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U.S. Automakers Are On A Roll, But Hiring Is Slow And Steady

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U.S. Automakers Are On A Roll, But Hiring Is Slow And Steady


U.S. Automakers Are On A Roll, But Hiring Is Slow And Steady

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  • <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
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It's MORNING EDITION from NPR News. I'm Steve Inskeep.


And I'm David Greene. The U.S. auto industry is doing more with less. A lot less. There are fewer car assembly plants in the United States. There are also hundreds of thousands fewer workers than there were before the recession. But productivity is the highest it's ever been. And profits are high too. NPR's Sonari Glinton looks at why that won't translate into more jobs.

SONARI GLINTON, BYLINE: You know how when take an embarrassing fall people rush up to you and ask are you all right, even after you're back on your feet. Well, that's how it's been with the car business.

KRISTEN DZICZEK: People ask a lot, is the auto industry back? It depends on what scale you want to look at.

GLINTON: That's Kristen Dziczek. She's the research director at the Center for Automotive Research. So if we're looking at scales, let's start with productivity. In this case, how many work hours it takes to build a car.

DZICZEK: Productivity in our automotive plants in the U.S. is 39 percent higher than it was in the year 2000. Productivity has never been this high.

GLINTON: And while sales aren't as high as they once were, vehicle prices are up so profitability is up. General Motors, Ford and Chrysler have all been making money and they've been rewarding their workers with profit sharing checks. And all the companies, foreign and domestic, are investing billions of dollars in North American facilities. You'd think this would translate into a hiring frenzy, right? Well Dziczek says, not so much.

DZICZEK: In employment we're still down a lot. The peak before the crash was over a million. And we're at about 670,000, 660,000 employees in motor vehicle and parts manufacturing in the U.S. So employment's still got a long way to go.

GLINTON: Here's the thing, the car companies are adding workers, but the addition of those workers is sort of slow and steady. A few thousand here, a few hundred there. The plants in the U.S. and North America are running at full steam. Every single plant that makes cars on this continent is at or near capacity in terms of number of shifts or hours worked.

And car plants that used to, say, have one assembly line, now have two - with the same amount of space and workers. Michael Robinet is an analyst with IHS Automotive.

MICHAEL ROBINET: There's no doubt that the industry is stressed right now. It's stressed at the vehicle assembly facility. It's stressed where they make engines and transmissions. And it's definitely stressed within the supply community.

GLINTON: Plants have added second and third shifts. And they're less likely to shut down or even go on their formally traditional summer breaks. Robinet says the car companies, both foreign and domestic, have learned the lessons of the economic crash well - almost too well.

ROBINET: The days of 2008 and 2009 still linger in our industry, and therefore everybody is being very, very careful about adding capacity, whether in the form of brick and mortar or in the form of new employees, and only adding them when it's absolutely necessary or they see a road in the future where it's going to be fully utilized.

GLINTON: Robinet says the car companies are not ready to expand the number of plants in the U.S. unless they're absolutely sure they'll be needed for a long, long time. Meanwhile, companies like Volkswagen are building plants in Mexico. New plants in places such as Michigan or even Mississippi just don't seem to be on the horizon. Robinet says, though, the car business has sort of hit its sweet spot.

ROBINET: The industry is back. It's in a happy place. The world is now looking for more vehicles built in North America, and certainly exports are going to be on the rise. That's a great ending comment, by the way. That one's a keeper.


GLINTON: You know what? I think I will. Sonari Glinton, NPR News.

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