WASHINGTON, DC – Alliance for Automotive Innovation released the following statement on automobile and parts tariffs.
John Bozzella, president and CEO Alliance for Automotive Innovation said:
“Automaking is America’s largest manufacturing sector. Automakers, battery makers and parts suppliers have invested billions in American manufacturing and directly support communities and American workers in Michigan, Tennessee, South Carolina, Alabama, Mississippi, Kentucky, Ohio, West Virginia, Texas, Indiana, Illinois, Missouri, Georgia, New York and more.
“Automotive facilities and global supply chains create American jobs, provide Americans with vehicle choice and the big one – support auto affordability in America. We are committed to building and investing in the U.S., but these facilities and supply chains are massive and complex and can’t be relocated or redirected overnight.
“Additional tariffs will increase costs on American consumers, lower the total number of vehicles sold inside the U.S. and reduce U.S. auto exports – all before any new manufacturing or jobs are created in this country.”
For more information on the auto industry in America: 2024 DATA DRIVEN: Navigating the Road Ahead and HERE.
Auto industry and jobs:
- 10.1 million jobs coast-to-coast – 4.9 percent of total U.S. jobs.
- Contributed more than $730 billion in worker paychecks in 2022.
- 12 percent of motor vehicle and parts jobs are in R&D.
Auto industry and economic growth:
- Drives $1.2 trillion into U.S. economy annually – 4.8 percent of GDP.
- Every $1 in vehicle manufacturing creates an additional $4.23 in economic value.
- In 2022, the auto industry invested more than $32.8 billion in research and development in the U.S. – fourth highest for any manufacturing industry.
Auto industry generates tax revenue:
- More than $340 billion in federal, state and local revenue generated annually by auto manufacturing.
- In 2023, states received more than $35 billion in tax revenue from new vehicle sales (more than $20 billion from used vehicle sales).
Auto industry and domestic supply chains:
- Automakers and battery partners have committed about $125 billion for 80+ EV and EV battery projects, creating 113,000 jobs across 18 states.
- This includes $68.3 billion in the South, $42.1 billion in the Midwest, $13.3 billion in the West and $0.3 billion in the Northeast.