Report details impact the automotive industry has on Michigan’s economy, what is at stake in current political environment
Lansing, MI – The Institute for Energy Innovation and Michigan Energy Innovation Business Council (Michigan EIBC) today released Legacy, Innovation, and the Race Against China: The Automotive Industry and the Michigan Economy, a comprehensive report that highlights the critical role the transportation sector and its supply chain partners play in the Michigan economy. As competition with China heats up, the report emphasizes the need for supportive policies that enable automotive innovation.
Contributing nearly $348 billion annually to Michigan’s gross domestic product (GDP) and supporting more than 20% of the state’s workforce, the mobility sector is essential to the vitality of Michigan’s economy. Since 2016, $26.2 billion in announced investment in electric vehicle (EV) and battery manufacturing has been injected into the Michigan economy, leading to the creation of more than 25,000 jobs across the state. It is projected that as EV adoption continues to increase and production ramps up, Michigan could see an increase of more than 50,000 jobs by 2030. Unpredictable and irresponsible federal policy actions, however, threaten to upend this promise and the future of an industry on which the Michigan economy has been built.
“Uncertainty is bad for business,” said Sophia Schuster, Policy Principal at Michigan EIBC. “Unsupportive economic policies, such as the threat of tariffs, will drive up prices and lead to declining sales and layoffs. This will stifle spending on research and innovation necessary to keep up in a market that has been blown wide open by a burgeoning Chinese auto industry. Failure to support American auto manufacturing today could be catastrophic for the American transportation sector of tomorrow, and no state will feel the impacts of this downturn more acutely than Michigan. To ensure that Michigan remains a hub for automotive innovation, rational and supportive federal and state policy action that embraces the transition to electrified transportation and encourages continued private investment is needed.”
“There is no denying that supportive federal and state policies made it possible for the American automakers to invest in Michigan,” said Glenn Stevens, Executive Director of MICHauto. “From ramping up production, to securing their supply chains and integrating innovative technology solutions, these policy levers have been critical to them remaining competitive in a crowded global market. Rescinding these policies risks Michigan’s current status as a major locus of EV manufacturing and research and development, and the future of the American auto workforce.”
“Michigan has long served as the center of the American automotive industry, in large part due to its proud and talented manufacturing workforce,” said Mike Murphy, President of American EV Jobs Alliance and Michigan native. “As EV adoption continues to rise, the future of this industry is clear. To be able to effectively compete, our American automakers need to continue innovating. Supportive federal and state policies have allowed them to do just that and stay in this race. Taking them away is like giving our economic competitors, especially China, a helping hand.”
It is critical that Michigan decision makers move expeditiously to pursue programs and policies that will leverage and reaffirm the state’s role as a leader in the clean mobility industry. The report released today reminds Michigan policymakers of what is at stake if we fail to seize this moment.
You can view a fact sheet about the report via Google Drive.
