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Federal Register / Vol. 86, No. 213 / Monday, November 8, 2021 / Notices
Figure 25: Comparison of U.S. Automobile Parts Imports to U.S. Automobile Production 14

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US. Automobile Production right axis
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$120

Trendline
8

6

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Automobile Parts Import Value left axis
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$20

0

Source: Wards Intelligence InfoBank; Department of Commerce, Census Bureau.

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As U.S. production of engines and parts, transmissions and powertrain parts, and electrical components has been negatively impacted by imports, producersespecially American-owned producersin the U.S. market are finding it difficult to stay competitive due to escalating costs associated with technological advancements. Cost increases have been driven, in large part, by advancements in vehicle electronics, connectivity systems, safety features, advanced driver-assistance systems, and autonomous vehicle technologies.121 To illustrate, a McKinsey study of North American 121 Jim Irwin, EV, AV Spending in Slowing Market Points to Pile Up, WardsAuto, July 30, 2018, https www.wardsauto.com/alternativepropulsion/ev-av-spending-slowing-market-pointspile?NL=WAW-04&Issue=WAW-04_20180730_
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automobile parts suppliers found that the aggregate average real cost of automobile parts indexed to 2010
dollars and adjusted to compensate for inflation, productivity changes, and other macroeconomic forces for passenger vehicles was approximately $13,400 in 2010, and is expected to rise to $15,900 by 2020, an increase of almost 20 percent. These estimates also indicate that parts costs increased to approximately $14,100 in 2013 and $15,100 in 2017 with an overall 13
percent increase from 2010.122 This presents a significant problem to automobile parts suppliers, as they have been unable to increase prices to help compensate for higher costs. Indeed, during the same 2010 to 2017 period, the average sales price of a new automobile in the United States increased from $24,063 in 2010, to 122 McKinsey & Company, The Future of the North American Automotive Supply Industry, March 2012, https www.mckinsey.com//media/
mckinsey/dotcom/client_service/automotive%20
and%20assembly/pdfs/the_future_of_the_north_
american_automotive_supplier.ashx; Department of Commerce calculations.

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$24,454 in 2013, and to $25,366 in 2017
a five percent increase.123 That is to say, over the same seven-year period, the average price of a vehicle increased far less than the price increase associated with components. As acknowledged by the McKinsey study, OEMs were unable to raise prices for mass-market cars. In turn, they used their purchasing power to limit suppliers abilities to increase prices, even in the face of higher input costs, thereby eroding automobile parts producers profitability.124
Further, for automobile producers U.S. operations, TEXT REDACTED
from 2013 to 2017, while the average revenue earned per vehicle TEXT
REDACTED.125 For American-owned automobile producers in particular, TEXT REDACTED.126 During the 2013
to 2017 period, American-owned 123 Wards
Intelligence InfoBank.
& Company, The Future of the North American Automotive Supplier Industry, supra.
125 U.S. Producers Survey Responses, Question 2a and Question 3.
126 Id.
124 McKinsey
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2. U.S. Producers of Automobile Parts Are Facing Downward Pressure on Prices Due to Low U.S. Automobile Prices