An Automotive News analysis finds Japan’s automakers have absorbed $28 billion in combined costs from tariffs, electric vehicle write-downs and policy reversals — with more pain ahead. Two major auto suppliers are merging. Plus, Ducker Carlisle analyst Nate Chenenko breaks down data showing dealerships have been steadily losing service business to quick lubes and independent shops since 2022.

June 12th, 2026 | Japan's automakers absorb $28B tariff hit; dealerships losing service share

Automotive News Daily Drive

Welcome to Daily Drive for Friday, June 12th, 2026. I'm Kellen Walker in Las Vegas. Today on the show, Japan's automakers have absorbed $28 billion in combined costs because of U.S. policy whiplash. Two major auto suppliers are merging and Canada wants a bilateral deal with the U.S. as Trump says he doesn't want to extend USMCA.

Plus, new data from billions of credit card transactions shows dealerships have been losing service business to quick loops for years, and the gap is widening. They're not losing their business to the cross-branded dealership. They're losing their business to the independent shop that was an afterthought to them. Let's run through all the news you need to know to keep up in the auto industry. Trump's policy whiplash is hitting Japan's automakers where it hurts most, the bottom line.

An Automotive News analysis finds Toyota, Honda, Nissan, Mazda, Subaru and Mitsubishi have absorbed $28 billion in combined costs from U.S. tariffs, EV write-downs and emissions policy reversals. That number could top $40 billion by March 2027. Toyota faces the biggest hit, more than $17 billion in tariff costs alone.

Honda is close behind after booking over $9 billion in EV write-downs. Honda saw its first annual loss in nearly 70 years as a public company. Two major auto suppliers are joining forces. Dana is merging with Eaton's Mobility Business in a deal valuing the combined company at more than $10 billion in enterprise value.

The merger brings together commercial vehicle transmissions, engine and emissions products with Dana's powertrain and thermal technologies. The companies expect $250 million in cost synergies within two years of closing. The deal reflects broader industry pressure, tariffs, EV uncertainty and a robust aftermarket as Americans hold onto their vehicles longer.

June 12th, 2026 | Japan's automakers absorb $28B tariff hit; dealerships losing service share

Read the full transcript

The candid version is on a podcast,
not the earnings call.

June 12th, 2026 | Japan's automakers absorb $28B tariff hit; dealerships losing service share

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.