In 2024, auto industry sales and production were somewhat normal, and electrified vehicle (EV) sales hit record high levels in the United States. So, we looked forward to 2025 with cautious optimism. Despite the disruptions since 2020, automotive consumer demand was holding up remarkably well, and light vehicle prices overall—for EVs, in particular—continued to come down.

For 2025, forecasters were predicting both a sales uptick and a production slowdown in the U.S. There continued to be warning signs as well: layoff notices, growing costs, plant closure announcements in Europe, rising trade protectionism in global markets, and, as it often is, an uncertain U.S. automotive policy environment. Our conference asked: Will slowing EV growth shift investment to vehicle automation? How will regulatory reforms impact supply chains? Will rising costs transform not only where but how we build vehicles in the future? And will consumers continue to drive market growth?

Automakers and suppliers adopted a wide range of strategies to navigate the coming market and policy uncertainties, strategies that would certainly be put to the test in the coming years. For a deep dive into what the future held for U.S. automakers and suppliers, the Federal Reserve Bank of Chicago’s 31st Annual Automotive Insights Symposium took place on February 5-6, 2025, at the Bank’s Detroit Branch with optional pre-conference tours occurring on February 4, 2025.

Through panel discussions, keynote speeches, and optional site tours, attendees heard:

• The 2025 outlook for U.S. and North American auto production, sales, and supply chains in a highly uncertain environment
• How the global, federal, and state policy and regulatory environments are changing and what that means for the U.S. auto industry and its partners and other interested parties
• How automakers and suppliers are working to lower costs by adopting automation, simplifying products and processes, and implementing novel manufacturing approaches—and what those changes mean for the rest of the automotive ecosystem
• About the forces that are shaping the geography of automotive trade
• How employers are addressing auto affordability as a barrier to employment
• Remarks from Federal Reserve Bank of Chicago President Austan Goolsbee

Transcripts are available for the following panels:

• Welcome Remarks Day One
• 2025 Auto Industry Outlook
• Auto Outlook Panel: Driving Into 2025
• Automotive Policy & Regulatory Outlook
• How Automation Might Impact Auto Industry Competitiveness
• Closing Remarks Day One
• Welcome Remarks Day Two
• The Forces Shaping Automotive Trade Geography
• Auto Affordability as a Barrier to Employment: Some Fresh Approaches
• The Supply Chain Implications of Simplifying Manufacturing

Through events like this, the Federal Reserve Bank of Chicago serves the public, fostering economic opportunity and advancing a strong economy for our region and nation.