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7,200,000. Keep it Made in America Let Jobs Drive Auto A Report from the United Steelworkers.

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Presentation on theme: "7,200,000. Keep it Made in America Let Jobs Drive Auto A Report from the United Steelworkers."— Presentation transcript:

1 7,200,000

2 Keep it Made in America Let Jobs Drive Auto A Report from the United Steelworkers

3 We Can’t Take Any More "Policy makers need to recognize this as an emergency at the scale of any we’ve seen in recent years. The American workforce is too big to fail.” Jared Bernstein Chief Economist Vice-President Biden Employers cut an additional 611,000 jobs in April, 149,000 of those were in the manufacturing sector. Official Unemployment is now 8.9%. The Real Unemployment rate is at 15.8%.

4 In 2004-5, the US auto industry directly employed over two million people at assembly plants, parts manufacturers and dealerships. These jobs supported millions of others. Nearly 30% of the manufacturing jobs in the US auto industry disappeared between 2000 and 2008. During this time period, the U.S. lost almost 5 million manufacturing jobs. Driving the US Economy

5 The American Auto Industry Supports 7.2 million jobs DirectIndirect Assembly221,000265,000 Parts784,0003,685,000 Dealers1,130,000 Total2,135,0005,080,000

6 The Jobs Begin Here

7 Building a Car Is More Than Just Building a Car

8 The Impact Goes Deeper they spend their money in the US economy, which supports thousands more U.S. jobs In other words: Each one of those people, Goes out to eat, Pays taxes, Buys school clothes for their kids, Goes for their yearly check-up,

9 US Auto Industry R&D spending in the US is second only to the semiconductor industry – over $16 billion per year. 1 in 10 corporate scientists and engineers in the US are employed by the auto industry. Auto is one of our largest exports, totaling almost $100 billion in cars and parts in 2008. The industry supports a supply chain which is also key to our national defense industry. The automotive industry generates almost 4% of US GDP. And Let’s not forget …

10 What Direction? The GM Plan

11 Oklahoma City-2006 Lansing Craft Centre-2006 Spring Hill #1 - 2006 Atlanta – 2006 Lansing Metal - 2006 Pittsburgh Metal - 2008 Portland SPO - 2006 Baltimore - 2005 Linden - 2005 Lansing M - 2005 Lorain - 2005 GM, Ford, Chrysler, Delphi & ACH Plant Shutdowns Announced and Executed, 2005-2011 St. Louis - 2006 Doraville - 2008 Wixom – 2007 Batavia Trans. – 2008 Windsor Casting – 2007 Ford Shutdowns Delphi Plant Shutdowns ACH Plant Shutdowns Twin Cities - 2011 Norfolk – 2007 Essex Engine – 2007 Maumee Stamping – 2007 Chrysler Plant Shutdowns Newark –2008 Updated: March 05, 2009 Brook Park Casting – 2010 Massena Foundry - 2009 St. Louis Bulk Center – 2009 Toledo South – 2006 Drayton Plains PC - 2009 Livonia Engine - 2010 Saginaw Malleable - 2007 Indianapolis Metal - 2011 Flint North Engine – 2008 Flint North Components – 2011 Flint Metal Center – 2011 Janesville - 2008 Moraine - 2008 Oshawa Truck - 2009 St Louis South – 2008 Grand Rapids Stamping - 2008 Fontana PDC – 2009 Romulus Trans. - 2005 Muncie Transmission - 2006 Windsor Trans. - 2010 GM’s Plan for Survival: Close more plants; Lay-off more workers.

12 Sales Do Not Equal Jobs Domestic Content: Domestically Produced69% Imports 5% When a car is imported, in addition to the assembly jobs that are lost, we also lose the jobs in the domestic supply chain. The GM Plan

13 While the US auto manufacturers should be given a chance to survive, the increasing trend of outsourcing assembly and parts should not be part of their plan. Under its most recent plan, GM intends to increase its importation of vehicles from countries such as Mexico, South Korea and China by 365,000 vehicles. Any plan for GM or Chrysler that is supported (and funded) by the U.S. taxpayers must be focused on maintaining a competitive domestic auto industry, with American jobs the top priority. The GM Plan

14 Drive America Forward Our Plan to

15 1.Stimulate domestic demand for automobiles. 2.Insist that American tax dollars be used to support domestic production. 3.Restore cooperative innovation and research and development efforts 4.Change health care policy to control costs while protecting coverage and quality 5.Ensure trade policy promotes U.S. interests. Our Plan

16 Support a “Cash-for-Clunkers” program with a strong domestic content provision. Other countries have provided their auto industries stimulus packages of over $26 billion. Italy, Germany and, most recently, Japan included measures that would provide vouchers of upwards of approximately $3,000 to consumers who trade in an old car and purchase a new one. Auto Stimulus

17 The effectiveness of these initiatives is stunning: In Italy, one Italian bank predicted that the initiative could increase car sales by 200,000 this year. This would cut the bank’s prediction of anticipated decline in auto sales in half. In Germany, the initiative led to a 40 percent increase in March sales (compared to March 2008). For the first three months of the year, new car registrations are up 18 percent, which amounts to over 130,000 new cars registered. Auto Stimulus

18 Governments are also becoming more forceful in tying stimulus money to pledges that auto companies will not close plants or lay-off workers. Italy conditioned its $1.7 billion of stimulus money to keeping plants open. France loaned $8.5 billion to its three carmakers in early February. French President Sarkozy announced that the loans were not protectionism and that, “It is my responsibility to keep jobs in France.” Support Jobs at Home

19 Establish a National Automotive Research and Development Program Provide incentives for improved supplier management programs Provide incentives for companies to create programs that lead to high road production Invest in the Future:

20 The Detroit Three provide healthcare for over 2 million employees, retirees and their dependents. This represents approximately $10 billion per year indirect subsidy that other industrialized countries provide due to nationalized healthcare. Health Care Policy Must Change

21 The US imports $41.5 billion in cars and light trucks from Japan and $7.5 billion for Korea, while they import only $534 million and $373 million from us. There must be improved equity between us and our major industrialized trading partners. Trade Policy Should Promote U.S. Interests

22 We are counting on Congress to help us Drive America Forward


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