Leading Michigan’s Signature Industry During Complex Times

A global race to electrification and next-generation mobility that’s driving competition like never before, particularly from China.

The increasing development of automation and AI requiring rapidly evolving skill sets and the need for a workforce with new high-tech skills.

Unprecedented uncertainty stemming from broad tariffs that jeopardize the North American supply chain and have pushed the U.S. to the verge of a prolonged trade war.

Any one of these developments could serve as an inflection point. All of them occurring at once has pushed the entire industry into unprecedented territory.

No stranger to change and challenge, automotive leaders face many uncertainties as they lead Michigan’s signature automotive and mobility industry. However, the trajectory for the future of the global industry is set − it is now up to regions, states, and countries to innovate and adapt to maintain their automotive leadership.

We’re Not Leading Anymore

By Tu Le

My family owes a lot to the auto industry. Five (including me) of my seven siblings have worked at Ford and GM in their careers. My family isn’t alone. The economic impact the automotive sector has on the people of Michigan can’t be overstated. It currently employs an astonishing 1 out of 5 people in the Michigan workforce.

The sector has given us stable, comfortable lives. For decades, Michigan thrived because of it. That comfort made us cautious. And that caution is now costing us.

Because times are changing fast. In a big way.

As the world shifts to clean energy vehicles, automation and AI accelerate, and competition from South Korean and Chinese automakers — none of whom build in Michigan — intensifies, the way of life many folks in the state have long been used to is under serious threat.

This isn’t easy to say — and it may be even harder to hear — but we’re not leading anymore. We haven’t been for a long time. While we clung to the old ways of doing things, the rest of the world moved forward.

The so-called “threats” from China EV Inc, from Tesla, Rivian, Lucid, and Silicon Valley? They’re not threats anymore. They’re here. At our doorstep. And want to eat our lunch.

What do they all have in common?

They’re bold.

They embrace risk.

They make big bets — some fail, some don’t. And they’re fine with that. Failure to them is a badge of honor. It’s means they’re pushing boundaries.

They design hardware and software to work together, seamlessly and call it “engagement.” That’s what creates the stickiness the tech world always talks about.

They move fast. Really fast.

In a digital world, speed is exponential. Every day we don’t catch up, we fall further behind.

At my consultancy, Sino Auto Insights, we operate by three core beliefs:

• All companies are becoming software and AI companies.
• Innovation is now moving east to west.
• You’re not moving fast enough.

We added the “AI” piece just three years ago. That’s how fast this world is evolving.

Mario Andretti was once asked what made him such a great race car driver, his response was “If everything seems under control, you’re not going fast enough.”

Michigan has the talent, the legacy, and the potential to become a global mobility powerhouse. But to get there, we need to get uncomfortable — and live there.

That means:

• Backing entrepreneurs with bold, risky ideas.
• Accepting that failure is part of the journey.
• Building significant digital and AI capabilities.
• And moving a hell of a lot faster. We don’t need another task force. We need urgency. Our storied past does not guarantee any future success.

The world isn’t going to wait for Michigan to catch up.

It’s time to move.

Tu Le is Managing Director Sino Auto Insights; Expert-in-Residence, TechTown Detroit; and Cohost, China EVs & More/At The Wheel podcasts