Transplants Could Account For Half Of American Auto Production In Five Years
In less than a decade, the number of auto company workers employed by companies other than the Big 3 has risen from 25 to 39 percent. But by 2017 that number could rise to 50 percent.
A report by Automotive News outlines the post-recession rise in American auto manufacturing driven by Asian and European auto makers
Overall, carmaker employment in North America is down by 104,524 jobs since 2005. Yet Asian and European companies added 28,654 jobs during that stretch as they built plants, installed r&d centers and put in other facilities in the United States, Mexico and Canada. Nondomestic automakers have opened seven assembly plants in North America in the eight-year-span, while the Detroit 3 closed 21.
The key growth factor here is not so much the strength of weakness of Detroit, but the desire of auto makers like Honda, Nissan and Volkswagen to localize production in the United States as a means of protecting themselves from currency fluctuations or, in the case of the Japanese auto makers, unforeseen disruptions to their supply chain like the 2011 tsunami. As John Casesa of Guggenhein Partners tells it
“The economic reality of the auto business is that it is most efficient to produce cars in the markets where they are sold, and that is what has drawn all these automakers to the U.S.”
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The headline and other references should read 'North American' not 'American' per the linked article.
I've seen some comments, boy, there are some misguided souls in the good Old US of the A. 1. Unionists/Socialist (what you Americans refer to as a Socialist) support the worst form of capitalism. Unionist are capitalist, really. The only difference between them and a genuine capitalist is the fact that a capitalist is prepared to take a risk and work to advance. A unionist wants what a capitalist has without taking any risk. 2. To the people who complain about 'foreign companies' taking money and jobs out of the US. What bullshit. This article supports the fact that while the Big 3 are shedding jobs while the so called foreigners are creating jobs. You need more foreign vehicle manufacturers in the US to create jobs. Not only have the UAW destroyed Detroit, their policies towards supporting regulations has made the US less competitive. The US is only becoming more competitive because your dollar is reducing in value against all the countries that have money buy your exports. 3. Read the link below and you can see how 'foreign' companies like Apple and Google don't pay taxes in Australia and reap big bucks. From what it appears the US companies aren't any better, unless it's different rules for the US to the rest of the world. Before anyone bitches clean your own home first. Then realise we live in a global economy, not an American economy. The US can make it, but it doesn't have the influence economically it had 40 years ago, it's dwindling. smh.com.au/business/how-savvy-multinationals-curb-their-tax-bills-20121116-29hhm.html
Being a car-nut and a very patriotic American (perhaps over the top sometimes, but I won't apologize for that), this topic is one that is near and dear to my heart. I truly...truly, want to support American companies, employing American workers, assembling cars in America made from parts also made in America. Problem is, a large majority of cars that I am interested in don't fit (with perhaps the exception being the Jeep Wrangler...and even that now has some "Italian" connection to it). The arguement about "where the profits go" gets hard to stand behind when you consider the amount of money that goes to a local economy when a Hyundai or BMW decides to park a manufacturing facility in your hometown. Which benefits the most Americans? The profit, or the taxes and paychecks to the local community? If looking small cars, if I buy the Ford Fiesta (an "American" company) is that supporting Americans more, even though the car is assembled in Mexico? I absolutely love the Fiat Abarth...does it help the American economy (Michigan) because the engine is built here, thought the car is also assembled in Mexico (and in the Fiat's case...if Fiat is healthy and profitable, doesn't that also help Chrysler?)? Don't even get started on cars like the Toyota Camry and Avalon and Honda Accord. By parts content and assembly, they are more "American" than most of the American nameplated cars on the road. Heck, the new Buick Encore is 50% Korean and 18% Chinese...hardly American at all. Bottom line, trying to take a stand to "Buy American to support our citizens" isn't easy or black and white. In the end, it would be wonderful if American car companies built world-class cars right here in America that not only were competitive, but measurably better than their "foreign" competitors. That would make the argument much easier to substantiate and support. Meanwhile, I can't decide between the Wrangler and the Abarth when I come back from my overseas assignment...
I always look at which vehicle best fits my needs. All things similar or equal, then I prefer to support the home team, meaning made in US. Preferably non-UAW.