For the first time since the assembly line was invented and implemented in Michigan by Henry Ford, the state known as the capital of the world's industry failed to produce the most amount of vehicles in North America last year. Ontario has long been nipping at the heels of Michigan in terms of total auto output and finally surpassed the state in 2004 by 103,000 vehicles. The article cites a few factors for Michigan's fall from grace, including government subsidized health care in Canada, downtime created in Michigan by plant retoolings, and the chronic market-share declines of the Big 3. Michigan, however, is on pace to regain its title in 2005, but for how long is anyone's guess.
The linked article is a good read and there's a chart that lists the top 10 auto producing states and countries in North America for various years.

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