The New Liberal Podcast Keeping America's Auto Industry Running ft. Adam Ozimek
Aug 12, 2025
Adam Ozimek, Chief economist at the Economic Innovation Group and auto industry expert, joins to bust myths surrounding the American automotive scene. He discusses how the industry is not in decline despite perceptions, emphasizing its cultural significance and stable production rates. Adam also sheds light on the Treaty of Detroit and its impact on labor dynamics, as well as the effects of Trump's tariffs on competitiveness. The conversation is a deep dive into how history and trade policies shape the future of America's auto manufacturers.
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Production Levels Are Surprisingly Stable
- U.S. auto production and employment have stayed roughly at historical averages for decades.
- The industry now concentrates on higher value-added production while lower-value cars are often imported or made in Mexico.
China's Rise Reflects Scale, Not Just U.S. Failure
- China leads global auto production mainly because of size and rapid growth, not solely U.S. decline.
- Emerging markets add many first-time buyers, so China's share naturally expands as incomes rise.
The Early Exodus From Detroit
- The decline of Detroit began in the 1940s–60s as automakers moved operations outside the city for less confrontational labor environments.
- Production shifted to Ohio, Pennsylvania, California and Indiana long before the later southern migration.