Why Was the Auto-Industry Concentrated in Detroit?

March 15, 2012 in Daily Bulletin

Why was the automotive industry concentrated in Detroit? Slate answered the question:

  • Detroit did have several geographical advantages. Iron and wood (crucial components for manufacturing cars at the time) were abundantly available in the region. Rail and water access meant that cars could easily be shipped to other regions.
  • However several other regions had those advantages and more. What made Detroit different was that several automobile innovators including Henry Ford happened to be from that city.
  • After that, cross-pollination of talent, and a silicon-valley type model where workers would often change industries or start their own entrepreneurial efforts, led to significant advantages in having an industry based in one location.

To read more about the one decision made by a car manufacturer that changed everything, as well as the role that Mitt Romney’s father played, click here.

Source: Slate