Background
The Center for Automotive Research continually tracks publically announced North American investments made throughout the automotive industry in a proprietary database called the CAR Book of Deals. The database covers more than 20 years of investments announced by automotive companies. To populate the Book of Deals, CAR monitors news, governmental, and company sources on an ongoing basis.[1] Smaller announcements, particularly those from supplier firms, may not be included. This annual update is based solely on publically announced automaker investments across North America in 2017.
Coverage
Facilities
CAR’s Book of Deals tracks capital investments to various facilities across North America – including administrative offices, manufacturing facilities, R&D/technical centers, and distribution centers.
Investment
CAR’s Book of Deals has announced North American capital investment details as far back as the early 1990s.
Products
CAR records the details of the purpose of the investment and related products in as much depth as available.
Incentives Announced
When available, CAR records the federal, state, and local incentives provided, as well as the details related to the use and purpose of the public funding.
Total Jobs
CAR tracks the employment details, including both new and retained positions, based on each specific investment.
2017 Investment Highlights
- Total Investment: Automakers announced roughly $11.2 billion in new investment throughout North America
- Total Jobs: Over 24,000 total jobs were announced, and over 9,000 new jobs are projected to be created
- Number of Announcements: Automakers announced 63 new investments in 2017
- Announced Total Incentives: Publically released incentive information shows that over $894 million was offered to 12 different automaker investments
Top 10 Automaker Announcements, 2017
Source: CAR Book of Deals
The largest announcement in 2017 was related to Volkswagen’s settlement with the U.S. government on their diesel emissions case. The company has announced plans to spend $2 billion across the United States, with $800 million explicitly allocated to California to provide clean vehicle infrastructure in that state.
Share of North American Investment, 2017
Source: CAR Book of Deals
Automakers announced plans to invest over $10.2 billion in U.S. facilities, and this investment comprises 91 percent of all automaker investments made in North America in 2017. The $10.2 billion includes 50 announcements, and 77 percent of all planned U.S. investments are for new or updated manufacturing facilities. The automakers also announced over $779 million of investment in Canada and $208 million in Mexico during the last calendar year.
Historical Overview
Between 2009 and 2017, the North American region has received roughly $120 billion in automaker announced investments – Canada received 6 percent of North American investment, Mexico received 21 percent, and the United States received the remaining 73 percent. Throughout this time frame, the Great Lakes region has obtained roughly 46 percent of North American automaker investments, if we include Canadian investments, this adds up to more than half of the investments heading to this area (52 percent).
North American Investments by Region, 2009 to 2017
Note: U.S. Great Lakes includes: IL, IN, KY, MI, MO, and OH. South includes: AL, FL, GA, MS, SC, TN, and TX
Source: CAR Book of Deals
Since the recession in 2009, global automakers have announced 11 new assembly plants throughout North America—8 in Mexico, and 3 in the United States.
New Assembly Plants Announced by Major Automakers, 2011 to 2017
Source: CAR Book of Deals