Tariff-fueled auto investments are bypassing union strongholds like Michigan

The states poised to benefit most from any auto jobs created by the tariffs likely aren’t the ones some expected, especially those dishing out those monthly dues to the UAW.

The details: While union states like Michigan—home to the Detroit Three Automakers—have been central to the UAW’s support for the tariffs, a large share of the investments in auto plants sparked by the levies will be made in predominantly nonunion, right-to-work states, as a Bloomberg report spotlights. 

• Hyundai Motor Group has announced that it will invest a total of $21 billion in U.S. manufacturing, with a significant amount of those dollars slated for facilities in Alabama and Georgia (both nonunion states).

• Mercedes-Benz recently announced that it is deepening its U.S. production footprint at its Alabama assembly plant—with plans to build a new core vehicle at the facility, rumored to be the new compact GLC crossover.

• Honda Motor Co. is investing more than $1 billion in its Ohio facilities to produce ICE, hybrid-electric, and EV models on the same production lines—but Honda remains a non-union automaker. 

GM and Stellantis have announced new investments in their U.S. manufacturing facilities since President Trump started putting his tariff plans in motion—but nothing quite as massive as Hyundai’s $20 billion, which the company says will create 14,000 new direct full-time jobs. 

Between the lines: For states like Michigan, the concerns tied to those new auto investments are elevated by the growing popularity of brands like Hyundai that continue to chip away at their profits in the U.S. 

• To illustrate this point, Bloomberg notes that UAW workers got $14,500 profit checks from GM and Ford workers got more than $10,000 last year.

• The potential that tariffs could continue to slow down the economy, could significantly impact the Detroit Three automakers’ sales and profits, which determine those bonus checks for UAW members.

Bottom line: The trickle effect of the tariffs’ impact on U.S. manufacturing in the auto industry could not only affect vehicle sales and overall profits; it also could chip away at worker morale at facilities operated by GM, Ford, and Stellantis—if challenges worsen—which could have broader impact in the Detroit Three’s operations.  

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