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State of the Region Industry Spotlight: Automotive and Mobility

March 24, 2022
Today, March 24, the Detroit Regional Chamber released its 2022 State of the Region report. This year’s regional report card explored data on the ongoing economic impacts of the COVID-19 pandemic on employment, consumer habits, industry sectors, and more.

The automotive and mobility industry in Michigan is one industry sector that has been largely impacted by the COVID-19 pandemic. Michigan, which is home to 96 of the top 100 suppliers in North America and contributes 1.1 million jobs and $304 billion to the economy annually, has been affected significantly by supply chain strain and inventory shortages.

U.S. Light Vehicle Sales

At the start of 2021, U.S. Light Vehicle Sales were projected to increase steadily after experiencing a drop as low as 8.6 million in April 2020 due to operational shutdowns. While sales strongly bounced back in early 2021, since April 2021 there has been a consistent decline in the annualized light-vehicle sales rate, due in part to the ongoing semiconductor chip shortage in the U.S.

At the same time, Average Transaction Prices (ATPs) reached $47,077, up nearly 14% compared to December 2020.

North American Car and Truck Production

In 2021, Michigan car and truck production increased 18%, with total vehicle production reaching 1.03 million in December of 2021. In Michigan, vehicle production totaled 1.8 million units in 2021, an increase of over 17.6% over 2020.  The top producing plants in Michigan – Stellantis’ Sterling Heights Assembly Plant, Jefferson North Assembly Plant, and Ford Motor Company’s Dearborn Truck Assembly Plant – are all located in the Detroit region.

Manufacturing PMI

In addition to an increase in vehicle production, the Manufacturing PMI (Purchasing Managers Index) continues to recover with its 19th consecutive month of growth as of December 2021, signaling that the manufacturing economy is expanding.

A manufacturing PMI above 50% over a period indicates an expansion in manufacturing activity.

Michigan’s EV Footprint

While the state’s signature industry has faced challenges due to supply chain deficiencies, the electric vehicle footprint has grown significantly. According to MichAuto’s 2021 Michigan is Automobility Report, one-third of U.S. battery production and development takes place in the state of Michigan, positioning the state to be the epicenter of the next decade of automotive production and innovation.

Numbers show that Michigan is paving the way for greater EV advancement through investments in new facilities that will produce all-electric vehicles and components. A total of $10.6 billion was invested in EV and AV firms throughout the state from 2010 to 2020.

For more about the Detroit region by the numbers, view the full 2022 State of the Region Report and watch the event presentation.