The Auto Industry Moving South: An Examination of Trends

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Since the late 1980s, a number of high-profile automotive assembly facilities—and their associated jobs—have located in the southern portion of the United States—in a region which previously had a small automotive presence. Speculation is rampant that the automotive industry is moving south, lured by lower costs and large incentive packages. This has caused concern among the traditional automotive communities in the U.S. upper Midwest and southern Ontario that they do not have the necessary resources to compete for new automotive investment against the southern U.S. This paper examines what factors are responsible for this shift south, and whether the northern region can stem the tide and attract new investment.

This study was prepard for the Automotive Communities Partnership.