Dear Friend,

Yesterday, I was at the Detroit Auto Show to highlight how we must continue to work together here in Michigan to lead the future of the American auto industry.

Since I took office, I have made it clear that I will work with anyone to boost Michigan’s economy and keep Michigan as the #1 state for auto manufacturing and battery and EV investment. Yesterday, I laid out my vision to strengthen and diversify Michigan’s economy and set the auto industry up for success.

However, for the last 9 straight months, American manufacturing has contracted, leading to job losses and production cuts caused by chaotic national policy and sweeping tariffs, which have taken a terrible toll.

In 2026, Michigan will stay focused on setting our auto industry up for success.

See below how we must work together and get it done.

Sincerely,

2026 Detroit Auto Show Speech

Click here to watch full speech.

During my keynote address at the Detroit Auto Show, I discussed the impact of tariffs on Michigan’s economy, the importance of innovation and collaboration, and actions the state must take in 2026 to continue attracting business and creating good-paying local jobs amidst national uncertainty.

Let's Meet This Challenge

To set Michigan’s auto industry up for success in 2026, we have to look at what we’re up against. Right now, China wants to dominate every part of auto manufacturing, and they’re making major headway. In 2025, they exported 6.8 million vehicles, up from just 1 million in 2020—a seven-fold increase in five years. 

Amidst rising competition, it’s tempting to see the future as zero-sum. A philosophy of “I win but only if you lose,” could lead someone to believe in the magical power of tariffs. But as we’ve seen over the past year, they don’t work alone. Nothing does. We have to meet these challenges.

Michigan is Leading the American Auto Industry

Michigan is home to some of the most exciting automotive research happening anywhere in the world and the highest density of engineering talent of any state. In spite of all the big challenges we face:

• Michiganders made 2 million cars last year, one-fifth of the U.S. total.
• Stellantis announced investments in Warren and Detroit to create and protect thousands of good-paying, local union jobs building the next-generation of trucks and SUVs.
• GM is increasing production of their gas-powered full-size SUVs and light-duty trucks at Orion Assembly.
• Ford continues to move forward with their BlueOval plant in Marshall. This year, they’ll also launch 12 Ford Future Builders Labs in Detroit and Battle Creek schools, connecting thousands of local students with exciting careers in engineering, tech, and the trades. 
• I signed another balanced, bipartisan budget and a long-term solution to fix the damn state AND local roads. Last year at the auto show, I pledged to bring Republicans and Democrats together on roads, and we got it done.

Michigan remains:

• #1 for auto manufacturing, R&D, and workforce.
• #1 for battery and EV investment.
• #4 for regional workforce development.
• A top 10 state for doing business for the third year in a row.

We Must Collaborate and Innovate

We often talk about diversifying Michigan’s economy away from the auto industry, but the secret is to capitalize on and use our auto industry as a launchpad for innovation. Instead of building on that incredible record, the folks in DC have made deep, devastating cuts to R&D. In Michigan, at the state level, we still believe in science and technology:

• We established a bipartisan R&D tax credit, and we work with our universities on cutting-edge initiatives.
• Yesterday, I signed an executive directive to position Michigan at the forefront of geologic hydrogen, an emerging source of clean, reliable energy that could transform our economy. This directive puts Michigan on a path to lead the nation, create good-paying jobs, lower energy costs, and reduce our reliance on foreign fuel.

A fully assembled vehicle requires nearly 30,000 parts. Producing all of them in the United States is impractical and, in many cases, impossible. When we slap tariffs on our allies and fight with our neighbors, like Canada and Mexico, China wins. Collaboration is a strength, not a weakness. We must work together to keep assembly in Michigan as much as possible to protect good-paying union jobs.

Let's Set Michigan Up for Success

To set ourselves up for success, in Michigan:

1. The Michigan Legislature has got to get their job done—on time this year. That means the budget on my desk by June 30th. With so much uncertainty, we owe it to local governments, schools, and business leaders to enact a transparent, timely budget.
2. We need more skilled workers to fill good-paying, in-demand auto jobs, from mechanics and technicians to programmers and engineers. We must continue to double down on the programs we’ve created to help people get skills, like:
   • Going Pro, which helps employers train and retain their employees.
   • The Community College Guarantee, which gives every high school graduate the chance to earn a tuition-free associate’s degree.
   • The Michigan Achievement Scholarship which has helped over 42,000 students save thousands – up to $27,500 over 5 years – as they earn their undergraduate degrees.
3. We must permanently expand Michigan Reconnect to every Michigander 21 and older, giving more Michiganders the opportunity to earn an associate’s degree or skills certificate, tuition-free. Michigan Reconnect has helped thousands of Michiganders get the knowledge and skills they need to make more money. At the same time, we’re building a stronger talent pipeline for the auto industry.

As governor, I’m going to stay focused on the fundamentals: affordable housing, great schools, safe roads, strong communities, and good-paying jobs. When we deliver on these kitchen-table issues, we make greater innovation and collaboration possible.

We cannot shy away from the hard work it takes to compromise and get stuff done. It will always be easier to retreat and sit in a silo. Staying and figuring out how to win together is the smarter, harder choice.

Together, let’s step up to the challenge, embrace change, and work for a better future.