Some 17 million motor vehicles were produced in North America in 2018 . Vehicle production is a crucial element of the North American economy . Like many other manufacturing segments in the region , vehicle production has slumped in the past two years due to increased costs of production and changes in supply chains , though . Future of free trade and vehicle production In 2016 , manufacturers in the NAFTA region produced the most vehicles in one year since the free-trade agreement was signed in 1994 , with over 18 million units produced . Although the current free trade agreement between Canada , the United States and Mexico has had many opponents , NAFTA has allowed a less restricted flow of products and capital across North America , which is now essential to the automotive industry supply chain . The United States has by far the biggest market share : 11.3 million vehicles were assembled in the United States in 2018 , whereas Mexico and Canada only assembled around six million between them . However , it is expected that , In 2020 , new rules will govern how the vehicles are produced in the NAFTA region , which of course will have an effect on the consumer . The requirements of the new `` United States–Mexico–Canada Agreement '' , signed October 2018 , will include that rules of origin ( ROO ) are to be met on automobiles , specifically that 75 percent of the finished vehicles ' value is to come from within the NAFTA governed region : an increase in 12.5 percent .
