Powertrain sourcing in the automobile industry: The role of scale and geography in North America

Publication Type:

Conference Paper

Source:

Gerpisa colloquium, Paris (2019)

Abstract:

This paper describes the geography of powertrain production in North America and explains reasons for changes in the distribution. The analysis includes data obtained from IHS Markit documenting the location of production for every engine and transmission installed in vehicles at every final assembly plant in North America for the years 2000 through 2016.
In principle, powertrain plants and final assembly plants are strongly co-located, but we find that carmakers have structured increasingly complex spatial arrangements among their powertrain and final assembly operations. The nature of the specific geography largely depends on whether the carmaker is expanding or contracting production in North America.

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