An annual conference in Detroit on Wednesday covered trends having an impact on the auto industry, including tariffs, electrification, and inclusion of minorities in the industry.
The 26th annual Rainbow PUSH/CEF Global Automotive Summit included speakers from automakers and data-analytic companies. What follows is a sampling of viewpoints.
Tariffs: The Trump administration has implemented tariffs across multiple industries, including automakers and suppliers. Tariffs are paid by importers, who often pass on the cost to customers.
“They’re expensive,” said Perry Watson IV, president of the National Association of Minority Automotive Dealers. “Part of this is protectionism” so U.S automakers “get it together” to face impending challenges from Chinese auto manufacturers, he said.
China’s auto industry is moving faster to design vehicles and reduce costs.
“They can change incredibly fast,” Terry J. Woychowski, president, automotive of Caresoft Global, a Michigan-based engineering services company, said at a June event. Caresoft analyzes vehicles for customers, including automakers and suppliers. He said in June that China poses an “existential threat” to traditional automakers.
However, those traditional automakers are feeling some pain from the tariffs.
“The tariffs are very disruptive to the supply chain,” said Ryan Grimm, group vice president of purchasing and supplier development for Toyota Motor North America. “We’re completely up to our eyeballs in working with our suppliers” about tariffs.
Electrification: The industry still is moving toward more electrification but not so much to fully electric vehicles.
“There’s a bridge and that’s hybrids,” said Marc Bland, chief diversity officer of S&P Global Mobility.
Hybrids combine electric power along with traditional internal combustion engines.
“Electrification – that’s happening,” Toyota’s Grimm said. But demand for full EVs “has slowed” Such demand, he added, “has flatlined and will likely stay flatlined for some time.”
Inclusion: Speakers said that Blacks, Asians and Hispanics represent an increasing portion of vehicle buyers.
“If you’re interested in green, you can’t ignore inclusive economics,” said Watson of the National Association of Minority Automobile Dealers. “Inclusive economics is not optional.”
The Rainbow PUSH Coalition was the result of a merger between Operation PUSH and the Rainbow Coalition, according to its website.
The Trump administration has criticized the idea of Diversity, Equity and Inclusion, or DEI. It has pressured companies to roll back DEI programs.
Having more minority participation in the industry is “a business metric, it’s not an emotional appeal,” said John Graves, chairman of the Rainbow PUSH Automotive Project.
