🤖 Monday Headlines: Rules, Recalls, Robotaxis, and More

Need to Know News

• ⚖️ The Latest on the CARS Rule

• ⏎ Recent Recall Rundown

• 🚕 J.D Power’s Robotaxi Report

• 🔌 The Best and Worst States for EV Adoption

BUSINESS

⚖️ The Latest on the CARS Rule

On October 9th, a U.S. appeals court heard arguments on National Automobile Dealers Association’s challenge to the Federal Trade Commission's CARS Rule, which aims to regulate dealership advertising and finance practices.

NADA and the Texas Automobile Dealers Association argue that the rule was improperly implemented, skipping critical procedural steps, and imposes unjustified burdens on dealerships.

The FTC defends the rule, asserting it’s necessary to crack down on deceptive practices like bait-and-switch advertising and questionable finance and insurance products.

At the heart of the case is whether the FTC followed proper procedures when developing the rule. NADA claims the agency skipped the "advance notice of proposed rulemaking," (ANPRM) which would have allowed more feedback at the initial stage of rule development.

However, the FTC argues that this step wasn't required under the Dodd-Frank Act, which guides the CARS Rule.

Judges questioned both sides on whether skipping this step constituted a “harmless error” or if NADA and the industry were materially harmed by the omission. NADA’s lawyers emphasized that the absence of an ANPRM denied dealerships sufficient time to comment on potential impacts.

In contrast, the FTC argued that NADA actively participated in the later stages of the rulemaking process, influencing changes like the removal of add-on disclosures.

The legal debate also touched on the cost-benefit analysis. NADA criticized the FTC for overstating consumer time savings while underestimating the financial burden on dealerships. Judges noted that similar rules, like the Truth in Lending Act, took years of litigation to refine, suggesting the CARS Rule could face a similar lengthy legal process.

The court is expected to rule within 2-6 months, potentially sending the rule back to the FTC for further review or striking it down altogether.

(Thank you to our friends at Comply Auto for the heads up and insights!)

⏎ Recent Recall Rundown

Recalls are once again sparking major concerns among consumers after BMW, Honda, and Chrysler all pulling thousands of vehicles off the roads for safety concerns.

🛑 BMW: Brakes Still Causing Trouble 🛑

BMW is recalling over 11,500 vehicles after a failed fix for brake power assist problems earlier this year.

Affected models include the X1, X5, X6, X7, and several from the 7-Series lineup.

The recall stems from faulty integrated brake modules that could lead to a reduction in brake power and malfunctions in both the ABS and DSC systems.

🛞 Honda: Steering Trouble Sparks Major Recall 🛞

Honda is recalling nearly 1.7M vehicles from 2022 to 2025, including Honda Civics, CR-Vs, HR-Vs, and Acura Integras.

A defect in the steering gearbox assembly could cause excessive internal friction, making the vehicles difficult to steer and increasing crash risk.

While no injuries have been reported, the National Highway Traffic Safety Administration received 145 complaints about this issue earlier this year.

🐏 Chrysler: Jeep and Ram Safety Concerns 🐏

Chrysler's recall affects more than 283K vehicles, including 2020-2024 Jeep Wranglers, 2022-2024 Jeep Grand Cherokees, and 2023-2024 Ram 1500s.

Jeep owners are warned to park away from structures due to high-voltage battery failures that may lead to vehicle fires.

Meanwhile, Ram trucks face turn signal malfunctions that increase the risk of crashes.

Dealers are being instructed to update battery pack software and inspect the steering column control modules to address these issues free of charge.

🚕 J.D Power’s Robotaxi Report

Climbing into a driverless car still freaks a lot of people out. But those who try it seem to love it.

The 2024 U.S. Robotaxi Experience Study from J.D. Power shows that once people ride in a robotaxi, satisfaction scores soar to 8.53 out of 10. That’s a big shift from the general public’s skepticism, with only 20% of people who haven’t tried robotaxis saying they trust the tech.

For those who’ve ridden in one, though, trust shoots up to 76%. It’s clear: experience breeds confidence.

While robotaxis still feel like a novelty in cities like Dallas, Vegas, L.A., Phoenix, and San Francisco, the key to winning over more riders lies in boosting brand recognition, expanding service areas, and making trips cheaper. Brands like Cruise, Waymo, Zoox, and others are still figuring out how to build trust and deliver on safety features.

• Private Chats — 77% of riders would choose a robotaxi over Uber/Lyft for trips requiring privacy, but they still prefer ride-shares for navigating unfamiliar areas.

• Following the Law (Or Not) — Riders gave high marks for robotaxis that obey traffic laws and handle normal traffic seamlessly.

• Novelty Factor — For now, robotaxis are a cool experiment, but until they solve for cost and coverage, they won’t become mainstream.

With strong feedback and a clear sense of what’s needed, robotaxi companies have the roadmap to shift from novelty to necessity.

🔌 The Best and Worst States for EV Adoption

The latest iSeeCars analysis highlights significant differences in electric vehicle adoption across the States over the past five years.

States like Arkansas and Louisiana have seen rapid growth, with Arkansas leading the charge, growing its EV market share by over 13,900%. West Virginia, which had no measurable EVs in 2019, also saw notable increases in 2024.
 

 
In contrast, states like South Carolina and Hawaii experienced slower growth in EV adoption, although they still managed to more than double their EV market share since 2019.

Interestingly, even EV-heavy states like Oregon and California showed below-average growth, likely due to already high adoption rates.
 

If you should know about it, we’re gonna write about it.
👇 Stay in the know — sign up today!👇