{"id":24648,"date":"2026-01-12T17:40:07","date_gmt":"2026-01-12T17:40:07","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=853989"},"modified":"2026-01-12T17:40:07","modified_gmt":"2026-01-12T17:40:07","slug":"michigan-auto-industry-faces-a-critical-time-report-says","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2026\/01\/12\/michigan-auto-industry-faces-a-critical-time-report-says\/","title":{"rendered":"Michigan Auto Industry Faces \u2018a Critical Time,\u2019 Report Says"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/img\/social\/opengraph\/ij-social-default-1200x630.png\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/midwest\/2026\/01\/12\/853989.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/midwest\/2026\/01\/12\/853989.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p>Michigan needs to confront risks to its $348 billion piece of the global automotive industry this year and move decisively toward keeping jobs, engineering and production in the state.<\/p>\n<p>That message comes from Glenn Stevens, executive director of statewide industry advocacy group MichAuto that last month <a href=\"https:\/\/michauto.org\/state-of-automobility\/\">released a report<\/a> he describes as a \u201ccall to action.\u201d<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"auto\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>This is \u201ca critical time in the industry\u2019s history,\u201d Stevens told Bridge Michigan.<\/p>\n<p>\u201cWe are at an inflection point like we\u2019ve never seen before. We\u2019ve got to be making changes and doing things differently to protect our signature industry and our economy as a whole.\u201d<\/p>\n<p>The concern is escalating as Michigan readies for its largest automotive celebration: The annual <a href=\"https:\/\/detroitautoshow.com\/\">Detroit Auto Show<\/a>, which returns to Detroit\u2019s Huntington Place from January 17-25.<\/p>\n<p>The auto industry accounts for about 20% of Michigan jobs and has a payroll of $83 billion.<\/p>\n<p>The report warns Michigan must bolster its innovation economy or \u201cbe left behind.\u201d<\/p>\n<p>Over 2026, MichAuto will launch a roadmap for policy, economic development and talent attraction for the industry to thrive in Michigan, Stevens said.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"auto\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>That will come after a year when the auto industry reeled from waves of tariff changes, new fuel economy standards and more. Underlying it all were federal changes and market forces that prompted automakers to curtain their electric vehicle strategy.<\/p>\n<p>Among them, Ford Motor Co. in December said it would take a $19 billion hit to <a href=\"https:\/\/bridgemi.com\/business-watch\/ford-retreats-from-evs-after-michigan-spends-big-on-subsidies-for-battery-plants\/\">shift its EV capacity<\/a> to gas-powered vehicles, while adding new energy storage systems to its EV battery lineup.<\/p>\n<p>Beyond that, southern US states are building a \u201cbattery belt\u201d by actively recruiting automakers and suppliers, including those from Michigan. And the Chinese auto industry is advancing \u201cat an astounding rate as it attempts to dominate the race for electrification,\u201d the report says.<\/p>\n<p>Combined, the report says, changes mean that Michigan cannot rest on its automotive legacy to maintain economic benefits, like employment and powering the state\u2019s GDP.<\/p>\n<p>Due to automation and the digital economy, Michigan needs to elevate innovation as a business goal that will create jobs and economic growth, Stevens said.<\/p>\n<p>\u201cWe have to double down on the research and development part of the industry,\u201d Stevens said, noting that Michigan is the top state for privately funded auto R&amp;D research.<\/p>\n<p>Innovation centers \u2014 including <a href=\"https:\/\/michigancentral.com\/\">Michigan Central<\/a>, funded by Ford and the state \u2014 should play a bigger role in the state\u2019s economy as they develop, Stevens said. And they will support other industries, he added, such as the life sciences.<\/p>\n<p>MichAuto also is advocating for Michigan to:<\/p>\n<p>\u2013 Prioritize workforce development, including <a href=\"https:\/\/pro.stateaffairs.com\/mi\/news\/going-pro-workforce-training-cut\">Going PRO<\/a>, a training program for which the Legislature recently reduced funding. Other goals include increasing the number of bachelor\u2019s degrees awarded and creating a pipeline to replace aging workers<\/p>\n<p>\u2013 Improve the state\u2019s business climate through tax and regulatory changes that make the state more competitive<\/p>\n<p>\u2013 Set long-term, sustainable economic development incentives. This has been controversial, notably after lawmakers in 2025 <a href=\"https:\/\/bridgemi.com\/business-watch\/michigan-legislators-kill-gretchen-whitmers-2b-cash-for-jobs-program\/\">defunded the $2 billion Strategic Outreach and Attraction Reserve (SOAR) Fund<\/a><\/p>\n<p>\u2013 Add support for the industry transition. MichAuto says that helping companies and workers to adapt to new technologies, manufacturing processes, and skills will keep auto jobs in the state<\/p>\n<p>The most recent <a href=\"https:\/\/michauto.org\/state-of-automobility\/\">\u201cState of Automobility<\/a> \u201d report from MichAuto represents a switch from the group\u2019s typical reports, which are released every 18 months or so, Stevens said, and contain data updates.<\/p>\n<p>The warnings for the state and its auto industry come amid still more reports about Michigan\u2019s prosperity slide, including alerts <a href=\"https:\/\/www.detroitchamber.com\/education-talent\/state-of-education-and-talent\/reports\/\">from the Detroit Regional Chamber<\/a> that the state needs to sharpen its education system.<\/p>\n<p><a href=\"https:\/\/businessleadersformichigan.com\/\">Business Leaders for Michigan<\/a> in November released the 40-page \u201d <a href=\"https:\/\/businessleadersformichigan.com\/michigan-in-a-new-era\/\">Michigan in a New Era<\/a> \u201d roadmap for state success under the next governor, who will be elected in fall 2026.<\/p>\n<p>While the nation has grown, the report notes, Michigan:<\/p>\n<p>\u2013 Ranks 50th in household income growth over the past 25 years<\/p>\n<p>\u2013 Shows flat growth in high-wage professional jobs over 20 years, while they\u2019ve grown 35% nationally<\/p>\n<p>\u2013 Fell from 16th to 44th in fourth grade reading over 30 years<\/p>\n<p>\u2013 Has one of the highest <a href=\"https:\/\/bridgemi.com\/talent-education\/michigan-k-12-crisis-state-slow-to-respond-as-kids-miss-school-scores-fall\/\">chronic school absenteeism<\/a> rates in the nation<\/p>\n<p>The next administration needs to focus on \u201cchanging what\u2019s within our control \u2026 to change our state\u2019s trajectory,\u201d the Business Leaders for Michigan report said.<\/p>\n<p>Also in November, University of Michigan <a href=\"https:\/\/bridgemi.com\/business-watch\/report-aging-crisis-to-cause-michigan-to-lose-out-on-economic-boom\/\">economists warned<\/a> that the state is poised to miss out on expected national job growth in 2026 due to its aging workforce and slim population growth.<\/p>\n<p>When it comes to the auto industry, the report said, 2025\u2019s tariffs ended up slightly positive for the sector despite fears that they could prompt job losses.<\/p>\n<p>However, estimates of tariff effects \u201care highly uncertain both because tariff policy remains fluid and because it is inherently difficult to quantify the effects of such a major policy shift,\u201d the U-M economists note.<\/p>\n<p>So far, the economists expect light vehicle production to increase 2.7% \u2014 and prices on new vehicles to increase 6.6%, or about $3,100 per vehicle. <a href=\"https:\/\/www.andersoneconomicgroup.com\/auto-dashboard\/#tab-293244\">According to Anderson Economic Group<\/a>, a policy analyst company in East Lansing, the average new vehicle price in November was $49,814.<\/p>\n<p>At the same time, the Detroit Three\u2019s share of US light vehicle sales fell from 36.1% in 2023 to 34.2% in 2024. U-M\u2019s economists say the two-decade market share slide of General Motors, Ford and Stellantis is expected to reverse in 2026 \u201cas the new (federal) policy mix takes effect.\u201d<\/p>\n<p>___<\/p>\n<p>This story was originally published by <a href=\"https:\/\/bridgemi.com\/\">Bridge Michigan<\/a> and distributed through a partnership with The Associated Press.<\/p>\n<div class=\"copyright-notice lite\">Copyright 2026 Associated Press. All rights reserved. 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