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7,200,000
Keep it Made in America
Let Jobs Drive AutoLet Jobs Drive Auto
A Report from the United SteelworkersA Report from the United Steelworkers
We Can’t Take Any More
"Policy makers need to recognize this as an emergency at the scale of any we’ve seen in recent years. The American workforce is too big to fail.”
Jared BernsteinChief Economist Vice-President Biden
• Employers cut an additional 611,000 jobs in April, 149,000 of those were in the manufacturing sector.
• Official Unemployment is now 8.9%.
• The Real Unemployment rate is at 15.8%.
In 2004-5, the US auto industry directly employed over two million people at assembly plants, parts manufacturers and dealerships. These jobs supported millions of others.
Nearly 30% of the manufacturing jobs in the US auto industry disappeared between 2000 and 2008.
During this time period, the U.S. lost almost 5 million manufacturing jobs.
In 2004-5, the US auto industry directly employed over two million people at assembly plants, parts manufacturers and dealerships. These jobs supported millions of others.
Nearly 30% of the manufacturing jobs in the US auto industry disappeared between 2000 and 2008.
During this time period, the U.S. lost almost 5 million manufacturing jobs.
Driving the US Economy
The American Auto Industry
Supports 7.2 million jobsDirect Indirect
Assembly 221,000 265,000
Parts 784,000 3,685,000
Dealers 1,130,000 1,130,000
Total 2,135,000 5,080,000
The Jobs Begin Here
Building a Car Is More
Than Just Building a Car
The Impact Goes Deeper
they spend their money in the US economythey spend their money in the US economy,,
which supports thousands more U.S. jobs
they spend their money in the US economythey spend their money in the US economy,,
which supports thousands more U.S. jobs
In other words:In other words:
Each one of those people,
• Goes out to eat,
• Pays taxes,
• Buys school clothes for their kids,
• Goes for their yearly check-up,
Each one of those people,
• Goes out to eat,
• Pays taxes,
• Buys school clothes for their kids,
• Goes for their yearly check-up,
• US Auto Industry R&D spending in the US is second only to the semiconductor industry – over $16 billion per year. 1 in 10 corporate scientists and engineers in the US are employed by the auto industry.
• Auto is one of our largest exports, totaling almost $100 billion in cars and parts in 2008.
• The industry supports a supply chain which is also key to our national defense industry.
• The automotive industry generates almost 4% of US GDP.
• US Auto Industry R&D spending in the US is second only to the semiconductor industry – over $16 billion per year. 1 in 10 corporate scientists and engineers in the US are employed by the auto industry.
• Auto is one of our largest exports, totaling almost $100 billion in cars and parts in 2008.
• The industry supports a supply chain which is also key to our national defense industry.
• The automotive industry generates almost 4% of US GDP.
And Let’s not forget …
What Direction?
The GM Plan
Oklahoma City-2006
Lansing Craft Centre-2006
Spring Hill #1 - 2006
Atlanta – 2006
Lansing Metal - 2006
Pittsburgh Metal - 2008
Portland SPO - 2006
Baltimore - 2005
Linden - 2005
Lansing M - 2005
Lorain - 2005
GM, Ford, Chrysler, Delphi & ACH Plant Shutdowns
Announced and Executed, 2005-2011
St. Louis - 2006Doraville - 2008
Wixom – 2007
Batavia Trans. – 2008
Windsor Casting – 2007
Ford Shutdowns
Delphi Plant Shutdowns
ACH Plant Shutdowns
Twin Cities - 2011
Norfolk – 2007
Essex Engine – 2007
Maumee Stamping – 2007
Chrysler Plant Shutdowns
Newark –2008
Updated: March 05, 2009
Brook Park Casting – 2010
Massena Foundry - 2009
St. Louis Bulk Center – 2009
Toledo South – 2006
Drayton Plains PC - 2009
Livonia Engine - 2010Saginaw Malleable - 2007
Indianapolis Metal - 2011
Flint North Engine – 2008Flint North Components – 2011Flint Metal Center – 2011
Janesville - 2008
Moraine - 2008
Oshawa Truck - 2009
St Louis South – 2008
Grand Rapids Stamping - 2008
Fontana PDC – 2009
Romulus Trans. - 2005
Muncie Transmission - 2006
Windsor Trans. - 2010
GM’s Plan for Survival: Close more plants; Lay-off more workers. GM’s Plan for Survival: Close more plants; Lay-off more workers.
Sales Do Not Equal Jobs
Domestic Content:
Domestically Produced 69%
Imports 5%
When a car is imported, in addition to the assembly jobs that are lost, we also lose the jobs in the domestic supply chain.
The GM Plan
While the US auto manufacturers should be given a chance to survive, the increasing trend of outsourcing assembly and parts should not be part of their plan.
Under its most recent plan, GM intends to increase its importation of vehicles from countries such as Mexico, South Korea and China by 365,000 vehicles.
Any plan for GM or Chrysler that is supported (and funded) by the U.S. taxpayers must be focused on maintaining a competitive domestic auto industry, with American jobs the top priority.
The GM Plan
Drive America Forward
Drive America Forward
Our Plan to
Our Plan to
1. Stimulate domestic demand for automobiles.
2. Insist that American tax dollars be used to support domestic production.
3. Restore cooperative innovation and research and development efforts
4. Change health care policy to control costs while protecting coverage and quality
5. Ensure trade policy promotes U.S. interests.
Our Plan
• Support a “Cash-for-Clunkers” program with a strong domestic content provision.
• Other countries have provided their auto industries stimulus packages of over $26 billion.
• Italy, Germany and, most recently, Japan included measures that would provide vouchers of upwards of approximately $3,000 to consumers who trade in an old car and purchase a new one.
Auto Stimulus
The effectiveness of these initiatives is stunning:
• In Italy, one Italian bank predicted that the initiative could increase car sales by 200,000 this year. This would cut the bank’s prediction of anticipated decline in auto sales in half.
• In Germany, the initiative led to a 40 percent increase in March sales (compared to March 2008). For the first three months of the year, new car registrations are up 18 percent, which amounts to over 130,000 new cars registered.
Auto Stimulus
Governments are also becoming more forceful in tying stimulus money to pledges that auto companies will not close plants or lay-off workers.
• Italy conditioned its $1.7 billion of stimulus money to keeping plants open.
• France loaned $8.5 billion to its three carmakers in early February. French President Sarkozy announced that the loans were not protectionism and that, “It is my responsibility to keep jobs in France.”
Support Jobs at Home
• Establish a National Automotive Research and Development Program
• Provide incentives for improved supplier management programs
• Provide incentives for companies to create programs that lead to high road production
Invest in the Future:
The Detroit Three provide healthcare for over 2 million employees, retirees and their dependents.
This represents approximately $10 billion per year indirect subsidy that other industrialized countries provide due to nationalized healthcare.
Health Care Policy
Must Change
The US imports $41.5 billion in cars and light trucks from Japan and $7.5 billion for Korea, while they import only $534 million and $373 million from us.
There must be improved equity between us and our major industrialized trading partners.
Trade Policy Should Promote
U.S. Interests
We are counting on Congress to
help us Drive America
Forward
