Automotive Jobs Drive America


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Automotive Jobs Drive America

  2. 2. YOU KNOW THAT “WHAT YOU DRIVE, DRIVES AMERICA. BUT HOW DO ” YOU CONVINCE OTHERS? If you’re like a lot of people who are concerned about American jobs, you’ve talked to family and friends about why it makes sense for consumers to consider where the cars they buy are built—and how each automaker contributes to our economy. With recent headlines over buyouts and plant LEVEL FIELD closings, many Americans assume cars are all the same IS SPREADING THE WORD these days. They are not. Millions of jobs—and billions in R&D—are at stake. T ■ Level Field already o help set the record straight, a group of concerned retirees enjoys the support of formed the Level Field Institute —a nonprofit, research thousands of retirees. organization that is dedicated to explaining why “What you drive, ■ We have also briefed drives America. We believe the best way to promote jobs and ” more than one thousand our economic competitiveness is to make sure that car buyers union locals and several who care about these issues have all the facts when they visit a dealership. hundred car dealerships. That’s why we’re distributing this “Discussion Guide” to thousands of people like you; people who understand the value of supporting American ■ Level Field’s research jobs and are eager to get others on board. has been featured in the Wall Street Journal, We wanted you to be the first to know about the JPC (Jobs-Per-Car) USA Today, and the rating— a new online tool we’re creating that will show how each car New York Times. purchase impacts American jobs. We’ve also outlined some easy-to-grasp facts, figures, and talking points that will help ■ Our representatives you explain how certain automakers support our local have also appeared on communities and our economy more than others. With CNN, CNBC, and the this Discussion Guide and other resources on the Level Today Show. Field website, you’ll find it’s easier than ever to make a strong case for American jobs and to spread the word. Visit where you’ll find a customized Jobs-Per-Car (JPC) Rating tool, “Scorecards” for each automaker, research reports, and other helpful information. WHAT YOU DRIVE, DRIVES AMERICA. 1 FOR MORE FACTS AND RESOURCES, VISIT
  3. 3. HOW TO CONVINCE OTHERS THAT AUTO JOBS MATTER. A lot of people you discuss this topic with might ask: “Does the kind of car I buy really matter to America?” The answer is that auto jobs matter in two different, but important, ways: Your community and the U.S. economy. YOUR COMMUNITY. OUR ECONOMY. Nearly a half million Americans work at automaker Automakers buy much of the steel, rubber, and assembly lines, stamping plants, research labs and semiconductors made in the U.S.; conduct more offices across America. And nearly 5 million other R&D than any other industry; and have invested Americans depend on those plants and labs for more than $230 billion in new plants and their own jobs. In fact, each autoworker supports infrastructure over the past 25 years. more than nine other jobs— from parts suppliers to the local schools, hospitals and police stations that serve them. ONE AUTOWORKER JOB SUPPORTS NINE U.S. WORKERS AUTOMAKERS INVEST IN THE ECONOMY WHAT YOU DRIVE, DRIVES AMERICA. 2 FOR MORE FACTS AND RESOURCES, VISIT
  4. 4. HOW TO EXPLAIN WHY ALL CARS ARE NOT THE SAME. With all the recent buyouts and plant closings, it’s natural for people to ask the question: “Aren’t all cars the same these days?” But the fact is, the differences between automakers can be enormous. Here are a few comparisons AUTOMAKERS U.S. EMPLOYMENT NUMBERS that will help you explain why: • GM employs more U.S. workers than all major foreign automakers GM combined. • Ford operates nearly as many Ford assembly lines in the U.S. as Toyota, Honda, Nissan, Hyundai and VW Chrysler put together. All Foreign • Honda employs about seven Automakers Combined times more U.S. workers than Hyundai, and more than 11 times Toyota more workers than Volkswagen. • Ford, GM and Chrysler sell about Honda half the cars bought in the U.S., but they buy nearly 80% of the parts Hyundai made here. VW 0 20 40 60 80 100 120 “ Thousand When my wife and I retired to Florida, we were surprised at how little our neighbors thought about what automakers contribute. With recent cuts at Ford and GM, we didn’t know what to say. But now we do — thanks to information from Level Field, I’ve found ” a way to support my friends back in Detroit. — Jensen Beach, FL WHAT YOU DRIVE, DRIVES AMERICA. 3 FOR MORE FACTS AND RESOURCES, VISIT
  5. 5. HOW TO HELP PEOPLE MAKE THE JOBS-PER-CAR CONNECTION. There are a lot of facts and figures you can use to convince people that their car purchase impacts American jobs. But perhaps the fastest way to get the point across is to encourage people to use the Level Field Jobs-Per-Car (JPC) Rating. The JPC Rating is designed to: Other helpful tools from • Compare the number of U.S. workers a Level Field include: company employs with the number of cars it • LFI Scorecards offer side-by-side comparisons sells in the U.S. of leading automakers on jobs, assembly plants • Provide a more accurate look at jobs than and domestic content. simply asking where a car is assembled. • LFI Research Reports examine industry trends and what it means for the U.S. economy. The score generated by the JPC tool is based on how many U.S. workers each company employs • LFI Ads and Handouts allow retirees, auto for every 2,500 cars it sells here. At the top end, dealers and others to share these facts with Chrysler employs 83 workers for every 2,500 potential car buyers. cars it sells, while Ford and GM follow with 80 and 71. Toyota scores 33, while Hyundai scores 15. Chrysler Ford GM JOBS-PER-CAR RATING (U.S. workers per 2,500 cars) 83 Toyota Hyundai 0 20 40 60 80 100 Autoworkers “ If you read the paper, you’d think there were only two kinds of plants in America: those GM is closing and those Toyota is opening. ” When reporters get it wrong, I send the Level Field Scorecards. — Washington, D.C. WHAT YOU DRIVE, DRIVES AMERICA. 4 FOR MORE FACTS AND RESOURCES, VISIT
  6. 6. HOW TO ADDRESS CONCERNS OVER EFFICIENCY. The JPC Rating gives people a quick indicator of how each car purchase impacts American jobs. But it may also raise the question:“Doesn’t a high JPC rating really mean that an automaker is less efficient?” The best way to answer this question is to explain that most automakers use about the same number of workers to build a car. It’s where the work gets done that matters. Why Ford employs nearly 2.5 times more Americans than Toyota. Toyota and Ford sell about the Toyota employs less than half Because Toyota makes less same number of cars here. So, as many workers. Why?… than half as many cars here. you would expect them to employ the same number of U.S. workers. But they don’t… 16% U.S. Auto 34 U.S. Cars 0.9 U.S. Car Sales Employees Produced 15% (in thousands) 80 (in millions) 2 Toyota Ford SOURCE: Global Market Data Book 2007. GM is more efficient than VW, yet still employs 40 times more Americans. Each GM worker makes 31 cars And nearly 40% of the total GM workforce is here, but per year, while each VW worker only 1% of the total VW workforce is in the U.S. only makes 14 cars per year… Cars Produced 14 GM Global VW Global Per Worker Workforce Workforce 31 40% 1% VW GM Foreign U.S. WHAT YOU DRIVE, DRIVES AMERICA. 5 FOR MORE FACTS AND RESOURCES, VISIT
  7. 7. HOW TO EXPLAIN THE IMPORTANCE OF AUTO PARTS. Last year, automakers spent approximately $222 billion on U.S. parts, making them among the largest buyers of U.S. steel, rubber and semiconductors. Those parts suppliers, in turn, employed about 780,000 U.S. workers. The average Big 3 car used nearly 2.5 times more domestic content than the average foreign car, including those built in the U.S. W DOMESTIC CONTENT BY CATEGORY (2007—sales weighted) hat’s the difference between 79% and 35% domestic content? If Ford, There’s a big difference GM and Chrysler had used only 35% between 79% and 35% domestic content: domestic content last year (like foreign automakers did), they would have spent $95 billion less here in the U.S. That $95 Ford, $95B billion in lost sales could have cost between 200,000 GM and in sales 79% Chrysler and 330,000 American workers their jobs. Foreign Automaker 35% Average DOMESTIC CONTENT (2007 model year) Ford GM Chrysler Honda Nissan Toyota Hyundai BMW VW 0 10 20 30 40 50 60 70 80 90 Percent WHAT YOU DRIVE, DRIVES AMERICA. 6 FOR MORE FACTS AND RESOURCES, VISIT
  8. 8. HOW TO SPREAD THE GOOD NEWS ABOUT TOMORROW’S JOBS. Today’s patents will have a big impact on whether tomorrow’s best jobs remain here in the U.S. Fortunately, automakers invest more in R&D than any other industry—and Ford, GM and Chrysler invest approximately 80% of that spending here in the U.S. Reasons to feel good about the future. RESEARCH & DEVELOPMENT EXPENDITURES While the U.S. has lost many basic manufacturing (in the United States, by sector) jobs, advanced manufacturing jobs (on transmissions and engines) are likely to remain. Today’s patents Automotive $16.9 will also have a big impact on whether tomorrow’s best jobs remain here in the U.S. Pharmaceuticals $15.9 R&D translates into better cars for Americans. Software $15.1 In addition to having a positive impact on job growth, R&D also offers tangible benefits for car Semiconductors $12.6 buyers. It helps foster advances in technology, which translates into safer, less expensive and 0 5 10 15 20 more fuel-efficient automobiles. It also helps bolster $ Billion America’s reputation as a leader in innovation. SOURCE: Ward’s Automotive Facts and Figures. 2005, National Science Foundation. RANKING AUTOMAKERS vs. U.S. GOVERNMENT In Michigan alone, more NASA than 200 R&D facilities Ford employ 65,000 R&D GM workers—a $10 billion per NASF USDA year investment in America’s DHS economic competitiveness. EPA 0 2 4 6 8 10 $ Billion WHAT YOU DRIVE, DRIVES AMERICA. 7 FOR MORE FACTS AND RESOURCES, VISIT
  9. 9. HOW TO PLAY A PART IN SUPPORTING AMERICAN JOBS. BE PROACTIVE. STAY INFORMED. • Encourage people you know to use the JPC • Visit on a regular Rating (on the Level Field website) before they basis for updates and materials on the American buy a car. auto industry and workforce. • Download Level Field Scorecards and use • Email us at to other research information from the Level Field share your feedback or ask questions. website to make the case for American auto jobs. • Make sure your local autodealer has Level Field’s latest information. • Write to reporters who dismiss the importance of American auto jobs. • Write to Congress about issues that affect American auto jobs. DOWNLOAD A levelfieldinstitute COMPLETE SET OF SCORECARDS AT: .ORG “ Cars are a big topic around here— somewhere between sports and arguing about politics. It’s great to be able to show ” someone a Level Field Scorecard that proves you’re right. — Birmingham, MI WHAT YOU DRIVE, DRIVES AMERICA. 8 FOR MORE FACTS AND RESOURCES, VISIT
  10. 10. PRINT OUT THIS PAGE and refer to it when having the auto jobs discussion. FIVE KEY POINTS TO COMMUNICATE TO CAR BUYERS. 1 Auto jobs matter to America. Nearly five million U.S. jobs depend on automakers. They are America’s #1 exporter, a leading buyer of parts and materials, and our largest source of R&D. 2 Some automakers contribute more than others. GM employs more Americans than all 16 foreign automakers combined. Ford operates nearly as many assembly lines as Toyota, Honda, Nissan and Hyundai combined. 3 The JPC Rating makes it easy to compare cars. This fast, reliable online tool calculates a jobs-per-car rating, based on how many U.S. workers each company employs for every 2,500 cars it sells here. 4 Auto parts play a big part in the job story. Automakers who use more domestic content help secure the jobs of 780,000 auto parts workers. Ford, GM and Chrysler use 85% more American auto parts. 5 R&D is the future of the American auto industry. This $17 billion industry translates into more jobs, more infrastructure investment, not to mention better, safer cars for all of us. By showing our support for American autoworkers, we give automakers more reason to keep investing in this area. “ I don’t care about what my friends buy, as long as they at least take a look at the facts. If we don’t show automakers we care ” about jobs, they won’t care about them as much themselves. — Cleveland, OH WHAT YOU DRIVE, DRIVES AMERICA. 5505 Connecticut Ave. NW, #346 Washington, DC 20015-2601 TEL 202.510.2018 FAX 866.212.1232 9 FOR MORE FACTS AND RESOURCES, VISIT