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The United States operates 44 passenger vehicle assembly plants

There are currently 44 passenger vehicle assembly plants located in the United States, of which 25 are operated by Ford, General Motors and Stellantis.

According to the American Automotive Policy Council (AAPC), it takes about $2 billion in initial capital investment to build a single new auto assembly plant (i.e., land, building, tooling and equipment) for one vehicle model, and tens of millions of dollars each year to maintain these facilities in good repair.

In addition, U.S. automakers-Ford, GM, and Stellantis-operate numerous electric vehicle engine, transmission, and battery manufacturing plants that also require significant upfront investments and millions of dollars annually to maintain.

The vast majority of investments made in this sector are made with decades of production in mind.

Both the North American Free Trade Agreement (NAFTA) and the U.S.-Mexico-Canada Agreement (USMCA) established a largely predictable and stable policy environment, a prerequisite for new capital investments and for maintaining U.S. competitiveness.

The AAPC believes that building a multi-billion dollar plant for vehicle assembly, engine manufacturing, transmissions or electric vehicle battery packs to serve the North American region is much easier to justify than for a single U.S. market.

Passenger vehicle

Since the signing of the USMCA , U.S. automakers have announced a cumulative investment of $25 billion in new U.S. facilities.

And of that amount, more than 80% has been made in support of the transition to electric vehicles.

These investments represent a firm commitment by American Automakers to expand their U.S. workforce and fully comply with the agreed understanding of the USMCA rules as negotiated and signed in November 2018.

In addition, according to the AAPC, the three U.S. automakers are among the largest investors in research and development (R&D) in the United States, amounting to a cumulative total of between $10 billion and $12 billion annually.

The vast majority of that amount is now spent on technologies related to electric vehicles and autonomous vehicles.

 

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