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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)


 

Aug 04 2014
Ford Media Center

Business Leaders for Michigan (BLM), the state’s business roundtable, today brought leading corporate executives to Washington, D.C. to meet with Michigan “alumni” to talk about Michigan’s reestablished position as a leading location for business development and expansion. Michigan Governor Rick Snyder joined executives in emphasizing the state’s progress on key factors that lead to economic expansion.

Jul 30 2014
Written by David Shepardson | Posted on The Detroit News

General Motors Co., Raytheon Co. and the U.S. Army are teaming up to help soldiers returning to civilian life get jobs at GM dealerships as service technicians.

GM has the largest U.S. dealer network with 4,300 and in the coming years will need about 2,500 new technicians. Such qualified staff can be a struggle to find, while the unemployment rate among returning Army veterans is more than twice the national average. The push comes as the Army plans to reduce its size from 574,000 to 450,000.

Jul 28 2014
Written by Melissa Burden | Posted on Detroit News

General Motors Co.’s Chevrolet brand is providing 12 plug-in hybrid Chevrolet Volts to the nonprofit MBAs Across America program, which is traveling the country to help small businesses.

The automaker held a celebratory event Friday at its Renaissance Center headquarters. GM CEO Mary Barra and Detroit Deputy Mayor Ike McKinnon welcomed the students who spent the week in Detroit working with seven local businesses.

Jul 21 2014
Written by David Skolnick | Posted on Vindy.com

After his first visit to the General Motors Lordstown complex, U.S. Sen. Rob Portman, co-chairman of the Senate Auto Caucus, called it “a really inspiring experience.”

The Republican senator said Friday that he was impressed with the Chevrolet Cruze being built at the facility and the workers.

Lordstown “is producing a world-class car in a world-class production facility,” he said about the Cruze.

Jul 17 2014
Written by Mitsuru Obe | Posted on Wall Street Journal

With an ultimate goal of stimulating economic growth, hopes are high that the proposed Trans-Pacific Partnership free trade agreement will lead to a spike in cross-border business deals among member countries. Assuming that’s the case, Japan’s chief TPP negotiator posed an interesting question: why does the pact sidestep a key factor that affects practically all international business activity?