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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)


 

Sep 29 2014
Written by Len Bracken | Posted on Bloomberg BNA

Matt Blunt, president of the American Automotive POLICY Council (AAPC), which represents Ford, General Motors and Chrysler on trade policy issues, told Bloomberg BNA that it would be very difficult for USTR to reach an agreement with Japan.

Sep 25 2014
Written by Madeline O’Leary | Posted on Bloomberg

Ford Motor Co. (F), the second-biggest automaker in the U.S., hired more than 14,000 domestic workers since 2011, exceeding a pledge it made three years ago that it would recruit 12,000 by 2015.

In its latest hiring round, Ford is adding 1,200 more jobs at its Kansas City Assembly Plant where increased demand for the Transit cargo van and the Ford F-150 truck brought 2,800 new hires in 2012 and 2013.

Sep 17 2014
Written by Melissa Burden | Posted on The Detroit News

General Motors Co. said Tuesday it will add about 750 new jobs and a third shift early next year at its Wentzville Assembly Plant in Missouri to help meet demand for the new 2015 Chevrolet Colorado and GMC Canyon pickups.

The Detroit automaker said dealers have ordered about 30,000 Colorado pickups, which is seven times what it expected. Dealers also have ordered about 14,000 Canyons.

“We have had some great dealer early input,” said Brian Sweeney, head of Chevrolet sales and service in the U.S., in an interview.


 

Sep 10 2014
Written by Vicki Needham | Posted on The Hill

U.S. automakers expressed frustration on Tuesday that trade negotiators aren’t pushing harder to include currency rules in international trade agreements.

The American Automotive Policy Council (AAPC), which represents the big three auto companies, said they are “alarmed” that the latest round of Trans-Pacific Partnership (TPP) talks in Hanoi have ended without the subject being discussed.

"After 21 rounds of TPP negotiations, we remain alarmed that a key priority for the U.S. Congress has been ignored,” said AAPC President Matt Blunt.

Sep 09 2014

For Immediate Release:
September 9, 2014
Contact: Colin Dunn
info@americanautocouncil.org
(202) 400 - 2609
 


AAPC Statement on the Conclusion of the Trans-Pacific Partnership Negotiations in Hanoi, Vietnam