Global Value Chains, Local Economic Values: The Automobile Industry’s Role in Trade and Investment
On March 26, 2019, RGIT and the American Institute for Contemporary German Studies (AICGS) co-hosted an event featuring representatives from the German and Japanese automotive industries and experts on trade and economics.
Throughout the panel discussion, the invited experts highlighted the contributions of the global automotive industry to the US economy and the positive role that free trade plays in securing these benefits. During his opening remarks, RGIT President and CEO Daniel Andrich underscored the value of German business in the US. The approximately 5,300 German-owned companies located across all parts of the country contribute to the overall strength of the US economy. They secure almost 700,000 jobs, foster innovation through research, and develop the skillsets of the local workforce. Bernhard Mattes, the President of the German Association of the Automotive Industry (VDA), drew further attention to the specific achievements of the German automotive industry. He noted that 118,000 Americans are employed in around 300 facilities operated by the German automotive industry in the US. With investments already totaling around $30 billion and another $5 billion planned in the next few years, the German automotive industry remains committed to the US market as an attractive investment location. He stressed that the US is not only an important production location, but also a key export hub. Indeed, roughly 60% of German cars produced in the US are exported abroad.
For further information about BDI and DIHK’s position on the Section 232 investigation into automobiles and automotive parts, please find their joint comment here.