This study seeks to estimate the economic impact in 2010 of Toyota’s U.S. operations on the U.S. economy and 16 individual state economies. It finds that Toyota’s employment in the U.S. contributes to the support of more than 365,000 jobs nationally, and compensation of over $20 billion.
In late 2008 and throughout much of 2009, the global economy was in recession and the world’s automotive industry was in crisis. In the United States, automotive sales plummeted to historically low levels, both automotive commercial and consumer credit availability contracted sharply, and critically, two major automotive manufacturers—General Motors and Chrysler—were on the brink of collapse.
The United States automotive industry is a critical component of economic growth with extensive interconnections across the industrial and cultural fabric of the U.S. This report outlines many known elements and highlights tremendously important associations beyond the market space of manufacturing. It touches on the following elements as they relate to the automotive industry: national and regional employment; research, development and innovation; state and local government revenues; foreign direct investment; education; health care; U.S. trade; and quality of life.
The Consumer Assistance to Recycle and Save (C.A.R.S.) Program, commonly called “Cash for Clunkers” (C4C), was a $3 billion government incentive to boost automotive industry sales that was in place July 24, 2009 through August 24, 2009. The program was widely hailed as a success since 677,081 individuals traded in their older and less fuel efficient vehicles for new vehicles. During this 32-day period, 2009 new vehicle sales peaked and, for the first time in a long time, the industry experienced the first signs of recovery. Aside from the potential environmental benefits associated with the program, the major purpose was to create jobs in the devastated automotive sector of the U.S. economy.
The global recession and climate change have placed a premium on policies and practices that can create jobs while also addressing environmental challenges. In the United States, the business community has an opportunity to lead the way by shifting corporate vehicle fleets from reliance on the standard internal combustion engine to more fuel-efficient technologies and alternative fuels. On a large scale, such a move could substantially reduce carbon emissions by reducing the use of fossil fuels and supporting thousands of new jobs. As discussed later in this paper, if half of U.S. corporate fleets embraced alternative fuels, the potential annual reduction of carbon fuels could be the same as removing 1.2 million gasoline-powered vehicles from U.S. roads. The number of jobs created or preserved to produce the alternative vehicles could total 20,000
The motor vehicle industry is the largest manufacturing industry in the United States. No other single industry is linked as closely to the U.S. manufacturing sector or directly generates as much retail business and employment as the motor vehicle industry. This study describes the economic contribution of American Honda Motor Co., Inc. and all of its U.S. Honda-affiliate companies.
The automotive industry has long been, and continues to be, one of the most important sectors in the U.S. economy. The motor vehicle and parts industries employed 732,800 workers directly as of September, 2008, and the Detroit Three employed 239,341 hourly and salary workers in the United States at the end of 2007. The international producers employed roughly 113,000 people in the United States at that time. The auto industry has one of the largest economic multipliers of any sector of the U.S. economy, and is sufficiently large that its growth or contraction can be detected in changes in the U.S. Gross Domestic Product. In many states, employment in automotive and automotive parts manufacturing ranks among the top three manufacturing industries. The purpose of this memo is to estimate the economic impact—in terms of jobs, compensation and tax revenues—of a major contraction involving one or more of the Detroit Three automakers.
Vehicle infrastructure integration (VII) consists of applying both vehicle-to-vehicle and vehicle-to-infrastructure communication to the tasks of improving safety, enhancing mobility and improving quality of life.