Overview of the U.S. Automobile Industry

Abstract

As recently as 1950, more than one-half of the world’s vehicles were registered in the United States, and more than three-fourths of the world’s vehicles were produced in the United States. Early in the twenty-first century, the United States is no longer the world’s leading producer of vehicles, but it continues to be home to the largest number of them by far. This chapter provides an overview of the U.S. auto industry. We start by discussing the major disruptive forces currently facing the industry. In the second and third sections, we focus on the market for vehicles as well as different aspects of the production of vehicles. Section four briefly discusses the role of the government. We conclude with providing a brief outlook for the industry.