| Because of its own characteristics, auto industry can drive the whole country or region's economic development, so most of the countries in the world are committed to the development of auto industry and to improve the competitiveness of domestic auto industry. Starting from Marshall, many economists are studied from the theory and practice, and are proved that industrial clusters can enhance the regional competitiveness; in addition, auto industry's inherent characteristics also indicate that industrial cluster is suitable for its development.In the strategy of revitalizing the old industrial bases in Northeast region, to strengthen the pillar industries is an important opinion, and in this region, auto industry is a pillar industry. The auto industry in Northeast China has a long history and a strong foundation, how to use industrial cluster to develop it in order to enhance its domestic and international market competitiveness is now a common subject for the regional governments and enterprises.Combined with four foreign auto industrial clusters, we can conclude the formation mechanism of a cluster, including the internal factors, external conditions and three driving forces. With Porter's diamond model and the formation mechanism, we can summarize the present situation of Northeast China auto industry, and analyze the feasibility of formation. Then, using SWOT analysis model to find out the internal capacity factors and external environmental factors of northeast aoto industry, so that we can obtain some suggestions to build the auto industrial cluster in northeast region.After a comperation with the formation mechanism, we can find out that although the auto industry in northeast region have most of the conditions for the formation of cluster, but due to the cooperation between government and enterprises is not enough, the driving forces behind the cluster is insufficient, the real formation still need time. As in China, the auto industrial cluster is built under the plan of gouverment, so the impact by gouvement is more important than the market, in this case, gouvement should takes some plan and policy to support the cluster; and entreprises should improve it's own competitiveness, work together with the gouvement to build the auto industrail cluster in northeast region. |