MichAuto > Blog > Industry Transition > 2024 MichAuto State of the Industry: Uncertainties Can Become Opportunities 

2024 MichAuto State of the Industry: Uncertainties Can Become Opportunities 

December 12, 2024

Key Takeaways

  • The automotive and mobility industry is facing significant challenges due to economic uncertainties, regulatory requirements, and the need for flexibility in manufacturing to adapt to various powertrain technologies and market demands. 
  • The industry must focus on reducing complexity and improving efficiency, as exemplified by the need to simplify specifications and streamline processes to remain competitive. 
  • The impact of tariffs and subsidies on EV sales is a critical concern, with policy changes potentially affecting market dynamics and the industry’s ability to adapt. 

On Dec. 10, MichAuto investors, partners, and supporters explored the third Economic Contribution report, which analyzes Michigan’s mobility industry’s contribution to the state’s economy.

The study builds on a previous report produced by Public Sector Consultants in 2021. It includes an expanded definition to reflect the mobility industry’s evolving technology cluster and an enhanced methodology that captures direct contributions and the resulting ripple effects more accurately.

Opening the conversation, MichAuto Executive Director Glenn Stevens Jr. explored key takeaways from the 2024 Economic Contribution report, including how the industry provided $83 billion in total earnings and compensation and more than 1.2 million direct and indirect jobs in the state’s economy last year. Stevens also advised the audience to be mindful of warning bells as the industry progresses.

Glenn Stevens Jr.

“The industry is not just changing, it’s growing. We’ve always been up against something in the industry—but nothing like this. It’s up to us to move faster, to compete, and to win. But given the people in the industry, I like our chances.”

Glenn Stevens Jr., Executive Director, MichAuto

Pivoting for the Future 

Following Stevens’ presentation, Guy Gordon started the panel conversation to discuss the latest industry news and trends, such as foreign competition and how companies prepare for uncertainty in 2025.

Among the concerns discussed, Husby mentioned how some companies are still economically catching up from the COVID-19 pandemic and how Michigan should be the place for “flexible manufacturing” when the wrong bets are placed and pivoting is necessary.

Jonathon Husby headshot

 “What you still have coming out the last four years are companies that still aren’t healthy … not fully caught up to the economics. The volumes will say a lot about where [the economy] goes. … Part of this is having the willingness to think differently. There are people here who are always looking for a complexity redesign. I think there are things that we can simplify and reduce the cost of getting there.” 

– Jon Husby, President and Chief Executive Officer, ADAC Automotive

Morris reminded the audience of the “fundamental demand for transportation,” also calling for planning flexibility amid policy and technology uncertainty.

Emily Kolinski Morris headshot

“There’s an inherent demand for personal transportation, particularly in the United States. And it gets complicated when you think about what … technologies are going to be embedded in that. We all have to be thoughtful about … what are you assuming [when you see unit range numbers]? What level of tariffs are you talking about? … because it’s very easy to swing your forecast by that magnitude, depending on which stake.”

– Emily Kolinski Morris, Chief Economist, Ford Motor Company

McElroy was focused on the economic war with China and the potential EV battery crossover into the defense industry.

 

John McElroy Headshot

“We need a number of strategies – even though EVs aren’t hitting the numbers that everyone investing thought they would, I think they still are the future. When you look at the materials that go into the batteries … there’s a lot of crossover with international defense,” he said. “But you know what’s going to change [EV sales numbers]? It’s great product. There’s nothing wrong with the automotive industry that great products can’t fix.”

– John McElroy, Host, Autoline

Continuing to be Proactive 

Closing the conversation, the panelists discussed their thoughts on the industry’s future and what the industry itself needs to continue being proactive on. McElroy advised industry insiders to continue educating the public about the sector’s importance. At the same time, Husby and Morris celebrated the partnership growth and general successes in our state to get us through the next chapter.

“I’m deeply concerned about how the auto industry is going in the country, and I don’t think it’s visible to public [and] political leaders,” McElroy said. “We could lose a lot of this industry before the decade is over. There’s no one cause [to blame]; we’ll die by a thousand cuts … You add the Chinese competition … the slow sales … technology change … We got to raise the consciousness that this industry is extremely important to the economy and national defense.”

“I’m seeing more partnership going out of our industry,” Husby said. “This is exciting because we all don’t have to go invest in this [individually]. We can do this together. I like the flexible manufacturing discussions that are ongoing and how we can think differently. I think that eco-partnership is going to be huge for where we go.”

“If economics teaches us anything, we will find an answer over time. I think that [because] people are talking about this, it gives me hope,” Morris said. “Celebrate the successes. There are a lot of good stuff. You have to learn and build on those to get to the next step.”