U.s. Auto Parts Industry

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 Despite recent growth, the U.S. motor-vehicle sector is still behind. Total U.S. motor-vehicle sector sales in 2011 were 48.1 percent below sales in 2000 because of declining overall demand and significant long-term loss of market share.  The U.S. auto-parts industry is particularly vulnerable. The U.S. trade deficit in auto parts increased from $9.5 billion in 2000 to $31.2 billion in 2010. Exports support U.S. jobs, but imports displace production that would support domestic employment; thus, on balance, trade deficits tend to increase unemployment (holding everything else in the economy constant).  The U.S. auto-parts industry is threatened by Chinese practices. Heavily subsidized auto parts from China caused the U.S. auto-parts…show more content…
 For some states, auto-parts jobs are a significant share of overall employment. The 10 most vulnerable states as measured by auto-parts employment as a share of total state employment in 2009 are Michigan (6.5 percent of total state employment), Indiana (4.8 percent), Ohio (3.7 percent), Kentucky (3.3 percent), Tennessee (3.0 percent), Alabama (2.2 percent), South Carolina (1.9 percent), Illinois (1.7 percent), Wisconsin (1.6 percent), and North Carolina (1.4 percent). Objective The purpose of proposal is to evaluate the correlation of the automobile industry, and the financial (and unemployment) crisis in the United States. Literature Review Employment in the U.S. Auto-Parts Industry The extent of employment in the U.S. auto manufacturing business is motivated by demand for original equipment manufacturer (OEM) parts to equip car manufacturing factories in the U.S. Due to the relative influence of the entire motor-vehicle division on the auto-parts industry (Office of Transportation and Machinery 2011, 9), direct employment in the U.S. auto supply business has dramatically decreased in the past few years, downturning 419,600 jobs (45.8 percent) from November 2000 to November 2011 (Figure A). Direct employment in the U.S. auto-parts industry
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