International automakers redefining American auto industry
American International Automobile Dealers Association (AIADA) and Association of Global Automakers (Global Automakers) has presented an economic impact report to highlight growing impact of foreign automakers on the US economy at the AIADA Auto Summit in Washington, DC.
Increased investment and operations by international manufacturers and dealers are reshaping the global auto industry, alongwith redefining the quintessential ‘American car’.
Resultant, international automakers produced more than 5 million vehicles using domestic and globally sourced parts in the United States last year. The number accounts for 45% of all vehicles built in America. With sales volume at 7.5 million vehicles, this equates to 59% f all vehicles sold in US. With a collective investment of $64 billion, international automakers operated 380 U.S. facilities, including 32 manufacturing plants.
On the job front, this investment and business is responsible for employing 100,000 Americans on a payroll of $9+ billion. In fact, 500,000 additional American jobs were created to service 10,000 dealership franchises. Exports to 60+ countries stood at 800,000 automobiles from the US.
“The positive economic ripple effect created by our industry doesn’t end after the vehicles are designed, built, and distributed to dealerships nationwide,” said AIADA President Cody Lusk. “The impact only grows, as thousands of international dealership franchises staffed by hundreds of thousands of Americans then begin the work of selling and servicing some of the most popular vehicles in the United States.”
“For over 50 years, international automakers have invested billions of dollars in the U.S. and have revitalized local economies, created tens of thousands of jobs, and expanded the local tax base,” said Global Automakers CEO John Bozzella. “As the data demonstrates, the old perceptions of foreign versus domestic in the U.S. don’t fit the reality anymore.”