Largest Jump in CAFE Standards in a Generation is a Driving Force for Economic Growth in Vehicle Manufacturing

LANSING, MI (August 13, 2012) At least 20,000 jobs will be created by 2030 in Michigan as a direct result of vehicle fuel economy standards proposed by the Obama administration, according to a new study released by the BlueGreen Alliance. Findings in the report, Gearing Up: Smart Standards Create Good Jobs Building Cleaner Cars, reveal 570,000 jobs would be created nationally from fuel savings and developing clean car technology, and 50,000 of these jobs would be created in light-duty vehicle manufacturing and assembly by 2030. This proposal for light-duty vehicles built between 2017- 2025 means fuel economy will reach an all-time high 54.5 miles per gallon (mpg) and low for emissions of 163 grams of carbon dioxide per mile (g/mi).

The report and a state-specific fact sheet were highlighted at an event in Lansing today at the Michigan AFL-CIO.

“We’re already on the cutting edge of vehicle manufacturing, and higher fuel efficiency standards are helping Michigan continue to drive the world into the future,” said Mark Schauer, Co-Chair of the BlueGreen Alliance Jobs21! Initiative. “If we’re going to spur economic growth today, we need to look to the technology of the future.”

America spends $1 billion a day on foreign oil. The BlueGreen Alliance estimates show that by 2030, these proposed standards will save drivers of passenger cars and light trucks approximately $61 billion dollars per year on their gasoline bill, even after accounting for the slightly higher purchase price of more fuel-efficient vehicles. By the time the proposed standards have fully taken effect in 2025, they will save consumers an estimated $4,000 dollars over the life of a vehicle.

“Across Michigan, more fuel efficient vehicles are already employing steelworkers in good-paying jobs from Grand Rapids to Detroit, up to Alma and beyond,” said United Steelworkers (USW) District 2 Director Michael Bolton. “Smart standards like these are putting the U.S. auto industry and the economy back on solid ground and we’re creating good jobs and vehicles that are better for our environment.”

The report also explores the impact of increasing domestic content in vehicles. Findings show that if light-duty vehicle domestic content was increased from its current 60 percent to 75 percent in 2030, then an additional 4,100 U.S. manufacturing jobs would be created on top of the 50,000 already projected by the study, creating a ripple effect in other sectors of 9,000 more jobs.

“We at UAW are building world-class vehicles, the best products on the planet, and we’re really proud of what we build,” said United Auto Workers (UAW) International Representative Brian Fredline. “The fact that this new generation of vehicles work for the economy and the environment adds even more to that pride in our work and overall product quality.”

Besides creating over half a million jobs, there will be a net increase of about $75 billion in annual Gross Domestic Product (GDP) by 2030.

“Americans are already embracing the vehicles of the future,” said Sarah Mullkoff from the National Wildlife Federation. “This fact clearly shows that environmental protections and good jobs not only can co-exist, but that they can drive growth while keeping our air cleaner and addressing climate change.”

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GRAND RAPIDS, MI (August 13, 2012) At least 20,000 jobs will be created by 2030 in Michigan as a direct result of vehicle fuel economy standards proposed by the Obama administration, according to a new study released by the BlueGreen Alliance. Findings in the report, Gearing Up: Smart Standards Create Good Jobs Building Cleaner Cars, reveal 570,000 jobs would be created nationally from fuel savings and developing clean car technology, and 50,000 of these jobs would be created in light-duty vehicle manufacturing and assembly by 2030. This proposal for light-duty vehicles built between 2017- 2025 means fuel economy will reach an all-time high of 54.5 miles per gallon (mpg) and low for emissions of 163 grams of carbon dioxide per mile (g/mi).

The report and a state-specific fact sheet were highlighted at an event in Grand Rapids today at UAW Region 1D, the Owen Bieber Building.

“We’re already on the cutting edge of vehicle manufacturing, and higher fuel efficiency standards are helping Michigan continue to drive the world into the future,” said Mark Schauer, Co-Chair of the BlueGreen Alliance Jobs21! Initiative. “If we’re going to spur economic growth today, we need to look to the technology of the future.”

America spends $1 billion a day on foreign oil. The BlueGreen Alliance estimates show that by 2030, these proposed standards will save drivers of passenger cars and light trucks approximately $61 billion dollars per year on their gasoline bill, even after accounting for the slightly higher purchase price of more fuel-efficient vehicles. By the time the proposed standards have fully taken effect in 2025, they will save consumers an estimated $4,000 dollars over the life of a vehicle.

“Across Michigan, more fuel efficient vehicles are already employing steelworkers in good-paying jobs from Grand Rapids to Detroit, up to Alma and beyond,” said United Steelworkers (USW) District 2 Director Michael Bolton. “Smart standards like these are putting the U.S. auto industry and the economy back on solid ground and we’re creating good jobs and vehicles that are better for our environment.”

The report also explores the impact of increasing domestic content in vehicles. Findings show that if light-duty vehicle domestic content was increased from its current 60 percent to 75 percent in 2030, then an additional 4,100 U.S. manufacturing jobs would be created on top of the 50,000 already projected by the study, creating a ripple effect in other sectors of 9,000 more jobs.

“For a long time, Michigan’s economy has been interlinked with the auto industry and investing in the technology of the future,” said USW Local #49 Recording Secretary and Grievance Chairperson Becky Sallie. “Raising fuel efficiency is an investment in Michigan’s economy and the future of workers like myself.”

Besides creating over half a million jobs, there will be a net increase of about $75 billion in annual Gross Domestic Product (GDP) by 2030.

“I’m proud to be a part of the process of manufacturing components for advanced vehicles that make them more fuel-efficient right,” said United Auto Workers (UAW) Local #167 Bargaining Chairman Mark Monroe. “Manufacturing these and other components here in the United States is an economic development opportunity that American workers can’t miss out on.”

“Americans are already embracing the vehicles of the future,” said Sarah Mullkoff from the National Wildlife Federation. “This fact clearly shows that environmental protections and good jobs not only can co-exist, but that they can drive growth while keeping our air cleaner and addressing climate change.”