(DETROIT) - Michigan's auto industry, worth about $348 billion, is at a turning point and could lose jobs and factories if the state does not act soon, according to a new report from MichAuto.
The report says car production is changing fast. Electric vehicles, automation, and new factories in southern states and overseas are putting pressure on Michigan. Industry leaders warn the state can no longer rely on its history as the home of the auto industry.
Major automakers like Ford Motor Company, General Motors, and Stellantis are already changing how and where they build vehicles. Ford recently scaled back electric vehicle plans and shifted billions of dollars toward gas-powered vehicles and energy storage.
Auto jobs still matter deeply in Michigan. The industry supports about 20% of all jobs and pays roughly $83 billion in wages. But the Detroit Three are losing market share, falling from just over 36% to about 34% in one year.
MichAuto says Michigan needs to invest more in research, train new workers to replace an aging workforce, improve the business climate, and offer long-term incentives to keep factories and engineers in the state.
The report also warns that slow income growth and fewer high-paying jobs could hurt Michigan's economy overall if the auto industry weakens.
Industry leaders say decisions made in the next year, especially in 2026, will help determine whether Michigan stays a global auto leader or falls behind.