Automakers Threaten to Pull Out of California Over Location-Tracking Laws

Automakers represented by the Alliance for Automotive Innovation—including General Motors, Toyota, Volkswagen, and Hyundai—warned they may halt all new and used vehicle sales in California starting July 1, 2026, unless the state delays enforcement of a 2024 law aimed at protecting domestic violence survivors from tracking via car data systems. The law requires automakers to implement a two-day process for drivers to submit restraining orders and terminate remote access to vehicle location data, as well as allow in-vehicle toggling of location sharing. The industry group argues compliance with certain provisions is impossible within the current timeline, despite nearly two years of preparation. California, the largest U.S. auto market accounting for roughly 10% of national sales, now faces the prospect of automakers exiting rather than meeting the law’s requirements. The standoff highlights escalating tensions between state-level privacy regulations and the operational realities of global automakers, raising questions about whether California will soften its stance or risk losing access to major brands like GM, Toyota, and VW. The Alliance emphasized that while they are implementing victim protections, full compliance with the law’s technical mandates is not feasible by the July deadline.