Estimating the New Automotive Value Chain

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The automotive value chain is comprised of one of the largest sets of interconnected markets in the U.S. economy. We define the automotive value chain as the accumulated value produced by companies that sell components, materials and light vehicles to consumers, businesses and governments each year in the United States, and the services and after-sale products purchased each year by individuals and businesses to maintain and operate light vehicles in the United States. The sum value of the automotive value chain is much larger than the typical estimate of the annual net output produced by the U.S. automotive industry that is tracked by the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce.1 In contrast to the BEA estimate, which is restricted to the measurement of the value of U.S. automotive production and new vehicle dealerships each year, our measurement of the automotive value chain includes the value of all of the light vehicle production sold each year in the United States,and the after-sale products and services connected to the operation of light vehicles in the country. This study was prepared for Accenture.