ANN ARBOR – In an analysis of General Motors announced plant investments for this spring, the Center for Automotive Research calculates more than 28,000 jobs will be retained or created, and will contribute almost $2.9 billion to the U.S. Gross Domestic Product.
CAR has carried out the great majority of studies investigating the impact of the U.S. motor vehicle industry on the U.S. economy since 1992. In November 2010, CAR revised its estimate of the total number of U.S. jobs saved by the federal intervention rescuing both General Motors and Chrysler from certain liquidation. CAR Research Memorandum: The Impact on the U.S. Economy of the Successful Automotive Bankruptcies, Center for Automotive Research, Ann Arbor, November 17, 2010 The total jobs saved at the time was estimated at 1.14 million along with $66 billion in annual U.S. personal income.
?There is no greater evidence of the positive effect of the historic federal intervention than large new investments in major U.S. automotive facilities on the part of the rescued firms such as General Motors,? said Sean McAlinden, executive vice president of research and chief economist at CAR.
GM?s investment in plants and facilities throughout the United States over the next few months will be on the order of $2 billion dollars and will create or retain the jobs of more than 4,000 GM workers.
CAR estimates that this investment over the next year will in total support more than 28,000 jobs in the U.S. economy, including 4,083 people directly employed by GM; 8,638 indirect jobs, such as goods and service suppliers and their suppliers, and 15,492 consumer expenditure-induced jobs, which result from the direct and indirect employees spending their earnings.
The 28,213 jobs earn a total of $1.65 billion in salary, contribute almost $2.9 billion to GDP, pay $169 million in income tax, and contribute $362 million in transfer payments, such as Social Security, Medicaid, Unemployment, and others.
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