Trade Dispute and Economic Slowdown Drive Automotive Job Losses, Manufacturing Hit Hardest
The shrinking economy and unresolved trade conflict have negatively impacted automotive employment. From June 2024 to June 2025, total employment in the automotive sector and related industries declined 1.1% to 611.9k.
- Motor vehicle parts & accessories manufacturing: down 6.2%, back near June 2020 pandemic levels.
- Metalworking machinery manufacturing: down 10.3%, the sharpest decline.
- Motor vehicle manufacturing: down 1.7%.
- Automotive parts & accessories stores: down 1.2%.
- Dealers & maintenance: saw employment growth, supported by positive sales and continued vehicle use.
DAC’s Andrew King stressed that prolonged trade disputes will keep weighing on the industry, with manufacturing particularly hard-hit.
EV Sales Hit Record High Ahead of Tax Credit Phaseout
U.S. electric vehicle (EV) sales surged to a record 146,332 units in August, representing 9.9% of all auto sales, as buyers rushed ahead of the September 30 expiration of key federal tax credits.
August Wholesale Used-Vehicle Market Stays Flat, With EVs Leading Gains Amid Strong Retail and Fleet Sales
Wholesale used-vehicle prices held steady in August, with the Manheim Used Vehicle Value Index (MUVVI) flat at 207.4, reflecting a 1.7% year-over-year increase. Seasonally adjusted values muted what was a stronger-than-normal gain, as non-adjusted prices rose 1% month over month and 1.8% year over year—well above the long-term average August increase of 0.1%. Tight inventory and strong consumer demand for affordable vehicles continued to support higher-than-expected valuations, particularly for EVs, which have now outperformed the broader market for five consecutive months. EV wholesale values rose 4.6% year over year, compared to 1.4% for non-EVs, with EVs also posting slightly stronger month-over-month gains.