MichAuto, an automotive, mobility and technology association in Michigan, revealed in its 2025 State of Automobility Report the state of Michigan's auto industry but also the nation’s.
Michigan has long been an epicenter for the U.S.’s automotive industry and today has 25 original equipment manufacturers that create over 1.2 million people jobs to the automotive and mobility industry, according to the report. But it is facing growing competition within the U.S. and globally.
According to the report, since 2004, the Southern states have grown their automotive manufacturing unit volume by 59% while Michigan’s has decreased by 25%. Globally, China has risen to the top, producing three times as many vehicles as the U.S. and accounting for 34% of total production.
The data brings to light challenges that the industry is facing as the push to bring manufacturing back to the U.S. increases, led by the Trump administration. Challenges include trade disruptions, a dwindling workforce, and the constantly evolving manufacturing technology and electric vehicle demand.
According to the U.S. Bureau of Labor Statistics, export motor vehicle parts manufacturing prices rose 17% from December 2021 to December 2024. And import motor vehicle parts manufacturing prices rose about 6% during the same time period. The rise in cost trickles down to the consumer level, impacting affordability.
Michigan data shows that more than half of students wouldn’t consider a career in the automotive and mobility industry. It attributed the reluctance to a lack of knowledge about the diversity of available roles, unclear education pathways, and misunderstood working conditions. There is a significant gap between the low number of graduates and the high number of job openings in the field, seen in the ongoing challenge that service departments face in finding and keeping service technicians.
Despite this fall's end of the federal EV tax credit, American interest in EVs continues at a slower pace. The report said that between 2020 and 2025 automotive OEMs and suppliers have announced $227 billion in electrification investments. But, according to the Alliance for Automotive Innovation, China produced 70% of the world’s EVs last year.
