In 2021, Hyundai Motor America (HMA) and Hyundai America Technical Center, Inc. (HATCI) hired 7,050 workers in Alabama, California, Texas, Georgia, Michigan, and other states in the U.S. In addition, HMA’s independent dealer network employed 54,100 workers across all fifty states. CAR estimates HMA, HATCI, and HMA’s independent dealers in 2021 contributed 190,950 jobs in the U.S. economy. Of these, HMA and HATCI’s U.S. automotive operations support 58,250 jobs, and 132,700 jobs are associated with HMA’s 835 dealers in fifty states. HMA and its dealerships added USD 20.1 billion in private earnings to the U.S. economy, including USD 3.0 billion in social welfare contribution and USD 2.8 billion in federal and state income tax revenue.

HMA’s employment multiplier is 8.3—implying 7.3 additional jobs for every employee in HMA’s U.S. automotive operations. HMA’s independent dealers have an employment multiplier of 2.5, indicating 1.5 other jobs created for every HMA dealership worker.

In 2022, Hyundai Motor Group (HMG), a multinational conglomerate that owns Hyundai Motor Company (HMC), the parent company of HMA, announced that HMG, Hyundai Mobis, and SK On will invest an additional USD 10.6 billion into new electric vehicle facilities in Georgia and Alabama, which is expected to hire 13,500 jobs in those states. CAR estimates these jobs will create or retain a total of 62,800 jobs in the United States by 2025. These jobs will generate USD 8.3 billion in private earnings, including USD 1.3 billion in government social welfare funds and USD 1.2 billion in federal and state personal income tax.

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As a result, environmental, social, and governance (ESG) initiatives, such as the demand to reduce greenhouse gas (GHG) emissions to meet the Paris Agreement target of limiting global warming to 1.5°C, have become increasingly commonplace across all aspects of automotive operations. Agencies such as the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) seek to further guide industry reduction of CO2 emissions, reaching net-zero emissions globally by 2050. As a result, many vehicle manufacturers have carbon neutrality targets in place, commonly announced through public annual sustainability reports, showcasing their sustainability efforts and goals. Topics included in these reports range from renewable energy to human rights efforts. These announcements are critical

in signaling to investors and stakeholders public-facing organizational sustainability initiatives. Still, some companies are limited in providing actionable and measurable data and often lack consistency in reporting from one manufacturer to the next. Despite the challenges from this significant shift in the automotive industry, there are also opportunities to further align across stakeholders, make additional commitments to broader climate initiatives, and advocate for more comprehensive regulations. A coordinated effort is an important step in achieving sustainability goals now that the industry has recognized accelerated action is required to limit global automotive operations’ environmental and social impact.

CAR researchers conducted supplier roundtable sessions, and interviews with vehicle manufacturers, and assessed publicly available industry information to help gain a better understanding of industry action in this area. The vehicle manufacturer interviews were a cornerstone of the research, which were conducted to explore sustainability efforts in the automotive industry across six topic areas including (a) Corporate Goals and Commitments, (b) Carbon, (c) Social, (d) Sourcing and Suppliers, (e) Products and Materials, and (f) Moving Forward. These interviews intended to gain a more comprehensive understanding of existing sustainability goals, strategies for meeting these goals, the existing obstacles to progress, and possible pathways to resolve these obstacles.

Based on these findings, this study has identified recommendations and targeted industry action that can help the automotive industry increase collaboration and accelerate efforts to achieve 1.5°C, limiting climate change throughout the supply chain.

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Estimated costs for dealer compliance and the impact on their transactions with consumers were derived from approximately 60 dealer surveys and 15 interviews, conducted from August 2022 through December 2022, with dealers, ESIGN contract technology providers, and IT developers,3 as well as regulatory training professionals. CAR’s survey focused on five key areas including: 1) prohibited misrepresentations, 2) new consumer disclosure requirements, 3) “Add-On” prohibitions and disclosures, 4) recordkeeping, and 5) consumer vehicle transactions. Importantly, dealers were asked for incremental costs, directly related to regulatory compliance only.

The Center for Automotive Research also included qualitative feedback from dealers within our study to support key survey findings, provide essential dealer feedback, and capture respondents’ viewpoints on key regulatory challenges for consideration. Additionally, CAR researchers elected to present our dealer survey findings using median values, to reduce the influence of outlier responses, and to provide the most conservative estimate of costs.

According to the analysis in this study, median upfront costs for compliance with the Federal Trade Commission Rule, if finalized as proposed, were estimated by dealers to be USD 46,950 per location. These upfront costs include updated training, IT system investment, as well as planning and preparation. This results in a total median upfront cost of USD 2,184,348,750 for automobile dealers nationally.

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The IRA Clean Vehicle Credits attempts to address many challenges regarding consumer acceptance of BEVs and other advanced propulsion technologies. One key objective of the regulation is to support President Biden’s goal of reaching 50 percent EV market share by 2030 while ensuring a strong domestic supply base for this critical technology. The U.S. has recently faced supply chain challenges causing long wait times, along with serious national security concerns due to foreign markets controlling large portions of the EV supply chain. In response, the law aims to limit the role of China and other foreign entities of concern role in the sourcing of EV critical minerals, raw materials, and battery components to the U.S. market. However, the IRA’s clean vehicle credit nuances may hinder the EV market at a time when automotive and battery manufacturers are investing billions in the industry. Manufacturers will face challenges in the coming years as they work towards building a domestic chain to meet the Clean Vehicle Credit requirements. Additionally, the complexity of the regulation could lead to confusion and frustration among potential consumers.

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CAR’s estimates demonstrate that General Motors—the largest automaker by U.S. market share and second-largest automaker by U.S. light vehicle production volume—is a significant contributor to the U.S. economy and the economies of the nine states in which GM has manufacturing facilities. Close to 90 percent of the light vehicles GM builds in the United States are also sold in the country. GM is also among the largest investors in the U.S. automotive industry, with a total of $44.3 billion in announced investments in the country since 2000. Over the past 19 years, nearly four out of every five dollars General Motors has announced it would invest in North America have been spent on U.S. facilities.

This report is presented in two major sections: a brief history of GM in the United States, which includes GM’s sales, market share, production, and investments, and the economic contribution of General Motors in the United States and the nine states in which GM has manufacturing operations. Two appendices cover the modeling methods and provide detailed employment contribution results by U.S. industrial sectors.

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