Navigating OEM and Supply Chain Dynamics

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What just happened?

That's the question hanging over the automotive industry after the new administration's surprise announcement: a sweeping 25% tariff on imported vehicles and key auto parts. 

To help make sense of it all, Jan Griffiths welcomes Glenn Stevens Jr., Executive Director of MichAuto. Together, they break down what this means for manufacturers, U.S. jobs, and the future of vehicle production in America.

While the intent behind the policy might sound great—more American jobs, stronger borders—the reality is a bit messier. Glenn explains that the auto industry saw changes coming, but not this fast or this broadly. And now, companies are scrambling to make sense of what applies, what doesn't, and how it impacts the bottom line.

They walk through the details of the policy shift: the tariff now hits not just imported vehicles but key parts like engines and electrical components. Glenn clarifies how USMCA-compliant products might catch a break—but only for now.

It's not just about cost. It's about timing. Sourcing and manufacturing strategies built over decades can't be reworked overnight. And while the idea of reshoring sounds patriotic, Glenn and Jan warn against letting nostalgia drive strategy.

They dig into the risk of weakening USMCA partnerships and what that could mean for competitiveness across the region—especially with Chinese automakers like BYD moving fast and taking over the market.

There's talk of "tariff stacking," confusion about who pays, and rising tensions between OEMs and suppliers. Some OEMs are stepping up to collaborate. Others? Not so much.

Through it all, Glenn reminds us of one powerful truth: the auto industry is resilient. From chip shortages to financial meltdowns, it's been tested before and has come out stronger.

This episode isn't just about tariffs. It's about how leaders show up in moments of uncertainty. And it's a reminder that the ones who listen, collaborate, and adapt will be the ones who lead the way forward.

Themes discussed in this episode:

• The real-world impact of sudden tariffs on the U.S. auto industry
• The misconception that tariffs automatically lead to more American jobs
• The massive impact of new tariffs on imported vehicles and auto parts
• Why trade policy decisions today could weaken the US auto industry tomorrow
• The urgent need for supply chain transparency and data-driven decision-making
• How tariff stacking could significantly increase costs across the supply chain
• The risk of damaging OEM-supplier relationships under cost pressure

Featured guest: Glenn Stevens

What he does: Glenn is the Executive Director of MichAuto and VP of Automotive and Mobility Initiatives at the Detroit Regional Chamber. In this role, he provides strategic direction and leadership to promote, retain, and grow Michigan’s automotive and mobility industries. Glenn also leads strategic fundraising efforts and works closely with investors to strengthen engagement and retention. With over 30 years of experience in management, strategy, and operations across multiple industries—including automotive, steel, and capital equipment—he brings a broad perspective and deep industry insight to the role.

Episode Highlights:

[02:12] It’s Not “Good” News—It’s Just News: Description: The new 25% tariff sounds like a win, but the way it’s being done has the auto industry worried about what comes next.

[03:38] It’s Not Just the Cars: The 25% tariff doesn’t stop at vehicles—it now hits engines, powertrains, and more unless you’re playing by USMCA rules.

[07:26] Tariffs Don’t Stop at the Border: Higher import costs are set to ripple through the supply chain, squeezing small suppliers and threatening vehicle production.

[09:36] Not Made in a Day: Decades of global sourcing can’t be undone overnight—especially when the tech, talent, and capacity just aren’t here.

[11:45] Nostalgia Isn’t a Strategy: Wishing for the good old days won’t bring back U.S. manufacturing—especially without a clear, modern strategy to compete globally.

[13:56] The Cost of Going It Alone: When tariffs raise costs across the US, Mexico, and Canada, the whole region loses its competitive edge in the global auto game.

[15:05] While We Tariff, BYD Builds: As China’s BYD scales fast and innovates even faster, the U.S. auto industry risks falling behind—distracted by politics instead of focused on reinvention.

[17:13] The Hidden Cost No One's Ready For: With copper, wire harnesses, and border crossings all in the mix, products may face multiple tariffs multiple times—and it’s the supply base and consumers who’ll feel it.

[19:47] Strained Supply, Strained Relationships: As costs climb, tensions between OEMs and suppliers could rise, too—putting a fragile but critical partnership to the test.

[20:40] Contract or Collaboration? With tensions rising, some OEMs double down on contracts while others open the door to dialogue—one path leads to progress, the other to shut down.

[22:24] Supply Chain Gets a Spotlight: Tariff chaos is forcing companies to get serious about supply chain visibility, data, and readiness—turning crisis into a much-needed wake-up call.

[25:47] Leading by Listening: Glenn’s approach to leadership? Hit the road, listen hard, and turn industry concerns into action at the policy level.

Top Quotes:

[03:07] Glenn: “We knew there were going to be trade changes, but this is really a curve ball for the industry — one that we anticipated but we're dealing with today. Are more jobs in America and more jobs in Michigan good? Yes. Is border security — which is one of the initial reasons for some of these moves, seems like a year ago now, but it was only a couple of months ago. Is that a good idea? Yes. But the methodology of making these changes, and what it means to the impact for the short term and potentially the long term, has us concerned.”

[12:37] Glenn: “I think we're looking a little bit more isolationist than we have been. But that's not something that just started with this administration. That is something that really started a couple of administrations ago. And is that the right thing to do in a global trade economy? Likely not. Are there forces that we have to reckon with that didn't exist before? Yes. The Chinese automotive industry did not exist 20 years ago. It didn't exist like it does today, five years ago. And so, that's a force we have to reckon with, but it needs to be well thought out. The industry and government have to do this together.”

[14:19] Glenn: “We're absolutely interconnected, and that region — this region — is competitive. It needs to be more competitive, and automation will play a role there, and technology, and advances in even things like AI. And then you look at the USMCA region — it has to be competitive globally. And there's a concern that if you weaken the strength of the three countries together as an operating block of trade companies — let's just talk about automotive, but it's certainly for other sectors of our economy — what does that do to us overall? If input costs are all higher and the vehicle costs more, does that make us globally competitive or less competitive? It makes us less competitive, and that's the concern.”

[18:33] Glenn: “I don't think anyone's anti-tariff. They're strategic tools that can be deployed and utilized, but right now, they are a very large umbrella to raise the revenues of the US Treasury and to drive onshoring overnight, so to speak, and that's not possible. What we really were hoping for — and still hold out hope for — is that there is a reopening of the USMCA, which was stipulated by the agreement in 2026, that we pull that up and work with our trading partners to work out the difficulties or the bugs — and it does need to be updated.

[26:17] Glenn: “We’re trying to really be that voice — that voice that communicates, again, to our federal legislators, to our local legislators, to our policymakers, and everything we can do to be part of that collective voice. We work very closely with the other associations. We have a synergy call that we do once a month with Michigan Manufacturers, MEMA, CADIA, the economic development people, and representatives. Dingell joins that call. Representative Stevens joins that call. Once a month, we get together for 45 minutes to collectively talk about what we should be working on together. So, the collective voice is much stronger. So, that's what we're doing—listening and trying to be that voice.”