The U.S. automotive industry had a solid 2025 on aggregate, with sales rising 2.2% to a new post-pandemic high (Chart 1). However, the industry was also subject to notable volatility, as the implementation of tariffs and the expiration of electric vehicle (EV) subsidies led to significant and episodic front-loading of purchases by consumers. Sales activity over the past 6 months has remained stable overall, with support provided by lower financing rates, but 2026 is shaping up to be another year of volatility. The notable increase in oil prices since the start of the conflict in the Middle East at the end of February ... (full story)