With 25% tariffs looming on imported vehicles and ongoing steel and aluminum trade disruptions, the automotive industry is facing a perfect storm. In this episode—based on insights from the article Automotive tariffs: How automakers can forge ahead in a swirl of uncertainty—we explore how automakers can navigate a rapidly shifting trade environment.
From fluctuating material costs to unpredictable policy changes, this episode explores how companies can move beyond reactive mode. With tools like integrated business planning (IBP), AI-driven sourcing, and digital manufacturing, carmakers are finding ways to stay agile, protect margins, and stay ahead of shifting customer expectations.
What You’ll Learn in This Episode:
1. Why Uncertainty Is More Damaging Than the Tariffs Themselves
- Tariffs on steel, aluminum, and imports are disrupting supply chains—but the real threat is unpredictability
- Without clarity, long-term planning becomes almost impossible for automakers
2. Material Impact: The Hidden Costs of Steel and Aluminum
- How tariffs on key materials can add hundreds of dollars per vehicle
- Why Canada’s aluminum supply is especially critical
3. Digital Transformation as a Defensive Strategy
- How automakers are leveraging real-time data to plan, pivot, and prepare for “what if” scenarios
- Digital transformation is no longer optional—it’s how companies stay resilient
4. The Five Digital Levers Automakers Are Pulling
- Integrated Business Planning (IBP): Connects data across finance, operations, and supply
- Direct Material Sourcing: Quickly identifies alternative suppliers and materials
- Cloud-Based Finance Tools: Runs scenario modeling and cost impact simulations
- Digital Manufacturing Systems: Enables agile retooling and smarter resource use
- Customer Experience Platforms: Analyzes buying behavior and price sensitivity
5. The Role of AI and Simulation
- “Co-pilot” AI interfaces and agentic AI help companies make sense of massive data sets
- AI can suggest suppliers, predict bottlenecks, and assess pricing impact across SKUs
6. A Real-World Example: The Ford F-150
- How one of America’s best-selling vehicles could be impacted by just $1,000 in added cost
- Why understanding ripple effects—from marketing to production to sales—is mission critical
Key Takeaways:
- Automotive tariffs are just the tip of the iceberg—uncertainty is the real disruptor
- Digital tools like IBP, AI, and cloud finance platforms empower faster, smarter decision-making
- Real-time visibility and agile planning can help automakers reduce risk, control costs, and meet demand
- This isn’t just about cars—every industry can learn from how automakers are building resilience
- Digital transformation isn't a luxury—it's the survival kit for the modern global economy
Subscribe to our podcast for more insights on how global industries are adapting to disruption. Visit The Future of Commerce for expert guidance on transforming your operations through technology. Share this episode with your team or leadership if supply chain volatility is on your radar