U.S. auto production is reshaping freight networks

Automakers are moving more production to the United States

After decades of watching production lines move overseas, auto manufacturing is experiencing a reversal towards reshoring. Much of the shift is driven by the increased costs of foreign imports and the desire for reliable domestic supply chains. But those aren’t the only advantages:

• Domestic production can improve flexibility, control, and speed. This often outweighs pursuing lower-cost foreign manufacturing.
• The “Made in the USA” label engenders trust and brand loyalty.

What the big brands are doing

• Hyundai Motor Group: Opened a $7.6 billion plant in Bryan County, Georgia, in 2025
• Subaru: Moved Forester production from Japan to Indiana in 2025
• Rivian: Building its R2 SUV in Normal, Illinois, with deliveries starting in spring 2026
• Nissan: Moving Rogue production from Japan to Tennessee in 2027
• Mercedes: Planning to build more core segment models in Alabama by 2027, investing an additional $4 billion in the plant
• General Motors: Planning to move Chevy Blazer and Equinox production from Mexico to Tennessee and Kansas, respectively, in 2027, and Buick Envision production from China to Kansas in 2028
• Honda: Relocating next-gen Civic production from Mexico to Indiana, with 210,000 units/year starting in 2028
• Stellantis: Announced it will shift Ram 1500 pickup production from Mexico to Michigan; no specific date given

What this means for auto logistics

• Automotive companies should start rethinking networks around key U.S. production hubs as freight flows move from imports to U.S. plants and supplier networks, with more inbound component complexity.
• Shorter supply chains and lead times improve speed but leave less margin for disruption. This requires improved visibility and contingency planning.
• As reshoring increases domestic freight demand and reshapes certain shipping lanes, trucking capacity will tighten in certain areas. Secure capacity early and consider diversifying your transportation modes.

Aluminum crunch hamstrings automakers

U.S. automakers are facing an aluminum shortage coupled with significantly higher costs due to a major supplier outage. Aluminum, which is lighter than steel but doesn’t sacrifice strength, has become a key material for efforts to boost fuel economy. As a result, it has become a key commodity for many U.S. carmakers.

What’s going on

• The major source of sheet aluminum for the U.S. auto industry is Novelis, whose New York plant supplies roughly 40% of all aluminum to U.S. automakers.
• This plant suffered two separate fires in late 2025, resulting in the closing of a major portion of the facility.

How it impacts car makers

• Aluminum shortages are a major issue for vehicle models that moved from steel to aluminum in recent years.
• In search of fuel savings, automakers shifted popular models to aluminum, driving industry demand for sheet aluminum.
• In the wake of the Novelis fires, some of these product lines have seen significant inventory shortfalls, driving buyers toward competitor models.
• U.S. automakers affected by the outage are finding it hard to replace their aluminum supply because of U.S. tariffs on foreign imports and the Iran conflict.

Going forward

• Novelis expects its New York plant to recover through mid-2026, with a phased restart beginning this month.
• Automakers are seeking refunds following the U.S. Supreme Court’s decision to strike down certain tariffs that were instituted under the International Emergency Economic Powers Act (IEEPA). But the tariffs on imported aluminum are separate and stay in place under Section 232 of a different law granting the president trade powers.
• The aluminum crunch underscores the importance of sourcing diversification and sourcing hierarchies, allowing companies to shift suppliers when disruption hits.

Shippers may be impacted by Supreme Court decision on trucking accidents

The U.S. Supreme Court’s recent decision in Montgomery v. Caribe Transport clarifies a legal issue for the freight industry. The Court ruled that accident-liability lawsuits against brokers may proceed under state law. While not explicit, the Court also appeared to suggest that shippers, too, may be liable under state law if a truck hauling their freight gets in an accident.

This introduces new complexity for shippers, who may face increased litigation exposure tied to how they select and vet trucking companies. While federal safety oversight remains in place, the addition of state-level liability is expected to increase compliance demands, legal costs, and insurance premiums.

Shippers should stay in close contact with their logistics providers to evaluate how the changing landscape may affect their transportation choices.

Taiwan auto parts tariff set at 15%

The U.S. and Taiwan have finalized a trade deal that sets a 15% cap on section 232 tariffs on a series of goods including auto parts, aluminum and copper. The tariffs are retroactive to May 1. According to a May 28 document from the U.S. Department of Commerce, the rate will apply to parts for passenger vehicles and light trucks.

For more details, see the Trade Policy & Customs section of this report. 

Table of Contents