Improving Vehicle Fuel Economy to Create 21,000 Jobs in Ohio

At least 21,000 jobs will be created by 2030 in Ohio as a direct result of vehicle fuel economy standards proposed by the Obama administration, according to a new study released by the BlueGreen Alliance.

August 30, 2012

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

TOLEDO, OH (August 30, 2012) At least 21,000 jobs will be created by 2030 in Ohio 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 Toledo today at the UAW Local 14 union hall.

“All Americans are eager to spend less to fill their gas tanks,” said Frank Szollosi from the National Wildlife Federation. “By working together, American auto companies and the United Auto Workers have proven that environmental protection and good jobs not only can co-exist, but that they can drive growth while taking a historic and much-needed bite out of global warming pollution.”

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.

“Today, if you’re driving a union-built car from one of the domestic automakers, you’re more likely than ever to be driving a vehicle that’s highly fuel-efficient,” said UAW Local 14 President Ray Wood. “Manufacturing these cleaner cars here in the U.S. is an economic development opportunity that American workers can’t miss out on.”

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.

“Building strong businesses and protecting the environment can go hand-in-hand,” said Senator Sherrod Brown. “The economic recovery still has a long way to go, but the American auto industry is back – with Ohio workers making stylish, affordable, and fuel-efficient cars that consumers want to buy.”

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.