2026 RAV4 goes hybrid-only, Subaru sets price hikes for June, Senate targets California EV rule

Hey everyone. In the latest run of our Market Pulse newsletter, we broke down the most recent data on auto delinquencies, recovery rates, and why more buyers are walking into deals with stretched budgets.

Highlights:

• Why auto loan performance is slipping fast in unexpected places

• How student loan collections are quietly reshaping affordability

• What rising used car values mean for repos and risk

Out of the loop? Catch up here.

— CDG

Welcome to the Daily Dealer a concise rundown of the most important automotive industry headlines that matter to car dealers, automakers, and industry insiders.

Resale values are revealing some hard truths about brand strength:

After 5 years, top performers like Toyota and Ram are holding nearly double the value of the bottom performers like Chrysler and Dodge.

It’s a reminder that total cost of ownership typically starts with the exit—not the sale.

*Tesla not included due to limited historical data.

(Data/graph source: CarEdge / CDG analysis via Joe Cecala)

1. 2026 Toyota RAV4 is going hybrid-only, with expanded U.S. production planned for Kentucky

Toyota’s next-gen RAV4 is a tariff-era playbook in motion—fully hybrid, tech-loaded, and built closer to home.

Why it matters: The RAV4 is the best-selling unit in the U.S., and Toyota’s already running lean with just a 10-day supply. That leaves little buffer as 25% import tariffs kick in.

To stay ahead, Toyota’s adding 200K units of production, shifting more RAV4 builds to Kentucky, and going all-in on hybrid and plug-in models.

Looking ahead: The 2026 RAV4 hits later this year. Pricing’s TBD—but if Toyota nails the mix, it could hold the crown, tariffs or not.

(Go deeper: 4 min. read)

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2. Subaru is raising prices across multiple models starting in June

Subaru is raising prices across multiple models starting in June, with hikes ranging from $750 to over $2,000 depending on the trim.

The Forester (one of Subaru’s more affordable options) is seeing increases up to $1,600.

And while the company points to “market conditions,” the timing closely mirrors Ford’s recent price bumps on the Mach-E, Maverick, and Bronco Sport, all imported from Mexico.

Big picture: Automakers are beginning to recalibrate pricing in response to shifting costs and supply dynamics, making this a key moment for price-sensitive buyers.

(Go deeper: 3 min. read)

Catch the next episode of Daily Dealer Live

2026 Toyota RAV4 debut, dealership M&A recap, Subaru price hikes

Featuring special guests, including:

• Dorian Jimenez, Owner/Operator at Classic OKC

• Ross Tinkahm, Go-To-Market Leader at Podium

• Michael Speigl, Dealer Principal at WE Auto

Streaming on all CDG channels today at 1 p.m. EST

3. Republicans are targeting California’s EV rule in Senate showdown

The U.S. Senate is moving to block California’s plan to phase out gas-powered vehicles by 2035, with votes on three resolutions expected soon.

The measures would unwind California’s EV mandate and related truck emission rules, citing concerns over consumer readiness, costs, and charging infrastructure.

Auto dealers, including the National Automobile Dealers Association, are urging Congress to take control of the issue—arguing California’s timeline is out of step with national demand.

Zooming out: EVs aren’t going anywhere, but this vote could shape whether adoption follows California’s pace—or an entirely market-driven one.

(Go deeper: 3 min. read)

Thanks for reading everyone.

— CDG

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