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 six 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 220 assembly plants, manufacturing facilities, research labs, distribution centers and other facilities, located in 32 states, across 115 Congressional districts. Further, their auto-dealer network independently employs 609,000 more Americans.

In total, FCA US, Ford, and General Motors account for more than 66% 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 2015)


 

 

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)


 

 

  • Oct 22 2015

    A World Premiere: FCA US Kokomo Casting Plant Becomes First-Ever Casting Facility to Earn World Class Manufacturing Bronze Award

    | Posted on Kokomo Herald

    As the 11th FCA North American facility to receive bronze status, Kokomo Casting was awarded bronze after a two-day audit in which the plant earned a minimum of 50 points in 10 technical and 10 managerial pillars by demonstrating clear WCM know-how and competence through employee-conducted pillar presentations and a review of projects that have been implemented across the shop floor.
     
    With Kokomo Casting’s award, there are now three Indiana plants in the bronze class. Indiana Transmission II and Kokomo Transmission each received the bronze designation in 2014. 
     

  • Oct 14 2015

    CEO Mary Barra: GM working in secret on self-driving cars

    Written by Nathan Bomey | Posted on USA Today

    Despite being one of the oldest names in the car business, General Motors is “among the leaders” in the development of self-driving cars along with Silicon Valley's best — from Apple to Tesla, GM CEO Mary Barra said Tuesday in a wide-ranging interview with USA.

    Barra says GM is well positioned to thrive as transportation enters a new self-driving revolution even if Apple eventually makes a car — widely expected to be an autonomous, electric vehicle.

  • Oct 01 2015

    AAPC Celebrates Manufacturing Day

    AAPC Celebrates Manufacturing Day
    American Automakers Continue Significant Investment in the U.S. Economy

    WASHINGTON, D.C. – Tomorrow we celebrate Manufacturing Day and the extraordinary impact the automotive industry has on the manufacturing sector.

  • Sep 21 2015

    GM CEO Barra No. 1 on Fortune Most Powerful Women list

    Written by Melissa Burden | Posted on The Detroit News

    General Motors Co. CEO Mary Barra has been crowned tops in a new Fortune magazine list of the Most Powerful Women.

    The Detroit automaker’s top executive since early 2014, Barra, 53, was cited by Fortune for leading the carmaker “out from under the shadow of its 2014 ignition-switch recall.”

    The ignition-switch recall tied to 124 deaths has cost GM billions of dollars and it faces multiple lawsuits and investigations by the Department of Justice, Securities and Exchange Commission, 50 state attorneys general and Transport Canada.

    Filed Under: Job Creation
  • Sep 11 2015

    GM Foundation Grants $1 Million to Hispanic Groups

    | Posted on GM News

    The General Motors Foundation today announced grants totaling $1 million to fund Hispanic education and science, technology, engineering and math initiatives to help empower young Latinos to join the workforce of the future.

    Grace Lieblein, General Motors vice president of Global Quality, announced the grants during a press conference at the National Press Club, where she was joined by GM Foundation Vice President Lori Wingerter, Chief Diversity Officer Ken Barrett, U.S. Rep. Tony Cárdenas, D-Calif., and representatives from Hispanic organizations.

    Filed Under: Job Creation