CEO Column

A New Administration, New Opportunities for the U.S. Auto Industry

Jennifer Safavian
September 30, 2024

Autos Drive America’s mission remains steadfast: to fuel the continued growth of the American automotive industry and support our member companies as they create and sustain manufacturing careers across local communities. With the presidential election only a few short weeks away and a new administration on the horizon, Autos Drive America is ready to collaborate with whoever wins the White House on key legislative initiatives–advancing priorities related to trade, workforce development, and continued innovation and growth across the industry.

Strengthening Trade Partnerships

A strong trade economy is vital to the strength and success of the U.S. auto industry. Last year, American automakers exported 1,657,470 vehicles, worth $65.8 billion. Autos Drive America’s members alone exported 762,000 U.S.-built vehicles to more than 130 countries, generating $24 billion in revenue. (Check out this graphic for more about the importance of trade to the U.S. auto industry.) These exports, and the careers and investments they spur, are helping to drive the resurgence of manufacturing in the United States while simultaneously growing the global economy.

Whoever wins the White House, they must pursue policies and trade agreements that ensure the U.S. remains a leader in auto manufacturing across the globe. Free and fair-trade agreements open new markets for parts and materials and allow U.S.-manufactured cars to reach consumers worldwide without restrictions or tariffs. We’ve seen the impact of trade on the state level, as dozens of governors from New York to Washington have prioritized international trade and partnerships as a key driver of their economies. The federal government should follow suit.

And with over 95% of the world’s consumers living outside our borders, trade policies are more important than ever. According to the World Trade Organization (WTO), strong trade partnerships reduce poverty and create shared prosperity—values that align with the goals of the automotive sector. By supporting legislation that enhances trade, we can unlock new growth, ensure U.S.-made vehicles and parts remain in-demand worldwide, and continue driving economic progress across the country.

Creating Careers and Investing in Workforce Development

The good-paying career opportunities afforded to Americans are some of the most important benefits the international auto industry offers to the strength of the U.S. economy. Our member companies directly employ more than 156,000 Americans, with 102,600 of those jobs in manufacturing, offering competitive wages that exceed local and regional standards and quality benefits that support employees’ health and wellbeing. What’s more, these jobs are stable, providing our workforce with peace of mind and security to provide for themselves and their families.  And international automakers are only continuing to grow and create more opportunities for their workers, as they are currently building and expanding 6 facilities across 4 states.

Our member companies are focused on building the workforce of tomorrow by meeting the challenges of today, investing in training programs and infrastructure to shape the next generation of automotive workers. As demand for electrification and green vehicles grows and technology continues to transform our industry, any future administration must support technical and apprenticeship programs. In addition, they must enact policies to help maintain the significant reskilling, upskilling, and recruitment efforts auto manufacturers are already prioritizing. Right now, international automakers offer 337 workforce development programs that are preparing American workers for the automotive jobs of the future. But we can’t do it alone.

The federal government’s support in developing our workforce will ensure the industry remains competitive in a rapidly changing market. Policies that recognize the value of industry-driven apprenticeship and workforce education and that offer flexible, competency-based skills development will allow our industry to prepare the next generation of autoworkers. Improving workforce programs and providing access to educational and employment opportunities are key to our industry’s success. In addition, Congress can build upon the investments the U.S. auto industry has made in the workforce by reauthorizing and improving the Workforce Investment and Opportunity Act and expanding the federal Pell Grant program, something Autos Drive America is pushing for on Capitol Hill.

Supporting Industry Growth

Innovation is key to the growth of the automotive industry, and our members are at the forefront of developing new technologies that will steer the future of mobility. By investing in cutting-edge technologies and prioritizing research and development, our members are ensuring U.S. automakers continue producing the safest, smartest, and cleanest vehicles the world has to offer. However, we need a regulatory environment that supports rapid technological advancements without stifling growth

Over the past 60 years, international automakers have invested $109 billion into U.S. operations—and with policies that bolster industry growth, they can fuel more investments and keep driving the industry forward.

Conclusion

A new administration brings many new opportunities, and Autos Drive America is eager to collaborate with either the Trump Administration or the Harris Administration to ensure that international automakers continue contributing to the U.S. in meaningful ways. From strengthening trade partnerships to advancing workforce development and supporting industry growth, there are clear paths we can take, and together, we can continue bolstering an industry that serves our workers, communities, and the entire nation.