Jan. 16, 2026
The Detroit News
Myesha Johnson, Candice Williams
Autos: Recalibrating After Turbulence
Michigan’s automotive and mobility industry is entering 2026 on steadier ground after a turbulent 2025, according to Glenn Stevens of MichAuto. But challenges remain.
Stevens said policy shifts from Washington, including tariffs, relaxed fuel economy rules and a pullback in EV incentives, have largely centered the market on gas-powered trucks and SUVs, many of which are built in Michigan.
“We do think the market demand is flattening right now,” he said. “Last year was a pretty flat year — 2025 from a North American production. And all of the analysts believe that we’ll probably see a similar year. And there’s some headwinds that are against that.”
Cox Automotive, for instance, projects U.S. new vehicle sales will total 15.8 million this year, slipping 2%.
Uncertainty also continues regarding the U.S.-Mexico-Canada Agreement, a trade deal whose future is a major concern for Detroit automakers as it’s due to be renegotiated this year.
Affordability is a big concern with the average new vehicle price exceeding $50,000.
Auto suppliers, which provide roughly 70-75% of vehicle components, continue to face rising costs from tariffs and inflation, Stevens said. Any drop in vehicle demand could ripple through the supply chain. There were some job losses in 2025 and there may be more in 2026, he said.
“The hope is that because of the vehicles we make this is a short-term stability issue,” he said. “That we will not see a lot of reduction in employment throughout the supply base in the communities in 2026. That is the optimistic look.”