California auto sales could halt over connected-car safety law delay

A major auto-industry group warned Monday that California car companies could be forced to stop selling new and used vehicles on July 1 unless lawmakers delay deadlines in a connected-car safety law. For buyers, that would mean fewer cars to choose from on dealer lots; for dealerships, it could freeze turnover in both new and used inventory in the country’s largest auto market, which accounts for about 10% of U.S. sales.

The fight centers on a 2024 California law signed by Gov. Gavin Newsom on Sept. 27 as part of a broader package of domestic-violence bills. The statute was written to help survivors stop abusers from using connected vehicles to track them, a problem legislative analyses say can include real-time location tracking, location history, and remote lock or unlock functions accessed through smartphone apps or other wireless systems. The law requires automakers to build a process that lets a driver submit a restraining order or similar documentation and request termination of another driver’s remote access within two business days. It also requires easy access to disable location sharing from inside the vehicle.

California lawmakers modeled the measure in part on the federal Safe Connections Act of 2022, which forces mobile carriers to separate domestic-violence survivors from shared accounts within two business days. The bill was co-sponsored by the University of California, Irvine School of Law Domestic Violence Clinic and Ending Tech-Enabled Abuse, and state materials say California has more than 35 million registered vehicles, which gives the rule outsized practical reach.

The Alliance for Automotive Innovation, which represents General Motors, Toyota, Volkswagen, Hyundai and most other automakers, said there was a substantial risk that sales in California would be suspended unless the state delays the deadline. The group said manufacturers are working to meet the victim-protection rules, but some elements cannot be finished this year because they require extensive engineering, testing and integration across many makes, models, model years and vehicle systems.

The California Legislature is now weighing whether to push back the timetable before the July 1, 2026 deadline arrives. A June committee analysis said lawmakers added an urgency clause because of the approaching deadline and were considering changes after automakers ran into implementation problems. The outcome will decide whether California keeps pressing ahead on one of the country’s most aggressive connected-car privacy rules, or gives the industry more time to rework the software and service systems that now sit at the center of the market.