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Economic Contributions

AMERICA'S AUTOMOBILE INDUSTRY IS THE ENGINE THAT DRIVES THE ECONOMY.

The automobile industry is one of the largest industries in the United States. New vehicle production, sales and other jobs related to the use of autos are responsible for 1 out of every 10 jobs in the U.S., according to a 2003 report on the "Contribution of the Automotive Industry to the U.S. Economy" prepared by the University of Michigan and the Center for Automotive Research (CAR).

No other single industry supports so much manufacturing or generates more retail business and employment. America's automakers are among the largest purchasers of aluminum, copper, iron, lead, plastics, rubber, textiles, vinyl, steel and computer chips.

The impact of the automotive industry on the U.S. Economy:

  • Employment: America's automobile industry is one of the largest industries in the country. When jobs dependent on the industry are included, the auto industry is responsible for 13.3 million jobs nationwide.

  • Compensation: The contribution of automotive manufacturing to compensation in the private sector is estimated at $335 billion, or over 6% of U.S. private sector compensation.

  • Job Creation: For every worker directly employed by an automaker, over 10 spin-off jobs are created. America's automakers are among the largest purchasers of aluminum, copper, iron, lead, plastics, rubber, textiles, vinyl, steel and computer chips.

  • GDP: Almost 4% of America's total gross domestic product is generated by the sale and production of new light vehicles.

  • Output: The U.S. automotive industry produces a higher level of output than any other single industry. When measured in constant 2000 dollars, automotive economic output increased by 73% during 1990-2003.

  • R&D: The auto industry invested $15.2 billion in research and development in 2002, higher than any other manufacturing industry.

  • Exports: Automotive exports rose from $33.4 billion in 1988 to almost $81 billion in 2003, an increase of 143%.

This information originates from the study, "Contribution of The Automotive Industry to the U.S. Economy" that was prepared by the University of Michigan and the Center for Automotive Research (CAR). The study was issued in Fall 2003.

[ PDF ] Economic Contribution of the Automotive Industry to the U.S. Economy

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