Domestic Automakers Maintain Jobs Advantage

- Even After Historic Job Reductions, U.S. Automakers Support 2.5 More U.S. Jobs Per Car Than Foreign Automakers -

WASHINGTON, Jan. 18 /PRNewswire-USNewswire/ -- The Level Field Institute today issued its 2007 Index, which calculates how many U.S. jobs each automaker operating in the U.S. supports. Level Field, which examines how automakers and the automotive industry contribute to the U.S. economy, said the 2007 Index shows the jobs advantage of domestic automakers remains extremely large -- even in the face of historic job reductions and the increased market share of foreign automakers.

"Foreign automakers spend millions around the country promoting their new plants and U.S. investment," said Level Field President Jim Doyle. "We welcome their investment, but Americans should know each Ford, GM or Chrysler Group purchase supports nearly 2.5 times the number of U.S. jobs of foreign automakers, on average. Domestic automakers also purchase nearly 80% of the parts made here."

The Index shows that historic buyouts at GM and Ford will reduce their "jobs advantage" only modestly. Each company could continue to support approximately 2.5 times more U.S. jobs per car sold than the typical foreign automaker. Domestic automakers will support approximately 1.7 times more jobs per car than Honda, 2.5 times more jobs per car than Toyota, and 6.6 times more jobs per car than Hyundai.

A copy of the complete Index is available at www.levelfieldinstitute.org

Despite opening a new plant, Toyota's jobs performance dropped slightly in 2006 (due in part to its increase in imports), and could drop again in 2007. Honda remains the best jobs performer among the major foreign automakers, with slightly more than half as many (56%) jobs per car as the domestic automakers. Hyundai trails all other major automakers with just 16% as many jobs per car as domestic automakers.

Current buyouts and other cost reductions at Ford, GM and Chrysler Group will likely result in a net industry-wide loss of 95,000 jobs by 2010 (from 2005 employment). Even still, the three companies would represent 71% of the U.S. automaker employment. They would still employ four times more U.S. workers per car sold than Hyundai, 2.5 times more than Toyota and nearly twice as many as Honda.

Doyle continued, "Had Ford, GM and Chrysler Group reduced their U.S. investment to match foreign automakers this year, another 158,000 U.S. jobs would likely be lost."

"Our goal is to make clear exactly what's at stake when consumers choose a vehicle," Doyle continued. "Level Field examines the impact of jobs, plants, and R&D on our economy -- collectively, and on a company-by-company basis. We think people should be able to compare companies side-by-side when making an auto purchase."