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2025 | OriginalPaper | Chapter

11. The Impact of Global Shifts in the Automotive Industry in the United States

Authors : Bernard F. Swiecki, Kristin Dziczek

Published in: Global Shifts in the Automotive Sector

Publisher: Springer Nature Switzerland

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Abstract

The U.S. automotive industry, once a pioneer in mass production and technological innovation, now finds itself playing catch-up in the global shift towards electric vehicles (EVs). With EV adoption rates lagging behind Europe and China, the United States faces significant challenges in both consumer adoption and supply chain development. The chapter explores the intricate political and economic landscape that influences the transition to EVs, highlighting the dominance of China in global EV battery manufacturing and the strategic investments made by the U.S. to bolster its domestic EV supply chain. The analysis delves into the role of U.S. industrial, environmental, and trade policies in shaping the future of the automotive industry, examining how recent legislative measures, such as the Bipartisan Infrastructure Act and the Inflation Reduction Act, aim to accelerate EV adoption and production. The chapter also discusses the implications of these policies on employment, labor, and the broader economic landscape, providing a nuanced view of the opportunities and challenges that lie ahead. Furthermore, it examines the global competition for critical minerals and materials essential for EV production, underscoring the strategic importance of securing a resilient and sustainable supply chain. The chapter concludes by highlighting the potential risks and uncertainties that could impact the continued electrification of the U.S. automotive industry, offering insights into the future prospects and policy challenges that must be addressed to ensure a successful transition to a low-carbon transportation system.

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Appendix
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Footnotes
1
There are many other pieces of legislation that address fuels, tax provisions, and other automotive incentives. These are summarized at the U.S. Department of Energy’s Alternative Fuels Data Center: https://​afdc.​energy.​gov/​laws/​key_​legislation
 
2
Under §177 of the Clean Air Act, states may choose to follow California’s emissions regulations. The 17 states that have aligned with some or all of California’s light-duty vehicle emissions regulations are Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington. Together with California, these states represent over 40 percent of the U.S. market for new vehicles (California Air Resources Board, 2023).
 
3
The TPP later became known as the Comprehensive and Progressive Trans-Pacific Partnership and includes eleven nations: Canada, Mexico, Australia, Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam. The United Kingdom signed the CPTPP in 2023 and will join the agreement once ratified by all the parties (UK Department for Business and Trade, 2023).
 
4
Canada and Mexico made up 51 percent of U.S. motor vehicle and parts imports in 2022 and 61 percent of exports that year (U.S. Department of Commerce, International Trade Administration, 2022).
 
5
“Foreign Entities of Concern” is defined in §40,207(a)(5) of the IRA as entities that are “owned by, controlled by, or subject to the jurisdiction or direction of a government of a foreign country that is a “covered nation” as defined in 10 U.S.C. 2533d(d)(2). As of October 2023, these “covered nations” include Burma, the People’s Republic of China, Cuba, Eritrea, Iran, the Democratic People’s Republic of Korea, Nicaragua, Pakistan, Russia, Saudi Arabia, Tajikistan, and Turkmenistan (U.S. Department of State, 2023). Exactly how the “Foreign Entities of Concern” language will impact automakers and suppliers is not yet known. Additional guidance from the U.S. Department of Treasury is expected in Q4 2023.
 
Literature
go back to reference WardsAuto. (2023). Global Auto Sales. Informa Tech. WardsAuto. (2023). Global Auto Sales. Informa Tech.
go back to reference WardsAuto. (2023). U.S. Auto Sales. Informa Tech. WardsAuto. (2023). U.S. Auto Sales. Informa Tech.
Metadata
Title
The Impact of Global Shifts in the Automotive Industry in the United States
Authors
Bernard F. Swiecki
Kristin Dziczek
Copyright Year
2025
DOI
https://doi.org/10.1007/978-3-031-80641-4_11