Michigan Automobile Industry

5,00,000 people or 15% of the workforce in the state is employed in the automobile industry while producing 23% of all US vehicles. Also known as the Great Lakes State, Michigan rose to the title of the ‘Automobile capital of the world,’ through the dominance of Detroit in the early 20th century and during the period of great growth till 1970.5,00,000 people or 15% of the workforce in the state is employed in the automobile industry while producing 23% of all US vehicles. Also known as the Great Lakes State, Michigan rose to the title of the ‘Automobile capital of the world,’ through the dominance of Detroit in the early 20th century and during the period of great growth till 1970. The brands evolved from Henry Ford, Walter P Chrysler, and French explorer - Antoine de la Mothe Cadillac (discovered Detroit), finds instant recognition in popular culture around the world. Three dominant automakers – General Motors, Ford, and Chrysler, led the American car market till 1960 before the Japanese and German compact cars found special interest in the US.

The exuberance of the silent generation didn’t match up to the realities of the oil market. America’s reliance on the Middle East for oil made the supersized cars irrelevant. The three auto giants moved slowly to the changing demands of the market. Unionization of the industry in the 1930s helped the workers set a standard for working condition and livable wage.

The companies, shining fresh on the consumer’s appetite for automobiles obliged. The rise of the middle class followed till 1960. When Global markets opened up, and consumers’ patriotic fervor oozed out into ‘free love’ and ‘individuality,’ American automakers registered a loss. At the same time, low-skilled workers, persuaded by the favorable working condition, began moving from the South to the City. American car manufacturers could no longer recall World War II atrocities to dissuade consumers from purchasing German or Japanese cars. Faced with cost pressures and market share, American auto giants moved to suburbs, looking for low wages. Detroit’s relevance slumped. In 2013, the city declared bankruptcy with an estimated debt of $18 billion.



Michigan's automotive sector recovered steadily after 2009, with wages increasing in 2010, but falling in 2011/2012 due to a new contract with the United Auto Workers (UAW). The state's projection of 21% annual car registration growth from 2015 to 2040 in developing economies might be disrupted by self-driving cars and ride-sharing apps (Uber, Lyft). The bulk of the self-driving technology is concentrated in California and Michigan. Governor Snyder signed four bills that permitted car manufacturers to use the state’s American Center for Mobility at Willow Run for testing autonomous technology. Ford with its deep roots in Michigan (research, headquarters, and workforce) plans to bring 100,000 cars by 2021 for the autonomous and ride-sharing automobile market.