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Auto Production Footprints: Comparing Europe and North America

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  • Thomas H. Klier

Abstract

Today?s footprints of motor vehicle production1 in Europe and North America appear at first glance to be remarkably similar: In both regions, plants producing motor vehicles are highly agglomerated, which is typical of manufacturing activities. The auto industry is a global industry: A dozen or so mass producers compete with one another around the world. Because these automakers employ similar production models in their plants, one might expect similar forces to shape their production location decisions. This article evaluates whether the same general factors explain the broad patterns seen in the auto industry?s footprints in Europe and North America. This question is of particular interest because to date, little comparative analysis of this kind has been performed, especially involving Europe as a whole. In general, most auto industry analysis of Europe has focused on its individual countries instead of the entirety of the region.

Suggested Citation

  • Thomas H. Klier, 2015. "Auto Production Footprints: Comparing Europe and North America," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 101-119.
    • Handle: RePEc:fip:fedhep:00017
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    References listed on IDEAS

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    Cited by:

    1. Thomas H. Klier & James M. Rubenstein, 2017. "Mexico’s Growing Role in the Auto Industry Under NAFTA: Who Makes What and What Goes Where," Economic Perspectives, Federal Reserve Bank of Chicago, issue 6, pages 1-29.
    2. Kher, Hemant V. & Kydd, Christine T. & O'Brien, Terrence M., 2017. "Evolution of product quality in European, Japanese and US automotive firms: An exploratory longitudinal analysis," Omega, Elsevier, vol. 73(C), pages 29-36.
    3. Carlos Maravall-Rodríguez & Anna Chiara Küffel, 2018. "A Comparative View of Motor Vehicle Production in France," European Economy - Economic Briefs 040, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

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