The automotive supply chain runs on scale. Volume buys capacity, amortizes tooling, and puts a buyer at the front of the queue. Karma Automotive builds roughly 150 vehicles a year, so none of that leverage exists. A traditional tier-one scrap earns more in a week than Karma needs in twelve months. In this episode of the Auto Supply Chain Champions Podcast, Jan Griffiths and Tom Roberts sit down with Juan Lalinde, Director of Global Purchasing at Karma Automotive, the California ultra-luxury automaker built from the assets of Fisker. Juan sources a company where a $2 million tooling quote sits against a 150-unit build year. His model is not a smarter algorithm. It is a stronger network. AI clears the noise, and the non-value-added work, and the doors still open the old way, through a knock, an introduction, and a supplier who wants a shot at ultra-luxury. Juan calls it HI. Human intelligence. That approach got tested. Karma pulled a structural program out of Northern Europe, where the Fisker-era extruders had merged, closed, or scrapped the tooling, and localized it with a supplier in Tijuana, two hours down the road. Requalification finished. The tooling was paid for. Then the tariffs on Mexico landed. Juan ran the numbers, saw that China carried heavier-duty and domestic quotes at 10 times the cost, and chose to stay and work the problem with the supplier. What came out of it is a different kind of negotiation. Karma hands the supplier the schedule: deliver 100 parts by the date, and run the job at 1:00 in the morning if that protects the capacity, paying their bills. Juan is also clear that Karma is not a pure EV. The motors are electric, and the engine exists only to charge the battery, which takes charging infrastructure out of the decision, where it still stops buyers. Most supply chain leaders will never buy at 150 units a year, and the lesson holds anyway. When volume stops doing the negotiating, what is left is the relationship, the speed of the call, and whether the supplier believes the business is going somewhere. That work does not automate. Themes Discussed in This Episode Sourcing when scale is not on your sideWhy relationships still open doors that data cannotAI for the noise, human intelligence for the decisionLocalizing to Mexico and absorbing a tariff shock with the supplierDeveloping small suppliers from ISO to IATFSchedule flexibility as a low-volume negotiating toolEREV and the charging anxiety are still holding buyers backBrand desirability as a sourcing asset This podcast is powered by QAD RedZone. Featured Guest Name: Juan Lalinde Title: Director of Global Purchasing, Karma Automotive About: Juan is Director of Global Purchasing at Karma Automotive, with extensive experience in global supply chain management and process improvement. Known for driving operational efficiency and leading high-performing teams, Juan has delivered multimillion-dollar savings and innovative solutions across the automotive and technology sectors. Juan holds an MBA from the University of San Diego and is fluent in English and Spanish. Connect: LinkedIn About Your Hosts Jan Griffiths Jan is the host and producer of the Auto Supply Chain Champions Podcast and The Automotive Leaders Podcast. A former automotive manufacturing and supply chain executive, Jan is recognized as a Champion for Culture Change in the automotive industry. She brings direct, grounded conversations to leaders navigating execution, disruption, and transformation across the global automotive ecosystem. Tom Roberts (Co-host) Tom is Co-host of the Auto Supply Chain Champions Podcast and Vice President of Strategic Industry Development at QAD. He works closely with automotive and industrial manufacturers to close the gap between insight and execution, helping leaders move from visibility to systems of action that drive real operational outcomes. Mentioned in the Episode: Beyond the Bottleneck: The State of AI in Automotive Manufacturing and What’s Next, the QAD webinar with Automotive NewsMarques McCammon, CEO of Karma Automotive, on The Automotive Leaders Podcast Episode Highlights [03:11] The Phoenix in the Portfolio: Juan describes the third-generation Revero as the proof of everything Karma has engineered since 2020, with the Gyesera, the Ivara, and the Kaveya super coupe behind it. [04:10] Volume Buys You Nothing: Traditional tier ones and twos scrap more in a week than Karma needs for a year, so the search is for a partner who cares about the part rather than the quantity. [06:16] Everything Matters at 150 Cars a Year: Juan walks through the paint shop and the body-in-white line, where the goal is to give skilled people their time back and keep rework from stealing it. [08:09] “I Know a Guy” Is a Sourcing Strategy: Karma finds the operator who left a big tier two to open a shop, checks for ISO certification, and develops them toward IATF. If they grow, Karma grows. [09:30] AI Clears the Noise, HI Opens the Door: Juan draws the line between what AI is good for and what still requires a person, and explains why Karma has had to hear a lot of noes to get its yeses. [14:56] Not a Pure EV, and That Is the Point: The powertrain is electric, and the engine only generates power for the battery, which Tom credits as a direct answer to range anxiety. [19:19] The Tariff That Landed After the Tooling: Karma localized an aluminum program to a Tijuana supplier, invested in tooling, and then watched duties on Mexico appear. The relationship, not the contract, carried the cost conversation. [21:00] Hand the Supplier the Schedule: Forecasting and open communication let Karma work around a supplier’s capacity instead of competing for it, which is how a 100-piece order stays welcome. Top Quotes [08:09] Juan Lalinde: "The automotive is a big industry, but it's a small space." [09:30] Juan Lalinde: “Even though AI is the future, for us, HI, human intelligence, is what’s taking us to the next step.” [16:57] Juan Lalinde: “It’s a game of Whac-A-Mole. It’s like a trivia pursuit but with tariffs. You don’t know what you’re gonna get in the next roll of dice.” If this episode resonated, share it with a fellow automotive leader and subscribe to the Auto Supply Chain Champions Podcast, where we're closing the gap between insight and action across the global automotive supply chain. Follow the Auto Supply Chain Champions Podcast for real conversations with leaders who are making hard choices, focusing their bets, and leading with intent. 🎧 Follow the podcast: 🔗 Learn more about QAD Redzone: https://www.qad.com/