ABSTRACT

For more than half a century, the spatial distribution of automotive production within the United States followed the regional branch concept. The two dominant producers-first Ford and later General Motors’ Chevrolet Division-maintained branch plants in the largest metropolitan areas, where consumers clustered, such as Atlanta, Boston, Dallas, Los Angeles, New York, Philadelphia, and San Francisco. As bulky products fabricated from thousands of parts, automobiles were assembled as close as possible to consumers in order to minimize aggregate freight costs. However, the large coastal metropolitan areas have lost nearly all of their automotive plants in recent years. Minimizing the costs of transporting assembled vehicles to consumers remains a critical factor, but the optimal location for plants has switched to the interior of the country.