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August 2006, No. 229b

On April 18 and 19, 2006, the Chicago Fed held a conference at its Detroit Branch to examine the ongoing structural changes in the U.S. auto industry. As suppliers play an increasingly central role in auto production, it has become crucial for carmakers to have a strong relationship with their supply base.

Last Updated: 07/25/2006

The Supplier Industry in Transition—The New Geography of Auto Production

Thomas H. Klier, James Rubenstein

Over the past few decades, evolving carmaker–supplier relations have resulted in regional and international shifts in the location of production. Conference participants discussed recent trends in the relations between carmakers and their supply base, as well as prospects for the industry’s continued concentration in the Midwest. This Chicago Fed Letter summarizes the major themes of the conference presentations and discussion.

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