The production of automobiles is one of the largest industries in the United States. The automotive industry produces more than five percent of the gross domestic product, is the largest consumer of steel in the country, and accounts for one out of every seven jobs within the United States.
Foreign Vehicles
Foreign automobiles, especially from Germany and Japan, have become widely popular within the United States since the 1980s. This is primarily due to their fuel economy, long life span, and high resale values.
Japanese Vehicles
Japan alone accounted for 10 percent of total vehicle sales in 2001, though Japanese automakers rely heavily on the U.S. plants to manufacture and assemble cars for the U.S. market.
Sales
Sales of import vehicles went up five percent between 1997 and 2001 alone, from 13 percent of total motor vehicle sales to 18 percent in 2001. Although assembly is done domestically for the U.S. market, foreign automobiles gain in popularity has taken a financial toll on the American motor industry.
American Vehicles
Historically, American-made automobiles have been less fuel efficient and run for 100,000 miles less than Japanese import vehicles. The American automotive industry spends 18 billion dollars annually in research and development of new advanced technologies like fuel efficiency, safety, emissions, and performance.
Employment
In 2000, the American automotive industries were forced to lay off several thousand production line workers, and again in 2007. Though the industry peaked in 2000, they saw a total loss of 215,500 jobs by 2005.
Ford and GM
Recently, GM and Ford have been forced to close a dozen North American plants, and lay off 60,000 employees, putting an estimated 174,000 employees out of work in the auto parts production field. While Ford's production in the United States is down 26 percent, their total light vehicle production is down just eight percent.
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