1 Redefining the American Auto Industry The Growing Impact of International Automakers on the U.S. Economy 2014
2 ABOUT US Association of Global Automakers The Association of Global Automakers represents international motor vehicle manufacturers, original equipment suppliers, and other automotive-related trade associations. Our global perspective has led us to approach every issue collaboratively by working with industry leaders, legislators, regulators, and other stakeholders to create the kind of public policy that improves vehicle safety, encourages technological innovation, and protects our planet. Our goal is to foster an open and competitive automotive marketplace that encourages investment, job growth, and development of more vehicles that enhance Americans quality of life. The Association has served as the voice of automobile manufacturers from around the world since 1961 under various names. American International Automobile Dealers Association Established in 1970, the American International Automobile Dealers Association (AIADA) is the only national trade association whose sole purpose is to represent America s nearly 10,000 international nameplate automobile dealership franchises. The Association serves as an advocate for the industry before Congress, the White House, and federal agencies. AIADA is the international nameplate dealers first line of defense in Washington, D.C., and its members are part of an active dealer community with a powerful voice. We focus our lobbying efforts on issues impacting America s international nameplate automobile dealers, including: trade and anti-competitive restrictions; regulatory overreach; tax measures; energy and fuel economy policies; and other industry-related issues.
3 ABOUT THE REPORT Redefining the American Auto Industry is a report produced by the Association of Global Automakers and the American International Automobile Dealers Association to demonstrate the economic impact of international automakers on the U.S. economy. International nameplate automobile manufacturers and dealership franchises are designing, building, and selling more vehicles across the U.S. than ever before. In the process, they are redefining the meaning of an American car. In 2013, international manufacturers produced 1 more than 5 million vehicles in the U.S., accounting for 45 percent of all vehicles made in America. These vehicles were sold at American dealership franchises or exported from the U.S. to more than 60 countries around the world. Last year, international automakers directly employed 100,000 Americans at more than 380 facilities. Each auto industry job has led to the creation of additional jobs 2 elsewhere in the economy a ripple effect that supports the employment of another 500,000 Americans across the country. In addition, nearly 10,000 international nameplate dealership franchises created more than 500,000 American jobs. The goal of this report is to educate policy makers on the reality of today s vibrant and growing U.S. auto industry, which is made up of a global array of companies putting down deep roots in America. Each company, whether founded in the U.S. or abroad, significantly contributes to our national economy and local markets. Every step involved in building an American car contributes to the United States economy. Jobs are created at a vehicle s earliest beginnings in research, design, and development; and jobs continue to flourish from the manufacturing and assembly process to the dealership franchise. In this report you will find 2013 investment data relating to: Capital Investment Dealership Employment Manufacturing Facilities National Payroll Parts and Materials Purchases Vehicle Sales Vehicle, Engine, and Component Production Research and Development Direct Automaker Employment U.S. Exports 1 Vehicles are made, built, or manufactured in the United States using domestic and globally sourced parts national employment multiplier for auto manufacturing was determined by M. R. Press Consulting, LLC using IMPLAN U.S. input-output model. 1
4 NATIONAL DATA SUMMARY International automakers have put down deep roots in America over the past 50 years, becoming a significant and integral part of the U.S. economy. Their U.S. operations include research, design, manufacturing, and assembly of cars and light trucks, as well as engines and components. International automakers invested more than $64 billion into 380 facilities and offices that directly employed more than 100,000 Americans purchased nearly $73 billion in parts and materials with a payroll of more than $9 billion to 2
5 produce more than 5 million vehicles DEALERSHIP that were sold at nearly 10,000 dealership franchises which was 45% of all U.S. vehicle production employed more than 500,000 Americans that and with nearly 800,000 of those U.S.-built vehicles were exported a total combined average payroll of $4.8 billion Data based on 2013 calendar year. Capital investment total is cumulative through December 31,
6 INTERNATIONAL AUTOMAKERS PRESENCE IN THE UNITED STATES U.S. operations manufacturing plants 56 R&D facilities BMW 44 Nearly 10,000 dealership franchises BMW Volkswagen 68 Hyundai Mercedes-Benz Hyundai Isuzu Kia Kia Mazda Volkswagen BMW Volkswagen Mercedes-Benz Volvo Subaru Mazda Mitsubishi Suzuki 37
7 Subaru Mitsubishi Mercedes-Benz Kia Subaru Mitsubishi Hyundai Mercedes-Benz Hyundai Volkswagen Kia Hyundai Volkswagen BMW Volkswagen Group of America* BMW Mazda Key RI DE DC # BMW Ferrari Jaguar Land Rover Maserati Mercedes-Benz Subaru Volvo CT 177 NJ 344 WV 74 Manufacturing Facilities R&D Facilities Headquarters Number of Dealership Franchises *Volkswagen Group of America headquarters include the VW, Audi, Bentley, and Lamborghini brands. 5
8 Manufacturing: International automakers investment in America keeps growing through the creation of more jobs and the increased production of vehicles, engines, transmissions, and other parts and components. 32 manufacturing facilities More than 5 million vehicles produced in the U.S. 66% vehicles sold in the U.S. that were manufactured* in America 16 states with manufacturing facilities AL AR CA GA IL IN KY MO MS OH SC TN TX VA WA WV Employment: From research and development, through manufacturing and all the way to the dealership, international automakers support American jobs in all sectors of the automotive industry. More than 100,000 employed at 380 facilities More than $9 billion direct U.S. payroll 63% of jobs are in manufacturing R&D, finance, and sales operations Top 10 states for employment OH TN CA AL IN KY MS SC GA TX R&D: International automakers have 56 research and development centers located across the country. These facilities design some of the most innovative, fuel efficient, and safe vehicles on American roadways. 56 R&D facilities market research technology research concept development design styling engineering design prototype fabrication hot/cold weather testing crash safety testing manufacturing 11 states with R&D facilities AL AZ CA CO GA IN MI NC NJ OH SC 6 *Vehicles are made, built, or manufactured in the United States using domestic and globally sourced parts.
9 Dealer Franchises: International nameplate automobile dealers are selling more vehicles across the U.S. than ever before, employing more than 500,000 Americans at nearly 10,000 dealership franchises across the country. Nearly 10,000 More than 500,000 dealership franchises in the U.S. employed at dealership franchises DEALERSHIP $4.8 billion total combined average payroll Top 10 states by international dealership franchise employment CA FL TX NY PA NJ OH IL VA NC Sales: International automakers share of U.S. vehicle sales continues to rise, now accounting for more than 59 percent of total industry sales. Last year, sales increased by 29 percent to reach 7.5 million vehicles. 7,577,951 59% market share vehicle sales of U.S. vehicle sales International automakers 29% increase in sales year-over-year Exports: International automakers exported a record number of American-made automobiles from the U.S. last year. The production of these vehicles and their engines and components takes place at 32 manufacturing facilities in 16 states. International automakers exported nearly 800,000 vehicles to more than 60 countries around the globe Data based on 2013 calendar year. 7
10 U.S. PRODUCTION State Automaker Facility Name City Production Start Vehicles/Components Produced Manufacturing of Alabama, LLC Lincoln 2001 Odyssey, Pilot, Ridgeline, Acura MDX, V-6 engines Alabama Hyundai Hyundai Motor Manufacturing Alabama Montgomery 2005 Elantra, Sonata, engines Mercedes-Benz Mercedes-Benz U.S. International, Inc. Vance 1995 GL, ML, RL Motor Manufacturing Alabama Huntsville cylinder, V-6, and V-8 engines Arkansas Hino Motors Manufacturing U.S.A,. Inc. Marion 2006 Differentials, rear axles, suspensions, related parts California Georgia TABC, Inc. Long Beach 1972 Sheet metal components, steering columns, catalytic converters, weld sub-assemblies Hino Motors Manufacturing U.S.A., Inc. Ontario 2004 Axle and knuckle components Precision Parts of Georgia, LLC Tallapoosa 2006 Transmissions Kia Kia Motors Manufacturing Georgia West Point 2009 Optima, Sorento, Hyundai Santa Fe Illinois Mitsubishi Mitsubishi Motor Manufacturing of America Normal 1998 Outlander Sport Indiana Manufacturing of Indiana, LLC Greensburg 2008 Civic Hybrid, Civic Natural Gas, Civic Sedan, Acura ILX, Acura ILX Hybrid Subaru Subaru of Indiana Automotive, Inc. Lafayette 1989 Legacy, Outback, Tribeca Motor Manufacturing Indiana Princeton 1996 Highlander, Highlander Hybrid, Sequoia, Sienna Kentucky Motor Manufacturing Kentucky Georgetown 1986 Avalon, Avalon Hybrid, Camry, Camry Hybrid, Venza, 4-cylinder and V-6 engines, powertrain parts Mississippi Missouri North America Vehicle Assembly Plant Canton 2003 Motor Manufacturing Mississippi Blue Springs 2007 Corolla Altima, Armada, Frontier, Murano, NV, Sentra, Titan, Xterra Bodine Aluminum Inc. St. Louis 1990 Engine brackets, carrier covers Bodine Aluminum Inc. Troy 1990 Cylinder heads, cylinder blocks, automatic transmission parts of America Manufacturing, Inc. Marysville Auto Plant Marysville 1979 Accord Coupe, Accord Sedan, Accord Hybrid, Acura TL Ohio of America Manufacturing, Inc. Anna Engine Plant Anna cylinder and V-6 engines of America Manufacturing, Inc. East Liberty Auto Plant East Liberty 1989 Crosstour, CR-V, Acura RDX Transmission Manufacturing of America, Inc. Russells Point 1996 Transmissions, gears, four-wheel-drive components South Carolina BMW BMW Manufacturing Co. Greer 1994 X3, X5, X6 North America Vehicle Assembly Plant and Battery Plant Smyrna 1983 Altima, LEAF, Maxima, Pathfinder, QX60, Rogue, batteries Tennessee North America Powertrain Assembly Plant Decherd 1997 Engines Bodine Aluminum Inc. Jackson 2003 Cylinder blocks, automatic transmission parts Volkswagen Chattanooga Assembly Plant Chattanooga 2011 Passat Texas Motor Manufacturing Texas San Antonio 2006 Tacoma, Tundra Virginia Mazda Mazda Remanufacturing and Technical Center Colonial Heights 2008 Automatic transmissions, RX-7 and RX-8 rotary engines Washington BMW Joint Venture BMW-SGL Carbon Moses Lake 2011 Ultra-lightweight carbon fiber reinforced plastics West Virginia Motor Manufacturing West Virginia Buffalo cylinder and V-6 engines, 6-speed automatic transmissions Hino Motors Manufacturing U.S.A., Inc. Williamstown 2007 Medium-duty and specialized trucks 8
11 U.S. SALES State No. of Dealerships Total Vehicle Sales International* Totals Market Share of Int l Automakers Green Vehicles** Total Sales Int l Automakers Green Vehicle Sales Green Vehicle Market Share of Int l Automakers Alabama ,767 95,700 56% 3,569 2,989 84% Alaska 25 23,214 10,730 46% % Arizona , ,634 60% 12,308 9,860 80% Arkansas ,338 51,791 44% 2,624 2,235 85% California 981 1,510,120 1,149,797 76% 148, ,733 76% Colorado , ,284 62% 7,819 5,968 76% Connecticut , ,652 73% 5,511 4,277 78% Delaware 37 43,247 25,645 59% 1,568 1,204 77% District of Columbia 2 15,047 11,568 77% 1, % Florida , ,118 69% 32,718 26,085 80% Georgia , ,304 60% 13,965 11,800 84% Hawaii 37 48,724 38,862 80% 3,319 2,738 82% Idaho 56 45,002 22,900 51% 1,585 1,303 82% Illinois , ,266 55% 19,301 14,595 76% Indiana ,491 92,045 44% 6,945 5,282 76% Iowa ,696 44,314 37% 3,610 2,854 79% Kansas 88 94,453 44,986 48% 3,293 2,617 79% Kentucky ,820 64,835 52% 3,722 3,019 81% Louisiana ,675 96,844 49% 2,424 2,046 84% Maine 67 52,429 30,499 58% 1,983 1,666 84% Maryland , ,264 69% 10,812 8,432 78% Massachusetts , ,693 72% 11,665 9,546 82% Michigan ,105 93,444 20% 10,987 5,288 48% Minnesota ,191 96,965 48% 6,626 5,323 80% Mississippi 79 92,833 48,838 53% 1,598 1,365 85% Missouri ,604 91,105 45% 6,483 4,938 76% Montana 44 41,298 15,306 37% 1, % Nebraska 52 73,468 29,630 40% 1,755 1,326 76% Nevada ,701 66,476 65% 3,771 2,957 78% New Hampshire 89 76,655 49,642 65% 2,619 2,134 81% New Jersey , ,650 72% 12,225 9,461 77% New Mexico 66 75,882 37,606 50% 2,492 2,021 81% New York , ,726 67% 25,267 20,526 81% North Carolina , ,281 62% 14,456 11,944 83% North Dakota 32 38,257 11,807 31% % Ohio , ,007 50% 12,077 9,099 75% Oklahoma ,030 63,869 41% 3,773 2,967 79% Oregon ,509 82,184 68% 9,281 7,483 81% Pennsylvania , ,360 59% 14,775 11,328 77% Rhode Island 49 42,376 29,605 70% 1,331 1,116 84% South Carolina , ,879 59% 5,479 4,642 85% South Dakota 23 36,053 12,439 35% % Tennessee , ,698 57% 5,823 4,756 82% Texas 563 1,202, ,324 52% 26,553 21,141 80% Utah 68 84,885 53,741 63% 3,251 2,744 84% Vermont 43 37,312 22,548 60% 1,543 1,248 81% Virginia , ,848 68% 14,636 11,410 78% Washington , ,491 68% 17,531 13,554 77% West Virginia 74 81,198 37,911 47% 1,398 1,149 82% Wisconsin ,662 97,311 45% 7,398 5,787 78% Wyoming 24 23,576 8,529 36% % Totals 9,174 12,767,773 7,577,951 59% 515, ,332 78% *Acura, Aston Martin, Audi, Bentley, BMW, Bugatti, Ferrari, Fiat,, Hyundai, Infiniti, Jaguar Land Rover, Kia, Lamborghini, Lexus, Lotus, Maserati, Mazda, McLaren, Mercedes-Benz, MINI, Mitsubishi,, Porsche, Rolls Royce, Smart, Subaru, Suzuki,, Volkswagen, and Volvo **Advanced Technology Vehicles (ATVs) include all hybrid, electric, fuel cell, and natural gas vehicles. Data based on 2013 calendar year. 9
12 Global Automakers 1050 K Street, NW, Suite 650 Washington, D.C American International Automobile Dealers Association 500 Montgomery Street, Suite 800 Alexandria, VA GO-AIADA Data for this report was provided by automobile manufacturers participating in the 2013 Global Automakers and AIADA Economic Impact Survey: BMW,, Hyundai, Kia, Mazda, Mercedes-Benz, Mitsubishi,, Subaru,, Volkswagen, and Volvo. Sources used to compile the data used in this report: AIADA's membership roster, the 2013 Global Automakers and AIADA Economic Impact Survey, NADA DATA, Automotive News Data, and R.L. Polk Automotive Data.