Across the United States, international automakers’ commitment to their U.S. operations is transforming the auto manufacturing industry by upskilling workforces, creating innovative technologies, and providing life-changing careers for American workers. Over the past sixty years, Autos Drive America’s members have invested more than $109 billion in their U.S. operations, expanding their production by 85% over the past 25 years. Today, the rapid-fire growth continues, with four companies currently building new facilities, including new electric vehicle and battery manufacturing plants.
This exponential growth has far-reaching benefits: As new facilities and joint ventures open, suppliers often build new operations nearby, working with international automakers to strengthen local economies, bolster supply chains, and help the industry meet market and consumer demands.
Economic Impact
Attracting suppliers brings new career opportunities and economic growth to local communities in auto manufacturing, technology, and construction. For example, Business Alabama estimates that approximately 150 Tier 1 suppliers have opened in the state since Mercedes first started production at their Vance facility in 1997.
New facilities are anticipated to have a similar impact on their regional economies: Hyundai’s new electric vehicle manufacturing campus in Savannah, Georgia has attracted 17 suppliers, with $2.7 billion in new factory investment and almost 7,000 jobs. Slated to start production at the end of 2024, the supplier-to-manufacturing pipeline will support the automaker’s production of 300,000 EVs annually.
Supply Chain Resiliency
Building supplier plants in auto manufacturing hubs creates a more resilient supply chain that streamlines the production process, cutting down on costs and reducing inefficiencies. The EV transition has highlighted the need for a stronger supply chain, as the shift to electric vehicles has increased demand for certain components, including batteries and semiconductors. Suppliers are responding to the uptick in demand: For example, ZF Transmissions last year announced a $500 million expansion in Laurens County, SC to keep pace with the shift to electric mobility and support South Carolina’s international auto manufacturing industry.
Meeting Consumer Demands
International automakers and their suppliers are also working in tandem to respond to changing consumer demands. With an EV battery supplier plant in Nevada and another under construction in Kansas, Panasonic, is helping international automakers get new electric and hybrid vehicles on the road faster. Both supplier plants are producing lithium-ion batteries for automaker manufacturing plants, helping lead the global transition to sustainable energy solutions. In Nevada, Panasonic has scaled production to 5.5 million lithium-ion cells a day, recently marking the successful delivery of 10 billion cells which have been used to power millions of EVs. By providing essential components to auto plants in nearby states, they are helping to usher international automakers into the helm of the electrification transition. The consumer and market landscape are constantly evolving, and suppliers are helping international automakers build the cars needed to keep pace.
As suppliers continue to move near our member companies, they are helping international automakers expand their economic footprint across the U.S. and meet the needs of consumers. At the same time, this partnership is fostering economic growth up and down the supply chain, leading to greater opportunities for Americans nationwide. International automakers remain committed to continuing this momentum and look forward to developing new and stronger partnerships with supplier companies to lead the U.S. auto industry forward.
