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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 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.

Apr 29 2014
Chrysler Media Group
  • Adds 15,000 square feet of interactive training for manufacturing employees
  • More than 9,000 participants trained since grand opening in 2012
  • Now teaching 45 different hands-on classes; originally started with four classes

April 28, 2014 , Warren, Mich. - After officially opening more than two years ago, the final touches on a significant expansion in both square-footage and educational programming at Chrysler Group’s World Class Manufacturing (WCM) Academy were completed early this year.

Filed Under: Job Creation
Apr 09 2014
Written by Jeff Bennett | Posted on The Wall Street Journal

General Motors Co. GM -2.23%  on Tuesday announced a $449 million investment in two Michigan plants to bolster the development and production of its Chevrolet Volt and Cadillac ELR hybrid-electric vehicles.

Apr 04 2014
Written by Peter Morici | Posted on The Street

Trade agreements have further exposed U.S. manufacturers to foreign competition but have not similarly improved their market access abroad. Principal competitors China, Japan and Germany all systematically undervalue their currencies to make their exports artificially cheaper than U.S. products both in domestic and rapidly growing Asian markets.

Filed Under: Job Creation