North American vehicle production 1990-2019

Around 16.8 million motor vehicles were produced in North America in 2019. Vehicle production is a crucial element of the North American economy. Like many other manufacturing segments in the region, vehicle production has slumped in the past three years due to increased costs of production and changes in supply chains, though.

Future of free trade and vehicle production

In 2016, manufacturers in the NAFTA region produced the most vehicles in one year since the free-trade agreement was signed in 1994, with over 18 million units produced. Although the current free trade agreement between Canada, the United States and Mexico has had many opponents, NAFTA has allowed a less restricted flow of products and capital across North America, which is now essential to the automotive industry supply chain. The United States has by far the biggest market share: roughly 10.9 million vehicles were assembled in the United States in 2019, whereas Mexico and Canada only assembled around six million between them. However, it is expected that, In 2020, new rules will govern how the vehicles are produced in the NAFTA region, which of course will have an effect on the consumer. The requirements of the new “United States–Mexico–Canada Agreement”, signed October 2018, will include that rules of origin (ROO) are to be met on automobiles, specifically that 75 percent of the finished vehicles’ value is to come from within the NAFTA governed region: an increase in 12.5 percent.