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Around 16.1 million motor vehicles were produced in North America in 2024. 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 few years due to increased costs of production, changes in supply chains, and stoppages related to the onset of the coronavirus pandemic.

Future of free trade and vehicle production

The free trade agreement between Canada, the United States, and Mexico has had many opponents, the treaty has allowed a less restricted flow of products and capital across North America, which is now essential to the automotive industry supply chain. The requirements of the United States–Mexico–Canada Agreement (USTR), which became enforceable on July 1, 2020, includes 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 governed region: an increase in 12.5 percent as of 2018.

The United States remains North America's largest producer of automobiles

The North American automotive production region is comprised of Canada, the United States, and Mexico. The United States has by far the biggest market share. Roughly 10.6 million vehicles were assembled in the United States in 2024, whereas Mexico and Canada only assembled around 5.5 million combined.