WASHINGTON, D.C. — The new American automakers have become the fastest-growing segment of the U.S. motor vehicle industry, investing nearly $28 billion in new factories and creating more than 55,000 new, high-paying jobs over the past two decades, according to a new study released today by the Association of International Automobile Manufacturers (AIAM).
The new American manufacturers—international automakers that manufacture passenger cars and light-duty trucks in the United States—have contributed all of the growth in the U.S. motor vehicle industry over the past decade, according to the study conducted by the Center for Automotive Research for AIAM. In addition, the study found that these manufacturers will invest nearly $4 billion in new factories over the next three years and hire over 9,000 Americans to staff them.
The study found that the new American automakers are responsible for more than 93,000, direct, high-paying manufacturing and non-manufacturing jobs, as well as hundreds of thousands of additional related jobs in dealerships, suppliers, and other automotive industry services. In addition, sales of vehicles manufactured in the United States by the new American automakers have quadrupled over the past 20 years.
“The new American automakers have kept the United States in the lead as the world’s number one auto-producing nation,” said Tim MacCarthy, President and CEO of AIAM. “Despite the 2001 recession, the increased production by new American automakers forestalled any decline in U.S. automotive production over the past decade.”
The study looked at investment, employment, and sales trends across the U.S. motor vehicle industry, and includes data through the end of 2003. Additionally among its findings:
- The current 26-percent new American automakers’ share of U.S. production will continue to grow with the planned construction of new plants and the expansion of current facilities.
- International automakers spent $66.7 billion on purchases in 2003 from U.S. suppliers of all types, including $49.1 billion in auto parts.
- When the number of jobs created by the new American automakers is combined with related new vehicle dealership employment, this sector of the industry has generated 1.8 million jobs in the U.S. economy.
- The growth of new American automakers’ sales is a result of increased public demand for these vehicles.
“The new American automakers are the fuel injectors under the hood of the U.S. automotive industry,” said MacCarthy. “Not only are we leading investment in new American manufacturing, but through our development of advanced alternative power train vehicles, we have become the leaders and innovators in safety, energy conservation, environmental quality, and engineering. We produce four of the five hybrid cars available in the U.S. today.”