An average car is made from a wide variety of materials, each selected for specific properties like strength, weight, durability, and cost. Here’s a breakdown of the primary materials used:
1. Steel – Makes up the bulk of the car body and frame, around 50-60%. High-strength steel is often used for structural components and frames, while regular steel is common in body panels.
2. Aluminum – Around 10-15%, mostly in parts where a lighter weight is essential, like the engine block, wheels, suspension components, and hoods.
3. Plastics and Polymers – Account for around 10-20% of car materials, used for interior components, bumpers, dashboards, and fuel tanks. Plastics are chosen for flexibility, durability, and their ability to be molded into complex shapes.
4. Glass – Primarily for windows and windshields. Laminated safety glass is used for windshields, while tempered glass is typical for side and rear windows.
5. Rubber – Used for tires, seals, hoses, and gaskets.
6. Copper and Electrical Components – Essential for wiring and electronics, copper is widely used along with other metals in smaller quantities for various sensors, batteries, and motors.
7. Composites and Advanced Materials – Lightweight composites like carbon fiber or fiberglass may be used in performance vehicles or some structural parts. Carbon fiber and high-tech materials are also becoming more common in electric vehicles.
8. Other Metals – Magnesium, titanium, and other metals might be used for specific parts, especially in performance or luxury vehicles due to their lightness and strength.
In total, a car can be made up of dozens of different materials when counting all minor components and specialized materials. The exact composition varies based on the car’s type, purpose, and cost, with electric vehicles often using even more aluminum and composites to reduce weight and increase efficiency.
Estimating the total employment from raw material extraction to a finished car is complex, as it involves numerous industries and global supply chains. However, here’s an approximate breakdown of employment along the major stages:
1. Raw Material Extraction and Processing
– Steel, Aluminum, Plastics, Rubber, Glass, Copper – Industries such as mining, smelting, chemical processing, and rubber production involve thousands of workers globally. For example:
– The global steel industry alone employs about 6 million people directly.
– Aluminum, glass, and plastic production each require hundreds of thousands of workers worldwide.
Estimate: For materials used in cars, 2-3 million people might be involved in production.
2. Parts Manufacturing
– Components for Engines, Transmissions, Electrical Systems, Interiors, and Exterior Parts – Hundreds of parts are made for each car, from intricate electronics to seats, tires, and dashboards. Large companies like Bosch, Continental, and Denso are among the biggest employers in this field.
Estimate: About 3-5 million people worldwide are employed in parts manufacturing, specifically to meet the automotive sector’s demands.
3. Logistics and Supply Chain Management
– Shipping, Warehousing, and Distribution – Moving materials and components to assembly plants involves a network of truck drivers, dock workers, warehouse employees, and logistics planners.
Estimate: Logistics directly for automotive materials and parts likely employ about 1-2 million people worldwide.
4. Vehicle Assembly and Production
– Assembly Lines, Quality Control, Testing – Car manufacturing plants employ hundreds to thousands of workers each, with companies like Toyota, Ford, and Volkswagen each employing hundreds of thousands globally.
Estimate: Roughly 2-3 million people are employed in car assembly and production worldwide.
5. Sales, Distribution, and Post-Production
– Dealerships, Marketing, Finance, and After-Sales Services – From sales representatives to maintenance workers, this sector supports ongoing demand and customer service.
Estimate: Global sales and after-sales service for the automotive sector employ an additional 3-5 million people.
Total Employment Estimate
Adding these up across all stages, approximately 10-15 million people could be employed globally in the automotive sector, from raw material production to final sales. The number may vary due to automation, global demand, and regional economic factors, but this range gives a rough idea of the vast employment network supporting the production of a single car.
The United States is one of the largest automotive markets globally, but it represents only a portion of total global auto sales and production. Based on recent data, here’s an approximate breakdown:
1. Global Automotive Sales – In 2023, around 80 million vehicles were sold worldwide.
2. US Automotive Sales – Of these, the U.S. accounted for around 14 million vehicle sales, making up roughly 18% of global automotive sales.
Using this as a basis, we can estimate the employment distribution:
1. Raw Material Extraction and Processing
Many raw materials are sourced globally, especially for U.S. car production, so only a fraction of the employment in this stage is directly tied to U.S. auto sales. However, U.S. demand still influences the supply chain heavily.
Estimate: Around 10-15% of employment in raw materials may support U.S. automotive demand.
2. Parts Manufacturing
The U.S. imports many parts but also has a significant parts manufacturing base within the country, employing millions in companies focused on U.S. automotive demand.
Estimate: About 15-20% of global parts manufacturing employment supports U.S. automotive needs.
3. Logistics and Supply Chain Management
Global logistics networks include substantial support for the U.S. market, given its high import rate for parts and materials.
Estimate: Around 15% of global automotive logistics employment is tied to U.S. demand.
4. Vehicle Assembly and Production
The U.S. produces some vehicles domestically, though many vehicles sold in the U.S. are assembled abroad. U.S. assembly plants directly support the U.S. market but represent a portion of global production employment.
Estimate: Roughly 15-20% of global vehicle assembly and production employment is tied to U.S. auto sales.
5. Sales, Distribution, and Post-Production
U.S. auto sales, financing, marketing, and after-sales services employ a considerable workforce within the U.S., making it one of the largest markets for these jobs.
Estimate: About 20-25% of global employment in this stage is likely tied to the U.S. market.
Total Estimate
Averaging these, approximately 15-20% of global automotive employment likely supports U.S. auto sales. Given the estimate of 10-15 million people employed globally in the automotive sector, this translates to around **1.5-3 million jobs** worldwide tied to the U.S. automotive market.
In the U.S., a significant share of automotive employment is concentrated in sales, after-sales services, and parts manufacturing. Here’s a breakdown to estimate what portion of U.S.-related automotive employment is domestic:
1. Raw Material Extraction and Processing
– The U.S. sources many raw materials for car manufacturing from abroad, although there are domestic industries for steel, aluminum, and plastics.
– However, only a small percentage of the raw material workforce involved in U.S. automotive production is based in the U.S.
Estimate: Around 5-10% of the raw materials workforce serving U.S. auto demand is domestic.
2. Parts Manufacturing
– The U.S. has a sizable parts manufacturing industry, especially in areas like the Midwest, though it still relies on significant imports.
– Major suppliers and small parts manufacturers combined make up a significant portion of the automotive workforce in the U.S.
Estimate: Roughly 50-60% of parts manufacturing jobs for the U.S. market are domestic.
3. Logistics and Supply Chain Management
– Domestic logistics play a major role in transporting vehicles and parts within the U.S.
Estimate: Approximately 60-70% of logistics jobs related to U.S. automotive demand are domestic.
4. Vehicle Assembly and Production
– Many vehicles sold in the U.S. are imported, but there is still substantial domestic production, especially by companies like Ford, General Motors, and Toyota.
Estimate: About 50% of vehicle assembly jobs serving the U.S. market are domestic, as a substantial portion of vehicles are produced locally.
5. Sales, Distribution, and Post-Production
– Sales, financing, and after-sales services are overwhelmingly domestic in the U.S., including dealerships, repair shops, and customer service roles.
Estimate: Nearly 100% of these jobs for the U.S. market are domestic.
Overall Estimate
Combining these estimates, we can calculate a weighted average:
– Raw Material Extraction and Processing: 5-10%
– Parts Manufacturing: 50-60%
– Logistics and Supply Chain: 60-70%
– Vehicle Assembly and Production: 50%
– Sales, Distribution, and Post-Production: 100%
Taking an average of these stages, we find that about 60-65% of U.S.-related automotive employment is domestic. Given that an estimated 1.5-3 million jobs worldwide support U.S. auto demand, this translates to approximately 900,000 to 1.95 million domestic jobs in the U.S. automotive sector.
This estimate highlights the critical role of domestic jobs in areas like parts manufacturing, assembly, logistics, and services, even with globalized supply chains.
The percentage of U.S.-assembled cars made from domestically sourced parts and materials has declined over the years due to globalization, but a significant portion still comes from domestic suppliers, particularly in certain categories. Here’s an approximate breakdown:
1. Domestic Content Requirements and Estimates
– American Automobile Labeling Act (AALA): This act requires manufacturers to report the percentage of U.S. and Canadian parts in vehicles sold in the U.S., but it combines U.S. and Canadian parts, making it harder to isolate just U.S. content. On average, cars assembled in the U.S. contain about 45-50% U.S. and Canadian parts combined.
– A deeper look into the AALA data and industry sources suggests that 30-40% of parts and materials for U.S.-assembled cars are likely sourced within the U.S. alone.
2. Parts and Components
– Major Parts: Engines and transmissions have a relatively high rate of domestic sourcing, with some U.S. plants manufacturing these components locally for American brands (e.g., Ford, GM) and even some foreign brands (e.g., Toyota, Honda).
– Other Components: Electrical systems, electronics, and many smaller components are frequently sourced from global suppliers in Mexico, Asia, and Europe. The trend toward international supply chains has reduced the proportion of domestically sourced parts over time.
3. Raw Materials
– Steel and Aluminum: The U.S. produces a significant amount of automotive-grade steel and aluminum domestically, but much of it is still imported, particularly from Canada, Mexico, and overseas. Only about 20-30% of the steel and aluminum in U.S.-assembled cars is likely sourced domestically.
– Plastics, Glass, and Rubber: These materials are partially sourced from domestic manufacturers, but many are also imported. The percentage of domestically sourced materials varies widely by manufacturer and model.
Overall Estimate
Considering all components and materials, it’s estimated that around 30-40% of the parts and materials in U.S.-assembled vehicles are sourced domestically. This percentage varies by manufacturer and model, with American automakers like Ford and GM generally using a higher proportion of U.S.-sourced parts compared to some foreign automakers with U.S.-based assembly plants.
The balance between domestic and imported content reflects the structure of modern global supply chains, where cost, efficiency, and specialization drive sourcing decisions.
If domestic sourcing for U.S.-assembled cars were increased by 25% over current estimates, it would significantly boost domestic employment and economic impact. Let’s break down the effect of increasing domestic content and calculate potential job creation and economic value based on current figures.
1. Current Domestic Content and Employment Estimate
– Current Domestic Content: About 30-40% of parts and materials in U.S.-assembled cars are sourced domestically.
– Target Increase: Increasing domestic content by 25% would raise the domestic portion to 37.5-50% of parts and materials used in U.S.-assembled cars.
– Jobs Supported by Current Domestic Sourcing: Based on previous estimates, the automotive sector (including parts manufacturing, assembly, logistics, etc.) currently supports 900,000 to 1.95 million U.S. jobs.
2. Calculating Job Creation from a 25% Increase
– If domestic content increases by 25%, this would theoretically boost related employment by a similar margin.
– Estimated Job Increase: 25% more domestic sourcing could create an additional 225,000 to 487,500 U.S. jobs in areas like parts manufacturing, raw material processing, logistics, and assembly.
3. Economic Impact of Increased Domestic Sourcing
– Average Annual Wage: The automotive manufacturing sector in the U.S. has an average wage of about $65,000 per worker.
– Additional Wage Impact: With 225,000 to 487,500 new jobs, the wage impact alone would contribute $14.6 billion to $31.7 billion annually in wages.
– Multiplier Effect: In manufacturing-heavy industries, the economic multiplier is high due to the supply chain and consumption impacts. Each dollar spent in auto manufacturing typically generates about $2.87 in additional economic activity. This is due to spending rippling through suppliers, retail, service industries, and beyond.
– Total Economic Impact: Using the wage impact and the multiplier effect, the broader economic impact could range from $42 billion to $91 billion annually.
Summary of Impact
– Job Creation: Approximately 225,000 to 487,500 additional U.S. jobs.
– Wage Increase: $14.6 billion to $31.7 billion in additional wages.
– Total Economic Value: $42 billion to $91 billion in economic output per year.
Additional Considerations
– Infrastructure and Investment: Achieving this increase in domestic sourcing would likely require investment in U.S.-based manufacturing plants, training, and infrastructure upgrades, which could further stimulate the economy.
– Long-Term Impact: Increased domestic production capacity would enhance U.S. supply chain resilience and reduce dependency on global suppliers, potentially mitigating economic impacts from global disruptions.
In summary, raising domestic content by 25% could create hundreds of thousands of jobs and add tens of billions of dollars to the U.S. economy annually, providing a significant boost to domestic manufacturing and related sectors.