In 2023, we saw better-than-expected automotive sales, the United Auto Workers’ stand-up strike, and the full implementation of the Inflation Reduction Act’s electric vehicle incentives.

The strikes are now over, pent-up consumer demand may be winding down, the IRA has been in place for over a year, EV prices are coming down, and electrified vehicles are the fastest growing segments in the U.S. market by far. However, the growth rate of EV sales has slowed recently, and automakers and suppliers have started to reassess the speed at which they expect to reach their electrification goals.

How will the future U.S. auto market evolve? Will the U.S. have a mix of propulsion systems for longer than other global markets? Are supply constraints behind us and will 2024 be a more demand-driven market? Will we have enough of everything we need to build vehicles if we get fewer inputs from China? What are the strategies automakers and suppliers will use to address rising costs? These topics and more were covered at the Federal Reserve Bank of Chicago’s 30th Annual Automotive Insights Symposium, held on January 17–18, 2024, at its Detroit Branch.

Through engaging panel discussions and keynote speeches, we explored:

• The 2024 outlook for U.S. and North American auto production, sales, and supply chains as the U.S. market moves toward electrification and supply and demand come more into balance
• The economic impact of the recent UAW contracts and the outlook for future labor relations under these agreements
• How automakers and suppliers are charting their individual strategic pathways from internal combustion engines toward electrification—and how they plan to lower costs
• The important role of international trade in the supply chain for critical minerals, batteries, and EV components
• The critical questions about critical minerals: What do we need, are there enough resources, where will they come from, and what are the potential bottlenecks for future EV supply?

Through events like this, the Federal Reserve Bank of Chicago serves the public, fostering economic opportunity and advancing a strong economy for our region and nation.