Toyota's U.S. Economic Impact

Click here to view the download the full CAR report, "Contribution of Toyota to the Economies of Fourteen States and the United States in 2003"

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A new study from the Ann Arbor, Michigan-based Center for Automotive Research (CAR) shows Toyota’s investment of $13.4 billion in its U.S. operations contributed 386,300 jobs and $14.4 billion in wages to the U.S. economy in 2003.

The first-ever single-manufacturer economic impact study by CAR, titled "Contribution of Toyota to the Economies of Fourteen States and the United States in 2003," takes a comprehensive look at how Toyota’s national activities have impacted regional U.S. economies beyond the number of employees directly compensated by Toyota, and forecasts the impact of Toyota’s operation in San Antonio, Texas, scheduled to start production in 2006.

According to the study, Toyota’s U.S. manufacturer-related operations directly employed 29,135 people in 2003. Those workers represent employment in manufacturing operations, sales, marketing, distribution, research, development and design, headquarters, and all other operational activities within the company, including the five manufacturing plants, located in Buffalo, W.Va.; Georgetown, Ky.; Huntsville, Ala.; Princeton, Ind., and Fremont, Calif.

Another 74,060 workers were directly employed in new vehicle dealer-related operations, including sales, service and marketing-related activities. Add in the number of supplier jobs and the number of spin-off jobs (defined as jobs resulting from spending generated by Toyota’s direct employees, dealers and their suppliers) and the total was 386,300 workers.

CAR also estimates that the San Antonio, Texas plant, which will manufacture the Tundra truck line, will generate approximately 9,000 additional total jobs and $460 million in annual compensation in Texas once it is fully operational. During the construction phase, extending from 2004 through 2008, that number is expected to rise to 10,600 as a result of the construction labor required to complete the $850 million facility.

"This study illustrates the importance of foreign direct investment in the United States, which is largely responsible for the U.S. motor vehicle industry first recovering, and then maintaining, its traditional position as the largest national automotive industry in the world," said Kim Hill, director, automotive communities program and assistant director, economics and business group, CAR. "Toyota is one of the major international automakers leading this trend."

"The study also emphasizes the many intangible benefits of Toyota’s U.S. investment, such as innovation, productivity performance, environmental performance and increases in product quality that have had a ripple effect within the industry, in local communities and throughout the entire U.S. economy," said Hill.

"Toyota’s long-time motto is 'to enrich society through building cars,'" said Dennis Cuneo, senior vice president, Toyota Motor North America (TMA). "We are proud to be an integrated part of the American economy and an integral partner to the communities where we do business."

More here.