International Competition, Automotive Decline, and Regional Economies

Abstract

This article reviews some recent books on automotive competition that broadly focus on the rise of the Japanese industry and the competitive decline of the traditional North American industry. Each book suggests, if not always explicitly, a likely structure for and distribution of future automotive manufacturing. The implications of these analyses for national and regional automotive production vary substantially. Some scenarios call for further erosion of domestic production in the face of international competition and pressures to move remaining activity to offshore locations. Other scenarios suggest a revitalization of domestic automotive production, although not necessarily within the traditional companies.