Methodology and Sources

Automaker claims about U.S. employment vary widely. Some companies count North American employment and do not break out U.S. jobs, while others do. Some companies count employees at dealerships, while others do not. Some apply job "multipliers" to demonstrate that company's complete job footprint. Some companies have updated their job counts for 2009, while other companies and trade associations still use 2007 or 2006 data.

Level Field’s U.S. job figures are estimated as of December 31, 2008. We count only direct employment, unless the difference between direct employment and “spinoff” is noted. We use U.S., rather than North American, job data wherever possible. We do not count jobs at dealerships, unless specified. We count jobs at finance offices, if the firm qualifies as a subsidiary of the automaker.

Manufacturing-related employment for Ford, GM, Chrysler, Honda, Toyota, Hyundai/Kia, BMW, Mercedes, VW, Subaru, Nissan and other top automakers is based on their respective annual reports, corporate websites and press statements, as well as statements by the auto trade groups. Several automakers have announced significant job cuts in 2009. Because cuts are generally made on a rolling basis, Level Field relies on end of year estimates.

Level Field estimates for total domestic automaker employment (295,000) and foreign automaker employment (95,000) are obtained by aggregating individual job claims for each foreign automaker. Level Field’s foreign automaker total is slightly higher than, but generally consistent with, figures used by the Association of International Automobile Manufacturers (AIAM). Our figures for domestic automakers is slightly lower than those used by the Automotive Trade Policy Council (ATPC), a trade group for Ford, GM and Chrysler.

"Spinoff" employment refers to jobs at suppliers and other companies that directly serve automakers, as well as jobs at neighboring businesses (like hospitals, schools and restaurants) that would not exist without the financial support of autoworkers and their families. In CAR studies sponsored by AIAM and the Alliance of Automobile Manufacturers, spinoff employment is obtained by multiplying each automaker job by 9.4. A manufacturer’s total job footprint is obtained by multiplying that company’s manufacturing jobs by 10.4. CAR estimates each auto supplier job support 4.7 spinoff jobs, for a total auto parts job footprint of 5.7.

A recent CAR study for Honda uses a lower “spinoff” multiplier, based in part on automakers’ growing use of offshore suppliers. Level Field uses CAR’s other, higher multiplier in its materials, in order to allow for more direct comparisons with automaker and trade association statements, which are generally based on these higher multipliers.

Auto supplier employment estimates vary widely – and few published reports reflect the dramatic contraction in U.S. auto production that occurred in the final six months of 2008. Most industry associations use CAR's estimate of 783,000 auto supplier jobs, based on 2004 data (see, Contribution of the Motor Vehicle Supplier Sector to the Economies of the United States and its 50 States (January 2007)). In order to account for recent buyouts and plant closings, Level Field adjusts CAR’s 2004 figure by reducing it by the same percentage that U.S. auto production has fallen (approximately 27%).

Level Field's "jobs per car" scores are obtained by dividing an automaker’s U.S. jobs (as of December 31, 2008) by the number of cars that automaker sold in the U.S. that same year. This approach accounts for the research, design, engineering and management jobs that tend to be overlooked by simply counting assembly plants. It also accounts for market share. For example, a straight comparison of U.S. jobs at GM (92,000) and VW (1,500) is useful, but comparing GM and VW jobs per car scores accounts for the fact that GM sells about nine times more cars here than VW.

Our JPC site presents jobs per car data in terms of jobs per every 2,500 cars sold. Doing so allows us to present results in whole numbers, which are easier to compare. For example, Hyundai/Kia supports 15 jobs for every 2500 cars sold. If we were to present this in terms of every single car sold, Hyundai’s JPC score would be .0006.

Assembly plant and major facilities estimates vary. Some companies count only assembly plants, while others include "production facilities" that can include engine, transmission, stamping, casting and forging. Level Field counts "assembly plants" in operation as of December 31, 2008, based on Ward's Automotive Group’s “North America 2009 Model Vehicle Final Assembly Plant Locations.” Because most plants in the U.S. will be idled for at least part of 2009, we exclude only those plants that have been permanently closed.

Automaker R & D spending estimates are based on the companies’ respective annual reports and corporate websites, as well as materials provided by the National Science Foundation, ATPC, JAMA, AIAM and recent R&D reports by Booz Allen. Federal R&D spending estimates and other industry R&D spending estimates are based on survey data published by the National Science Foundation.

Statistics relating to automotive R&D employment and facilities in Michigan are from the Michigan Economic Development Corporation. The State's figures include firms doing business on behalf of foreign automakers, as well as foreign automaker local offices. Michigan’s ranking in annual corporate R&D is based on survey results published by the National Science Foundation.

Domestic content figures are based on the automakers’ filings with the Department of Transportation for each of their 2008 models, sales weighted according to each model’s 2008 sales. Each year, automaker submit reports with data for one or two models missing. In these cases, Level Field uses adjacent year data, where appropriate.

U.S. auto parts sales and parts supplier job estimates are based on CAR’s estimates for 2004 (783,000 jobs and $204 billion in U.S. sales), adjusted downward to match the 27% drop in U.S. auto production (through 2008). CAR’s $204 billion estimate is substantially lower than the $225 billion figures suggested by adding up the automakers’ own press statements, but those statements also include non-parts related services.

Investments in facilities and other capital investment data is taken from the Automotive Trade Policy Council's The Economic Contribution of the U.S. Auto Industry (2007), the Center for Automotive Research’s “Book of Deals,” and automaker and auto trade association websites. Much of this data relates to 1980 through 2005. Automakers have presented more recent investment data on a plant-by-plant basis. Industry investment from 1998 to 2003 is from CAR "Book of Deals," as reported in CAR's The Auto Industry Moving South: an Examination of Trends (2003). For that report's methodology, see www.cargroup.org.