By any variety of measures, the U.S. motor vehicle industry has made a remarkable comeback after experiencing an incredibly deep decline during the most recent recession. To answer the question of “just how much the motor vehicle industry has comeback?,” this blog examines the recent increases in production, employment, exports, and sales.
Production:
After falling over 60 percent from the second quarter of 2007 to the first quarter of 2009, the output of motor vehicle assemblies has more than doubled since then. In the first two months of 2012, motor vehicle assemblies averaged 9.9 million units at an annual rate. Looking to the future, U.S. automakers are also ready to meet the increased demand [1] for more fuel efficient vehicles which should further help their recovery.
Employment:
The increased production means the motor vehicle industry is putting more people back to work. From June 2009 through March 2012, the motor vehicle and parts manufacturing industry added 139,000 jobs to the U.S. economy, and motor vehicle and parts dealers added another 92,000 jobs, for a combined total of 231,000 jobs.
These job increases are a conservative estimate as they do not include the increase in jobs in the upstream industries that supply materials to motor vehicle and parts manufacturers (for example, the steel and chemical industries), and the increase in jobs in industries that supply services to motor vehicle and part manufacturers and to motor vehicle dealers (for example, the accounting and advertising industries).
Motor Vehicle Exports:
The increases in production and employment stem from increased demand, both here and abroad. Motor vehicle and parts exports are also on the rise, having more than doubled since the second quarter of 2009.
Motor Vehicle Unit Sales:
Here in the U.S., demand for new motor vehicles is also increasing, as unit motor vehicle sales in the first three months of 2012 rose to 14.5 million units at an annual rate, their highest level since the first quarter of 2008. While both car and light truck sales have risen in the first quarter, car sales grew faster. In fact, sales of new cars made up 53 percent of all motor vehicle sales in the first quarter, the highest share since the third quarter of 2009. Higher gas prices have played a role here, as rising gasoline prices tend to shift sales toward more energy-efficient autos and away from light trucks.
