New Study Confirms Auto Industry's Significant Contribution to U.S. Economy - Engine Builder Magazine
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Business and Management

New Study Confirms Auto Industry’s Significant Contribution to U.S. Economy


current economic recession has highlighted the importance of the
automotive industry to the economy and the nation’s employment, where
1.7 million automotive-related direct jobs impact more than 8 million
jobs in the private sector, according to the Center for Automotive
Research (CAR).

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A recently released report by the Sustainable Transportation and
Communities group at CAR, an Ann Arbor, MI-based nonprofit research
organization, examines the economic and employment impact of automotive
manufacturers, parts suppliers and dealerships in contributing to the
economies of all 50 states. The report also outlines what economic and
employment impacts to expect in the near future.

According to CAR’s study, the automotive industry spends $16 billion to
$18 billion dollars a year on research and product development, half a
trillion dollars on employee compensation and is a major driver of the
overall manufacturing contribution to the Gross Domestic Product.


“It is difficult to imagine manufacturing surviving in this country
without the automotive sector," said Kim Hill, director of the
Sustainable Transportation and Communities group at CAR, and the
study’s lead. "This report details the employment and economic
contributions to the U.S. economy and each of the 50 states. The
industry’s impact is huge on a host of other sectors as diverse as raw
materials, construction, machinery, legal, computers and
semiconductors, financial, advertising, healthcare and education. In
this time of national introspection concerning the value of the
U.S.-based auto industry, it is clear the value is quite high.”


“The CAR study results provide strong evidence of the deep vertical and
horizontal integration of the U.S. auto industry with so much of the
U.S. economy,” added Sean McAlinden, executive vice president of
research and chief economist at CAR. “The study also illustrates the
high productivity potential of the U.S. auto industry and the
importance of its role in leading the U.S. economy in the current
recovery. This study definitely proves that federal assistance to the
industry last year will produce many benefits in jobs, income and
public revenues for years to come.”


The study was written by Hill, project manager Deb Menk and research associate Adam Cooper.

The complete study is available at

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