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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 14 2014
Written by John Rosevear and Rex Moore | Posted on The Motley Fool

Even though it didn't have any major new models to announce, Ford (NYSE: F) had a big presence at last month's New York International Auto Show.

Ford celebrated the 50th anniversary of the original Mustang's debut by unveiling a commemorative model -- and with an epic stunt at the Empire State Building. The company also showed off its refreshed-for-2015 Focus, and many key Ford executives were on hand.

May 13 2014
Written by Carrie Cline | Posted on WTHR
For seven years, the city of Tipton has been waiting for Chrysler to start work at the transmission plant that the automaker helped to build.
 
After years of disappointment, the waiting is over today as the plant is dedicated.
 
This plant has been through the ringer in a county that's struggled economically with an unemployment rate as high as ten percent. The facility was under construction for seven years and went through two false starts before reaching this point. 
Filed Under: Job Creation
May 09 2014
Written by Rene Wisley | Posted on The Detroit News

 

Building electric vehicles has become a family affair for Detroiter Evetta Osborne, 47, and her daughter, Monique Watson, 28, of Livonia.

They see each other daily because they work side-by-side at General Motors Co.’s Detroit-Hamtramck Assembly Plant.

The mother-daughter duo have installed nearly every lithium-ion battery pack for GM’s plug-in hybrid electric vehicles — Chevrolet Volt, Opel Ampera, Holden Volt, and Cadillac ELR — since the Volt was in pre-production in 2009.

Filed Under: Job Creation
May 09 2014
Written by Joseph Szczesny | Posted on Daily Tribune

The comeback of the Chrysler Group has led to a dramatic growth in employment at Fiat Chrysler Automobiles North American headquarters and technical center in Auburn Hills and more is anticipated in the new five-year plan the automaker laid out this week.

Chrysler Group employment in Auburn Hills has climbed to more than 14,000 today after dropping to around 7,500 during the company’s bankruptcy five years ago.

The Auburn Hills’ numbers includes 450 summer interns, underscoring FCA chief executive Sergio Marchionne’s faith in the future.

Filed Under: Job Creation
May 01 2014
Written by Melissa Burden | Posted on The Detroit News

 

General Motors Co. said Wednesday it has started construction on a new facility for race engine design and development at its Global Powertrain headquarters in Pontiac, as the automaker works to bring together its North American powertrain engineering group for production as well as advanced and racing engines.

The automaker said the construction project also includes adding an electric motor lab to build prototype electric motors, and a gear center that supports designing and testing of gears in next-generation transmissions.