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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)


 

Jan 06 2014
Written by Craig Trudell | Posted on Journal Gazette

There are beer cans, and then there are Humvees. Ford will take pains to show its new, aluminum F-150 pickup has more in common with combat vehicles.

Jan 03 2014
4-Traders

Americans headed for local car dealers en masse last month, taking advantage of year-end closeouts, sweet leases and inexpensive financing to boost the industry log its strongest sales year since 2007.

Most major automakers, who report sales on Friday, were expected to report gains for the year. But there were signs in December that 2014 could bring more price competition and better deals for consumers as U.S. auto sales growth starts to slow.

Jan 02 2014
Written by Associate Press | Posted on The Detroit News

Ford says retail sales have risen 15 percent through November of this year.

The automaker says it expects to sell at least 2.4 million Ford-brand vehicles this year, enough to make it North America’s top-selling brand. It says it expects December sales to “grow substantially” compared to last December.

Dec 30 2013
Ford Media Page

With more than 2.4 million vehicles sold, Ford expects to retain its title as best-selling vehicle brand in North America in 2013, and has widened its lead over Toyota.

Dec 19 2013
Written by David Undercoffler | Posted on LA Times

Ford has announced it is joining a growing list of automakers who are taking a serious look at the future of self-driving cars.

The automaker has teamed up with the University of Michigan and State Farm Insurance to develop an autonomous Ford Fusion Hybrid test car. The collaboration will use the car to develop technologies that Ford and its suppliers can use on a future generation of vehicles.