June 28, 2026 to July 04, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas. Also consider subscribing to our Automotive - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week

Federal Government News

White House Directs EPA to Reform Aftermarket Parts Certification and Repair Regulations

President Donald J. Trump issued a memorandum on June 29, instructing the Environmental Protection Agency to reduce regulatory burdens under the Clean Air Act affecting vehicle repair costs and the certification process for aftermarket parts. The directive identifies California Air Resources Board's slow approval procedure as a bottleneck, contributing to higher prices. EPA is tasked with issuing guidance within 30 days regarding permissible emission repairs, expediting certification for aftermarket parts, and deprioritizing enforcement actions for individuals attempting repairs in good faith. The memorandum includes provisions regarding compliance, consumer access, and protection of intellectual property, marking a shift in federal regulatory posture on vehicle repair and parts modification.

Sources: www.whitehouse.gov

Justice Department Seeks Extension of National Motor Vehicle Title Information System Reporting

The Department of Justice's Office of Justice Programs is requesting an extension of the information collection for the National Motor Vehicle Title Information System (NMVTIS). The proposal reauthorizes monthly reporting requirements for U.S. junk and salvage yards, including auto recyclers, scrap-vehicle processors, and salvage auctions, as mandated by the Anti-Car Theft Act and 28 CFR part 25. Approximately 50,383 entities have NMVTIS IDs, with over 21,612 active reporters. Smaller operators may spend 30-60 minutes per month submitting inventories. Failure to comply may result in a civil penalty of $1,000 per violation. Comments are open until July 30.

Sources: www.federalregister.gov

FMCSA Requests Comments on Hazmat Hours-of-Service Exemption for Lone Star Haz Mat Response

The Federal Motor Carrier Safety Administration is soliciting public comment on Lone Star Haz Mat Response LLC’s application for exemption from hours-of-service rules following hazardous material incident operations. The request would allow field response personnel to exceed HOS limits for the return trip after completing emergency response, environmental cleanup, and incident deployments under contract with federal and state agencies. The exemption would apply four to five times per month and is limited to intrastate operations. Comments must be submitted by July 30, and FMCSA will decide following review of safety analyses and public input.

Sources: www.federalregister.gov

FMCSA Considers School Bus Driver Testing Exemption Renewal for NSTA

FMCSA is reviewing the National School Transportation Association’s request for a five-year renewal of its exemption permitting school bus endorsement applicants to forgo the engine compartment portion of the pre-trip inspection. The exemption is limited to intrastate school bus drivers, affecting more than 1,290 drivers across 15 states and reportedly covering pupil transport for some 64,500 students. NSTA asserts the exemption aids recruitment and retention and has had no negative impact on safety. Comments on the renewal are open until July 30.

Sources: www.federalregister.gov

USITC Initiates Investigation on Heavy Machinery Imports Over Patent Claims

The U.S. International Trade Commission, responding to a complaint from Caterpillar Inc., has launched an investigation into telehandlers, excavators, loaders, and their components imported by several Doosan Bobcat entities across North America, Europe, and Asia. The complaint alleges infringement of multiple Caterpillar patents under section 337 of the Tariff Act of 1930 and requests limited exclusion and cease-and-desist orders. Parties named in the complaint have 20 days to respond. Failure to respond may result in exclusion or cease-and-desist orders directed against the respondents.

Sources: www.federalregister.gov

Legislative Updates

MFA Act Referred to House Committee on Energy and Commerce

Bill 9515, titled "MFA Act," was referred to the House Committee on Energy and Commerce as of June 29. The measure is at the committee stage. Further Congressional actions or hearings on auto-related issues may follow as committee review proceeds.

Sources: www.congress.gov

What We're Reading This Week

• Hungary threatens clampdown on EV battery industry after pollution case: Hungary's government is considering stricter oversight of the electric vehicle battery sector following a pollution incident.
• Defense startups raid auto and fracking sectors for parts to speed weapons output: Defense companies are sourcing parts from automotive and energy firms to accelerate assembly of weapons systems.
• UK watchdog's car finance redress scheme partly suspended ahead of legal challenges: Britain's financial regulator has halted portions of its car finance redress program as legal proceedings advance.
• India's auto industry defends ethanol fuel mandate amid backlash: Indian automakers respond to criticism over new ethanol fuel requirements and their effect on vehicle design.
• New Delhi offers residents $1,000 to scrap old cars for EVs to curb air pollution: The Delhi government launches a scheme offering incentives for scrapping older vehicles and purchasing electric cars.
• Hungary to launch new pollution watchdog for EV battery makers: Hungary announces creation of a new regulatory agency focused on environmental compliance in battery manufacturing.
• China's BYD nears decision on second European plant, adviser says: BYD is reportedly evaluating locations for a second electric vehicle factory in Europe, citing market expansion.
• Battery metals recovery runs into stop-start EV market: Battery metals firms are struggling with erratic demand as EV adoption rates fluctuate in global markets.
• Tesla Sales Surge 25% on Recovery in Europe: Tesla recorded a 25% sales increase, driven by improved market conditions in Europe.
• India File: China EV tech drives change under the hood: Chinese electric vehicle technology is transforming vehicle architecture and supply chains in India's auto sector.

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