For more than a century, the automotive industry has been a pointed symbol of America’s industrial strength. Nowhere has this been more evident than in the Detroit Region, the birthplace of mass automobile production and a global hub for manufacturing, engineering and design
What is often overlooked, however, is the immense impact the automotive industry has had on virtually every other industry imaginable. New innovations and technologies used in aerospace, telecommunications, manufacturing and more often originate in the automotive space or are perfected and applied at scale in automotive applications.
For instance, the introduction of the assembly line by Henry Ford in 1913 revolutionized manufacturing and remains a system relied upon across industries today to speed up production, reduce costs and improve quality. From anti-lock braking systems (ABS) now used in trains, aerospace and other mobility applications to advancements in electrification, connectivity and even cybersecurity, the automotive industry continues to play a major role in originating, innovating and advancing game-changing technologies that can be leveraged across industries.
It should come as no surprise then that as the broader advanced mobility industry continues to evolve and expand, the automotive industry still plays a central role in its growth and success.
Technological Integration
Vehicle powertrains, whether conventional or electric, continue to serve as perhaps the most competitive arena in automotive technology advancement. Today’s OEMs and suppliers are creating differentiated solutions on three fronts:
- Battery electric vehicles
- Hybrids
- Advanced internal combustion engines
While internal combustion vehicles were the norm for decades, greater focus has been placed over the last 10 – 15 years on battery electric and hybrid vehicles.
Of the vehicles produced in the US in 2024, 23% had electric motors and 11% had batteries, citing a greater capacity for new technology integration and a continued shift toward electrification. In 2025, electrified vehicles (battery electric vehicles and hybrids) accounted for 22% of the US light vehicle market – enabling greater penetration of innovations in automotive technologies, with anticipation of continued growth.
Expansion Potential
While Detroit is still situated as the automotive capital of the world, new automotive hubs have popped up in North America and globally, creating new spaces for innovation, growth and expansion.
North American vehicle production is primarily centered in the United States. In 2025, US light vehicle production reached 10.4 million units, making up 68% of the North American total. In the same year, the Detroit Region’s light vehicle production reached 1.4 million, representing 9% of the North American total.
Detroit also leads in investment. In 2025, automotive investment was $5.3 billion, compared to $2 billion in 2024, with investments largely focused on innovation, new technologies and improving the region’s ability to modernize. Investment into the region’s industry comes from automakers, suppliers, educational institutions, state and government organizations and more – a collection of stakeholders working to solve the challenges facing both consumers and manufacturers.
These challenges include range anxiety, charging infrastructure gaps, changing regulatory standards and varying affordability across all types of vehicles. Most of these challenges revolve around current shortcomings in electric vehicle technology and will likely be resolved through continued innovation and investment.
Use Cases
While the Detroit Three automakers, Ford, General Motors and Stellantis, arguably remain the companies most closely associated with the Detroit Region, they have been joined by automakers and suppliers from around the world. These companies have sought out the Detroit Region for its unmatched access to automotive expertise, capability, and a workforce unrivaled globally.
Many companies within the Detroit Region support the automotive sector as suppliers, manufacturers and innovators. This strong ecosystem will enable the Detroit Region to continue to evolve, grow and lead in innovation. GEM and the Detroit Regional Partnership are supporting those working to transform the automotive industry through testing and proving, talent support, supply chain readiness and much more.
Learn more at gemdetroitregion.com.
