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FACT SHEETThe U.S. Auto Industry'sEconomic Footprint
 
 
FACT SHEETThe U.S. Auto Industry’s Economic Footprint
1
 
Ford Motor Company, along with General Motors Corp. and Chrysler LLC sold 8.5 million vehiclesin the United States last year and supported millions of American jobs, both directly and throughsuppliers and dealers in all 50 states.
Employment
 
At the end of 2007, Chrysler, Ford and General Motors directly employed about 240,000American workers and indirectly supported over 4.5 million workers in the UnitedStates.
 
A liquidation of the auto companies would result in the loss of 3 million U.S. jobs(according to a study by the Center for Automotive Research).
 
The auto industry works with thousands of suppliers in all 50 states and has 13,600dealers (which employ 720,000 workers with a total annual payroll of $36 billion).
Benefits
 
In 2007, Ford, GM and Chrysler spent $22.2 billion in payroll and $8.9 billion on healthcare.
 
Last year, the companies provided health care to almost two million Americans and paidpension benefits to 775,000 retirees or their survivors.
 Support for U.S. Government
 
The industry is responsible for $1.2 billion in annual state taxes and spends $12 billionannually in research and development.
 
 
The automotive industry is the largest U.S. export sector.
 
 
It represents almost 4 percent of the U.S. gross domestic product and 10 percent of U.S.industrial production by value.
 
 
The government stands to lose over $156 billion in federal taxes (over three years), if the U.S. auto industry were to collapse (according to a study by the Center forAutomotive Research).
 
According to an October 28
Wall Street Journal 
article, “The Pension Benefit GuarantyCorp. ended 2007 with an $11.2 billion deficit. Were GM to place its pension burden onPBGC, it would more than double the agency's current shortfall, a burden that could fallon taxpayers.”
Note: The worldwide market declines mean that 366 companies amongthe S&P 500 have underfunded pensions, according to a Credit Suisse study.
Support for Other Industries
 
Ford, GM and Chrysler are among the nation’s largest purchasers of U.S.-manufacturedsteel, aluminum, iron, copper, plastics, rubber, electronic, and computer chips.
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2007 figures
 
Ford – Information by State
2
 
StateNo. of Employees
 
No. of Suppliers
 
Total FordSupplier PurchasesFordDealerships
 
DealershipEmployees
 
Health-CareSpending
AL
15 33 $2B 72 2980 $16M
AK
-- -- -- 8 450 $290,000
AZ
280 53 $33M 41 3470 $22M
AR
10 16 $176M 58 1810 $5M
CA
620 248 $247M 228 17,180 $42M
CO
725 40 $9M 45 2,310 $12M
CT
65 34 $27M 50 1,490 $1M
DC
5 7 $1M -- -- $240,000
DE
5 5 $11M 13 660 $440,000
FL
985 78 $255M 149 11,190 $93M
GA
340 128 $354M 127 5,280 $43M
HI
5 -- -- 7 700 $510,000
IA
30 24 $400M 107 2,675 $2M
2
Total Ford supplier purchases and health care spending are annual numbers

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Ford Manleft a comment

Here is an example of Perception and read my post just below this. A contractor friend of my came over to my house to do some work. He saw my 2004 F-150 in my drive way asked how do you like your Ford? I said I love it. He tells my he just got a new Toyota pick up. I asked why? He tells me he thought he'd give it a try. He said his 1995 Ford Ranger's transmission went after 150,000 miles. I said for that you drop Ford? That's six times around the Earth and your not happy with that? He didn't expect my response. Now our friendship is probably strained, but to me that's ok. Now he knows how passionate I am about my Ford. Maybe to he'll feel a little guilty for going over to the other side. Like the song from Queen: "and another one's gone, another one bites the dust." Multiple that perception by a couple of hundered thousand buyers and you have the situation we're in.

Ford Manleft a comment

I have the answer. Listen to what I have to say and you will agree I am right. The route of the problem is PERCEPTION. Americans have come to perceive that everything Foreign/Imported is better. Foreign cars, trucks,TVs, appliances, wine, beer; you name it. We have bought/supported foreign business far too much, for far to long. Well, now the sky it falling. What are we going to do about it? WE, are the cause of the problem and WE are the solution to fixing the problem. Get your head screwed on straight and buy from American companies. We now have a generaton who has never even owned an American car. They don't even consider an American car because their parents are driving foreign cars. Their parents haven't bought an American car in 20 years. This is sad. To me this is down right treason. This is like saying, everything American is crap. If that is so then the American worker must be crap for making nothing but crap. Are you crap? Now that I have your attention smarten up, stand tall and have faith in your fellow American worker. He and his family would like your support. Buy FORD, you can't find a more American company then that. Remember Henry Ford in your History books? I own three Fords, a 96 Mustang, a 2000 Mercury Grand Marquis and a 2004 F150. All run good, look good, handle good and get good gas mileage. The six cylinder Mustang gets 30 mph. The Grand Marquis gets 25 mph on the highway. Yes this big machine gets 25 mph. This car is made for traveling. We took a trip to Niagara Falls this summer with 4 adults in comfort and all the luggage out of site in the trunk. You could fit a SMART car in the trunk, it's that big. Ever wonder why Seniors drive Mercury Grand Marquis? Drive one and you'll learn why. It's a cruise ship on wheels. That's my two cents. I hope I hit a nerve.

yo_manimal7617left a comment

I have read the previous comments with great interest and agreement for the most part. But....I do not beleive the government should be involved with running businesses. If a business isn't profitable, make it profitable or get out of the business. The US taxpayers should not have to prop up the banks, car industry's, etc.,

Bozwickleft a comment

It continues to amaze me how uninformed the general population is relative to simple economics. People regularly express confusion about "what an American car really is". The answer is quite simple. Follow the money trail. If the end manufacturer is not a U.S. based company, the end product is not American regardless of the assembly location. The reason foreign name-plates are manufactured in the States is again quite simple. 1.) These foreign manufacturers are avoiding costs and capacity constraints in the homeland 2.) They are paying less in total compensation then they would in their homelands by avoiding legacy costs (they do not pay health care or pensions to U.S. workers). Once the workforce is used up, they are discarded with nothing other than a 401k. 3.) The foreign companies take advantage of currency valuations. 4.) The foreign manufacturers realize they cannot put all American manufacturing personnel out of work. By employing at least some workers and avoiding legacy costs and some tariff (on trucks in particular), they really have the best of both worlds. To quote a friend, the Asians and to some extent the Europeans recognize that we are in an economic war. The U.S. is simply not smart enoguh to realize that we sell a piece of ourselves and our country with every purchase of a foreign car. We've given up entire industries, and autos will be the final chapter if we do not awaken to simple facts. These foreign companies and governments regognize the value of industry and have the trade and budget surpluses to prove it. The U.S. will be bankrupt in so many ways in less than a generation if we don't wake to these facts very soon. BUY AMERICAN WHEREVER POSSIBLE, before it's too late!!

mournstar7430left a comment

I love my 2008 Ford Fusion, it gets great gas mileage. I have gotten up to 36.9 on the highway on a recent trip from Idsaho to wyoming. In town I am running about 28miles per gallon. Keep up the good work.As a tax payer I support your efforts and hope for the sake of your company you get the bailout. This will affect many americans. IF CONGRESS DOESN'T GET IT THIS IS PROBALY THE BEST BAILOUT FOR THE MIDDLECLASS.If this bail out fails,there will thousands of jobs lost,from the guy that builds cars to the guy that pumps their precious gas.Families all over America will lose jobs,Car dealers, mechanics, parts providers.American will have given another industry the pinkslip. Groceries will go up. The stockmarket will fall even further. 401k's will be in the toilet and the americans who have worked hard all their live to save will have nothing. Where does the bread line start?Washington has sold our country long enough. We need more industry in this country. Americans are tired of having other countries sell us their copycat products, that are poor quality and made to look good for polical gain,in the One world Government that will not work, My heart and prayers are behind you. By the way we own 8 Ford vehicles. Two comets 4 Ford Trucks 1977 Maverick and my Fusion.Mournstar