The North American auto industry is at a turning point, as manufacturers grapple with software complexity, artificial intelligence adoption and rising competitive pressure from China, according to a post-event report from the Reuters Events Automotive USA 2025 conference held in Detroit.
The conference brought together OEMs, suppliers and technology partners for two days of discussions that highlighted a clear shift toward software-defined vehicles, with executives repeatedly stressing that software, not hardware, will be the key differentiator going forward. Vehicles now contain tens of millions of lines of code, creating productivity and quality challenges as development cycles struggle to keep pace.
AI emerged as a practical enabler rather than a buzzword. Speakers pointed to measurable gains in manufacturing, including improved quality control through camera-based systems and faster robot programming. At the same time, executives emphasized the importance of human oversight, particularly in safety-critical applications.
Safety beyond the factory floor was another major concern. Panelists warned that most post-collision repairs are performed outside certified networks, raising questions about proper calibration of advanced driver assistance systems. The gap between vehicle complexity and repair capability was described as a growing risk for consumers, insurers and OEMs alike.
Global competition, particularly from Chinese OEMs, framed many conversations. Analysts noted that Chinese brands are advancing rapidly not just on cost, but on software, user experience and speed of iteration, forcing Western manufacturers to rethink product strategy, partnerships and supply chains.
The definition of automotive luxury is also evolving. Conference speakers said premium experiences are increasingly shaped by software, personalization and seamless digital services, rather than traditional materials alone.
All of the aspects covered during the event are likely to influence everything from product mix and customer expectations to service, collision repair standards and training.
