The United Auto Workers (UAW) union has released a new report titled “Unlocking the Potential of U.S. Auto Manufacturing Capacity,” highlighting the potential for significant job creation within the U.S. auto sector. According to the report, the existing infrastructure and workforce could support the production of millions more vehicles, creating tens of thousands of good-paying union jobs, provided companies choose to invest domestically rather than moving operations abroad.
The analysis reveals that, in 2024, the U.S. had the capability to manufacture over 14.7 million vehicles at operational plants. However, only 10.2 million vehicles were produced, resulting in 4.5 million units of unused capacity. This underutilization is attributed to practices that prioritize stock buybacks and special dividends over job creation, with profits being directed to Wall Street.
Revitalizing the dormant capacity could lead to the creation of up to 90,000 new manufacturing jobs, estimates the UAW. Shawn Fain, President of the UAW, stated, “We don’t need to break ground on a single new plant to rapidly grow auto manufacturing capacity — it’s already right in front of us, in the plants we’ve built, the skills of our members, and the communities that depend on these jobs.”
Fain emphasized the need for companies to invest in domestic production rather than offshoring jobs to countries with lower wages, stating, “Auto companies must invest here at home and rebuild the middle class with union labor.”
The report notes that companies such as General Motors, Ford, Stellantis, and Volkswagen have reduced their U.S. vehicle production by 1.8 million units annually since 2015, while expanding in Mexico. This shift has led to plant closures, layoffs, and underutilized facilities in various U.S. communities.
Fain expressed that the working class is prepared to shape the future of the industry, saying, “The working class built the auto industry — and we’re ready to build its future. Auto companies should be using this moment to scale up and add good jobs by investing in workers instead of Wall Street.”
The full report can be accessed at: https://uaw.us/ExcessCapacityPaper
