The US automotive industry (suppliers and manufacturer) is the largest manufacturing industry in the U.S. representing nearly 10% of the U.S. economy.

As such it is a critical economic driver, substantially contributing to employment and productivity. Motor vehicle production reportedly accounts for over 10 percent of the U.S. private-sector gross domestic product, and one out of every seven jobs in the U.S. is in automotive manufacturing or a related industry.

Foreign Direct Investment continues to play an increasingly important role to the U.S. automotive industry. There are now nine foreign-based motor vehicle companies producing vehicles in fifteen auto plants in the United States. To varying degrees these companies also have encouraged their traditional supplier firms to co-locate new facilities in the United States to supply their new operations.

Over the last twenty years, foreign-based manufacturers have steadily added production capacity in the United States. Their share of U.S. passenger vehicle production accounted for 36.4 percent in 2006.

Source: Department of Commerce – U.S. International Trade Administration