in recognizing their application to your business or by taking advantage of available opportunities, can keep your dealership ahead of the curve in these tumultuous times. Disclaimer: Nothing contained herein constitutes, nor shall it be construed as, legal advice, nor shall it create an attorney-client relationship. Rather, it constitutes the lay opinion of the authors based on their experience and research. Independent research should be done before relying on any of the information contained herein for any purpose. Artificial Intelligence (AI) and Generative AI in Dealership Operations Artificial intelligence is being used on tasks previously thought to require human judgment, such as responding to customer inquiries or identifying patterns in data. In dealerships, these tools are increasingly used to respond to customer leads, summarize phone calls, schedule service appointments and assist with pricing and inventory decisions. The practical issue for dealers is no longer whether AI will be used, but whether it is properly controlled. Unmanaged use creates serious risks to customer data, operational integrity and regulatory compliance. Dealers who passively accept AI-driven tools from vendors risk being caught unaware of how decisions are made, how data is handled and where liability will land when something goes wrong. 28
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