Why Does Poland Have A Booth At The Detroit Auto Show?

The Detroit Auto Show has continued to evolve over the decades. While trade shows across the board are trying to figure out where they fit in a world with direct-to-consumer information (RIP E3), Motown has zeroed in on the consumer part of the experience.

It even rebranded over the summer, switching to what Michiganders have been calling it for years, officially dropping its name as the North American International Auto Show (NAIAS). Part of this switch seems to veer away from a gathering intended for execs to something more experiential.

Much of the showroom floor is now dominated by tracks for people to take out the latest and greatest automakers have to off. Heck, I even got to strap into a jump seat in the Rivian EDV-500! With this new layout, a majority of the third-party booths have been moved out to the concourse. Take a look!

Speaking of change, let’s take a quick detour to Sesame Street. The long running show has been in the news recently as HBO has decided not to renew its contract with the Jim Henson Company. The agreement gave Max, a wonderfully named streaming service, a 6-month exclusive window for new episodes before they aired on PBS. We’ll see where the show eventually lands, but those Muppets have taught us so many lessons over the years, from pre-elementary skills like the Alphabet and Numbers (with some pretty trippy sequences) to social dynamics and acceptance. To introduce this skill, we go to the illustrious author of “Uh Oh! Gotta Go!: Potty Tales From Toddlers” that I had the opportunity to meet as a very young child (I know you’re jealous Stef), Bob McGrath. 

Now, let’s go back to the auto show’s map for a closer look. Indeed, one of these things is not like the other.

Closer.

CLOSER!

Wait, is that the country of Poland between Hyundai and Mazda? Why do they have a booth at the Detroit Auto Show? I stopped by their stand to find out. I walked up and asked a tall woman if there was anyone available to answer some questions on why Poland’s Investment & Trade Agency was in Detroit. They seemed initially confused by my line of inquiry but said they’d find someone to talk to me in just a moment.

An exec from one of the Big Three was also there. He turned, introduced himself, and shook my hand. He then told me he had the exact same question. This leaves me wondering if the agency didn’t reach out to local companies ahead of the show or if those inquiries got lost between departments or even spam folders. A beat or two later, a gentleman came up and said we could talk.

The Pitch

Poland is a relatively big deal in the European auto industry, according to Bogusław Szczepanik of Unigas, an automotive supplier in Poland. He says he was in Detroit to help his country’s manufacturers find new businesses in the United States. He admits while Poland doesn’t have its own vehicle brand, more than 200,000 people work in his country’s automotive industry, and in 2022, more than 32 billion euros worth of parts were exported. That makes up 11.1% of Poland’s total manufacturing, second only in scale to food production, according to accounting firm RSM. The country was also the second biggest exporter of parts and accessories in Europe in 2022, behind Germany, per the Observatory of Economic Complexity.

As for why Poland would be attractive to vehicle brands and supplies, Szczepanik points to an educated population that would be able to supply a skilled workforce while also providing cheaper labor. Wages in Poland range from $1,500 to $3,500/month per Paylab. While that’s low for those of us living in the United States, the country’s workforce also benefits from a lower cost of living. The University of Warsaw says people “can get by” with $670/month. That’s apparently the start of mid-income, according to this Springer Nature academic journal. As a working journalist, that sounds incredibly tempting. Sadly, I don’t think the bosses at my day job would be okay with me working remotely from Europe, nor do I think my SO is all too keen on becoming an expat.

The China Of It All

I asked Sczepanik if, because of his country’s aforementioned traits, the Polish Investment & Trade Agency is trying to pitch Poland as a replacement for Chinese automotive production, with more countries expected to take harsh economic stances against China. My question might have gotten a little lost in translation. He replied, “It’s very hard to compete with Chinese. In Poland, you can see a lot of Chinese vehicles, which are extremely cheap, that look very nice and well-equipped. But I’m sure that China is a very big competitor. And now it’s difficult to say that we can we can replace [China], but if there are protections like tariffs, that would help us.”

I do sympathize with his country’s position. This area of Poland’s economy is directly competing against China, but few countries are willing to risk offending Beijing out of fear of reprisal. For what it’s worth, Poland voted in favor of the tariffs and appears to have lost out on building a second Leapmotor vehicle, the B10 crossover.

But Poland already appears to at least be a success story in efforts to build affordable EVs outside of China. Stellantis is already cranking out the Leapmotor T03 microcar there and the adorable Jeep Avenger. While both are of Chinese design, they are made using European labor. As of now, I’ve yet to see final numbers for EV sales by model in Europe for 2024, but Stellantis sure seems happy with the Avenger. It said it was the best-selling electric B-SUV in Italy and third in France and the Netherlands through September. Yes, Stellatnis is really framing this in a specific way to make it seem like a win, but after how rough a year they had and that the Avenger is available as a plug-in hybrid(!), with a 4Xe variant coming soon(!!), I’m inclined to give it to them.

Lingering Questions

As of publication, I have a few questions Szczepanik wasn’t able to answer or authorized to answer on behalf of the Polish Investment & Trade Agency. How long has Poland been attending the auto show? The country isn’t listed as an exhibitor for the 2022 or 2023 NAIAS. Did the ministry reach out to companies before attending this year’s event?

If they did, it seems odd that the aforementioned Big 3 executive was surprised to see this booth at the show.  And in light of the auto industry (and many others) collectively holding their breath at what the incoming White House administration might mean for imports, what is Poland’s pitch on how their manufacturer base would be mutually beneficial for American companies? I’ve reached out to the agency for comment and will let you know if/when I hear back.

I guess Poland was at the Detroit Auto Show like many other companies are, to show off what they have to offer and hope they can build connections to help their businesses succeed. The timing is a little funny, but it seems sincere and not at all nefarious. Now, if you’ll excuse me, I have a hankering to go back to the National Polish-American Sports Hall of Fame for pierogis (I was there once on a date in 2017) and need to pick up Ptasie Mleczko chocolate-covered marshmallow squares at the market across the street. They’re kind of addictive.