13 States Where The Auto Industry Drives The Economy

I once got stuck behind a convoy of car haulers in Kentucky, all loaded with fresh-off-the-line Camaros.

A local at the gas station nodded at the scene and said, “That’s the sound of our paychecks rolling by.” It wasn’t just pride. It was reality.

In some states, the hum of an engine isn’t just noise, it’s livelihood.

Factories, suppliers, testing tracks, and tech labs all hum along, feeding not just gearheads but entire economies with horsepower and steel.

1. Motor City Magic: Michigan’s Automotive Dominance

Motor City Magic: Michigan's Automotive Dominance
© More Perfect Union

Detroit didn’t earn its “Motor City” nickname by accident! Michigan remains the undisputed heavyweight champion of American auto manufacturing, with the Big Three – Ford, GM, and Stellantis (formerly Chrysler) – all calling it home.

Beyond Detroit, cities like Lansing, Flint, and Dearborn have automotive manufacturing woven into their DNA.

The industry employs over 125,000 Michiganders directly, with hundreds of thousands more working for suppliers and related businesses.

2. Ohio: The Heartland’s Hidden Automotive Powerhouse

Ohio: The Heartland's Hidden Automotive Powerhouse
© Local 12

Buckle up for a surprise – Ohio actually produces more cars than Michigan in some years!

The Buckeye State hosts Honda’s massive Marysville plant (birthplace of the Accord), plus major Jeep production in Toledo.

Automotive manufacturing provides paychecks to over 108,000 Ohioans.

The state’s central location makes it perfect for parts suppliers too, with hundreds dotting the landscape from Cincinnati to Cleveland, creating a complete automotive ecosystem.

3. Indiana: Where Japanese Automakers Found Their American Home

Indiana: Where Japanese Automakers Found Their American Home
© Indianapolis Business Journal

Japanese car companies fell in love with Indiana decades ago, and the relationship’s still going strong!

Subaru’s only North American plant calls Lafayette home, while Honda established a massive operation in Greensburg that churns out CR-Vs and Civics.

Toyota’s Princeton facility employs thousands producing Highlanders, Sequoias, and Siennas.

The Hoosier State’s central location and manufacturing heritage created the perfect match for these automotive transplants, with automotive jobs supporting about 1 in 5 Indiana manufacturing positions.

4. Kentucky: From Bourbon to Bumpers

Kentucky: From Bourbon to Bumpers
© Passport Toyota

Forget horse racing and bourbon – Kentucky’s biggest export might just be automobiles!

Toyota’s Georgetown plant stands as the company’s largest vehicle manufacturing facility globally, employing over 8,000 Kentuckians making Camrys, RAV4s, and Lexus models.

Ford operates two massive plants in Louisville, producing everything from Super Duty trucks to Escapes.

The Bluegrass State’s automotive industry employs over 100,000 people between manufacturing and suppliers, with vehicles and parts now representing Kentucky’s #1 export category.

5. Tennessee: The Southern Auto Manufacturing Superstar

Tennessee: The Southern Auto Manufacturing Superstar
© The Detroit News

Yeehaw for horsepower! Tennessee’s automotive boom began when Nissan planted roots in Smyrna back in 1983, now North America’s most productive auto plant.

Volkswagen joined the party with its billion-dollar Chattanooga facility, while General Motors keeps Spring Hill humming.

The Volunteer State recently scored automotive’s newest prize – Ford’s massive BlueOval City electric vehicle campus.

All told, over 123,000 Tennesseans work in automotive, with the industry accounting for an incredible one-third of the state’s manufacturing jobs.

6. Alabama: From Cotton Fields to Car Country

Alabama: From Cotton Fields to Car Country
© Alabama Department of Commerce

Roll Tide? More like roll cars off the assembly line! Alabama’s automotive revolution began when Mercedes-Benz shocked everyone by choosing Tuscaloosa for its first US plant in 1993.

Honda and Hyundai quickly followed suit, establishing massive operations in Lincoln and Montgomery.

Toyota and Mazda’s joint venture in Huntsville represents the newest jewel in Alabama’s automotive crown.

The transformation has been remarkable – a state once dependent on agriculture and textiles now boasts over 40,000 automotive manufacturing jobs, with vehicles becoming Alabama’s top export.

7. South Carolina: BMW’s Southern Manufacturing Jewel

South Carolina: BMW's Southern Manufacturing Jewel
© WSPA

German engineering meets Southern hospitality in the Palmetto State! BMW’s massive Spartanburg plant stands as the company’s largest facility worldwide, cranking out X-series SUVs that ship to 125 countries.

The Bavarian automaker employs over 11,000 South Carolinians directly. Volvo recently joined the party with its first American plant near Charleston.

The automotive sector has transformed the state’s economy, supporting over 72,000 jobs and becoming South Carolina’s top export category. Not bad for a state once known primarily for textiles and tourism!

8. Texas: Trucks as Big as the State Itself

Texas: Trucks as Big as the State Itself
© Texas Public Radio

Everything’s bigger in Texas – especially the trucks rolling off assembly lines! Toyota’s San Antonio plant specializes in full-size Tundra pickups and Sequoia SUVs, employing thousands of Texans.

General Motors builds Cadillacs and Chevrolets at its Arlington facility, a cornerstone of Dallas-Fort Worth manufacturing.

Tesla made headlines by relocating its headquarters to Austin and building its massive Gigafactory Texas.

The Lone Star State’s automotive footprint extends beyond assembly to a vast supplier network, with over 1,000 auto-related manufacturing facilities employing nearly 100,000 Texans.

9. Missouri: Where American Trucks Are Born

Missouri: Where American Trucks Are Born
© SCS Software’s blog

Show-Me State? More like Tow-Me State! Missouri has established itself as truck country, with Ford’s Kansas City Assembly Plant producing F-150s and Transit vans.

General Motors’ Wentzville facility cranks out midsize trucks and vans that keep America’s businesses moving.

Beyond assembly plants, Missouri hosts major operations for suppliers like Martinrea, Yanfeng, and Magna. The state’s central location makes it logistically perfect for the industry.

All told, over 16,000 Missourians work directly in auto manufacturing, with tens of thousands more in supplier roles.

10. Illinois: The Prairie State’s Automotive Might

Illinois: The Prairie State's Automotive Might
© Keller Bros. Ford Lititz

Chicago’s automotive roots run deeper than deep-dish pizza! The Windy City’s south side hosts Ford’s massive assembly plant, producing Explorer and Lincoln Aviator SUVs.

Stellantis (formerly FCA) builds Jeep Cherokees at its Belvidere facility, though production has faced challenges recently.

Beyond assembly, Illinois boasts major operations from suppliers like Continental, Flex-N-Gate, and Brake Parts Inc.

The state’s central location and excellent transportation infrastructure make it a logistics hub for the industry. Overall, automotive manufacturing provides over 30,000 direct jobs to Illinois workers.

11. Georgia: The Peach State’s Automotive Revolution

Georgia: The Peach State's Automotive Revolution
© Kia Media

Georgia’s gone from peaches to powertrains! Kia’s massive West Point facility represents the state’s automotive anchor, producing Sorento SUVs and Telluride crossovers.

Blue Bird Corporation builds America’s iconic school buses in Fort Valley, while Jaguar Land Rover recently announced a major EV manufacturing facility.

The biggest news? Hyundai’s $7.6 billion Metaplant near Savannah, set to produce electric vehicles.

Georgia’s automotive sector employs over 55,000 people directly, with the state’s excellent ports, highways, and business climate attracting additional manufacturers and suppliers each year.

12. Mississippi: Nissan’s Southern Manufacturing Success Story

Mississippi: Nissan's Southern Manufacturing Success Story
© Assembly Magazine

Who knew the Magnolia State would become an automotive powerhouse?

Nissan’s Canton facility, opened in 2003, transformed Mississippi’s manufacturing landscape, producing Altima sedans and Frontier pickups. The plant employs over 5,000 Mississippians directly.

Toyota’s Blue Springs facility near Tupelo adds another automotive jewel, producing Corolla models. The state’s central location in the growing Southern Automotive Corridor makes it attractive for suppliers too.

All told, automotive manufacturing provides over 18,000 direct jobs in Mississippi, with vehicles becoming one of the state’s top exports.

13. California: Electric Dreams and Automotive Innovation

California: Electric Dreams and Automotive Innovation
© Reuters

The Golden State’s automotive story is evolving from traditional manufacturing to electric innovation!

While Toyota’s NUMMI plant in Fremont once produced conventional vehicles, Tesla transformed it into a massive EV factory producing Model 3, S, X, and Y vehicles.

California hosts numerous EV startups like Lucid Motors, Rivian, and Fisker.

Beyond manufacturing, the state leads in automotive technology development, with companies like Apple, Google, and countless startups developing autonomous systems.

California’s 15,000+ EV manufacturing jobs represent the industry’s future, not its past.