Key Takeaways 1

Introduction 3

The Importance of the U.S. Auto industry 4

What Happened to the Once Globally Dominant U.S. Auto Industry? 7

The Decline of the Big Three U.S. Automakers 8

The Evolution of the Auto Industry of the United States 12

International Comparisons of U.S. Auto Industry Competitiveness 20

Location Quotient, Global Value Added, and Global Market Share 20

International Vehicle Production and Sales 23

International Trade Measures 26

International Productivity Comparisons 28

Innovation Indicators 29

Assessing U.S. Auto Industry Competitiveness Since 2010 34

The Rise of Mexico 34

China’s Dominance in EVs 37

How Did China Come to Dominate EV Innovation and Production? 37

China’s EV Export Dominance Leading to Growing Market Share in Third Countries 40

Future Challenges for the U.S. Auto Industry 42

Technological Challenges 42

Market Challenges 43

Summary 44

Endnotes 46