UAW Report: Unlock US Auto Manufacturing Potential, Create 90,000 Jobs

The UAW has released a compelling report titled "Unlocking the Potential of U.S. Auto Manufacturing Capacity," revealing a startling truth: America possesses the infrastructure and a skilled workforce capable of producing millions more vehicles. This potential, however, remains untapped due to companies prioritizing offshoring production and shareholder dividends over domestic investment.

Auto Manufacturing Potential: unutilized Capacity and Job Losses

In 2024, the United States had the capacity to manufacture over 14.7 million vehicles at existing plants but produced only 10.2 million, leaving a significant gap of 4.5 million units. This underutilization stems from a global "race to the bottom" that prioritizes low wages and exploitation, ultimately harming U.S. jobs and suppressing worker compensation overseas.

The Call for Domestic Investment

Revitalizing this dormant capacity could create up to 90,000 new U.S. auto manufacturing jobs, according to UAW estimates. The union emphasizes that there is no need to construct new plants; the infrastructure and skilled workforce are already in place. Instead of offshoring, auto companies must invest at home, fostering economic growth and rebuilding the middle class through good-paying union jobs.

The Shift Towards Offshoring

Major automakers like GM, Ford, Stellantis, and Volkswagen have steadily reduced U.S. production while expanding output in Mexico since 2015. This shift has resulted in plant closures, layoffs, and underutilized facilities across the country, negatively impacting communities that rely on the auto industry.

Investing in Workers, Not Wall Street

The UAW President, Shawn Fain, urges auto companies to seize this moment to scale up operations and create good jobs by investing in workers rather than solely focusing on shareholder profits. He emphasizes that the working class built the auto industry, and it is ready to shape its future through responsible investment and job creation.

The report serves as a stark reminder of the need for strategic job creation in the automotive sector. By prioritizing domestic production and fostering a skilled workforce, the United States can reclaim its position as a leader in auto manufacturing and drive sustainable economic growth. Furthermore, increased auto investment in existing infrastructure and facilities will not only create jobs but also ensure the continued success of the industry.

Ultimately, the future of the U.S. auto industry hinges on the ability to attract and retain a highly skilled workforce. This requires a concerted effort from both government and private sector to provide training opportunities, support research and development, and create a favorable environment for innovation. By investing in its people and fostering a culture of continuous improvement, the U.S. can ensure that its auto industry remains competitive on a global scale.