New Level Field Study Released Today Offers Detailed Economic Assessment
- Study Released Today Offers Detailed Economic Assessment; Level Field Announces New National Television Ad -
WASHINGTON, July 12 -- The current round of buyouts and layoffs at domestic automakers will not have a significant impact on their comparative economic contribution to the U.S. economy, according to a study released today by the Level Field Institute. Level Field, a national scorecard organization that examines how automakers and the automotive industry contribute to the U.S. economy, also announced today that it will begin running a new national television ad.
"Our study examines how the latest buyout, layoff and new plant developments are likely to affect our economy -- collectively, and on a company-by-company basis," said Level Field President Jim Doyle. "Surprisingly, the domestic automakers' 'job advantage' should remain unchanged at nearly three times as many jobs."
Doyle continued, "We welcome foreign investment, and our reports reflect the full scope of foreign automakers' U.S. activity. But we think it's critical that consumers and public officials compare companies side-by-side."
"Today -- and for the next several years -- we will have two very different kinds of automakers doing business in the U.S.: those that do the bulk of their engineering, research, management and other activities here, and those that conduct that work overseas. That difference represents about 185,000 automaker jobs," said Doyle. "In other words, if domestic automakers did as little of their production, design, engineering and other critical activities here in the U.S. as foreign automakers do, we'd lose about half the automaker jobs currently here in the U.S."
Level Field, which launched its "What You Drive, Drives America" national advertising campaign in May, also announced that a new television ad will begin running immediately. The ad can be viewed online at http://www.levelfieldinstitute.org/.
About the Level Field Study
The Level Field study, available online at http://www.levelfieldinstitute.org/, calculates the cars-per-U.S.-job and jobs- per-car ratios for each of the major automakers operating in the U.S. for the next five years. These calculations are based on industry sales projections and publicly available information. Level Field believes the most accurate way to measure an automaker's U.S. contribution is to examine the number of jobs that company supports on a car-by-car basis. Doing so accounts for market share differences and captures research, design and other jobs that tend to be overlooked.
From 2005 to 2010, total automaker employment could drop from 470,000 to 416,000, based on figures provided by automaker trade groups. The Level Field study finds that domestic manufacturers' share of employment remains relatively constant (76% of total automaker jobs in 2006 to 73% in 2010).
On a car-by-car basis, the jobs cuts will not significantly reduce how much more each company supports the U.S. economy.
U.S. Jobs Per 1000 Cars Sold in the U.S.
2006 2007 2008 2009 2010
Chrysler 40 42 43 45 47
Ford 38 36 36 35 38
GM 28 28 28 28 29
Toyota 13 13 13 13 13
Honda 18 18 19 20 20
Hyundai 5 5 5 7 7
Nissan 14 14 14 14 13
BMW 26 25 24 23 23
VW 7 7 7 7 7
Domestic Avg 34 34 35 34 35
Foreign Avg+ 13 13 13 13 13
+ Based on AIAM's projections for foreign automakers as a group. Does not tie directly to Level Field's per-company estimates, which add up to a higher total than AIAM's.
In 2010, after 72,000 announced buyouts and layoffs are completed, Chrysler Group, Ford and GM could still employ five times more U.S. workers, per car sold, than Hyundai or VW. They could still support nearly three times more U.S. workers, per car sold, than Toyota, and nearly twice as many U.S. workers, per car sold, than Honda.
The Level Field report also looks at what might happen if domestic manufacturers are unsuccessful in their turn-around efforts. The report finds that if every automaker, including Ford, GM and Chrysler Group, were to operate at the foreign manufacturer's rate of 76.5 cars-sold-per-U.S. job, the U.S. could lose approximately 240,000 jobs.
Full study results, along with methodology and assumptions, are available at http://www.levelfieldinstitute.org/.
About Level Field Institute
In an increasingly global auto industry Level Field's scorecard approach demonstrates how each company promotes jobs and invests in new plants and technologies that will keep America economically competitive.
We are a national organization, established by retirees and families of GM, Ford, DaimlerChrysler, and the suppliers and dealers that support them. The Level Field Institute also has the support of major manufacturers, suppliers, dealers, unions and others who care about these issues.