THE UGLY REALITY FOR DETROIT.

Editor's Note: This week, Peter discusses the new and ugly reality for the state of the auto business in Detroit as a result of the relentless chaos in Washington, D.C. (and let's just say it's Not Good). In On The Table, we preview the all-electric behemoth, the 2026 Cadillac ESCALADE IQL. Our AE Song of the Week is "Back On The Chain Gang" by The Pretenders. In Fumes, we have the third installment of Peter's riveting new series, The Great Races. And in The Line we'll have a special feature on MotoGP great Marc Marquez by AE Special Contributor Whit Bazemore. Onward! -WG


By Peter M. DeLorenzo

 

Detroit. Last week’s column, “Chaos in Washington Threatens to Destroy Detroit” wasn’t too popular in some circles (No, really? -WG), especially with the blind loyalists to the Sad King. I would use the term “mad” King but it’s clear at this juncture that after seven weeks in, what’s going on in our nation’s capital is just sad and pathetic.

 

What I’m hearing from readers mostly is “why should anyone be surprised” and “this is what we get” because people voted for someone who only cares about himself, power, attention and dominating the media. Yes, I wholeheartedly agree, but the real squeamishness is starting to boil over, especially when it comes to the livelihoods in this region of the country, which is the U.S. Auto Industry, aka “Detroit.”

 

Countless suppliers, assembly line workers and especially the upper echelon executives at Ford and GM (Stellantis, too, but since it isn’t an American-owned company it’s a distinction that must continue to be pointed out) voted a certain way last November. And now, the current occupant of the Oval Office has all of you by the balls.

 

That the dreaded Tariffs are arbitrary and capriciously malicious has become obvious to most rational-thinking people, especially when it comes to cars and trucks built in Canada and Mexico (and everything else for that matter too). But here’s the thing, the Attention Whore in Chief has discovered that he can hold these Tariffs over this region and this industry’s head indefinitely. And the wording that was used when the Tariffs were delayed yet again was simply reprehensible, as in, The Yellow Dictator was “granting” a reprieve to the auto industry for another 30 days.

 

Guess what? This will go on indefinitely. When you’re being governed by the “whims of the moment” and no rhyme or reason enters into the discussion, and the media duly reports every which way the wind is blowing in the Oval Office because “it’s good TV,” the U.S. Auto Industry will continue to be held hostage by a person whose ideas originate from the last person he talks with, every time. And when one of those people is the Muskian Nightmare in the flesh, there is no good outcome on offer in any of this.

 

Again, why should anyone be surprised by this collective chaos? But I’m still shocked that I’m actually hearing from some (allegedly) smart people in this business that “I never thought it would come to this.” Really? That’s what you’re going with? I laughed out loud at a headline in Automotive News last week that said: “Moving production back to U.S. because of Tariffs easier said than done, suppliers say.” To that I say (along with a lot of other people in this business), “No Shit Dot Com.”

 

The production and flow of vehicles from Canada and Mexico isn’t done on a whim, in case any of those pathetic politicians are wondering, or are too stupid to grasp. It’s done as an essential part of the ongoing function of the business. In other words, a switch can’t be “flipped” to facilitate this situation to please the whims of the Bloviator in Chief. The production and subsequent distribution of vehicles from Canada and Mexico is so ingrained in the fundamental structures of these companies that to systematically disrupt it or try to end it altogether would simply destroy these companies and their suppliers in one fell swoop, which was the point of my column last week.

 

That vast swaths of this business have a major case of “buyers’ remorse” with what’s going on right now is understandable, but it’s definitely not forgivable. That these people weren’t paying attention, and that certain CEOs were actively courting the current occupant of the Oval Office figuring that it would hold them and their companies in good stead, is simply naïve and laughable, if it wasn’t so painful. Those CEOs and key supplier executives got played by a person who not only doesn’t understand anything about this business, but simply doesn't care. He is, after all, someone who is only interested in dominating media coverage any which way he can, and if the U.S. Auto Industry becomes collateral damage in the process, then so be it. Remember this always: He and his handlers simply don’t give a shit.

 

The Tariffs being actively held over this industry’s head on an ongoing basis is the new – and ugly – reality for Detroit. Congratulations to all for signing up for four long years of this mayhem. You knew better, but you failed yourselves and everyone associated with this business. Will some of these CEOs and leaders of the big suppliers fall by the wayside because of their serial incompetence? One can only hope. Wait a minute, check that: you can count on it.

 

And that’s the High-Octane Truth for this week.

Editor's Note: Click on "Next 1 Entries" at the bottom of this page to see previous issues. - WG