Over sixty years ago, Peter Drucker famously described the automotive industry as the "industry of Industries" because the production of a motor vehicle drew on so many other industries.

Employing people from the steel, glass, semiconductor, and robotics industries, it is still true today. What are the consequences for American economic recovery if the auto industry collapses - or remains weak and unprofitable - for a prolonged period?

Sands, Klier, and White

The automobile industry worldwide is in the midst of an unprecedented crisis. The bankruptcies of Chrysler and GM have made taxpayers major shareholders in these carmakers. What do the next six months hold for the industry? How will Ford fare in competition with GM and with a potential Chrysler-Fiat merger? Are the Asian and European assemblers in North America faring any better? 

To discuss the causes of the current crisis, the consequences for the U.S. and global economies, and the outlook for the future of automotive production Hudson Institute was pleased to welcome Senior Economist at the Federal Reserve Bank of Chicago Thomas Klier and the Wall Street Journal's Senior Editor for Regulation/Washington Joseph White. Klier is the coauthor of Who Really Made Your Car? Restructuring and Geographic Change in the Auto Industry and White is the coauthor of Comeback: The Fall and Rise of the American Automobile Industry. Hudson Institute Senior Fellow Christopher Sandsmoderated the panel.

View Klier's presentation