The current automotive market is facing an extremely dynamic year, marked by tariffs, EV rollbacks, and challenges in urban air mobility. Joining us on the latest episode of Inside Automotive is Tim Jackson, the former president and CEO of the Colorado Automobile Dealers Association (CADA), who offers his perspective on the current market and the innovations shaping the future.
"It's such a dynamic year in automotive and it's gonna, I think, prove to be an even more dynamic year before we get to the end of it."
To begin today’s discussion, Jackson notes that the automotive sector has remained resilient, despite a decline in profitability. “Ford had a swing from profit in the first quarter to a loss in the second quarter,” he noted, while Honda saw profits cut in half. Jackson emphasized that strategic, targeted tariffs would have minimized unintended consequences and helped automakers and dealers plan more effectively.
Still, he acknowledged potential long-term benefits, including increased U.S. vehicle production, while highlighting the Trump administration’s elimination of California-specific emission standards as a positive move for the industry.
EV incentives & market shifts
Additionally, Jackson weighed in on the rollback of EV mandates and the federal $7,500 tax credit. He said states like Colorado, which previously saw up to a third of vehicle sales as battery-electric or plug-in hybrid vehicles, are already seeing declines as state incentives are reduced. He cautioned that sales should not be dependent on incentives, stressing that consumer choice should drive the market.
Jackson further questioned the equity of incentives for high-income EV buyers, citing a reported $175,000 average income among purchasers.
Preparing for the future
Looking beyond traditional automotive, Jackson explored the intersection of cars and aviation. Speaking at the Oshkosh Air Show, which drew a record 740,000 attendees, he discussed urban air mobility and flying cars as part of the broader transportation landscape. More than 200 companies are developing battery-electric flying vehicles, ranging from one-passenger ultralights that require no pilot’s license to larger FAA-regulated air taxis. These vehicles are designed for short-range trips of 50–80 miles and feature fast-charging technology for rapid turnaround.
Jackson also noted parallels between autonomous vehicles, drone delivery systems, and flying cars, describing them as interrelated advances that are shaping mobility and the consumer experience. Companies like Archer Aviation, Waymo, GM Cruise, and Zoox are leading the way in production and technology, with urban air mobility expected to enhance safety, efficiency, and reduce environmental impact.
Overall, Jackson concluded by encouraging the industry to continue embracing innovation while preparing strategically for future challenges, emphasizing the importance of resilience, consumer choice, and long-term growth.
