In Advance of Pres. Obama's Visit to Ohio, Sen. Brown & Top White House Official for Auto Rescue Discuss How Intervention Saved Ohio Manufacturing Jobs at Auto Suppliers

New Map and Analysis Shows How Auto Recovery Hasn’t Just Helped the “Big 3,” But Hundreds of Auto Suppliers Across the State

Sen. Brown: Jeep and Chevy Cruze Aren’t Just Assembled in Ohio, Many of Their Component Parts are Made in Ohio by Local Manufacturers

WASHINGTON, D.C. – The day before he will join President Obama in a visit to Toledo, U.S. Sen. Sherrod Brown (D-OH) released a new analysis showing the extent to which the auto rescue helped save jobs not just at auto plants of the Big Three, but at hundreds of independent parts suppliers throughout the state of Ohio. Brown’s analysis maps out the Ohio-made components in two popular cars that are also assembled in Ohio – Chrysler’s Jeep Wrangler and General Motors’ Chevy Cruze.

“The auto rescue wasn’t just about saving the Big 3, it was also about investing in Ohio manufacturers who make the auto parts used in some of America’s most popular cars,” Brown said. “Cars like the Chevy Cruze and the Jeep Wrangler aren’t just assembled in Ohio, but they’re made with parts manufactured in Ohio. By investing in the auto supply chain and Ohio’s economy, we can see how manufacturing can lead our economic recovery efforts.”

According to a 2010 study by the Center for Automotive Research, more than 792,000 Ohio jobs depend on the auto industry; this figure includes 120,285 direct employment (people employed directly by auto industry: 39,685 by automakers and 80,600 by parts suppliers); 276,330 indirect employment (jobs indirectly employed by automakers or parts suppliers: 167,891 by automakers and 108,439 by parts suppliers); and 395,981 spin-off employment (expenditure-induced employment resulting from spending by direct and intermediate employees; 221,018 by automakers and 174,963 by suppliers). A 2011 study by the Center for Automotive Research found that 164,654 jobs in 2009 would have been lost in Ohio if the auto industry had not been rescued.

Brown released a map showing the location of auto component manufacturers for two popular cars assembled in Ohio: General Motors’ Chevy Cruze and Chrysler’s Jeep Wrangler. The map shows the extent of Ohio components utilized in both models – and how investment in the auto industry has helped boost demand for Ohio-made parts:

  • Chrysler’s Jeep Wrangler: Prior to the auto rescue, only 55 percent of the parts in Chrysler’s Jeep Wrangler were made in America. Today, 70 percent of the Jeep Wrangler is American-made – with many parts made in Ohio. The glass is made in Crestline, the steering column in Perrysburg, the seats in Northwood, the hard top in Carey, and cargo components in Holmesville.
  • GM’s Chevy Cruze: Prior to the auto rescue, in November 2008, 1,000 workers at GM’s Lordstown plant were laid off. Today, nearly 5,000 people – including another shift of workers – build the Chevy Cruze, one of the hottest selling cars in the nation.  The Cruze’s tires are manufactured in Akron, its wheels in Cleveland, its seats in Warren, engine blocks in Defiance, metal in Parma, transmission in Toledo, and speakers in Springboro.

A full copy of Brown’s analysis can be found HERE.

On Friday, President Obama and Senator Brown will travel to Toledo, where they will tour Chrysler Group’s Toledo Supplier Park and speak with manufacturing workers. The President will also hear first hand from local business owners and residents about the importance of the auto industry resurgence to the community as a whole and the economic devastation it would have faced had Chrysler been allowed to fail.

About the Auto Industry’s Recovery

 

Yesterday, the National Economic Council released a new report on the resurgence of the American automotive industry. In the year before GM and Chrysler filed for bankruptcy, the auto industry shed more than 400,000 jobs.  Had President Obama failed to intervene, conservative estimates suggest that it would have cost at least an additional one million jobs and devastated vast parts of our nation’s industrial heartland.  Since GM and Chrysler Group emerged from bankruptcy in June 2009, the auto industry has added 115,000 jobs – the fastest pace of job growth in the auto industry since 1998. Last week – more than six years ahead of schedule – Chrysler Group repaid the government its outstanding loans. The repayment brought the total amount taxpayer dollars returned to $10.6 billion, which represents a full recovery on the resources committed by the Obama Administration. Chrysler Group’s Toledo operations employ more than 1,700 workers producing the Jeep® Wrangler, Jeep Liberty, and Dodge Nitro. Tier 1 suppliers for the Wrangler also support an additional 3,000 American jobs.

Brown has been an outspoken advocate for Ohio’s auto industry. In November of 2008, he introduced S. 3175, the Auto Industry Emergency Bridge Loan Act, with a bipartisan group of colleagues. In December 2008, Brown fought to ensure that funds from the Troubled Asset Relief Program (TARP) were allocated to aid the Big 3 and American auto suppliers—despite near-unanimous opposition from most House and Senate Republicans. At the start of 2009, Brown applauded President Obama’s decision to advance restructuring plans to ensure the viability of the American auto industry.

In January 2011, as the Toledo Auto Show kicked off, Brown called on the Chrysler Group to fully utilize the Toledo Assembly Complex by adding a new production line to the facility as part of the company’s planned 2011 expansion. Brown last visited the Toledo Assembly Complex with Vice President Joe Biden in August 2010.

What Automakers Are Saying About Ohio

“Chrysler Group has a long history and significant footprint in Ohio where we directly employ more than 2,500 people at our three manufacturing facilities in the Toledo area, home of the Jeep Wrangler for the last 30 years,” said Scott Garberding, Senior Vice President, Manufacturing/World Class Manufacturing, Chrysler Group LLC.   “In addition to our production facilities, the Toledo Machining Plant in Perrysburg Township produces 2.7 million steering columns and torque converters annually supplying all Chrysler Group assembly plants in North America and internationally. Chrysler’s manufacturing presence and that of its associated supply base continues to have a significant economic impact in Ohio and plays an integral role in the future success of this company.”

“A strong, resurgent auto industry is an economic force and multiplier to be reckoned with,” said Greg Martin, Director, Policy and Washington Communications for General Motors Corp. “Few other industries create more indirect  jobs, investment or the research and development necessary to secure America's, or in this case, Ohio's bright future and global competitive standing.”

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