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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 2014
Written by Edward A. Sanchez | Posted on Truck Trend

Chrysler as a whole has had a healthy 2013, and a large part of the company's success can be directly attributed to its Ram truck brand. Sales of the Ram pickups have shown a double-digit year over year increase almost every month of the year in 2013, and demand is so strong for the trucks, that the prospect of a third truck plant is reportedly being considered, according to Automotive News.

Feb 05 2014
Written by Vince Bond Jr. | Posted on Automotive News

Ford Motor Co., with demand for its Super Duty pickups on the rise, plans to boost production capacity of the trucks 15 percent at its Kentucky Truck plant in Louisville.

When completed, the $80 million expansion will enable Ford to produce an additional 55,000 units a year, the company said.

The plant builds the Ford F-250, F-350, F-450 and F-550 Super Duty pickups, along with the Ford Expedition and Lincoln Navigator SUVs.

Feb 04 2014
Written by KTVI | Posted on Fox 2 Now

The General Motors plant in Wentzville is hiring. The chairman of the United Auto Workers Union says the plant is hiring between 35 to 50 workers a week and it will continue to over the next few months.

 

Jan 31 2014
Written by James R. Healey | Posted on USA Today

Ford Motor says it's investing $80 million and adding 350 jobs at its Kentucky Truck Plant in Louisville, to boost production of F-series Super Duty models about 15%, or 55,000 trucks a year.

Super Duty is Ford's name for F-250 and F-350 truck models, sometimes known as three-quarter-ton and one-ton models, and the even heavier-duty F-450 and F-550. Super Duty trucks almost always are sold as work trucks, albeit often well-appointed -- thus high-profit -- models.

Ford says demand for Super Duties is rising as the economy recovers.

Jan 31 2014
Written by Associated Press, | Posted on Washington Post

LOUISVILLE, Ky. — Ford Motor Co. said Thursday it plans to invest $80 million in its Kentucky truck plant to churn out more F-Series Super Duty trucks. The ramped-up production will add 350 jobs, the automaker said.

The investment will boost production capacity by 15 percent, or about 55,000 units, as the company retools and upgrades the plant, Ford said. Improvements are planned in the body and paint shops, it said.

“This is a sizable leap forward in capacity,” said Joe Hinrichs, Ford’s president of the Americas.