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Job Creation

The U.S. Auto Industry Drives Domestic Job Creation

From research labs and supplier factories to assembly lines and dealership showrooms, the auto industry supports nearly 8 million American jobs. In sum, the industry pays $500 billion in annual compensation, and generates $70 billion in personal tax revenue. While FCA US, Ford and General Motors are just three of the sixteen automakers competing in the U.S. market, they employ two-thirds of America’s autoworkers. Why do FCA US, Ford and General Motors contribute so much more to our economy? They conduct the bulk of their engineering, manufacturing, marketing and finance work here, in the United States. Four out of ten FCA US, Ford and General Motors employees are based in the U.S. Conversely, at Toyota, Honda, Nissan, Hyundai/Kia, BMW, Mercedes and VW (the seven largest foreign automakers), only five in one-hundred employees are based here. That six-fold difference translates into millions of indirect U.S. jobs, and tens of billions of dollars in parts sales, R&D and capital investment each year.

As low-skill manufacturing has shifted overseas, the importance of high-skill manufacturing, such as automobile manufacturing, has risen. Likewise, with auto sales rebounding from the financial crisis of 2008 and 2009, the role of automakers in our economy will continue to grow. Industry experts predict FCA US, Ford and General Motors could hire 34,000 new workers over the next four years - those new jobs will support about 300,000 indirect new jobs at auto suppliers and other local businesses that serve FCA US, Ford and General Motors plants. The companies themselves currently operate more than 180 assembly plants, factories, research labs, distribution centers and other facilities, located in 31 states, across 91 congressional districts. Further, their auto-dealer network independently employs more than 580,000 other Americans.

In total, FCA US, Ford, and General Motors account for more than 68% of U.S. auto-industry jobs, while only holding a 45% total share in the U.S. auto market. Because the three companies research, produce and manufacture more vehicles in the United States than any of their foreign competitors, they have proportionally more employees than the size of their market share. Compared to their competitors, six times more of their global work force is based in the U.S.

 

US Employment (YE 2014)


Industries with Top 10 Highest Job Multipliers (2013)


 

May 15 2015
Written by Greg Gardner | Posted on Detroit Free Press

General Motors will invest $1 billion in its Warren Technical Center and add about 2,600 jobs over the next four years.

"This is an investment in our people who work at the Tech Center because it is positioning the company for long-term growth by enabling new levels of innovation and collaboration," Mark Reuss, GM executive vice president for global product development, said Thursday in Warren. "We will transform this campus into a collaborative workplace of choice for our current team and future talent."

May 05 2015
Written by Melissa Burden | Posted on The Detroit News

General Motors Co. Monday announced a $174 million investment to its Fairfax Assembly Plant in Kansas City, Kan., where GM CEO Mary Barra gathered with customers, employees and dealers to celebrate the automaker surpassing 500 million vehicles produced globally — the most by any automaker.

May 01 2015
Written by Melissa Burden | Posted on The Detroit News

General Motors Co. on Thursday said it will create 650 new jobs as it invests $5.4 billion into U.S. plants through 2017, including a total of $783.5 million at three Michigan sites.

GM and UAW executives announced the investments at GM's Pontiac Metal Center, which is getting $124 million in upgrades, including a new press. It will add 15 jobs with the investment. The plant was among those that faced closure around GM's bankruptcy but today has about 490 employees.

Apr 30 2015
Written by Greg Gardner | Posted on Detroit Free Press

General Motors will announce a new round of plant investments Thursday at its Pontiac Metal Center just as an independent report found the company's U.S. manufacturing employment reached its highest level last year since the 2009 bankruptcy.

Thursday's news is expected to detail upgrades at the Pontiac stamping operation, Delta Township assembly plant near Lansing and other locations. This week local officials in Arlington, Tex., voted on incentives for a $1.2 billion expansion of the assembly plant that produces the Cadillac Escalade, Chevrolet Tahoe and Suburban and GMC Yukon.

Apr 15 2015
Written by Brent Snavely | Posted on Detroit Free Press

Ohio Gov. John Kasich said today that the state doing everything it can to convince Fiat Chrysler Automobiles to produce the next generation Jeep Wrangler in Toledo even though he is opposes "corporate welfare."

"When it comes to Toledo, it's critical for us, the Jeep is critical for us and the opportunity for perhaps for more employment than we have is great," Kasich said today after a speech in Detroit. "We are doing everything we can, we are being as creative as we can."

Filed Under: Job Creation