While it is hard to say how much of the current auto sector recovery is attributable to government intervention, the ensuing restructuring of the Detroit Three has substantially changed the industry in the U.S

In this article, we suggest that the geography of battery electric vehicle (BEV) production is influenced by factors such as agglomeration economics and economies of scale that also underlie the location of internal combustion engine vehicle production. With several dozen vehicle assembly plants...

Today, the distinction between “American” and “foreign” vehicles is not so clear: Some models produced by the American-owned Detroit Three carmakers have a smaller share of domestic parts than models produced by foreign-owned carmakers. This article examines how much domestic content...

In the past few decades, the evolving relations between automakers and their parts suppliers have resulted in shifts in the location of production across North America. The authors explore the ongoing structural changes to the automotive industry and explain their local, regional, and...

On April 18 and 19, 2006, the Chicago Fed held a conference at its Detroit Branch to examine the ongoing structural changes in the U.S. auto industry. As suppliers play an increasingly central role in auto production, it has become crucial for carmakers to have a strong relationship with their...

Mexico’s share of automotive production has grown relative to those of its neighbors to the north because the country has become more integrated with North America and pursued trade agreements with numerous other countries. Those developments have boosted Mexico’s motor vehicle production by...

Electronics make up nearly 40% of the content of today’s average new automobile, and their share will continue to grow. On June 2, 2011, as part of the eighteenth annual Automotive Outlook Symposium (AOS), the Chicago Fed hosted a panel of experts at its Detroit Branch to examine the current...

Amid the global recession in 2008–09, the U.S. auto industry experienced its worst downturn in recent memory. While conditions have improved in 2010, questions about which factors will shape the industry’s competitiveness remain. The Chicago Fed hosted a conference on May 10–11, 2010, at...

This paper presents an overview of the economics literature on the effect of Corporate Average Fuel Economy (CAFE) standards on the new vehicle market. Since 1978, CAFE has imposed fuel economy standards for cars and light trucks sold in the U.S. market. This paper reviews the history of the...

France, Germany, and Sweden have recently linked vehicle taxes to the carbon dioxide (CO2) emissions rates of passenger vehicles. France has introduced a system of CO2-based purchase taxes and subsidies, whereas Germany and Sweden impose annual circulation (i.e., registration) taxes that are...