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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)


 

Feb 06 2015
Reuters

General Motors Co plans to begin building the Chevrolet Bolt, its all-new $30,000 electric car, in October 2016 at an underused small-car plant north of Detroit, two supplier sources said.

Despite the heavy hype surrounding the car's unveiling last month at the Detroit auto show, the sources said, GM's production target for the Bolt is relatively modest, at about 25,000-30,000 cars a year.

Jan 12 2015
Written by Jared Bernstein | Posted on The New York Times

If the new Congress can agree on anything this year, it may well be the Trans-Pacific Partnership, a trade deal between the United States and 11 other countries throughout the Asia-Pacific region. Passions run high when it comes to trade deals these days, and the Obama administration is working hard to sell it to labor unions, which roundly oppose it.

Dec 09 2014
Written by Peter Fricke | Posted on The Daily Caller

Negotiations over the proposed Trans-Pacific Partnership (TPP) free trade agreement are continuing this week in Washington, but some economists say the talks shouldn’t be limited to traditional trade barriers like tariffs.

According to Market Pulse, among the issues on the agenda are “intellectual property and reform of state-owned firms to establish fair business competition,” as well as bilateral issues, “such as Japan’s proposed exceptional tariffs on some agricultural produce.”

Dec 02 2014

For Immediate Release:
December 2, 2014
Contact: Colin Dunn
info@americanautocouncil.org
(202) 400 - 2609

 

AAPC Statement on Dr. Art Laffer’s Currency Manipulation Study

 

Oct 31 2014
Written by Sean Szymkowski | Posted on GM Authority

On Tuesday October 8th, the first round of graduates became certified General Motors technicians through GM’s partnership with the U.S. Army and Raytheon Company titled ‘Shifting Gears.’

The program looks to empower returning soldiers with hands-on course work and training at the Texas Fort Hood base to help reintegrate into civilian life. The 12-week program has been years in the making, and teaches essential skills to allow returning soldiers the opportunity to further serve as a technician at a General Motors dealership.

Filed Under: Job Creation