Concerns over Chinese-made vehicles and their connection to U.S. roads have been building for months. Automakers and franchise dealers have largely aligned against allowing Chinese-linked vehicles, software, and hardware into the U.S. market, and lawmakers on both sides of the aisle have pointed to national security risks tied to connected vehicle technology.
That opposition took a step forward this month. The Senate Commerce Committee advanced the Connected Vehicle Security Act of 2026 on a unanimous, bipartisan vote, sending the bill toward a vote before the full Senate. The legislation, introduced by Sen. Bernie Moreno (R-Ohio) and Sen. Elissa Slotkin (D-Mich.) would permanently block the import, sale, and operation of vehicles, software, and hardware tied to China and other foreign adversaries.
Mike Stanton, President and CEO of the National Automobile Dealers Association (NADA), joined Inside Automotive on CBT News to discuss the bill’s advancement and what it means for the franchise dealer community going forward.
The fight over Chinese vehicles isn’t over
The bill’s advancement out of committee doesn’t mean the fight is over, Stanton said. It still needs a vote before the full Senate, followed by three House committees. Sen. Ted Cruz, R-Texas, raised concerns during the committee session about Mercedes-Benz’s ownership structure, which exceeds the bill’s 15% foreign ownership threshold. Those kinds of details still need to be worked out before the bill reaches a final vote.
“It did pass unanimously, but there is still a lot of work to be done.”
NADA has spent more than three years engaging on the issue, according to Stanton, including trips to China and conversations with dealers who represent Chinese brands in other markets. The association has found alignment across its board, state and metro dealer associations, and its OEM partners on the need to keep Chinese-linked vehicles out of the U.S. market for now. NADA is continuing to work with lawmakers on Capitol Hill, along with automakers and the Alliance for Automotive Innovation, on the bill’s final language.
Dealers want a fair fight, not a permanent ban
Ford Chairman Bill Ford recently said it’s inevitable that Chinese vehicles will eventually reach the U.S. market, and that domestic automakers need to build better products in response. Stanton has driven Chinese-made vehicles himself and doesn’t dispute their quality or pricing. Dealers, he said, want to sell the best product available, and that’s human nature.
“We need to make sure that we’ve got a fair fight going on,” Stanton said.
Stanton pointed out that the U.S. is largely alone among major markets in restricting Chinese vehicles, noting that Mexico already allows a meaningful share of Chinese brands and Canada is moving to let them in as well. He sees the current restrictions as a window for U.S. manufacturers to close the gap on price and technology rather than a permanent wall.
If Chinese automakers eventually do enter the U.S. market under the right terms, including through the franchise system, Stanton said NADA would support dealers selling those vehicles just as it supports dealers selling any other brand.
NADA’s agenda extends well past the China bill
The Connected Vehicle Security Act is only one item on NADA’s list heading into the back half of 2026, Stanton said following the association’s ATAE conference. Direct-sale threats remain a top priority, with NADA supporting state-level fights in Washington, California, Florida and Colorado. The association is also continuing to oppose the REPAIR Act, which Stanton characterized as an intellectual property dispute involving big-box parts retailers and insurance companies rather than a consumer right-to-repair issue. Carvana’s shift into a dealer model is another development NADA is tracking.
“Nobody minds standing in line until somebody butts in.”
On the sales side, Stanton described a mixed picture depending on the dealer. Some are on pace for record months, while others are dealing with tighter local competition. NADA chief economist Patrick Manzi still expects the industry to finish the year strong, in the range of 16 million units or more.
On FTC compliance, Stanton said NADA continues to work with the agency on advertising guidelines and expects a fuller FAQ later this year, though the timeline remains unclear. He noted dealers sold 96.2% of vehicles in the U.S. last year, a figure he ties to the industry’s ability to improve rather than simply outcompete direct-sale rivals.
What’s next for the bill
The Connected Vehicle Security Act now awaits a vote before the full Senate, with three House committees still to weigh in before it could reach the president’s desk.
Stanton said NADA doesn’t yet have a firm timeline for that process, but the association is asking dealers and state associations to stay ready. NADA plans to notify its network through state and metro ATAE channels once it’s time to mobilize support for a final vote.
