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

# Full Transcript

**Podcast:** Automotive News Daily Drive

## Participants

- **Kellen Walker** (Automotive News)
- **Dan Schein** (Automotive News)
- **Doug Bolduck** (A&E (Automotive Europe Congress) / A&E's managing editor)
- **Nate Chenenko** (Ducker Carlisle)

## Transcript

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. Close is expected in the first quarter of 2027.

The USMCA clock is ticking and Canada is trying a new approach to keep the deal alive. Canada U.S. Trade Minister Dominic LeBlanc says he expects bilateral side agreements to be negotiated between the U.S. and each partner country alongside the broader trilateral framework. That comes as President Trump said he's not looking to renew USMCA ahead of a July 1st deadline.

Meanwhile, U.S. Ambassador Pete Hoekstra told a Toronto summit Canada has a strong case to make on autos and told Ottawa simply make us an offer. And those are today's headlines. You can find more details on all those stories at AutoNews.com. This week, our colleagues in Europe hosted some of the most influential industry executives in the world at Automotive News Europe Congress in Brussels.

Joining me now to talk about what they heard is Doug Bolduck, A&E's managi...

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

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

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.