Japanese Automakers Investing $1.7 Billion in New U.S. Plants

WASHINGTON, DC — September 20, 2006: Members of the Japan Automobile Manufacturers Association (JAMA) are spending an estimated $1.7 billion in the construction of four new U.S. auto and auto parts manufacturing plants, which are expected to employ an additional 4,680 American workers when all four new facilities become fully operational, says a new JAMA report, Japanese Automakers in America: New Plants, New Jobs, New Vehicles.

“This investment underscores the extent of our members’ commitment to satisfy American consumer demand for high quality, innovative products and to integrate our companies into the fabric of America,” said William C. Duncan, JAMA USA General Director.

Two of these plants opened earlier in 2006, a third will open in November 2006 and the fourth is scheduled to open in 2008. In addition to these new investments, JAMA member companies are spending $382 million in two existing engine plants to increase their manufacturing capacity, according to the report. With these investments, JAMA members’ investment in the U.S. is projected to grow to $30 billion by 2008. As of today, cumulative investment in 25 U.S. vehicle, engine, and parts manufacturing facilities stands at $28 billion, the report says.

JAMA produces the report annually to document Japanese automakers’ investment in America. The report includes production, R&D, export, and employment statistics as well as the value of purchases of U.S.-made auto parts.

In Japan’s fiscal 2005, which ran from April 2005 to March 2006, the report says that the value of parts purchases by JAMA members from U.S. companies hit a new record of $48.4 billion, a seven percent increase over parts purchases in the previous fiscal year.

In 2005, JAMA members’ 12 U.S. vehicle plants produced nearly 3.5 million American-made cars and trucks, an increase of 10 percent over 2004. Of these, 269,716 American-made cars and trucks were exported to countries around the world.

To handle the demand and assure continued innovation in 2005, Japanese automakers, their dealers and distributors employed a total of 431,738 Americans. Of these, automakers directly employed 57,370 at their 25 U.S. manufacturing plants and 3,593 at their 36 U.S. research facilities. In addition, Japanese brand vehicle dealers employed 349,086 at 7,050 dealership franchises and distributors employed an additional 21,689.

To obtain a copy of the report, go to www.jama.org. JAMA, located in Tokyo, has offices in Washington, D.C., Brussels, Beijing, and Singapore.