Dealer sentiment stayed upbeat in Q2, with Cox Automotive surveying more than 500 franchise dealers in late April and early May. Lexus is also leaning into electrification, with the redesigned 2026 ES arriving in June with hybrid or battery-electric powertrains, while Volvo secured authorization to import connected vehicles under a 2027 Commerce rule. The big logistics story ties to the Gordie Howe Bridge: in a just-in-time world, reducing crossing delays can prevent production from slipping—especially compared with the Ambassador Bridge.
"This connected Windsor and Detroit for almost 100 years now, coming up on 100 years. It opened in 1929, but this new bridge is modern."
The Gordie Howe Bridge is a new bridge linking Detroit and Windsor. It matters for cars because it helps trucks move parts and vehicles between the U.S. and Canada faster and with fewer delays.
The Gordie Howe Bridge is a major new crossing meant to connect Windsor, Ontario and Detroit, Michigan. It’s important to the auto industry because it’s part of the trade corridor that moves vehicles and parts between Canada and the U.S. more efficiently.
"And when it was the Ambassador Bridge, it was really a bottleneck. And now this, with two additional lanes, direct connection between two major super highways in both countries, makes the free flow of goods that much freer, if you will, in terms of logistics."
The Ambassador Bridge is the older bridge between Windsor and Detroit. If something blocks it, truck traffic can stop, which can delay car parts and vehicle deliveries.
The Ambassador Bridge is the existing Windsor–Detroit crossing that the episode describes as a major bottleneck. The discussion highlights how delays there can ripple through automotive logistics because many shipments rely on that single route.
"And now this, with two additional lanes, direct connection between two major super highways in both countries, makes the free flow of goods that much freer, if you will, in terms of logistics."
In this context, logistics means the planning and movement of goods—like auto parts—through routes, borders, and delivery schedules. The episode argues that adding lanes and reducing delays improves logistics efficiency for the auto industry.
"But first and foremost, in a world of just-in-time delivery, you are now zipping across the Detroit River instead of being hindered by, and get this, nine stoplights."
Just-in-time delivery means companies try to get parts right when they need them. That’s why if a key bridge or border route gets blocked, it can quickly slow down car production.
Just-in-time delivery is a supply-chain approach where parts arrive right when they’re needed, rather than being stored in large inventories. The episode ties it to why a single border crossing disruption can quickly become a major auto-industry problem.
"...ow can be a big problem. I mean, this, you've got Flavia Volpe in this piece calling this our Strait of Ho..."
The Lancia Flavia is an older car model made by the Italian automaker Lancia. It’s the kind of vehicle you’d hear about when people talk about classic cars and their history.
The Lancia Flavia is a classic Italian-built car that was produced in the mid-20th century, known for its distinctive engineering and place in Lancia’s lineup. It may come up in a podcast when discussing historical automotive design, specific models, or notable stories tied to the name “Flavia.”
"I mean, this, you've got Flavia Volpe in this piece calling this our Strait of Hormuz moment, this trucker blockade. That was our Strait of Hormuz moment."
It’s a metaphor for a critical “chokepoint” in shipping. The idea is that if one key route gets blocked, it can cause big problems far beyond the immediate location.
“Strait of Hormuz moment” is a comparison to the Strait of Hormuz, a chokepoint where disruptions can affect global shipping. The episode uses it to describe how a blockade at a single bridge can create outsized risk for trade and auto supply chains.
"Now, you mentioned in the piece the 2022 trucker blockade. And I think it's such a good example of why this is important and why anything happening with the one bridge, the ambassador bridge that exists right now can be a big problem."
A trucker blockade is when trucks block a road or entry point so other vehicles can’t get through. In this case, it shows how quickly car parts and deliveries can be disrupted.
A trucker blockade is when commercial vehicles are used to obstruct roads or access points, stopping traffic and deliveries. The episode frames the 2022 blockade as a demonstration of how vulnerable a single crossing can be for auto shipments.
Term
U.S. Border Services
"Of course, CVSA and the U.S. Border Services would really be in control of just about everything. There would be a plan in place."
U.S. Border Services are the U.S. agencies that handle inspections and entry for people and goods crossing the border. The episode is saying the new bridge would be more tightly managed by official authorities.
U.S. Border Services is the general term for U.S. agencies that manage entry and inspections at the border. The episode uses it to emphasize that the new bridge would be handled under formal federal inspection and enforcement processes.
"If we don't solve this and get this other bridge open, which would then be governed by federal agencies, run by Michigan, or excuse me, owned by Michigan and Canada. Of course, CVSA and the U.S. Border Services would really be in control of just about everything."
CVSA is an organization that helps with safety checks for commercial trucks. In the episode, it’s mentioned as one of the groups that would help control and inspect trucks at the crossing.
CVSA refers to the Commercial Vehicle Safety Alliance, a group involved in commercial-vehicle inspections and safety enforcement in North America. The episode mentions it as part of the enforcement framework that would oversee the new crossing.
"...get across the Detroit River with a truck, with a semi truck. So they were fighting this tooth and nail...."
The Tesla Semi is an electric truck built for hauling goods. Instead of using diesel fuel, it runs on electricity, and it needs charging infrastructure to operate.
The Tesla Semi is an all-electric heavy-duty semi truck designed for long-haul freight. It’s significant because it represents a push toward electrifying trucking, which can reduce reliance on diesel and change how fleets plan routes and charging. It may be discussed in the context of major infrastructure, logistics, and the challenges of moving large loads efficiently.
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Welcome to Daily Drive.
For Wednesday, May 27, 2026, I'm Kellan Walker in Las Vegas, today on the show.
Despite the economy and politics, dealers are feeling pretty positive.
Lexus is banking on high gas prices to lift its electrified models.
And Volvo gets the green light to import connected vehicles despite its Chinese ownership stake.
Plus, a look at why the North American auto industry is waiting anxiously for a new bridge between Detroit and Canada to open.
In a world of just-in-time delivery, you are now zipping across the Detroit River instead of being hindered by, and get this, nine stoplights.
It is six kilometers stretch leading up to the privately owned Ambassador Bridge, so you're breaking a lot of bottlenecks.
Let's run through all the news you need to know to keep up in the auto industry.
Dealer optimism held up in the second quarter. That's even as economic and political headwinds grew.
Cox Automotive's Latest Dealer Sentiment Index surveyed more than 500 franchise dealers in late April and early May.
Dealers rated their current markets a slightly favorable 53, up five points from Q1.
They forecast an even more bullish 57 for the next three months. The bright spot used vehicles.
Dealers rated that market a 62, the highest score since the third quarter of 2022.
Still, 54% said the economy was holding back their business, and 43% cited the political climate.
Lexus hopes geopolitical tensions might actually give it a boost with its new hybrid and EV models.
The redesigned 2026 ES sedan arrives at dealerships in June, with the hybrid or battery electric powertrain.
Both are built on the same assembly line, giving Lexus flexibility to shift production based on demand.
The hybrid is expected to account for about 80% of US sales, starting at just over $51,000.
The EV version starts a couple thousand less. The sedan is also larger, helping fill the void left by the discontinued LS flagship.
In the US will allow Volvo to import vehicles despite its ties to China and an impending government band on connected cars with Chinese hardware and software.
That's according to a disclosure from the automaker May 26.
The US Office of Information and Communications Technology and Services granted Volvo the authorization.
The automaker is majority owned by Chinese company Geely.
Here to talk more about it is Molly Boygon, tech and innovation reporter here at Automotive News and co-host of the Shift podcast.
Molly, welcome back to Daily Drive.
Thanks for having me, Kale.
So, Molly, you write that this move is key for Volvo to be able to continue importing its models into the US. Why is that?
Volvo had to get this authorization to be able to import vehicles because of a Department of Commerce rule, part of which is going into effect starting in 2027.
The reason why Volvo needed this authorization is because the Department of Commerce rule puts all of these restrictions on different software, hardware, vehicles and even ownership structures tied to China and connected vehicles.
So, given that the Chinese automaker Geely has a majority stake in Volvo, it needed to get this authorization basically as the first step to be able to continue to import vehicles into the United States.
Now, why did the US government decide to give Volvo a pass here and what are the risks, if any?
So, this is really just that initial step that says, okay, Volvo, we acknowledge that there's a Chinese company that owns the majority of this automaker.
And basically, it appears that the US government said the value from Volvo being able to continue to import connected cars into the US is greater than the potential risk of having that Chinese ownership.
However, Volvo and honestly, every automaker that imports into the US is going to have to figure out how to meet the other conditions of the Commerce Department rule, which involve prohibitions on Chinese hardware and software,
and even prohibitions tied to whether somebody who is involved in the manufacturing of this hardware and software could be under the control or influence of the Chinese government.
It's a very kind of nebulous, evolving definition and it's going to be really interesting to see how strict the US government is in its enforcement of the rule.
Interesting stuff. Molly Boygon, thank you so much for joining me.
Thanks for having me.
Thank you.
But it's still not open. That's at least partly because of a threat from President Donald Trump to delay the bridge unless Canada gives up a key part of the agreement to build it in the first place.
Greg Lason is digital and mobile editor of our sibling publication Automotive News Canada. He wrote an article about the saga on AutoNews.com and talked with our own Jake Nier about why this is such an important story for the industry.
Greg Lason, as always, great to have you here on Daily Drive.
Good to be back.
Greg, I got to commend you. We've been talking about doing something about the Gordy Howe Bridge for a while now and I will say that even though I've followed this story for a very long time and I've been pushing for us to do something about it,
I learned quite a bit from your writing about this and so I really think that anyone, even people who have been following this issue for a long time, could get a lot out of it.
So first and foremost, go read Greg's article on this. It's just so interesting.
Now, for those listening who aren't familiar with the Gordy Howe Bridge, remind them, you know, why is this so important for the North American auto industry and what is it?
Well, first, it's a second span connecting Windsor, Ontario and Detroit, Michigan, essentially the two automotive capitals of each respective country for the most part, at least long known to be the automotive capitals, right?
And so for a really long time, we only had the Ambassador Bridge, which anyone who watches Hockey Night in Canada, it's always a prominent feature there when the Red Wings are on.
This connected Windsor and Detroit for almost 100 years now, coming up on 100 years. It opened in 1929, but this new bridge is modern.
It is downriver of both cities. It connects directly the Highway 401, the busiest highway in Canada with the I-75 in Detroit, one of the busiest highways that runs essentially from Detroit to Miami, all through the Midwest, all up and down the coast.
This is a huge trade corridor, not only for auto, but for North America. It is one of the busiest border crossings in North America. It is one of the busiest trade crossings in North America.
And when it was the Ambassador Bridge, it was really a bottleneck. And now this, with two additional lanes, direct connection between two major super highways in both countries, makes the free flow of goods that much freer, if you will, in terms of logistics.
It will be cheaper. It will cost less for trucks to cross, so that's a win for the North American auto industry. But first and foremost, in a world of just-in-time delivery, you are now zipping across the Detroit River instead of being hindered by, and get this, nine stoplights.
It is six kilometer stretch leading up to the privately owned Ambassador Bridge, so you're breaking a lot of bottlenecks and really speeding up the time in which it takes for a truck to get from, say, Windsor to Toledo to the Jeep plant, if it supplies that, for example.
So this is a huge piece of infrastructure that's been called upon for about 30 years, almost my entire lifetime.
Greg, I know that you've mentioned this at least just in our conversations together, but I believe on the podcast as well, that those traffic lights, the many traffic lights that you have to hit in Windsor are pretty much the only stops in a route, I believe, correct me if I'm wrong, from like Miami to Montreal?
Is that about right?
That's correct. So when I was in college, St. Clair College, my alum was on that route, and there were, at that time in the 90s, 13 stoplights between Montreal and Miami, and 12 of them were in Windsor, and there used to be one right outside the Ambassador Bridge exit on your way into Detroit.
That's no longer there. But that's where they all were. Now, they've paired that down to nine, but in a very short amount of space, and it also has to go through a school zone. So you have these transport trucks loaded with parts from Magna and Linnimar,
Martin Rea, and tool and die trucks heading over to the United States, and they're being slowed to 60 kilometers an hour, which is about think about, you know, 30 miles an hour going through a school zone and still hitting another nine stoplights before they actually get on to what I like to call a private
driveway to America because it is privately owned. So there's no routine maintenance by any government agency. It's not, you know, overseen directly by MDOT, for example, or Transport Canada, for example. Sure, they have some say, but it is privately owned. So there's a lot of things, hurdles that the automakers have to deal with in getting their goods to and from the United States and Canada.
Now, you mentioned in the piece the 2022 trucker blockade. And I think it's such a good example of why this is important and why anything happening with the one bridge, the ambassador bridge that exists right now can be a big problem. I mean, this, you've got Flavia Volpe in this piece calling this our Strait of Hormuz moment, this trucker blockade.
That was our Strait of Hormuz moment. That moment was exactly why you should have other paths.
A $1 billion hit to the auto industry in one week. What did that week reveal about just how vulnerable that single crossing point is?
It raised a lot of red flags, starting with the fact that citizens, just anyone, you or I could drive down there, park our truck and refuse to move, and stop traffic dead on the way to and from the United States at a Canadian port of entry.
That in and of itself was wild. And that's what it was. It was citizens who were upset with COVID-19 restrictions. Prime Minister Justin Trudeau at the time, some of his policies, his party in general, his government in general.
And so it became a protest at the foot of the ambassador bridge, not necessarily protesting trade or the auto industry, but it showed that anyone with the will could simply stop the flow of goods.
And then it mushroomed from there in that law enforcement didn't really know whose jurisdiction it was. Was it the Ontario Provincial Police? Was it RCMP? Was it Windsor Police?
Because it's on Windsor Roadways. The bridge washed their hands of it because it wasn't actually on the bridge. It was blocking the road that accessed the bridge. So it became this really pivotal moment where people went, oh my goodness, there's a lot of problems here.
If we don't solve this and get this other bridge open, which would then be governed by federal agencies, run by Michigan, or excuse me, owned by Michigan and Canada. Of course, CVSA and the U.S. Border Services would really be in control of just about everything.
There would be a plan in place. This just illustrated how wild west it was for almost 100 years, but we went that century without any real problem. And now when it came to light, everyone went, oh my goodness.
Windsor Mayor Drew Dilkins told me within 60 minutes of automakers hearing of that closure, CEOs and executives were calling his office saying what is going on? Get that bridge open.
That really speaks to the just-in-time delivery nature of the business, the automotive business, and the reliance and the supply chains that we built on both sides of the border and the reliance on smooth and efficient trade in order to keep those operations going and to keep people working.
As I mentioned, Jim Farley from Ford says, you know, there are seats made in Windsor that are made 45 minutes ahead of time before they're actually installed in Ford vehicles in Michigan.
So anytime that bridge is down for an hour, suddenly Ford might be running 15 minutes behind on the line. What happens then? Workers sit down, trucks and vehicles are made.
For listeners who might not know this, probably most, I spent some time in my early career covering the Michigan State Capitol in Lansing, Michigan as a reporter, and this was kind of the topic du jour at the time when I started.
At the time it was Governor Rick Snyder here in Michigan who was really pushing for this second span to be built. And I think it might not be common knowledge, just how big a fight this was.
I mean, the owners of the Ambassador Bridge, the Maroon family, as you mentioned, this is a privately owned bridge connecting one of the busiest corridors, trade corridors in North America.
And they have total control over the only way to really get across the Detroit River with a truck, with a semi truck.
So they were fighting this tooth and nail. They didn't want the competition. And there were all kinds of sort of controversies and lobbying questions and things going on.
It took decades to get to where we were just to get a deal to build the bridge in the first place.
Yeah, I mean, when you look at the Maroon family, Maddie Maroon and now his son Matthew Maroon, who is in charge of the company, Maddie passed away a few years ago.
But to give you some context and perspective, Maroon bought that bridge back in the 70s, shortly after the AutoPact, and Maroon owns a trucking company.
So he was no dummy at the time. He realized how many of his own trucks were crossing that bridge for trade.
And then the AutoPact came into effect and trade in auto really opened up.
And he thought, geez, wouldn't it be great to own this and make some money?
And to give you an idea of how busy that bridge is, 5100 trucks a day crossed that bridge in 2025.
So you can understand why the Maroon family doesn't want to give up its private ownership.
And they tried to build their own second span. They tried to stop the government construction of the second span, the Gordy Howe International Bridge.
So they really fought tooth and nail through the courts and through injunctions.
Maddie Maroon actually went to jail, I believe, for a day or three days when he was in his 70s to prove a point after he refused some injunction that was put in place back in early 2000s.
And then the irony in all of this, and I love looking back on this part of it, is that it was conservative Prime Minister Stephen Harper and Democratic U.S. President Barack Obama, who actually came together and made this happen.
And Canada said, look, we all know we need this.
Michigan said, Governor Snyder said, we don't have the money. Canada said, we'll pay for it. We'll pay for the construction.
We'll co-own it. And Canada will recoup the cost that about 6 billion U.S. through tolls.
Now, I'm told no one has gone on the record and showed me the actual figures.
But the speculation is that it will take 100 years for candidates to recoup this, which leads us now to the GOP President Donald Trump being upset with liberal government Justin Trudeau and now Mark Carney as Prime Minister over here about that financial situation.
It appears Donald Trump wants his money now, not 100 years from now, and doesn't like this deal. So, you know, it's not lost on me that the political spectrum has flipped, and it went from getting along to being very tense.
So where does that leave us right now? I know that there's, I mean, it could be different by the time people even hear this, but, you know, it seems to flip around a lot.
We hear a lot of rumors and speculations, but do we have any sense of when this will actually open?
I mean, originally it was early 2026. I don't think it's early 2026 anymore, Greg.
No, I'm going to give you some dates. So originally it was to open in 2025 and then fall of 2025 and then early 2026 and then spring of 2026.
And then I had an actual date at one point of May 14th while we are now, as we speak, 12 days past that. So we keep blowing past all these signposts.
And look, say what you will of Donald Trump and his negotiating tactics, but nothing is lost on him or his team.
And so when they saw an opportunity to use this as a negotiating chip, a bargaining chip, they jumped at it and said, if you want a new USMCA deal, you better give us a better deal on that bridge or I'm not going to open it.
It is essentially what Donald Trump said. And so we know that he has enacted tariffs, rolled them back, put them back in place.
You know, a lot of times some of what he says, the ink isn't dry on some of these deals and things change along the way.
So if you're asking me, when will it open? I don't know. If you're asking for a window, I would say soon-ish.
You know, Canada is going to open this thing. Michigan wants it open. It has to open. And I think everyone's going to have to save some face at some point.
You know, I said to someone the other day, it was supposed to be open in spring.
Well, June 21st, I believe, is the first day of summer this year. So they have till the end of June to open this thing and save face.
So I don't know if US negotiating team is holding that over Canada's head or not and knowing that they're staring down a deadline that they would like to save face against.
But you know, somewhere sometime this year, that bridge will open. You know, Drew Dilkin told me it could open tomorrow if they would simply staff it and get permission from Donald Trump.
We know that it's ready. We know that it could open tomorrow provided there was staffing on both sides of the border.
So the owners of this bridge, the Canadian government and the state of Michigan, they want this open. President Trump's leverage point here is customs, right? Is that fair?
Yeah, that's fair to say. I think there's not a presidential seal, but there has to be presidential approval to open this bridge.
And yes, US customs is a federal agency. And so all of that is at the federal level. I suppose, look, I'm not an expert in US border security, but I would assume that the federal government could say, no, we're not staffing it right now.
But as far as I know, it is ready to be staffed and could be open should President Trump give the go ahead.
Greg Lason is digital and mobile editor at Automotive News Canada and the host of the Automotive News Canada podcast. Greg, great to talk to you about this. And I guess we will see if they can make that they can still save face and make it spring 2026.
Thanks for joining us anytime.
Greg Lason's story about the Gordy Howe Bridge is part of Automotive News' new series on the state of trade and tariffs. You can find that and all of our coverage at AutoNews.com.
That's Daily Drive for today. I'm Kellan Walker. Thanks to Automotive News journalists, Molly Boygon, John Hutter and Larry Velikwet for their reporting for today's podcast.
You can get the latest news on trade and tariffs, dealer sentiments and everything happening in the auto industry at AutoNews.com.
Come back tomorrow for more on the status of the Gordy Howe International Bridge with Automotive Parts Manufacturers Association President Flavio Volpe.
The most important things that went from Canada to the US and vice versa were manufactured goods and the center of manufactured goods is Detroit Windsor.
We'd love to hear from you. Let us know what you think of the show and the topics we cover today.
Send us an email at dailydrive at autonews.com or leave us a voicemail at 313-444-2774.
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