By Anita Rajan, General Director, JAMA USA
With the annual SelectUSA Investment Summit underway this week, it is important to remember just why Japanese-brand automakers continue to ‘select’ the United States as an automotive production center. Over the last 42 years of steady and sustained growth, cumulative manufacturing investment increased exponentially to a new height of $66.4 billion, with Japanese-brand automakers directly employing 110,000 hardworking Americans. Over a third of new manufacturing investments ($23 billion) have been deployed within the last ten years, and last year, Japanese-brand automakers welcomed a U.S. vehicle production milestone by surpassing 100 million vehicles produced.
This success has been based on longstanding trust and partnership.
- Trust that the U.S. will continue to welcome foreign direct investment (FDI), especially from close trading partners and allies, and prioritize policies that foster a positive business climate.
- Trust that Japanese-brand automakers earn as they dedicate not only dollars, but also their effort and know-how as they engage in the local community.
- Partnership that has been cultivated with workers and communities at operations in 27 states and throughout the advanced manufacturing and automotive workforce pipeline.
While new or additional investments grab the headlines, the progress of these investments is based on long-term vision and the everyday efforts of a high-quality U.S. workforce.
The other factor that has propelled Japanese-brand automakers into household names in the U.S. is the U.S. consumer. These automakers took steps in the 1970s to set up research and development and design (RD&D) operations even before opening U.S. manufacturing facilities because they understood the need to provide a variety of vehicles that meet the needs and preferences of U.S. consumers well. Today, these automakers now operate 43 RD&D facilities in the U.S.
Japanese-brand automakers’ dedication to the U.S. consumer is even more apparent in the accolades and recognition they have received for customer satisfaction, vehicle reliability, and vehicle safety. Consumer choice is paramount for our members as they cater to a diverse and ever-evolving U.S. customer base, which is why in addition to offering an increasing number of U.S.-produced vehicles, some vehicle offerings are imported from Japan. That said, as vehicle imports from Japan decreased by 40% since their peak in 1986, U.S. production has increased well over 400%. In other words, providing U.S. consumers a diversity of vehicle choices, including those are imported from Japan, complements rather than detracts from their efforts to provide the U.S. with good-quality FDI.
This year, we are excited to see the momentum continue with new battery manufacturing investments by Toyota and Honda coming online, along with a steady focus on achieving the next level of productivity and innovation throughout all Japanese-brand automaker U.S. based operations. The communities these automakers have supported and invested in for decades are undoubtedly cheering them on, and so are we.