U.S. Auto Industry Jobs Up Nearly A Quarter Million Since 2009
With the launch of new federal vehicle fuel economy rules, the American auto industry has grown by nearly a quarter million jobs (236,600) since June 2009 when the auto industry hit bottom, according to a new report from DrivingGrowth.org.
The report finds that fuel efficiency is a major factor behind the gains in U.S. auto jobs. Manufacturing of motor vehicle and parts has grown by 165,100, or 26.4 percent since June 2009. Another 71,500 jobs have been added at U.S. auto dealerships.
Examples of how fuel-efficiency standards are accelerating the auto industry's recovery in the U.S. include the following:
- Michigan -- 35,200 new auto manufacturing jobs since June 2009 when the auto industry hit bottom, accounting for half of the state's total job gains over the same period. In Saginaw, MI, for example, automotive supplier has added 650 jobs and will retain an additional 1,000 jobs for production of electric power steering components (EPS) for U.S.-made pickup trucks. EPS, which replaces a more fuel intensive hydraulic system, can boost fuel economy by 4-6 percent on a typical vehicle.
- Indiana -- 19,800 new auto manufacturing jobs since June 2009 when the auto industry hit bottom, accounting for over one third of the state's total job gains over the same period. In Greensburg, IN, Honda is investing $40 million and will hire 300 new workers as its Indiana facility becomes the sole global producer of the fuel-efficient Honda Civic hybrid. It will be exported to markets around the world from Indiana.
- Ohio -- 11,300 new auto jobs since June 2009 when the auto industry hit bottom, accounting for one quarter of the state's total job gains over the same period. In Warren, OH, General Motors is running three shifts at its Lordstown Assembly plant, adding 1,200 jobs and employing 4,200 total workers to produce the high-mileage Chevy Cruze, which achieves 42 miles per gallon (MPG) in the EcoCruze model.
Part of the brighter U.S. industry future is due to manufacturers investing in technologies to prepare their vehicle fleets for increased fuel efficiency standards. Model year 2012 is the first year of a long-term federal program that requires a sales-weighted average of the equivalent of 35.5 MPG by 2016.
In 2011, the Obama administration announced plans for additional draft fuel economy and emissions standards that will raise new passenger vehicle fuel efficiency levels to the equivalent of 54.5 MPG by model year 2025. The process of setting new fuel economy standards began in 2007, when Congress passed and President George W. Bush signed a new energy law.
The new rules, expected to become final in August, cover both fuel economy and emissions and are a continuation of the carbon pollution and fuel-efficiency standard program that currently goes to 35.5 MPG by 2016. Thirteen global automakers, including Ford, GM, and Chrysler, as well as the United Auto Workers (UAW) are on record in support of the new rules.