Auto Suppliers Face Geopolitical, Market Pressures

A sharp escalation in U.S.-China trade tensions is creating fresh turbulence for automotive supply chains, with electric vehicle battery networks particularly exposed.
China’s latest export curbs target high-end battery cells and key materials, complicating Western attempts to build alternative supply lines while a proposed 100 percent U.S. tariff would further disrupt flows of components.
At the same time, manufacturers and suppliers are restructuring: Germany’s Webasto announced 300 more job cuts focused on administrative roles, and First Brands’ parent company saw its CEO step down amid bankruptcy proceedings.
Policy and investment responses are emerging—Canada is developing an industrial strategy to defend jobs and prioritize domestic procurement, while Stellantis plans a $13 billion investment to add 5,000 U.S. factory jobs.
Corporate adjustments continue: GM canceled its next-generation hydrogen fuel-cell program and a planned $55 million Detroit plant, and Linamar expanded in North America with a US$300 million acquisition of Aludyne’s sites.
Market shifts are visible at industry shows, where battery firms pivot toward stationary energy storage as EV growth cools. Buyers also face supply risk from material shortages and new contractual terms suppliers say GM is adding to purchase orders.
Overall, geopolitical controls, demand shifts and corporate retrenchment are reshaping supplier strategy and sourcing decisions.