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Economic Perspectives, Vol. 30, 2nd, No. 2, 2006
The Geographic Evolution of the U.S. Auto Industry
For months now, the U.S. auto industry has been making front page news. The Big Three automakers continue to restructure and cut production capacity amid ongoing market share losses. The debt of both Ford and General Motors (GM) has been downgraded substantially below investment grade status. Some analysts have even raised the possibility of bankruptcy for one of the large Detroit-based carmakers. Related to the market share losses by domestic producers and their supplier base is a profound regional redistribution of production activity.
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