Left to right: John McElroy and Sandy K. Baruah
On Sept. 11, Detroit Regional Chamber President and Chief Executive Officer Sandy K. Baruah joined “Autoline After Hours” to discuss how Detroit can adapt as legacy automakers face disruption. Joined by host John McElroy, Joe White, and Sandy Munro, Baruah shared insights on industry challenges and opportunities.
Michigan’s legacy as the global leader of the automotive and mobility industry is undeniable. The industry is responsible for nearly $350 billion in economic contribution, nearly 30% of the state’s employment, and about a quarter of the state’s research and development. However, the industry’s prominence in Michigan and the Detroit Region makes it particularly vulnerable to emerging threats.
Baruah warned that fluctuating tariffs and trade policies are stalling investment and shrinking manufacturing jobs. Though seen globally, these impacts are disproportionately worse for Michigan and the Detroit Region, with their economic reliance on manufacturing and proximity to trade partner Canada.
The Detroit Three in particular are feeling the strain of these fluctuating conditions, having paid $12 billion in tariffs.
“That is $12 billion of U.S. innovation stranded capital that has kind of walked out the door … not even to consider the opportunity cost that’s been paid,” said Baruah.
Related | Get the Latest Trade Policy Developments at the MichAuto Tariff Resource Center
Michigan risks falling behind in the shift to EVs due to hyper-politicization and a reluctance to embrace this inevitable technological development. However, Baruah expressed some optimism, predicting that EV market share will reach 20% by the end of the decade.
He shared that the used EV market may help spike adoption with more affordable options available. He also shared the role politics may play as the “X factor” to solve adoption EV challenges.
“Are EVs still a political issue? Because right now, part of the depression in EV demand is politics, as politics is now part of it,” Baruah said.
To stay competitive and evolve as a state and Region dependent on legacy automakers, Michigan and the Detroit Region must diversify around its core strength: mobility.
“It’s the technology and it’s the skills around moving people and goods from point A to point B cheaply, safely, and efficiently,” said Baruah. “That is a core skill for us.”
This means investing in both skilled trades and postsecondary education to support the mobility needs of today and the future with a robust workforce.
Aligning the talent pipeline with evolving industry needs requires overcoming a cultural challenge, shared Baruah.
He suggests a K”-12 + 2” approach – requiring two years of education or training beyond high school. This could mean a traditional bachelor’s degree, skills certification, or similar avenues of preparing Michigan’s population for the workforce.
“Regardless of how education is delivered, what is the output?” Baruah asked. “What are we getting for our education dollars?”
The industry has never been more exciting in terms of global influence, new technologies, and more diverse opportunities.
“You have to give young people a vision of what the future is … and their role in it,” he said.