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Passenger Vehicles Industry and Trade Summary

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Passenger Vehicles Industry and Trade Summary Passenger Vehicles Industry & Trade Summary Office of Industries Publication ITS-09 May 2013 Control No. 2013001 UNITED STATES INTERNATIONAL TRADE COMMISSION Robert Koopman Director, Office of Operations Karen Laney Director, Office of Industries This report was principally prepared by: David Coffin, Office of Industries [email protected] With supporting assistance from: Brian Allen, Andrew David, Gerald Houck, David Lundy, Monica Reed, and Wanda Tolson Office of Industries Shadara Peters and Sonya Wilson Office of the Chief Information Officer Peg Hausman Office of Analysis and Research Services Under the direction of: Michael Anderson, Chief Advanced Technology and Machinery Division Address all communication to Secretary to the Commission United States International Trade Commission Washington, DC 20436 www.usitc.gov Preface The United States International Trade Commission (USITC) initiated its current Industry and Trade Summary series of reports to provide information on the rapidly evolving trade and competitive situation of the thousands of products imported into and exported from the United States. International supply chains have become more global, and competition has increased. Each Industry and Trade Summary addresses a different commodity/industry and contains information on trends in consumption, production, and trade, as well as an analysis of factors affecting industry trends and competitiveness in domestic and foreign markets. This report on the passenger vehicle industry primarily covers the period 2007 through 2011, with 2012 data where available. Papers in this series reflect ongoing research by USITC international trade analysts. The work does not represent the views of the USITC or any of its individual Commissioners. This paper should be cited as the work of the author only, not as an official Commission document. Suggested citation: Coffin, David. Passenger Vehicles. Industry and Trade Summary. Publication ITS-09. Washington, DC: U.S. International Trade Commission, May 2013. i ii CONTENTS Page Preface ...................................................................................................................................... i Acronyms ............................................................................................................................... vii Key Points .............................................................................................................................. ix Introduction ......................................................................................................................... 1 Global Industry ................................................................................................................. 2 U.S. Industry ....................................................................................................................... 5 Bankruptcy and recovery of Chrysler and GM ................................................................... 7 Geographic distribution ....................................................................................................... 9 Where U.S. manufacturing sites are concentrated.......................................................... 9 Government incentives and the sitting of assembly plants ............................................ 10 Shipments and production ................................................................................................... 11 Employment and wages ...................................................................................................... 13 Production process and strategies ....................................................................................... 17 Supply chain ........................................................................................................................ 20 Regulations affecting the industry ....................................................................................... 21 Government incentive programs ......................................................................................... 23 Research and development .................................................................................................. 24 U.S. Market .......................................................................................................................... 27 Distribution channels ........................................................................................................... 32 Market factors influencing demand ..................................................................................... 34 Factors of competition ......................................................................................................... 36 U.S. Trade .............................................................................................................................. 38 U.S. imports ......................................................................................................................... 38 U.S. exports ......................................................................................................................... 40 Foreign Industry Profiles .......................................................................................... 42 European Union (EU) .......................................................................................................... 43 Japan .................................................................................................................................... 48 Korea .................................................................................................................................... 51 Canada .................................................................................................................................. 53 Mexico ................................................................................................................................. 54 China .................................................................................................................................... 56 Foreign Markets ............................................................................................................... 60 Canada ............................................................................................................................... 60 European Union ................................................................................................................... 61 iii CONTENTS—Continued Page Foreign Markets—Continued China ................................................................................................................................... 63 Mexico ............................................................................................................................... 64 Saudi Arabia ........................................................................................................................ 65 Brazil ................................................................................................................................... 66 India .................................................................................................................................... 68 Bibliography 71 Appendix A 94 Boxes 1. The production process ....................................................................................................... 17 2. Corporate Average Fuel Economy (CAFÉ) standards ........................................................ 22 3. The development process .................................................................................................... 25 4. The Consumer Assistance to Recycle and Save (CARS) Program ..................................... 35 Figures 1. Shares of global passenger vehicle production, by country, 2007 and 2012 ....................... 3 2. U.S. passenger vehicle assembly plants, 2012 .................................................................... 9 3. Composition of U.S. passenger vehicle production, 2007–11 ............................................ 12 4. The decline of U.S. motor vehicle manufacturing industry employment, 1990–2011 ....... 13 5. Average hourly wages and motor vehicle manufacturing employment, 2007–11 .............. 14 6. Employment in selected motor vehicle manufacturing states by percent share, 2011 ........ 15 7. Estimated required Corporate Average Fuel Economy (CAFE) stranded levels will increase by 67 percent from 2012 to 2025 ...................................................................... 22 8. U.S. passenger vehicle sales, imports, and production, 2007–12 ........................................ 28 9. U.S. car and light truck sales, 2007–12 ............................................................................... 29 10. U.S. light truck sales by segment, 2007–12 ........................................................................ 30 11. Big Three and foreign-brand passenger vehicle sales in the United States, 2007–12 ......... 31 12. U.S. passenger vehicle sales by location of production, 2007–12 ...................................... 32 13. U.S. passenger vehicle trade balance, 2007–12 .................................................................. 38 14. European Union (EU) passenger vehicle production and exports, 2007–12 ....................... 44 15. Japanese passenger vehicle production and exports, 2007–12 ............................................ 48 16. Korean passenger vehicle production and exports, 2007–12 .............................................
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