U.S. auto parts manufacturers account for 66% of a vehicle’s value, according to MEMA, the Motor Equipment Manufacturers Association.
MEMA is the leading trade association in the United States for automotive suppliers, parts manufacturers, and remanufacturers.
U.S. Auto Parts Manufacturers
Since 1904, MEMA has represented the largest manufacturing sector in the United States, accounting for 932,000 direct jobs. Its members manufacture the technology and components needed to produce new vehicles and maintain 295 million vehicles on the road.
The automotive supplier sector supports the government’s goals to strengthen domestic manufacturing. This helps generate greater opportunities for economic development and has a positive impact on communities across the United States. With more than 932,000 workers nationwide, this sector represents the largest source of manufacturing jobs in the United States.
MEMA highlighted that automotive suppliers account for two-thirds of the value of every new vehicle. They conceive, design, and manufacture original equipment components and technologies.
An average vehicle may contain 30,000 or more components, reflecting the complexity and sophistication inherent in the modern automotive manufacturing sector. Furthermore, this industry remains a major avenue for investment in the United States.
Auto Parts Production
A July 2025 report by the United States International Trade Commission (USITC) highlighted the growth of the auto parts sector in recent years, noting that auto parts production in the United States increased from $311.8 billion in 2019 to $349 billion in 2024.
In addition, suppliers manufacture replacement parts (aftermarket) and other technologies and materials essential for the maintenance and repair of vehicles on U.S. roads. The aftermarket sector generates approximately $557,000 million in economic activity. It also encompasses more than 500,000 companies, including 6,500 parts manufacturers.
Regulation in North America
According to NEMA, the USMCA is still in its early stages, and its full benefits have not yet fully materialized.
For example, suppliers of passenger cars and light-duty vehicles became subject to stricter Regional Content Value (RCV) requirements as of July 2023. At the same time, commercial vehicle suppliers continue to move toward the full phased implementation of the USMCA requirements by July 2027.
In addition, most of the Alternative Transition Arrangements—which allowed vehicle manufacturers to delay the implementation of full rules of origin for a portion of their production—expired in July 2025, affecting the benefits received by U.S. auto parts manufacturers.
Over the past five years, the supplier sector has adapted significantly to meet the agreement’s requirements and fully adopt the new rules, procedures, documentation processes, and other business practices necessary to bring the USMCA’s vision to life on a day-to-day basis.
Furthermore, as MEMA has communicated to the Administration, changes in the supply chain and the transition to new subcontractors typically require a process lasting between 3 and 5 years in the automotive sector. Consequently, many of these changes may not fully materialize until after 2026.