Toyota braces for $1.3B tariff blow, EV funding lawsuit heats up, BMW-powered flying car gets greenlit

Hey everyone. We’re closing out launch week strong on Daily Dealer Live.

Joining us:

• Preston Stewart, National Variable Ops Director, Napleton Auto Group

• Brett Morgan, CEO, Morgan Automotive Group

• Patricia Muyshondt, CMO, Sames Auto Group

Streaming live at 1 p.m. EST on all CDG channels. Don’t miss it.

— 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.

Fascinating graph showing how auto tariffs are shaping U.S. retail prices so far:

Price increases for Mexico-built cars are outpacing every other region tracked.

(Data/graph source: CarGurus)

1. Toyota projects $1.3B tariff shakeup for April and May alone

Toyota’s latest earnings forecast is blunt:

$1.3B in tariff costs through May, a 21% annual profit decline through May 2026, and another $5.2B at risk from currency swings.

The issue:

Toyota Motor North America reported over half a million vehicle sales in Q1 alone—but a weaker dollar means those gains aren’t going as far in Japan.

Bottom line: Transparency is tough right now—but Toyota’s laying the groundwork for what could become a brutal stretch for global automakers…

(Go deeper: 2 min. read)

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2. Over a dozen states sue Trump Administration for halting EV charger funds

A multistate lawsuit is challenging the Trump administration’s freeze on NEVI funds—a $5B EV charging program created by the 2021 Infrastructure Law.

States argue the administration overstepped its authority by pausing funding already approved by Congress.

The result: active projects stalled and rural communities left behind.

Bottom line: This case will shape who controls the EV roadmap—elected lawmakers or executive agencies—and how quickly public infrastructure catches up to policy.

(Go deeper: 4 min. read)

3. BMW-powered flying car is heading for mass production

Klein Vision’s AirCar is officially in production—with plans to hit certain markets in 2026.

What we know: It transforms from road to air in less than two minutes and can reach 155 mph in the sky, powered by a BMW 280-horsepower engine.

However, at $1M, with no FAA approval in sight, and U.S. rights now held by China, it’s safe to say it won’t be taking off here anytime soon.

The signal: The AirCar is a step toward the future, sure. But it’s mainly a pricey novelty for now.

(Go deeper: 3 min. read)

Thanks for reading everyone.

— CDG

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