The Collective Spark

By Matt Pohlman, CEO, AIAG

In an industry as dynamic as automotive, change is inevitable. From shifting regulations to evolving trade policies, we operate in a world where uncertainty is the only constant. The latest developments around tariffs are yet another reminder that companies must take a proactive rather than reactive approach to ensure long-term sustainability.

At AIAG, we don’t engage in advocacy or lobbying, but we do understand the impact these trade policies have on our members. Tariffs introduce complexities across the global supply chain, influencing sourcing strategies, cost structures, and overall resilience. While we can’t control policy decisions, we can control how we prepare, respond, and adapt to them.

Beyond Reaction: Building a Resilient Supply Chain

The automotive supply chain is deeply interconnected. A tariff increase on one component doesn’t just affect a single supplier—it has ripple effects throughout the entire ecosystem. The challenge is not just about managing immediate costs, but also about ensuring long-term visibility, agility, and strategic decision-making.

So, what can companies do?

1. Increase Supply Chain Transparency – Companies must go beyond their tier-one suppliers to understand vulnerabilities deeper in the supply chain. Tools that provide better mapping and risk assessment can help businesses make informed decisions before disruptions arise.
2. Leverage Collective Intelligence – No company should navigate these challenges alone. By working together, benchmarking best practices, and sharing insights, the industry can develop standardized approaches that create efficiencies and reduce uncertainty.
3. Adapt with Agility – Being proactive means scenario planning, diversifying sourcing strategies, and developing contingency plans before they’re needed. Companies that take these steps today will be better positioned to respond to future trade shifts.

AIAG’s Role in Supporting the Industry

AIAG’s strength has always been in facilitating collaboration. We bring together OEMs and suppliers to share knowledge, develop industry-driven solutions, and build resilience in a way that benefits the entire sector. Through our forums, working groups, and best practices, we help companies stay ahead of challenges rather than simply reacting to them.

Tariffs may be beyond our control, but how we respond is not. The companies that succeed in this environment will be those that plan for disruption, build flexibility into their supply chains, and take advantage of the collective expertise available. AIAG is here to support that journey—helping our members turn uncertainty into opportunity.