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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. One out of three 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 226 assembly plants, factories, research labs, distribution centers and other facilities, located in 32 states, across 115 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)

FCA US/Ford/ General Motors employ 2 out of 3 of America’s autoworkers, translating to 232,000 jobs.

Industries with Top 10 Highest Job Multipliers (2014)



Apr 30 2015
Written by Greg Gardner | Posted on Detroit Free Press

General Motors will announce a new round of plant investments Thursday at its Pontiac Metal Center just as an independent report found the company's U.S. manufacturing employment reached its highest level last year since the 2009 bankruptcy.

Thursday's news is expected to detail upgrades at the Pontiac stamping operation, Delta Township assembly plant near Lansing and other locations. This week local officials in Arlington, Tex., voted on incentives for a $1.2 billion expansion of the assembly plant that produces the Cadillac Escalade, Chevrolet Tahoe and Suburban and GMC Yukon.

Apr 15 2015
Written by Brent Snavely | Posted on Detroit Free Press

Ohio Gov. John Kasich said today that the state doing everything it can to convince Fiat Chrysler Automobiles to produce the next generation Jeep Wrangler in Toledo even though he is opposes "corporate welfare."

"When it comes to Toledo, it's critical for us, the Jeep is critical for us and the opportunity for perhaps for more employment than we have is great," Kasich said today after a speech in Detroit. "We are doing everything we can, we are being as creative as we can."

Filed Under: Job Creation
Feb 06 2015

General Motors Co plans to begin building the Chevrolet Bolt, its all-new $30,000 electric car, in October 2016 at an underused small-car plant north of Detroit, two supplier sources said.

Despite the heavy hype surrounding the car's unveiling last month at the Detroit auto show, the sources said, GM's production target for the Bolt is relatively modest, at about 25,000-30,000 cars a year.

Jan 12 2015
Written by Jared Bernstein | Posted on The New York Times

If the new Congress can agree on anything this year, it may well be the Trans-Pacific Partnership, a trade deal between the United States and 11 other countries throughout the Asia-Pacific region. Passions run high when it comes to trade deals these days, and the Obama administration is working hard to sell it to labor unions, which roundly oppose it.

Dec 09 2014
Written by Peter Fricke | Posted on The Daily Caller

Negotiations over the proposed Trans-Pacific Partnership (TPP) free trade agreement are continuing this week in Washington, but some economists say the talks shouldn’t be limited to traditional trade barriers like tariffs.

According to Market Pulse, among the issues on the agenda are “intellectual property and reform of state-owned firms to establish fair business competition,” as well as bilateral issues, “such as Japan’s proposed exceptional tariffs on some agricultural produce.”