Automotive Industry Contribution to the U.S. Economy

Economic Contribution of the Automotive Industry to the U.S. Economy
An Update (Fall, 2003)

Prepared for the Alliance of Automobile Manufacturers
Prepared by the Center for Automotive Research (CAR)

The motor vehicle industry continues to be one of the most important sectors of the U.S. economy. It is sufficiently prominent to influence the movements of Gross Domestic Product, and it employs hundreds of thousands of workers in well-paying jobs across the country.

The employment contribution associated directly with the total automotive industry, combining new vehicle production, sales, and service is estimated to be 7,057,300 jobs in the private sector of the U.S. economy (5.2 million jobs associated with automotive manufacturing activity, 1.9 million jobs associated with new-vehicle-related sales and service activity), and the compensation contribution is estimated to be almost $335 billion, measured in 2003 dollars.

Significant as the industry statistics are, however, they still understate the contribution of the industry to the national and regional economies. They refer only tangentially to new motor vehicle dealer retail activities, and they focus on direct activity in manufacturing, ignoring spin-off activities related to automotive production.

The complete 47-page Center for Automotive Research document: Economic Contribution of the Automotive Industry to the U.S. Economy