Future of Mobility | Semafor World Economy 2026

Why It Matters

The discussion underscores how legacy manufacturing footprints and product-led efficiency can protect suppliers from trade and energy shocks while supporting fleets’ cost pressures and accelerating EV adoption; it also signals continued vulnerability to concentrated raw-material supply chains. Companies that combine local production with resilient sourcing and clear value propositions for efficiency are better positioned in a volatile mobility transition.

Summary

At Semafor’s World Economy 2026 session on the Future of Mobility, Michelin North America executive Matthew Cabe stressed the company’s long-standing strategy to manufacture locally—operating dozens of plants across the U.S. and Canada—which has insulated the business from recent tariff disruptions. Cabe said tariffs have been harmful but manageable because Michelin’s North American footprint predates recent trade shifts, and the company emphasizes total cost of ownership by promoting fuel- and energy-efficient tires that can offset higher upfront costs for fleets. He highlighted how rising diesel and energy prices are sharpening demand for efficiency, noted that EVs make tire-related efficiency gains visible through range metrics, and warned that key inputs such as natural rubber remain tied to equatorial global supply chains. Cabe also argued that lessons from COVID have strengthened supply-chain resilience and enabled quicker adaptation to geopolitical and market shocks.