Policy relief brings confusion—and opportunity—for digital transformation.
Recent changes to U.S. auto tariffs have brought partial relief to the automotive sector. Yet for many manufacturers, the real challenge now lies in interpretation. While “stacked” duties on components and materials have been rolled back, new exemptions under trade agreements like USMCA remain vague, leading to uncertainty and hesitation.
“The cost structures are changing,” said one European supplier executive, “but the rules feel murkier than ever.”
In this fog of shifting regulation, automakers and suppliers are embracing digital solutions to regain control. One such platform, Xotigo, enables users to instantly simulate the financial impact of cost, price, or volume changes across products, plants, and customer programs. Instead of relying on weeks of manual analysis, teams can see the effect of a tariff or strategic shift in seconds.
Beyond simulation, Xotigo also fosters cross-functional alignment. Its dashboard allows finance, procurement, and operations leaders to collaborate using the same data—enabling quicker, more confident decisions like moving production or re-negotiating supply contracts.
While the headline tariff may have eased, a high-tariff environment remains the norm. And with policies continuing to evolve, tools like the Xotigo Scenario Planning platform are becoming critical—not just for efficiency, but for survival.
In an industry where the smallest misstep can cost millions, the ability to act swiftly and strategically is no longer a luxury. It’s a competitive necessity.
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