How Big Is the Automobile Industry?
In recent weeks I’ve heard characterizations of how many people are employed by the automobile industry that are all across the board—from 2 million to 3 million to 7 million (Charles Dingell) all the way up to 10 million people (Michigan Gov. Jennifer Granholm). How many people are really employed by the Detroit automakers, their domestic suppliers, and distribution system? How many of these jobs are really at risk if one of them should fail?
Unless you believe that should, say, GM fail, that every employee of every GM dealer will be out of work, I think it’s specious to count all of those jobs in the total. Under those circumstances Americans will still buy cars and, presumably, there will still be retailers to sell them to them. They just won’t be GM dealers. Toyota, Hyundai, etc. dealers as well as the dealers of the remaining Detroit automakers will need to add more staff to handle their additional sales.
Please show your work.