Even before NAFTA took effect, the automotive industry in North America was the largest component of trade among the United States, Canada, and Mexico as well as each country's largest source of manufacturing employment. The success of NAFTA and continental economic integration will depend in part on whether the agreement can foster greater competitiveness in this deeply integrated sector. This book marks the first serious attempt to gauge the performance of the auto industry under NAFTA not only by country but in North America as a whole. In addition to country-specific assessments of the agreement's effects on auto production, several chapters take the more comprehensive North American perspective, including the effect of environmental regulation on the industry. The analysis uses data not widely available to model NAFTA's economic impact and draw out the implications for policymakers, investors, and others interested in the future of the North American economy.