Industry leaders meeting in Ann Arbor say AI, faster engineering and streamlined decision-making—not just trade policy—will determine the future of North American manufacturing.

ANN ARBOR – While Washington continues to debate tariffs and trade policy aimed at slowing China’s automotive expansion, industry leaders gathered in Ann Arbor say North America’s biggest challenge may be much closer to home: learning how to design, build and launch vehicles much faster.

That was the central conclusion of a new executive summary released Thursday by the Center for Automotive Research (CAR), following a June roundtable discussion with automotive executives and industry experts during the organization’s annual Management Briefing Seminars.

The report argues that “China Speed” is far more than a catchy phrase describing shorter product development cycles. Instead, participants described it as an entire industrial ecosystem built around rapid decision-making, digital engineering, vertically integrated supply chains, abundant capital and government policies that encourage manufacturers to move from concept to production at unprecedented speed.

For Michigan, where General Motors, For Ford Motor Co., Stellantis North America and hundreds of suppliers remain the backbone of the state’s manufacturing economy, the findings raise a critical question: Can Detroit adapt quickly enough to remain globally competitive?

“We’re seeing a fundamental shift in how vehicles are developed,” said Elizabeth Krear, CAR’s president and chief executive officer. “North America does not need to replicate China’s system, but it must become more intentional about reducing complexity, accelerating collaboration and investing in the capabilities that will define the next generation of automotive leadership.”

Tariffs Alone Won’t Close The Gap

One of the report’s strongest conclusions is that tariffs and other trade barriers, while potentially necessary to ensure fair competition, are not enough to restore North America’s competitive position.

Instead, participants argued the region must dramatically improve the speed at which new vehicles are conceived, engineered, tested and brought to market.

Among the recommendations:

  • Use artificial intelligence and machine learning throughout vehicle development to accelerate engineering decisions.
  • Expand collaborative research in batteries, autonomous driving, connected vehicles and advanced manufacturing.
  • Benchmark Chinese automakers and newer North American manufacturers to identify more efficient development practices.
  • Establish common standards for cybersecurity, connected vehicle data and supply chain transparency.
  • Build upon North America’s strengths in engineering talent, automation, artificial intelligence and regional innovation ecosystems.

Those recommendations align with broader trends already emerging across Michigan’s mobility sector, where automakers and suppliers increasingly rely on AI-powered design tools, digital twins, simulation software and software-defined vehicle architectures.

Why China Is Moving Faster

The report notes China’s competitive advantage extends well beyond lower labor costs.

Participants pointed to coordinated industrial policy, vertically integrated manufacturing, localized supply chains and streamlined decision-making that allow Chinese automakers to introduce new vehicles in significantly less time than many legacy manufacturers.

Chinese companies also increasingly view vehicles as technology platforms rather than static products.

Software updates, new digital features and performance improvements can often be delivered after purchase through over-the-air updates, allowing manufacturers to continuously improve vehicles without waiting for traditional redesign cycles.

Many newer Chinese automakers also entered the market without decades of legacy manufacturing processes, enabling them to adopt modern engineering practices from the outset.

AI Becoming A Competitive Weapon

For MITechNews readers, one recommendation stands out.

Participants repeatedly emphasized that artificial intelligence and machine learning will become essential tools for shortening vehicle development timelines.

Rather than replacing engineers, AI is increasingly being used to analyze design alternatives, accelerate simulations, identify manufacturing bottlenecks and improve decision-making across engineering teams.

The findings reinforce a broader trend that has emerged across Michigan’s technology sector, where AI is rapidly becoming an integral part of product development, advanced manufacturing and industrial automation.

As automakers race to deliver software-defined vehicles, companies that successfully combine engineering expertise with AI-driven development tools could gain a significant competitive advantage.

Michigan’s Opportunity

Despite the growing pressure from China, CAR’s report remains optimistic about North America’s long-term prospects.

Participants said the region continues to possess significant advantages, including world-class engineering talent, leading universities, advanced automation expertise and an established automotive supply chain.

Michigan, in particular, remains home to one of the world’s largest concentrations of automotive engineers, research institutions and mobility technology companies.

The challenge, participants concluded, is translating those strengths into faster execution.

“North America has the engineering talent, technology base and innovation capacity to compete,” Krear said. “The challenge is translating those strengths into faster execution.”

What’s Next

CAR said the discussions will help shape future research into improving North America’s automotive competitiveness.

For Michigan manufacturers, the report also underscores a broader reality.

The race against China is no longer focused solely on labor costs or production volume. Increasingly, success may depend on which companies can make engineering decisions faster, develop software more efficiently and bring new technologies to market before global competitors.

That could make artificial intelligence, digital engineering and organizational agility just as important to Michigan’s automotive future as the assembly lines that helped build the industry’s past.

Editor’s Note: MITechNews will follow up with industry economists and automotive analysts to examine whether Detroit can realistically adopt the faster development model outlined in CAR’s report, and what it could mean for Michigan jobs, suppliers and the state’s mobility economy.