Why Innovate When You Can Tax?

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President Trump has kicked the can down the road on tariffs for automakers, which means that for now, there’s a little relief. But in a month we’ll be staring over the precipice again, and that’s annoying.

In This Issue

• We Continue to Fall Behind in Innovation

• But If You Want To Try, Try Cleveland

• 2Tariffs2Stupid

We Continue to Fall Behind in Innovation

While the White House is out there telling the American people that an automaker can shift all of its production exclusively to the United States — including all aspects of the supply chain — in less than a month, the rest of the world is getting new and innovative products.

I’ve long suggested that the most innovation that’s happening in automotive is in electrification, and if we wanted to lead the world in that innovation we could. To further bring that point home, Volkswagen just debuted a new electric city car called the ID. EVERY1. It’s just a concept right now and only has a top speed of 81 miles per hour, but Kirsten Korosec at TechCrunch found out that it will be using the new software from its partnership with Rivian.

Volvo introduced its first 800-volt EV this week, as well, with the ES90 and it’s a sedan-crossover-liftback sort of thing. While the U.S. market doesn’t like sedans anymore, Volvo put its most innovative tech in a car that might not even make it to the United States (and if it does, like it's now planned, likely won’t sell in large quantities).

Some interesting things are happening here Stateside. GM is making some EVs profitably now, and some are pretty good. Ultium is now mainstream and the next innovation from GM is a bit unclear, but I’ll give them a pass at the moment since they’re continuing to build desirable EVs.

Stellantis’s most interesting product coming soon is the Ramcharger, which is a range-extended EV — but the first for a pickup truck. Ford is iterating right now on the current product, but there should be some new stuff coming in 2027. I know that feels like a long time, but it’s not. I think, if I’m honest, the most frustrating thing with Ford is they were in the lead with Lightning and Mach-E, and have ceded some ground trying to figure out where to go next.

None of it is at the breakneck pace of 2020, and maybe that’s for the best. But globally it feels like we’re falling behind because of tariffs and uncertainty.

And maybe that’s how auto manufacturing will be in the United States. I think EVs are where the innovation is currently happening, and I think automakers still aren’t convinced that the majority of people want the product.

The problem with that mindset is that the customers DO want those products. They do want innovative products. They want affordable products, too. But customers have been so brainwashed into thinking that they have to have a perfect product for all scenarios to even consider an EV.

Like that Volkswagon I’ve referenced, it doesn’t have a ton of range and the top speed is lower than most cars. But it’s still faster than the speed limit in nearly all parts of the country, and most people don’t need more than 60 miles a day of driving range. The car is expected to be priced at around $22,000 when directly converted from the Euro. Electric cars can be inexpensive — and desirable — if automakers and dealerships would just give them a chance.

But we know that dealerships hate selling EVs. Unless an automaker tries to not use dealerships, like Scout, and then suddenly they want EVs. But they don’t want to sell EVs, they just want to complain about them.

Then when dealerships that don’t want to sell EVs end up not selling EVs, they claim that people don’t want them. It’s a self-fulfilling prophecy that doesn’t exist in other markets, where also innovation is allowed to still happen.

As I said in my open letter to the automakers about tariffs, I am an American. I believe in the American values of all people being equal, in that we have a responsibility to help others in need, and that we have the spirit to boldly go. I hate seeing a segment that can be so robust and vibrant seemingly stagnate because of everything going on. I want to go back to doing the hard things because they are hard, and not touching the stove because it is hot.

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But If You Want To Try, Try Cleveland

If after the doom and gloom of the opening segment, you still want to try your hand in automotive in the United States, you might want to consider relocating to Cleveland. Especially if you want to get into automotive design because it’s the place you should probably be.

The Cleveland Institute of Art has a design program that is often sought after in the automotive space, and a recent visit to the Cleveland Auto Show reemphasized how important it is.

While the show itself doesn’t attract reveals — it did once in my time doing this — it does often bring in some designers to give presentations. Being only a few hours from Detroit helps, but for many designers, it’s also a homecoming where they come and talk to current students.

Ryan Nagode, VP and Head of Interior Design is an alum and was recently on hand to talk to students. I’ve known Ryan for what seems like forever, and I had always wondered why it was so easy to get Stellantis designers to come to Cleveland.

As it turns out, Stellantis hires a lot of grads from C.I.A. Nagode believes there are like 6 right now on their very small team, but he points out that of the four top lieutenants who report directly to Ralph Gilles, three of them went to C.I.A.

I asked him later how he ended up in Cleveland.

“Attending the Cleveland Institute of Art (CIA) for Industrial Design was an easy decision for me,” he tells me. “My father graduated from the ID program in 1974 and had a successful career as a toy designer for Fisher-Price Toys, giving me a direct link to the program. However, I fell in love with CIA's diverse opportunities and its ability to guide eager artists in finding the right career paths.”

The school appears to be quite popular, as several dozen students were on hand to talk to Ryan and his counterpart in exterior design — Irina Zavatski — about the cars they work on and what it’s like to work for Stellantis.

I was never a design-focused individual. I’m quite envious of a designer’s ability to do what they do. I also never really knew how someone gets into that line of work.

“If you find the idea of a career in an art-based industry like automotive design intriguing, reach out to the school, ask questions, and connect with professionals in the field,” Nagode says. “It's amazing how little is known about the design industry, especially at the middle and high school levels.”

While I didn’t expect to turn part of the newsletter into a career day, I find one of the interesting aspects of the Cleveland Auto Show is how some automakers bring in experts that you wouldn’t find at other shows of its size.

If you do have a kid who might be interested, I’d be remiss if I didn’t point out Stellantis’s “Drive for Design” event that they have each year. Nagode mentions that it’s a great chance to learn some things, but it’s also a great chance to have your work seen. Not just by people in the general public, but by people who might be offering you your next job.

2Tariffs2Stupid

A small reprieve to the Canadian and Mexican tariffs has been granted to automakers who comply with the requirements of the USMCA. That extension is for one month and comes after Trump reportedly talked to the heads of Ford, General Motors, and Stellantis.

I’m not sure how this is beneficial at all, and I’m not sure how automakers consistently seem to just be going along with it, but I guess uncertainty is better than tariffs. I mean, probably not, because predictability is important. At least there was some discussion and pushback, but any ground automakers did make will be ceded in the next round of discussions.

Are we winning yet?