Final answer:
Detroit's historical dominance in the US automobile industry declined due to factors like import competition and changing economic conditions, leading to a reduction in workforce and capital flight. Companies moved production from Detroit to optimize costs and labor relations.
Step-by-step explanation:
The scenario describes a historical overview of the US automobile industry, highlighting its rise centered in Detroit, which benefited from various geographic and innovative advantages. However, factors like increasing competition from foreign manufacturers, labor attitudes, and economic conditions eventually led to a decline in Detroit's dominance in the automobile industry. This transition included a reduction in workforce, capital flight, and spatial redistribution of auto manufacturing to optimize costs and labor dynamics. Newer automobile plants preferred locations closer to parts suppliers and consumers, as well as in areas that were more accepting of non-unionized labor arrangements.