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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)


 

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.

Dec 18 2013
Written by Zacks Equity Research | Posted on Zacks

General Motors Company announced that it will be investing $1.3 billion in 5 manufacturing plants located in 3 states of the U.S. The automaker will be using the investment for producing new fuel-efficient engines and transmissions and to upgrade assembly plants.

The five manufacturing plants in which General Motors will be investing include; assembly plants in Flint and Detroit and an engine plant in Romulus, Mich., a transmission factory in Toledo, Ohio, and a casting plant in Bedford, Ind.

Dec 17 2013
Reuters

General Motors Co said on Monday it will invest nearly $1.3 billion at five U.S. plants to make a new transmission and boost output for a planned new engine as well as add a vehicle paint shop.

GM, the No. 1 U.S. automaker, said the investment at the plants in Michigan, Ohio and Indiana will create or retain about 1,000 jobs combined, but did not say how many will be new jobs. The five plants employ about 7,500 people.

Dec 13 2013
Ford Media Page

Ford Motor Company next year will launch 23 new vehicles to customers around the world, open three more manufacturing facilities and add more than 5,000 new jobs in the United States to meet growing demand for its products.

“Next year, we are embarking on our most ambitious global launch year ever to meet customer demand for our products around the world,” said Raj Nair, group vice president, Ford global product development. “We are investing even more through our One Ford plan to serve more customers, in more segments – and deliver profitable growth.”

Dec 10 2013
Written by Melissa Burden | Posted on The Detroit News

General Motors Co. is adding more than 300 customer service workers at its Warren Tech Center, after closing a call center in Buenos Aires, Argentina, and is considering moving more call center jobs to the U.S. from another center in Philippines.

GM announced in March that it would move about 300 call center contract workers from various locations to Warren. The company wants to put the employees closer to people at GM, such as engineers, who can support and help them make quick decisions for customers.