Detroit City Wire

On September 11, Sandy K. Baruah, President and Chief Executive Officer of the Detroit Regional Chamber, appeared on “Autoline After Hours” to discuss how Detroit can adapt as legacy automakers face disruption. He was joined by host John McElroy, Joe White, and Sandy Munro.

Baruah highlighted Michigan’s long-standing position as a global leader in the automotive and mobility industry. The sector contributes nearly $350 billion to the state’s economy, supports almost 30% of its employment, and accounts for about a quarter of Michigan’s research and development activity. However, this economic reliance also makes Michigan and the Detroit Region particularly vulnerable to changes in the industry.

Baruah pointed out that fluctuating tariffs and trade policies are hindering investment and leading to job losses in manufacturing. These effects are more pronounced in Michigan due to its dependence on manufacturing jobs and its close trade relationship with Canada. He noted that the major automakers based in Detroit have paid $12 billion in tariffs.

“That is $12 billion of U.S. innovation stranded capital that has kind of walked out the door … not even to consider the opportunity cost that’s been paid,” said Baruah.

Michigan faces additional challenges as it transitions toward electric vehicles (EVs). According to Baruah, political divisions have slowed EV adoption within the state despite broader trends toward electrification across the country. Still, he predicted that EV market share could reach 20% by decade’s end.

He added that growth in the used EV market may make these vehicles more accessible for consumers through lower prices. Politics remain an important factor affecting demand for EVs.

“Are EVs still a political issue? Because right now, part of the depression in EV demand is politics, as politics is now part of it,” Baruah said.

To maintain competitiveness amid these shifts, Baruah argued that Michigan must diversify while building on its core strength—mobility expertise.

“It’s the technology and it’s the skills around moving people and goods from point A to point B cheaply, safely, and efficiently,” said Baruah. “That is a core skill for us.”

He stressed investing both in skilled trades training and postsecondary education to ensure a strong workforce for current needs as well as future demands related to mobility technologies.

Aligning educational programs with evolving industry requirements presents another challenge for Michigan. Baruah recommended what he called a “K-12 + 2” approach: two years of education or training beyond high school—whether through college degrees or technical certifications—to better prepare residents for available jobs.

“Regardless of how education is delivered, what is the output?” Baruah asked. “What are we getting for our education dollars?”

Baruah concluded by emphasizing opportunities created by new technologies within a globally influential industry:

“You have to give young people a vision of what the future is … and their role in it,” he said.