Since the 1970s the production strategy in the global auto industry has been changing from mass production to international production networks, which began with the relocation of many US auto factories to Canada and Mexico via the Canada—United States Automotive Products Agreement of 1965 and the North American Free Trade Agreement. Also, the appreciation of yen in the 1980s increased production costs for Japanese automakers. Consequently, many companies relocated their production to East Asia, including ASEAN. The 1997 Asian financial crisis drove more Japanese and US firms to establish production bases in East Asia as the asset prices dropped sharply, or the so-called “FDI-fire sale.” The forms of the network are joint ventures and direct investment by multinational corporations (MNC). As a result, there is an international production network in the auto industry in East Asia. Intra-industry trade in the region confirms this fact, which will be shown later.