Auto innovation at Mackinac: What will drive Michigan's future?

Posted on May 27, 2015

MACKINAC ISLAND — With upstarts from Tesla to Uber and Google Cars challenging the traditional business models of personal transportation, what are Michigan and Detroit to do to protect their long-standing status as a global automotive epicenter and leader?

That’s the multibillion-dollar question behind today’s kickoff session at the Detroit Regional Chamber’s 2015 Mackinac Policy Conference, where a coalition of business, academic and public partners are launching the Michigan Mobility Initiative.

“Detroit and Michigan are in the crosshairs of some very talented innovators in places like Silicon Valley,” said Doug Rothwell, president and CEO of Business leaders for Michigan (BLM). “Michigan has to work quickly and cohesively to maximize our existing automotive resources in next-generation mobility – and that includes a focus on talent … the engineers, designers and entrepreneurs who can harness innovation to change the way the world moves.”

MICHauto, a statewide effort of the Detroit Chamber, has been beating this drum since it was created in 2012 to promote, retain and grow the automotive industry in Michigan. It is hosting the automotive leadership roundtable at Mackinac this morning, backed by BLM and the top research universities — Michigan, Michigan State and Wayne State.

MSU president Lou Anna Simon will be moderator for the event, expected to draw more than 60 participants from auto manufacturers and suppliers, universities and economic development groups. The KPMG audit and consulting firm will also present a report on mobility trends.

“Other regions are fighting for this technology and these jobs, and it is important for us to emphasize that Michigan is at the forefront of the development of the connected vehicle,” said Glenn Stevens, vice president of MICHauto and Strategic Development for the Detroit Regional Chamber. “The automotive research, design and advanced manufacturing resources here are unparalleled and have our state leading next-generation mobility. If you want to design, test or manufacture smart mobility technology you have to have a presence in Michigan.”

The new mobility group recently released a map featuring 28 existing facilities that play a role in developing, designing, testing and manufacturing smart mobility technology in the state.

In 2014, Michigan led the U.S. in connected vehicle projects (45), followed by California (31). Ranked first nationally in advanced auto industry jobs (67,825) and businesses (462), southeast Michigan is positioned to lead in connected and automated vehicle and technology.

That’s the MICHauto intent anyway, and it’s a good thing the Detroit chamber went on offense to start pushing these priorities when it did.

“Michigan is the premier strategic location for emerging connected vehicle technology,” said Kevin Kerrigan, senior vice president of automotive at the Michigan Economic Development Corp. “The challenge now is to maintain and capitalize on this advantage, which could not be more important to the future of our state.”

Whatever their iconic stature in automobile and transportation history, Detroit and Michigan have no entitlement to being the global leaders of next-generation mobility – any more than they were guaranteed to get the auto assembly plants that went to southern U.S. states, or all of the auto parts jobs that migrated to Mexico and Asia over the last 30 years.

It’s critical now to leverage the talent and advantages that still reside here. A fitting opening note for the annual Mackinac shindig.