Yesterday, US Senators Jeff Merkley (D-OR), Elizabeth Warren (D-MA), and Joshua Hawley (R-MO) sent letters to the heads of Ford, General Motors, and Tesla, as well as the US heads of Honda, Hyundai, Nissan, Stellantis, Subaru, Toyota, and Volkswagen, excoriating them over their opposition to the right-to-repair movement.

"We need to hit the brakes on automakers stealing your data and undermining your right-to-repair," said Senator Merkley in a statement to Ars. "Time and again, these billionaire corporations have a double standard when it comes to your privacy and security: claiming that sharing vehicle data with repair shops poses cybersecurity risks while selling consumer data themselves. Oregon has one of the strongest right-to-repair laws in the nation, and that’s why I’m working across the aisle to advance efforts nationwide that protect consumer rights."

Most repairs aren’t at dealerships

The Senators point out that 70 percent of car parts and services currently come from independent outlets, which are seen as trustworthy and providing good value for money, "while nearly all dealerships receive the worst possible rating for price."

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• Three of Japan's iconic car companies are struggling.
• Toyota, Honda, and Nissan have seen sales in China slump, and now Nissan and Honda are considering merging.
• Japanese automakers, which have prioritized hybrids, are facing pressure from China's EV giants like BYD.

Japan's iconic auto industry is going through a rough patch, and now two of its most important companies are considering merging as they fight for survival.

Nissan and Honda are set to negotiate a possible merger, according to multiple reports on Tuesday, as they mull combining forces to stave off the growing threat of Tesla and China's electric vehicle makers.

It comes after the two companies and major rival Toyota reported slumping profits in their most recent earnings, as they grapple with ferocious competition in China and a bumpy transition to electric vehicles.

Nissan announced it would cut 9,000 workers amid falling sales, while Honda reported a 15% drop in operating profit in the second quarter.

Toyota, the world's largest automaker, saw profits for the quarter ending in September drop to 573.7 billion yen ($3.7 billion), down from nearly 1.28 trillion yen ($8.3 billion) over the same period last year.

All three companies face a similar problem; they are failing to sell enough cars in China.

Toyota's sales in China were down just over 10% in the first nine months of the year, with the company blaming "severe market conditions" such as "intensifying price competition."

Still, a Toyota spokesperson told Business Insider that its declining profits were not only attributable to China; it also saw weakness in Japan and North America.

Honda flagged a decline in sales in China in its most recent quarter, dragging down its total group sales. While Nissan reported a drop of over 5% in retail sales in China in the first half of the fiscal year — the largest drop of any of its regions.

Like other foreign automakers, Japan's car giants are being squeezed in China by local rivals. These rivals have rapidly gained market share by offering a range of affordable but high-tech EVs and hybrids.

BYD, Zeekr, and Nio have reported bumper sales recently, as European automakers like Mercedes-Benz and BMW are being squeezed in this region.

Many of China's EV champions are now expanding overseas, something Felipe Munoz, auto analyst at JATO Dynamics, told BI was putting the likes of Toyota and Honda under growing pressure.

"The real battle is happening in the emerging markets. And that's exactly where the Japanese car makers are suffering the most," said Munoz, pointing to the rapid expansion of the likes of BYD in Southeast Asia and Latin America.

"Japanese carmakers have a strong presence in Southeast Asia. And Southeast Asia right now is a hot market for Chinese cars," he said.

Electric woes

Japanese automakers have taken a broadly cautious approach to the transition to EVs, focusing instead on hybrid vehicles.

That approach has mostly paid off as EV demand has slowed, with Toyota reporting bumper profits on the back of strong hybrid sales in the US earlier this year.

However, Munoz said that while the hybrids-first strategy may have worked out in the US and Europe, it has created problems for Japanese automakers in China, leaving them without a strong lineup of EVs that can compete with local offerings that can cost less than $10,000.

"China is definitely shifting to fully electric. And this leaves out all of the car makers that are not competitive with their electric cars," said Munoz.

He added that Toyota, Honda, and Nissan are at risk of becoming overly dependent on US and European markets, which are experiencing stagnating growth while losing out in expanding markets like China.

"At the end of the day, the hybrid strategy worked in Japan, worked in the US, and worked very well in Europe, but that's not the case in China," he added.

There are signs that Japan's auto giants are changing their strategies.

Nissan has pledged to accelerate the introduction of new EVs in China and hybrids in the US, while Toyota is reportedly planning to expand production in China as it attempts to take on local firms.

A Nissan spokesperson told BI that the company is taking measures to meet the market's and customers' needs, including introducing new products.

They added that the US remains a priority market for Nissan, and that the company was expecting an increase in sales from new models.

Shares of the carmaker jumped after news of the potential merger with Honda broke, rising as much as 24% in early trading on Wednesday. Nissan's shares are down nearly 25% this year.

Japanese automakers will likely face new challenges in the coming years, especially in the wake of Donald Trump winning the US presidential election.

Speaking on an earnings call in November, Honda executive vice president Shinji Aoyama warned that Trump's proposed tariffs on vehicles imported from Mexico could have a huge impact on Japanese automakers, many of whom have factories in the country.

Honda did not respond to a request for comment, sent outside normal working hours.

• The Toyota Camry midsize sedan has been the best-selling passenger car in the US for over 20 years.
• I recently drove a 2025 Camry with all-wheel drive in its range-topping XSE trim.
• I was impressed by the Camry's efficient hybrid powertrain, comfortable ride, and great cabin.

The Toyota Camry has been America's best-selling passenger car for the past 22 years.

This year, Toyota introduced the updated ninth-generation Camry with fresh looks, upgraded tech, and a new hybrid-only drivetrain.

I recently reviewed an all-wheel-drive 2025 Toyota Camry XSE with an as-tested price of $43,194. I was impressed by the new Camry's smooth standard hybrid powertrain, fuel efficiency, comfortable ride, updated tech, and well-designed cabin.

The base front-wheel-drive version starts at $28,400, while my range-topping Camry test car started at $36,125. I found 17 key features that help the car stand out and keep its spot on top of the sales leaderboard:

Aggressive styling

The new Camry's styling is evolutionary rather than revolutionary, continuing Toyota's decision toward more angular and aggressive lines in recent iterations of the sedan.

The Camry's overall look, led by its distinctive hammerhead front end, is a far cry from the anonymous design that plagued earlier generations of the model.

Hybrid drivetrain

All Camrys now come standard with the Japanese automaker's tried and tested hybrid system under the hood. The power unit consists of a 184 horsepower, 2.5-liter, naturally aspirated four-cylinder engine mated to a 134 horsepower electric traction motor and a lithium-ion battery pack.

The total system output is 225 horsepower sent to the front wheels through an electronically controlled continuously variable transmission.

All-wheel-drive models like my test car have a 40-horsepower electric motor mounted to the rear axle, which boosts total output to 232 horsepower.

Great fuel economy

My all-wheel-drive Camry XSE test car boasted EPA fuel economy figures of 44 mpg city, 43 mpg highway, and 44 mpg combined.

I managed to get within a couple of mpg of the EPA's combined fuel economy estimates, which is pretty impressive for a 3,700-lbs sedan that was driven quite aggressively.

If you value fuel economy above all else, consider the base front-wheel-drive Camry LE, which is rated for a Prius-esque 51mpg in combined driving.

A quiet ride

Despite the athletic styling and firmer performance-tuned suspension of the XSE trim, the Camry is far from sporty.

The Camry's ride is quiet and compliant.

Thanks to its electric motors, the 232-horsepower hybrid system delivers smooth and spirited acceleration off the line.

Even under hard acceleration, the hybrid system remains up to the task with more than enough juice for on-ramps and highway passing.

The four-cylinder does emit a mild drone in protest when you gun the throttle, but it's not intrusive enough to detract from the driving experience.

According to Motor Trend, the hybrid 2025 Camry with all-wheel drive can accelerate from 0 to 60 mph in a respectable 6.8 seconds.

Thoughtfully designed cabin

The Camry interior is traditional Toyota. It's well-designed, with impeccable ergonomics and plenty of storage and charging options. A good mix of physical and touch controls makes on-the-fly use a piece of cake.

Material and build quality are both excellent, with plenty of soft-touch materials strategically placed in high-contact areas.

Advanced driver cockpit

In front of the driver is a heated leather steering wheel with paddle shifters and a configurable 12.3-digital gauge cluster that's only available on the XLE and XSE trims. My test car also came with the optional 10-inch color head-up display.

Large infotainment screen

The Camry comes with an 8-inch touchscreen, but my test car had the optional 12.3-inch unit. The Camry's infotainment system is well-organized and fairly intuitive to use.

Apple CarPlay

All trim levels come with wireless Apple CarPlay and Android Auto compatibility.

Panoramic roof

XLE and XSE trim Camrys can be optioned with a large panoramic glass roof that floods the cabin with sunlight.

360-degree camera system

The Camry comes standard with a backup camera. However, XLE and XSE trims can be optioned with Toyota's Panoramic View Monitor camera system.

Drive modes

The Camry offers drivers the choice of Eco, Normal, and Sport modes. Normal is the standard drive mode, while Sport mode offers peppier acceleration. Eco mode maximizes fuel economy by heightening the regenerative braking system to harness additional energy while dulling the throttle response to prevent aggressive acceleration.

There's also an EV mode that allows the Camry to operate for brief periods using only its electric motors at speeds up to 25 miles per hour.

Premium audio system

XLE and XSE trim Camrys can be optioned with a nine-speaker JBL premium audio system that sounds great. The Camry comes standard with a six-speaker system.

Comfortable front seats.

The Camry XSE's leather-trimmed, eight-way power-adjustable front seats were comfortable and supportive, and they were also heated and ventilated.

Roomy rear cabin

The Camry's rear seats boast a stout 38 inches of legroom and 37.6 inches of headroom. Rear seat passengers also have the benefit of dedicated air vents and USB charging sockets.

Flexible storage

Behind the rear seats is a decently sized 15.1 cubic foot trunk that can be expanded by folding down the rear seats. A spare tire is under the cargo floor.

Standard safety tech

The Camry comes standard with the latest Toyota Safety Sense 3.0 suite of driver assistance tech, which includes adaptive cruise control, lane departure alert, and proactive driving assist.

Features like lane change assist and rear cross-traffic braking are available only as part of pricey convenience packages, even on the highest trim.

• Auto execs see an opportunity to roll back state EV mandates under President-elect Donald Trump.
• Nissan and Toyota say state rules requiring a rapid uptick in EV sales are unrealistic.
• Automakers are facing slowing EV demand, job cuts, and competition from China.

Some auto executives see an opportunity with the incoming Trump administration to roll back state rules requiring a rapid uptick in electric vehicle sales.

Executives at Nissan, Toyota, and the auto industry's largest US lobbying group say it will be impossible for the industry to meet aggressive timelines to phase out gas-powered cars and trucks by 2035 in a dozen states including California and New York, as well as Washington, DC. In six states, a target kicks in in 2026, when at least 35% of new car sales must be EVs.

"It will take a miracle to be achieved," Jérémie Papin, senior vice president of Nissan, said this week during an event in Washington, DC. "That's where others need to do a reality check on what's possible."

He noted that EVs accounted for about 9% of new car sales nationwide in the third quarter — a record, but still far short of what regulators are requiring by 2026.

Automakers, facing lower-than-expected demand for EVs this year, are pulling back on production, and some companies are cutting jobs to save costs. At the same time, they have poured billions of dollars into EVs and executives say they are committed to the transition, especially to stay competitive with China as it churns out more affordable EVs. That balancing act has put the industry in a delicate position with Trump who railed against EVs on the campaign trail, vowing to kill tax credits and other incentives encouraging Americans to buy them.

Now the industry is strategizing how to influence Trump, including on EV sales requirements they view as too ambitious. Trump will likely take their side.

At a campaign event in Michigan in October, he said no state would be allowed to ban gas-powered cars. Trump during his first term tried to revoke California's authority to set stricter limits on tailpipe pollution than the federal government. California is granted that authority under the Clean Air Act but must get waivers from the Environmental Protection Agency. Biden restored the states' authority — a move currently being litigated and could reach the Supreme Court.

To avoid uncertainty, a group of automakers, including BMW, Ford, Honda, and Volkswagen, struck an agreement with California in 2020 to follow the state's rules through 2026.

The rules are stricter than federal regulations issued earlier this year by the Biden administration's EPA. Those federal rules aren't an "EV mandate," as Trump falsely said on the campaign trail. Rather, automakers can choose how to curb greenhouse gas emissions from cars, trucks, SUVs, and vans sold between 2027 and 2032. The agency estimated the rules could boost EVs to up to 56% of new car sales, with the rest from a mix of hybrids and gas vehicles.

'Not ready to go electric'

Dealers, which were the first to sound the alarm on changes in the EV market last year, have argued that state and federal emissions requirements are out of step with demand. As companies push to meet these requirements, dealers complain they are stuck with unpopular EVs on their lots.

"A majority of customers are simply not ready to go electric right now," Dave Kelleher, a Chrysler-Dodge-Jeep-Ram dealer in Pennsylvania, told BI. "Maybe with a new administration, some of those fines will become a thing of the past, or even mitigated."

Karoline Leavitt, spokeswoman for Trump's transition effort, said Trump will stop attacks on gas-powered cars.

"When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars AND electric vehicles," she said in an email.

John Bozella, president of the Alliance for Automotive Innovation, which represents companies producing nearly all the new vehicles sold in the US, sent a letter to Trump in November asking that he ease emissions regulations but keep EV tax incentives fueling domestic investment in the supply chain.

An analysis commissioned by the Natural Resources Defense Council found that companies have announced $312 billion in planned investments in EVs and battery production since Biden took office in 2021, fueled partly by tax incentives in the Inflation Reduction Act.

One automaker, Toyota, supports doing away with EV mandates and subsidies altogether. In a recent op-ed in the Wall Street Journal, Toyota Chief Operating Officer Jack Hollins wrote that state mandates distort the market because companies funnel zero-emissions vehicles to those locations and ultimately limit choices for customers.

General Motors initially sided with Trump in his crusade against California's EV rules, but dropped its support of the legal battle after Biden won the 2020 election. It's unclear whether the automaker would once again side with Trump if he tries to roll back emissions requirements. Paul Jacobson, General Motors' executive vice president and chief financial officer, told reporters that ideally there'd be more consistency between federal and state rules. But the automaker will respect regulators' authority, he said.

"There's a lot at stake here," Jacobson said during the event in Washington. "That's why we talk about being nimble across the board, because sometimes it's the marketplace and sometimes it might be the regulatory environment. But we can't make excuses for poor performance. It's not just Washington. It's China, it's Europe. There's a lot of things going on all over the world and we have to be able to respond to that."

• President-elect Trump plans to levy 25% tariffs on goods from Canada and Mexico, he said Monday.
• These tariffs could include vehicles imported into the US.
• There are dozens of Mexican and Canadian-made models sold in the US.

President-elect Donald Trump on Monday announced plans to enact 25% tariffs on goods made in Canada and Mexico when he takes office in January.

Mexico is the largest trade partner for the US, accounting for nearly 16% of total trade over the first three quarters of this year. Canada isn't far behind as the country's second-largest trading pattern, accounting for about 14.5% of trade.

Tariffs on goods from Mexico and Canada are especially problematic for the US automotive industry.

Mexico alone exports more than 2.3 million cars a year to the US, according to Commerce Department data.

Foreign and domestic carmakers like Ford, GM, and Nissan have invested decades of time and billions of dollars to establish a well-oiled, cross-border manufacturing and supply chain operation to make vehicles destined for US dealerships.

A 25% tariff would not automatically mean a matching price increase, though it would leave automakers — already struggling with shrinking profit margins — with little room to eat the cost without increasing the sticker price of their vehicles.

Large retailers like Walmart and Best Buy have already said consumer prices are likely to rise if businesses pass on cost increases to consumers.

Parts for cars, trucks, and SUVs sold in the US can cross the border several times during their production process, thanks to friendly conditions fueled by various regional trade agreements over the years.

Representatives from Ford, Honda, and the American Automakers Policy Council, a lobbying group representing Detroit's Big 3, did not immediately respond to requests for comment.

Nissan, Stellantis, General Motors, and Toyota declined to comment.

This comes at a bad time for US consumers who have seen the average cost of a new car skyrocket more than $10,000 since 2019 to more than $48,000. Many automakers, meanwhile, are planning layoffs and plant closures amid a slowdown in EV demand.

Information from the National Highway Traffic Safety Administration shows that several dozen vehicles made in Canada and Mexico are currently sold in the US.

Here's a closer look at these models, which range from pickups to luxury SUVs and EVs:

BMW Group

• BMW 2-Series Coupe/Convertible (Mexico)
• BMW M2 Coupe (Mexico)
• BMW 3-Series Sedan (Mexico)

Ford

• Ford Bronco Sport (Mexico)
• Ford Maverick (Mexico)
• Ford Mustang Mach-E (Mexico)

General Motors

• Chevrolet Blazer (Mexico)
• Chevrolet Blazer EV (Mexico)
• Chevrolet Equinox (Mexico)
• Chevrolet Equinox EV (Mexico)
• GMC Terrain (Mexico)

Honda

• Honda CR-V Hybrid (Canada)
• Honda Civic Sedan (Canada)
• Honda HR-V (Mexico)
• Honda Prologue (Mexico)

Kia

• Kia Forte (Mexico)

Mercedes-Benz

• Mercedes-Benz GLB (Mexico)

Nissan Motors Corporation

• Infiniti QX50 (Mexico)
• Infiniti QX55 (Mexico)
• Nissan Sentra (Mexico)
• Nissan Kicks (Mexico)
• Nissan Versa (Mexico)

Stellantis

• Ram 2500-5500 (Mexico)
• Ram ProMaster (Mexico)
• Jeep Compass (Mexico)
• Chrysler Pacifica (Canada)

Toyota

• Toyota Tacoma (Mexico)
• Toyota RAV4/RAV4 Hybrid (Canada)
• Lexus NX (Canada)
• Lexus RX (Canada)

Volkswagen Group

• Audi Q5/SQ5
• VW Jetta (Mexico)
• VW Taos (Mexico)
• VW Tiguan(Mexico)