CX Insights - Trend Watch - Automotive Industry (ICYMI February 2025)
| PLAYING WITH PRECISION (AND IMPRESSIVE ADAPTABILITY)
The U.S. auto industry finds itself navigating a complex chess tournament where tariffs keep shifting the board's dynamics. Industry leaders GM, Ford, and Stellantis are demonstrating remarkable agility, making strategic moves with the confidence of seasoned players. Manufacturing costs are accelerating upward with the momentum of a high-performance vehicle, while supply chains present challenges more intricate than a master engineer's blueprint of a gothic cathedral.
GM is strategically leveraging its global expertise in supply chain and production, while Ford continues its proud tradition of American manufacturing excellence with renewed domestic investment. "Made in America" has evolved from patriotic sentiment to cornerstone business strategy with impressive speed. Meanwhile, Stellantis is thoughtfully engaging with policymakers, highlighting the sophisticated economic considerations that deserve careful analysis.
In the immediate term, these automotive innovators are prudently building inventory reserves with the foresight of strategic planners. Looking further ahead? They're elegantly repositioning production and investing in cutting-edge automation that showcases their technological leadership. The significant question resonating through dealerships nationwide: How will these automotive pioneers transform their operations to maintain their competitive edge despite tariff challenges? The answer lies in their proven history of innovation and adaptability.
| THE SKY'S THE LIMIT (NO, LITERALLY, WE'RE FLYING NOW)
While traditional carmakers play tariff dodgeball, the mobility industry is having an identity crisis of the most exciting kind. The FAA is now approving training for flying taxi pilots, which is either the coolest career pivot or the plot of a straight-to-streaming sci-fi movie, depending on your perspective.
Orlando and Utah are planning for electric flying vehicle networks with the enthusiasm of kids designing tree houses. "Traffic? Oh, that's so 2024. We fly now." Imagine telling your boss you're late because your air taxi got caught in a cloud – finally, an excuse they haven't heard before!
| CARS: THE ULTIMATE CONTENT CREATORS
Big events like the Super Bowl and SNL 50-year special brought the opportunity to launch new models and campaigns. Automakers embarked on reinventing personalities faster than influencers after a scandal. Hyundai's "Play for the Car" campaign reminds us that driving was fun before it became a doom-scrolling opportunity. Jeep enlisted Harrison Ford for their Super Bowl spot “even though his name is Ford,” proving that even at 82, Ford’s appeal is still as rugged as the actual vehicles.
Volkswagen partnered with SNL's "The Californians" in what can only be described as the most perfect brand marriage since peanut butter met chocolate. "Umm, so I'll take the 405 to the 101, then switch to electric mode near Ventura Boulevard?" Pure marketing genius.
And in a great product placement branding win, Genesis, not content with merely making luxury vehicles, decided their cars needed to be TV stars too, landing roles in "Suits LA" that come with more screen time than some of the actual actors. Their GV80 Coupe isn't just transportation; it's auditioning for its own spinoff series.
| CHECKMATE: WHEN TARIFFS AREN'T JUST A GAME
While we do love learning about flying taxis innovations and creative ad campaigns, our automotive champions continue making strategic moves in the tariff chess match with impressive precision.
The industry's ability to pivot deserves applause—transforming production strategies at sports car speed while keeping their sense of humor. Auto companies have weathered everything from oil crises to pandemics; tariffs are just another showcase for their legendary adaptability.
The ideal outcome? A scenario where innovation thrives, manufacturing prospers, and consumers don't need a second mortgage for that new SUV. In this automotive chess tournament, we're cheering for an ending where everyone—industry and customers alike—enjoys the ride.