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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)


 

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
Oct 28 2014
Written by Jeff Bennett | Posted on The Wall Street Journal

General Motors Co. —trying to stir some buzz around the next generation Chevrolet Volt plug-in—said Tuesday it will move production of the vehicle’s electric drive unit to its home state of Michigan from Mexico.

Oct 28 2014
Written by Simon Johnson | Posted on Project Syndicate

Looking for ways to stimulate economic growth and create jobs, US President Barack Obama’s administration is seeking to press ahead with the mega-regional free-trade deal known as the Trans-Pacific Partnership (TPP). But is the US going about it the right way?

Oct 14 2014
Written by Michael Martinez | Posted on The Detroit News

Ford Motor Co. said Monday it is adding 850 hourly jobs to three facilities at its Rouge Center to help build the aluminum-body 2015 F-150 pickup, which will hit showrooms later this year.

Workers already have been hired and are being trained.

The new jobs will be divided among the center’s three facilities. Dearborn Truck will receive more than 500 new workers; Dearborn Stamping will get nearly 300; and Dearborn Diversified, which makes components, will receive more than 50 workers. The center now has nearly 5,000 hourly workers.

Oct 03 2014
Written by Governor Matt Blunt | Posted on The Hill

 

Manufacturing Day 2014 - A Time to Recognize Chrysler, Ford and GM

Today, Oct. 3rd, Americans and businesses will come together across the nation to recognize the importance of manufacturers to the United States economy and communities in all 50 states. As Americans take note, there is no better example of the contribution of manufacturers to the nation than that made by Chrysler, Ford and GM.