International Automakers Create 1.3 Million U.S. Jobs

Every worker employed at an international automotive plant or dealership in the U.S. spurs two "spin-off" jobs in this country, according to a University of Michigan study. In total, some 1.3 million U.S. jobs can be linked to the U.S. international auto sector (USIAS).

About 69,000 American workers are directly employed in manufacturing and support of USIAS plants. An additional 334,000 are working in non-manufacturing jobs at dealerships. Another 870,000 hold jobs associated with the presence of USIAS manufacturers. According to the study, "The Contribution of the International Auto Sector to the U.S. Economy," every USIAS manufacturing job generates another 5.5 jobs, and every USIAS dealership job generates 1.5 additional jobs. Other findings of interest:

  • U.S. sales of USIAS vehicles have risen 500% since 1986 and have surpassed U.S. sales of imported vehicles since 1994. Compared with the overall U.S. auto industry, USIAS manufacturing plants hold labor productivity advantages of 26% in assembly of vehicles, 44% in assembly of engines, and 80% in production of major stampings.
  • The percentage of U.S.-made parts in USIAS vehicles is 69.3%, compared with 77.6% for traditional domestic vehicles.

The University of Michigan study was prepared for the Association of International Automobile Manufacturers Inc.

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