Keep it Made in America

1
7,200,000
2
Keep it Made in America
Let Jobs Drive Auto
A Report from the United Steelworkers
3
We Cant Take Any More

• 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.

"Policy makers need to recognize this as an
emergency at the scale of any weve seen in
recent years.  The American workforce is too big
to fail. Jared Bernstein Chief Economist
Vice-President Biden
4
Driving the US Economy
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.
5
The American Auto Industry Supports 7.2 million
jobs
Direct Indirect
Assembly 221,000 265,000
Parts 784,000 3,685,000
Dealers 1,130,000 1,130,000
Total 2,135,000 5,080,000
6
The Jobs Begin Here
7
Building a Car Is More Than Just Building a Car
8
The Impact Goes Deeper

• Each one of those people,
• Goes out to eat,
• Pays taxes,
• Buys school clothes for their kids,
• Goes for their yearly check-up,

In other words
they spend their money in the US economy, which
supports thousands more U.S. jobs
9
And Lets not forget

• US Auto Industry RD 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.

10
What Direction? The GM Plan
11
GM, Ford, Chrysler, Delphi ACH Plant
ShutdownsAnnounced and Executed, 2005-2011
Drayton Plains PC - 2009
Flint North Engine 2008 Flint North Components
2011 Flint Metal Center 2011
Lansing Craft Centre-2006
Oshawa Truck - 2009
Lansing Metal - 2006
Portland SPO - 2006
Saginaw Malleable - 2007
Livonia Engine - 2010
Lansing M - 2005
Wixom 2007
Twin Cities - 2011
Massena Foundry - 2009
Romulus Trans. - 2005
Essex Engine 2007
Windsor Trans. - 2010
Windsor Casting 2007
Janesville - 2008
Maumee Stamping 2007
GMs Plan for Survival Close more plants
Lay-off more workers.
Grand Rapids Stamping - 2008
Brook Park Casting 2010
Linden - 2005
Newark 2008
Baltimore - 2005
Pittsburgh Metal - 2008
Norfolk 2007
Lorain - 2005
Toledo South 2006
Moraine - 2008
Fontana PDC 2009
Batavia Trans. 2008
Muncie Transmission - 2006
GM Shutdowns
Indianapolis Metal - 2011
St Louis South 2008
Ford Shutdowns
Atlanta 2006
St. Louis - 2006
Chrysler Plant Shutdowns
Doraville - 2008
St. Louis Bulk Center 2009
Delphi Plant Shutdowns
Spring Hill 1 - 2006
Oklahoma City-2006
ACH Plant Shutdowns
Updated March 05, 2009
12
Sales Do Not Equal Jobs
The GM Plan

• Domestic Content
• Domestically Produced 69
• 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.

13
The GM Plan

• 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.

14
Our Plan to
Drive America Forward
15
Our Plan

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.

16
Auto Stimulus

• 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.

17
Auto Stimulus

• 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 banks 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.

18
Support Jobs at Home

• 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.

19
Invest in the Future

• 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

20
Health Care Policy Must Change

• 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.

21
Trade Policy Should Promote U.S. Interests

• 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.

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