Episode #1381: The U.S. tightens the screws on Chinese-connected vehicles by shutting Polestar out of the market, CarGurus raises the stakes on transparent pricing for dealers, and Americans are spending more than ever to fire up the grill this Fourth of July.


Show Notes with links:

• The U.S. is drawing an even harder line on Chinese-connected vehicles. Polestar says it will be forced to stop selling new vehicles in America starting with the 2027 model year after the government denied its approval under the Connected Vehicles Rule.

  • Despite being headquartered in Sweden, Polestar's majority ownership by China's Geely put it squarely in the government's crosshairs.

  • The rule targets connected features like Bluetooth, Wi-Fi, cellular, and satellite communications over concerns they could collect sensitive data on American drivers.

  • Volvo Cars, also owned by Geely, received U.S. authorization in May to keep selling connected vehicles, though regulators have not publicly detailed why Volvo was cleared while Polestar was denied.

  • The decision accelerates Polestar's shift toward Europe, where 78% of its first-quarter sales occurred. Just 6% of deliveries came from the U.S. this year.

  • Polestar dealer Matthew Haiken: “I’m really, really, really upset. This whole company was like a family to me. I made money with Polestar. I was looking forward to all the new product. I’m just heartbroken.”

• If your inventory pricing isn't transparent, it's about to become a lot less visible. CarGurus is requiring dealers to disclose fees in listed prices or risk losing deal ratings and search placement starting July 14.

  • Beginning July 14, dealers must disclose applicable fees in their vehicle pricing or listings will receive a "No Rating" and be pushed lower in CarGurus search results.

  • The move follows increased FTC scrutiny around deceptive pricing practices.

  • CarGurus will calculate its Instant Market Value (IMV) and Deal Ratings using the vehicle's total advertised price, including disclosed fees.

  • Dealers already sending all-in pricing must update their CarGurus settings to indicate fees are included, or they could still lose Deal Ratings.

  • CEO Jason Trevisan said, "All-in pricing is the natural next step. We're proud to extend our industry leadership by making this the standard and creating a more upfront marketplace for consumers and dealers alike."

• Americans are ready to celebrate Independence Day, but they'll be paying a little more for the privilege. Cookout costs have reached a 10-year high, even as consumers plan to spend more than last year.

  • Nearly 87% of Americans plan to celebrate the Fourth of July this year, with food spending expected to climb to $9.4 billion, up 5.6% from last year.

  • According to the American Farm Bureau, the average cookout for 10 people now costs $73.82, the highest in the survey's 10-year history.

  • Grilling favorites are getting pricier, with strawberries up 12.4%, hamburger buns up 7.7%, ground beef up 5.5%, and ice cream up 5.3%.

  • There is one silver lining: potato salad is cheaper this year thanks to lower egg and potato prices, and the Northeast is the least expensive region for hosting a cookout.