The U.S. economy’s gross and actual automotive production of vehicles and parts has returned to long-term growth trends, according to the American Automotive Policy Council (AAPC).

The AAPC represents the common public policy interests of the U.S. automakers (Ford Motor Company, General Motors Company, and Stellantis).

Previously, this positive trend was interrupted by the 2008-2009 recession, reduced production resulting from the Covid-19 pandemic, and the related semiconductor crisis.

Between 2017 and 2023, automotive gross production grew from $597 billion to an estimated $814 billion. 

According to the AAPC, between 2020 and 2023, gross production grew 41 percent. 

Automotive production

Globally, the automotive industry is exposed to uncertain economic conditions that could negatively affect demand and production of new vehicles. 

Business conditions can vary significantly from period to period or region to region. 

In 2022, global automotive production was negatively impacted by supply chain issues, labor market disruptions and other lingering effects of the Covid-19 pandemic. 

But in 2023, light vehicle production showed resilience and strong growth, supported by sustained consumer demand and OEM efforts to replenish depleted inventory levels. 

Employment

Cooper-Standard Holdings refers that this resilience and growth occurred despite continued uncertainty in the global economy created by continued inflation, rising interest rates and increased geopolitical tension in key regions of the world. 

In 2024, this company expects production growth to moderate as inventory levels normalize, interest rates remain relatively high and geopolitical tensions that drive global economic uncertainty persist.

In the United States, employment data show that the number of jobs in the automotive industry has rebounded and exceeded the industry average over the past 32 years. 

The December 2023 U.S. auto industry employment level of 1,076,000 in December 2023 exceeds the average monthly employment level between January 1990 and December 2023.