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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 11 2014
Written by Matt Blunt | Posted on AL.com

American businesses could be hiring more workers today if we ended unfair trade practices used by some of our trading partners. No matter how competitive companies are in Alabama, they struggle to keep up with foreign competitors that are given an unearned advantage because of currency manipulation.

Aug 04 2014
Written by Matt Blunt | Posted on The Wilson Center

In an ever-shrinking world, a popular refrain among some skeptics is that American manufacturing is not competitive in the global economy. A new report by the American Automotive Policy Council (AAPC) reveals that is simply not the case. Led by Chrysler, Ford and General Motors, American manufacturing is on the rise, creating jobs and expanding opportunity at a rate that hasn’t been seen in years.

Aug 04 2014
Written by Melissa Burden | Posted on The Detroit News

General Motors Financial Co. Inc., a subsidiary of General Motors Co., said Friday it is expanding its Arlington, Texas, operations center and could add hundreds of new employees there over the next few years.

GM Financial said it bought a 240,000-square-foot building on 22 acres in Arlington, just a block from where about 2,150 GM Financial employees work in operations and customer service. The company is renovating the new space, which it will use for offices and a training and conference center.

Filed Under: Job Creation
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.