Japanese-Brand Automakers Contribute $60.4B in Mfg. Investment, 2.29M Jobs in US

Japanese-Brand Automakers in US: $60.4B in Plants, 2.29M Jobs

New data highlights Japanese-brand automakers’ contributions to the U.S. economy and workforce.

The Japan Automobile Manufacturers Association U.S. office (JAMA USA) has released its annual contributions update, including data from Rutgers University Economics Professor Thomas J. Prusa, PhD.

The contributions update shows that Japanese-brand automakers have continued to invest in American manufacturing and have cumulatively invested more than $60.4 billion since first starting production in 1982. In the coming years, this number also will include announced investments in both electrified vehicles and battery manufacturing facilities as they come online. The update also highlights how Japanese-brand automakers directly employ more than 107,000 U.S workers and have continued to invest in areas beyond the manufacturing floor. To date, Japanese-brand automakers have 50 vehicles designed and/or developed throughout 43 R&D/design centers across the country.

In addition to JAMA’s annual contributions data, Dr. Prusa’s employment study shows that in 2022, Japanese-brand automobile direct employment supported 499,000 intermediate jobs and 399,000 additional “spin-off” jobs. Combined with the 1,300,000 individuals directly and indirectly employed by the Japanese-brand automakers’ dealership network, Dr. Prusa’s study concludes that Japanese-brand automakers now support more than 2.29 million U.S. jobs. The study also highlights the $197 billion in employee compensation across Japanese-brand automakers’ manufacturing and supporting operations and new vehicle dealers’ employment.

“Japanese-brand automobile manufacturers play an essential role in the U.S. economy, investing over $60 billion in their U.S. manufacturing facilities over the last four decades. Our members are major job creators in dozens of states across the U.S., supporting millions of substantive careers befitting a 21st-century workforce,” said Anita Rajan, general director of JAMA USA. “Japanese-brand automakers strive to develop and foster partnerships, invest in people, and spark technological progress that drives innovation toward a future that meets the needs of American workers, drivers, and their families. This is a legacy our members have worked hard to cultivate for decades, and it’s one we look forward to championing for many decades to come.”

“Over the last decade, Japanese-brand automakers and dealers have increased their direct employment by 32.5% and 13.7%, respectively. The consistent growth of Japanese-brand automakers’ U.S.-based employment is quite remarkable,” said Rutgers University’s Dr. Thomas Prusa. “Whether viewed either over a longer- or shorter-run time span, the direct and indirect employment supported by Japanese-brand automakers and dealers has grown, which is especially impressive given the significant COVID-19 induced supply and demand-side challenges over the last three years.”

The Japan Automobile Manufacturers Association Inc. (JAMA) is a non-profit industry association that comprises Japan’s 14 manufacturers of passenger cars, trucks, buses, and motorcycles. 

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