Gaining Traction
Market recovery and the subsequent
rebound in production are just two of
many factors driving U.S. automotive
hiring in 2011–12 and beyond.
Other reasons include:
• U.S. automakers are now profitable
at much lower volumes, leading the
companies to focus more on growth
and investment than on cost-cutting
and restructuring strategies. The auto
industry has invested nearly $20 bil-
lion in the United States and Canada
in 2010 and 2011, and the government
has also provided investment incen-
tives through the American Recovery
and Reinvestment Act and the U.S.
Department of Energy Advanced
Technology Vehicle Manufacturing
Loan Program. Companies must hire
to grow.
• Because the industry hasn’t hired
in a long time, the incumbent
workforce—both salaried and
hourly—tends to be older. Companies
must hire to backfill retirement
attrition.
• For hourly production workers,
recent union labor agreements have
made labor cost parity possible.
Companies can hire and still be
competitive.
