Census Bureau Provides Informed Picture of the State of the U.S. Auto Manufacturing Industry

"Since its birth more than 100 years ago, the U.S. automobile manufacturing industry has experienced significant growth to not only become one of the largest U.S. manufacturing industries but also one of the biggest industries in the U.S. economy. The changes this industry has faced have included periods of decline as well as growth, such as the most recent recession and subsequent recovery. Throughout these years, the U.S. Census Bureau has provided consistent, comparable, and reliable statistics that are critical to understanding this industry.
The Annual Survey of Manufactures provides insight into the changes in this industry in the years between economic censuses..."
Automobile Industry

Spotlight on Statistics: Automobiles

"The U.S. automobile industry can be viewed as both a barometer and beneficiary of American growth and economic achievement. Supporting that view is the fact that the automobile industry affects industries that manufacture steel, glass, plastics, and rubber, as well as those that refine and sell gasoline, build roads, and maintain, repair, and sell motor vehicles.

Motor vehicles also affect our daily lives. In 2010, on an average day, 67.6 percent of the civilian noninstitutional population aged 15 and over drove; those who drove spent on average 1 hour and 18 minutes driving..."

The Resurgence of the American Automotive Industry
"When President Obama took office, the American automobile industry was on the brink of collapse. The President, as part of a larger effort to combat an historic economic crisis, made a difficult decision to provide support to General Motors (GM) and Chrysler on the condition that they, and all of their stakeholders, make the sacrifices necessary to fundamentally restructure their businesses and commit to tough-minded plans to return to viability.

The President’s decision to save GM and Chrysler was about more than those two companies. It was about standing behind the countless workers, communities, and businesses – large and
small – that depend on the automotive industry.

Two years later, the American auto industry is mounting a comeback. General Motors is expanding production and adding jobs, while Chrysler recently repaid its outstanding loans to the U.S. Treasury - six years ahead of schedule.Since GM and Chrysler emerged from bankruptcy, the auto industry has created 115,000 jobs, its strongest period of job growth since the late 1990s. GM, Ford and Chrysler have all returned to profitability, and in 2010, the “Detroit three” gained market share for the first time since 1995..."

Auto Industry Labor Costs in Perspective
"The auto industry occupies a special place in American folklore.1 The phrase “America’s love affair with the automobile” appears in the American Heritage dictionary, as a usage example under the entry for “love affair.”2 An Internet search for the phrase returns hundreds of thousands of matches.3 The College Board’s study guide for the Advanced Placement exam in U.S. History dedicates an entire chapter to “The Automobile in American Life.”4 And the idea that “What’s good for General Motors is good for the country”—although misquoted—still resonates with many Americans.5

Thus, it is no surprise that the auto industry receives a great deal of scrutiny in the popular press. This scrutiny was particularly intense in the final months of 2008,6 when a controversial assistance package of $13.4 billion from the U.S. Treasury provoked a debate on whether auto industry compensation costs were excessive. Data from the BLS National Compensation Survey (NCS) for 2009 allow auto industry compensation costs to be viewed in relation to those in other manufacturing industries..."

REBUILDING THE AMERICAN AUTO INDUSTRY
"When President Obama took office, the American auto industry was on the brink of collapse. The President made a difficult decision to provide support to General Motors (GM) and Chrysler on the condition that all stakeholders make the sacrifices necessary to fundamentally restructure these companies and put them on a path to viability. This summer, there are growing signs of a revival in the American auto industry: plants are adding shifts and hiring workers; manufacturers are returning to profitability; the auto supply industry has stabilized; and exports of U.S. vehicles are increasing. In addition, the Administration has made an historic set of investments designed to
position America as a leader in the global race to produce the advanced vehicles of the 21st century. Advanced technology vehicles are appearing in showrooms, new factories are breaking ground to manufacture and assemble electric vehicles, and innovations once at risk of being scrapped, are now being designed and made in America..."

Obama Administration Auto Restructuring Initiative General Motors Restructuring
"On March 30, 2009, President Obama laid out a framework for General Motors to achieve viability that required the Company to rework its business plan, accelerate its operational restructuring and make far greater reductions in its outstanding liabilities.After two months of significant management engagement, General Motors has developed such a plan and has already begun to make progress toward its achievement. The Company has also secured commitments of meaningful sacrifice from all of its major stakeholder groups , sacrifices sufficient for this plan to proceed forward. As a result, the President has deemed GM’s plan viable and will be making available about $30 billion of additional federal assistance to support GM’s restructuring plan . To effectuate its plan, General Motors will use Section 363 of the bankruptcy code to clear away the remaining impediments to its successful re-launch.

For the better part of a century, The General Motors Corporation has been one of the most recognizable and largest businesses in the world. Today will rank as another historic day for the company —the end of an old General Motors, and the beginning of a new one..."

U.S. Motor Vehicle Industry: Federal Financial Assistance and Restructuring
"...This report reviews the U.S. automotive industry at present, aspects of the
industry’s financial situation, and relief options. It includes an analysis of the
current situation in the U.S. automotive market, including efforts to address problems of long-term competitiveness and the impact of the industry on the broader U.S. economy. It focuses on financial issues, including credit questions, and legal and financial aspects of government-offered loans or loan guarantees. This further
includes consideration of legacy issues, specifically pension and health care
responsibilities of the Detroit 3. It also reviews potential solutions to the financial crisis, including options of government receivership and participation management, and various forms of bankruptcy. Finally, the report reviews stipulations that Congress might impose on auto manufacturers as conditions of providing assistance."

President Bush Discusses Administration's Plan to Assist Automakers
"...Because Congress failed to make funds available for these loans, the plan I'm announcing today will be drawn from the financial rescue package Congress approved earlier this fall. The terms of the loans will require auto companies to demonstrate how they would become viable. They must pay back all their loans to the government, and show that their firms can earn a profit and achieve a positive net worth. This restructuring will require meaningful concessions from all involved in the auto industry -- management, labor unions, creditors, bondholders, dealers, and suppliers.

In particular, automakers must meet conditions that experts agree are necessary for long-term viability -- including putting their retirement plans on a sustainable footing, persuading bondholders to convert their debt into capital the companies need to address immediate financial shortfalls, and making their compensation competitive with foreign automakers who have major operations in the United States. If a company fails to come up with a viable plan by March 31st, it will be required to repay its federal loans..."

Treasury Department reports on the plan.

U.S. Motor Vehicle Industry: Federal Financial Assistance and Restructuring
"This report reviews the U.S. automotive industry at present, aspects of the
industry’s financial situation, and relief options. It includes an analysis of the
current situation in the U.S. automotive market, including efforts to address problems of long-term competitiveness and the impact of the industry on the broader U.S. economy. It focuses on financial issues, including credit questions, and legal and financial aspects of government-offered loans or loan guarantees. This further
includes consideration of legacy issues, specifically pension and health care
responsibilities of the Detroit 3. It also reviews potential solutions to the financial crisis, including options of government receivership and participation management, and various forms of bankruptcy. Finally, the report reviews stipulations that Congress might impose on auto manufacturers as conditions of providing assistance.."

Auto Industry Financing and Restructuring Act.
"The purposes of this Act are—

(1) to immediately provide authority and facilities to restore liquidity and stability to the domestic 3 automobile industry in the United States; and
(2) to ensure that such authority and such facilities are used in a manner that—
(A)results in a viable and competitive domestic automobile industry that minimizes adverse effects on the environment;
(B) enhances the ability and the capacity of the domestic automobile industry to pursue the timely and aggressive production of energy efficient advanced technology vehicles;
(C) preserves and promotes the jobs of American workers employed directly by the
domestic automobile industry and in related industries;
(D) safeguards the ability of the domestic automobile industry to provide retirement and health care benefits for the industry’s retirees and their dependents; and
(E) stimulates manufacturing and sales of automobiles produced by automobile manufac
turers in the United States.

EPA Finalizes Amendment to the F019 Hazardous Waste Listing
"The U.S. Environmental Protection Agency is amending the F019 hazardous waste listing to facilitate the use of aluminum in automobiles, light trucks and utility vehicles. This action will encourage motor vehicle manufacturers to use more aluminum parts, producing vehicles that are lighter. Lighter vehicles are capable of increased gas mileage and decreased exhaust air emissions, including greenhouse gas emissions.

F019 is one of EPA's F-code Resource Conservation and Recovery Act hazardous waste listings, which include waste that is generated from common industrial and manufacturing processes. The amendment excludes from hazardous waste regulation F019 waste generated in the auto manufacturing industry provided the waste: 1) is not placed outside on the land prior to shipment to a landfill for disposal; and 2) is disposed of at an appropriately lined landfill. EPA has determined that these changes to the F019 listing are protective of human health and the environment..."