No other single industry is linked to so much of U.S. manufacturing or generates so much retail business and employment, as these facts show:
- Direct Auto Employment: America’s automobile industry is one of the largest industries in the country. The industry directly employs over 1.7 million people engaged in designing, engineering, manufacturing and supplying parts and components to assemble, sell and service new motor vehicles.
- Major Customer of Goods and Services: America’s automakers are among the largest purchasers of aluminum, copper, iron, lead, plastics, rubber, textiles, vinyl, steel and computer chips.
- Jobs Dependent on Autos: When jobs from other sectors that are dependent on the industry are included, the auto industry is responsible for 8 million jobs nationwide, or about 4.5% of private-sector employment.
- Compensation: The contribution of automotive manufacturing to compensation in the private sector is estimated at more than $500 billion each year.
- Tax Revenues: People in auto-related jobs collectively generate more than $70 billion annually in tax revenues.
- GDP: Historically, the auto industry has contributed from 3 - 3.5% to America’s total gross domestic product.
- R&D: The auto industry invests billions every year in research and development, among the highest of any industry. However, unlike many other industries, only a small portion of R&D – just 1% – is funded through the federal government.
This information originates from the study, “Contribution of the Automotive Industry to the Economies of All Fifty States and the United States” that was prepared by the Center for Automotive Research (CAR) and released in April 2010; R&D information from the National Science Foundation.