• Sep 1, 2006

The Level Field Institute - a group consisting of Big 3 retirees - has released a report detailing the impact of domestic and transplant automotive OEMs on the American auto parts industry, and it contains some interesting nuggets of information.

Of the $225B in auto parts purchased from the US last year, approximately 77, while Japanese automakers came in at 48 of its parts sourced in North America.

As the Level Field Institute points out, if the Big 3 were to drop their domestic parts buying down to the level of import manufacturers, the net loss to the US auto parts industry would be about $83B and 232,000 jobs. On the other hand, if the import manufacturers bring their domestic component buying up to the same level as the Big 3, the gain would be about $47B and 131,000 jobs. In all likelihood, what we'll actually see in the coming years is a convergence of these trends, with domestic manufacturers buying fewer components state-side, and foreign manufacturers increasing their domestic content.

[Source: Level Field Institute]

Warning - the Read link below points to a PDF.



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    • 1 Second Ago
  • 5 Comments
      • 8 Years Ago
      "In all likelihood, what we'll actually see in the coming years is a convergence of these trends, with domestic manufacturers buying fewer components state-side, and foreign manufacturers increasing their domestic content."

      Well yeah. Tesla wants to compete with Toyota some day using all thier Taiwanese motors, Chinese (maybe they can afford Japanese at $80K - $100K a shot) laptop batteries and a bunch of British other parts. If Tesla is the future then you're right.
      • 8 Years Ago
      $83B / 232K = $357K per employee, I know this industry has a fair amount of automation but that seems like an out-of -skew number.
        • 6 Years Ago
        You have to take in account profit and overhead for the suppliers, not just wages.
      • 8 Years Ago
      It's hard not to question the numbers given that "What You Drive, Drives America" is plastered on the main page, and the header.

      http://www.levelfieldinstitute.org/

      However, I'm not saying that there isn't a bit of truth in it. I wonder if the gap is as wide as they say it is.
      Ricks DiMarco
      • 3 Years Ago
      They also fail to factor in that we export cars from our American plants... and only the Japanese cars made in America have that kind of American content... most of them are made in Japan with 0% domestic content and though they distribute their "American" assembled cars throughout America, they do not distribute them elsewhere. Also, 95% of cars purchased in Japan are Japanese... so they are not purchasing our cars to fill the gap in our sales from the number of our citizens who are purchasing theirs... And I am posting this five years later... but Honda and Toyota are beginning to CLOSE their US plants... so that convergence that you predicted... is not going to happen. They snagged a customer base and now they're gradually beginning to pull out.