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USA Auto Factories Close while Mexico’s Car Industry Expands

June 28, 2017 
By Neal Tepel

Washington, DC - U.S. Companies are continuing to move manufacturing plants from our shores and American  jobs are disappearing at a record rate.

 An industry that has been particularly hit is the auto industry. Since 2016 layoffs by the US-based automakers have been  steadily increasing. The job cuts are taking a toll on workers and their communities across the American Midwest as thousands of auto workers in the States are joining the unemployment line. At the same time, Mexico continues to be a rapidly growing manufacturing hub for all the major global automakers including American car companies.

Mexico is the primary exporter of automobiles to the U.S. the overall 4th largest exporter of automobiles in the world. Experts predict car and light truck production to grow in Mexico to 4 million a year by 2020. Chrysler, Ford, and GM combined now have ten huge plants in Mexico that mainly import vehicles to the USA. In addition, many factories within the auto supply chain have relocated to Mexico displacing thousands of U.S. workers.

The layoffs in the U.S. auto industry are having a ripple effect as job cuts spread to auto supplier plants and local businesses. Where manufacturing once provided jobs and a critical tax base – local municipal services are becoming stressed in some communities. The elimination of a shift at the GM Lordstown assembly plant near Youngstown, Ohio has impacted parts suppliers locally and throughout the country. Three parts suppliers: Jamestown Industries, Magna Lordstown Seating Systems and Comprehensive Logistics, are all facing layoffs of hundreds of employees. Shift reductions at the GM Fairfax Assembly in Kansas City, Kansas, will result in over one-thousand layoffs. According to the Brookings Institute, the auto sector accounted for between 60 and 80 percent of all manufacturing jobs created between 2015 and 2016. A recent U.S. Federal Reserve report noted that overall manufacturing production fell by 0.4 percent in May 2017 led by a 2 percent decline in motor vehicle and auto parts production.

The automobile industry is the largest manufacturing and retail sector in the United States. While autos make up about 3% of the country’s gross domestic product, car sales are down 2 percent in 2017. With the industry now in a decline, GM has laid off more than 5,000 workers since late 2016.

Let’s save the American auto industry before it’s too late.

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