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Yet More Jobs Follow Volkswagen to Tennessee

June 24, 2015 by admin 1 Comment

University and industry researchers have examined the impact of Volkswagen’s operation on the Tennessee economy. They have concluded that the upcoming expansion will create thousands of new jobs and pump millions of dollars into the local economy annually.

Ever wonder why state governments throw out the welcome mat and offer generous incentives for international automakers? It comes down to just one word: jobs. Indeed, ever since Volkswagen set up shop near Chattanooga, Tennessee, the German automaker has created thousands of direct jobs with many times that number of indirect positions following.

Gainfully employed workers pay taxes, buy goods and services, purchase homes and otherwise contribute to their local economy. Notably, every state benefits from automotive industry investing — Tennessee has been benefiting in a big way, particularly as both Nissan and Volkswagen expand or are planning to expand their operations in the Volunteer State.

Center for Automotive Research Study

According to a January 2015 report by the Center of Automotive Research — Contribution of the Automotive Industry to the Economies of All Fifty States and the United States — more than 9,000 people are employed directly by car manufacturers in Tennessee. Another 53,000 have found work with body and trailering manufacturing companies and 218,000 are employed by parts manufacturers.

Volkswagen Passat in TennesseeThat’s more than 280,000 of just over 3 million people in the state’s labor force. Furthermore, those numbers will be rising over the next few years as Volkswagen doubles its lone US plant to accommodate an upcoming new vehicle, a midsize SUV.

UTK CBER Volkswagen Impact Study

A recently released study by the University of Tennessee, Knoxville (UTK) bears witness to what Volkswagen is doing in Tennessee. In July 2014, Volkswagen announced its plans for Chattanooga, what led to the university’s Center for Business & Economic Research (CBER) to analyze the impact of the plant’s expansion further.

The university report — Economic Impact of Volkswagen’s Chattanooga Expansion Plan — was prepared by William Fox, CBER Director and Lawrence Kessler, a research assistant professor with CBER.

The report noted that Volkswagen will be adding more than 500,000 square feet to its facility located in Hamilton County, Tennessee. The manufactory will gain 1,800 new workers. Moreover, another 200 engineering jobs will also be added to that number, employees working in a new Research & Development (R&D) center, the first automotive R&D center located in the US southeast.

Volkswagen says that it will take five to eight years for the new positions to be filled as production of the new model ramps up. The plant will be finished in the first half of 2016 with production commencing later in the year.

Temporary and Permanent Employment

Volkswagen SUVConstruction alone will add nearly 5,400 jobs while the plant is being built and contribute $217 million to the Tennessee economy. State and local coffers will enjoy a one-time increase in tax revenues too, totaling $20.5 million.

With 2,358 people currently employed directly by Volkswagen in Tennessee, the new totals will approach 4,400 when the hiring process comes to an end.

Once fully operational, the UTK researchers estimate that the new plant will create 9,799 new jobs and pump $372.6 million annually into the local economy. Further, local and state governments will see a $35.1 million bump in annual tax revenue through sales and other taxes.

OEM Contribution and the Multiplier Effect

Volkswagen’s presence in Tennessee has also encouraged original equipment manufacturers (OEMs) to expand or set up their operations in the region to serve the automaker. The UTK researchers found that 20 companies have done so since 2009, adding 2,257 jobs to the area and contributing nearly $200 million to the economy in less than six years. That financial investment is a gift that keeps giving and will likely increase as Volkswagen expands its operation.

The UTK researchers also honed in on the multiplier effect of auto industry job creation, noting that for each dollar spent another dollar or more of economic activity is generated.

In other words, as new workers are hired by Volkswagen and OEM suppliers, that’s more money to be spent on food, clothing, cars, entertainment and so forth, a ripple effect that underscores why your own state’s governor and politicians are eager to land car manufacturers.


See Also

Now Hiring: Volkswagen Adding 2,000 New Jobs in Tennessee

Big-Time Hit: 2018 Volkswagen Atlas SUV

Steady as She Goes: 2018 Volkswagen Passat


Photos courtesy of the Volkswagen Group of America.

Filed Under: Automotive News Tagged With: CHATTANOOGA, ECONOMY, EMPLOYMENT, JOBS, KNOXVILLE, TAXES, TENNESSEE, UNIVERSITY OF TENNESSEE, Volkswagen

Automotive Jobs: Who’s Hiring? Summer 2013 List.

August 8, 2013 by admin Leave a Comment

The U.S. auto industry is in a much better shape than it was in 2009, when companies were in the midst of shedding tens of thousands of jobs and production was reduced to levels not seen in three decades. The industry is well along in its recovery and that means a number of original equipment manufacturers, suppliers and related businesses are hiring.

We’ve scanned through some of the more recent hiring news and have found some jobs that are worth sharing with Auto Trends readers. The information is accurate as of August 2013; for later visitors to this article you may find that the details have changed. We will not be updating this story.


Automotive Jobs

Who: The Ford Motor Company

What: Up to 3,000 new salaried workers for 2013.

When: By the end of 2013.

Where: Chiefly in Michigan, but with some jobs scattered at locations across the United States.

How: Ford has set up a recruitment page to help get the word out. Ford is also utilizing social media — Facebook, Twitter and LinkedIn — to keep people informed about current job openings.

Notes: Stronger demand for its products in the United States and abroad has Ford planning for its future. Of the 3,000 new hires, Ford says that 80 percent will be for technical professionals. The new salaried positions are in addition to 12,000 hourly jobs Ford has promised to create by 2015.


Jobs announcementWho: General Motors Company

What: Fuel cells development.

When: Now hiring.

Where: At three locations in Michigan: Pontiac, Warren and Milford.

How: GM has set up a special page on its career site to attract researchers, engineers and other professionals to aid the company with its fuel cell efforts. Specifically, the company is hiring fuel cell technologists to join the company’s powertrain division.

Notes: GM is a leader in fuel cell development, having committed resources to build prototypes stretching back several decades. Fuel cells are part of an overall plan by the company to move into alternative propulsion systems.


Who: SMR Automotive Systems USA Inc

What: 350 new positions for this automotive supply company. SMR is looking for a product engineer and others to fill a variety of positions at various skill levels.

Where: 1855 Busha Highway, Marysville, Mich.

When: Now hiring.

How: Apply online or mail your resume to: Automotive Systems USA Inc • 1855 Busha Hwy, Marysville, MI 48040

Notes: SMR is part of the Samvardhana Motherson Reflectec (SMR) group of companies that makes automotive rear view and side mirrors. It holds a 22 percent market share in this segment, leading all competitors.


ZF Transmission: JobsWho: ZF Transmissions, the American division of the German ZF Group of companies.

What: Employees to fill new positions that are opening up as the company responds to demand for its fuel-saving transmissions. The company plans to add 450 new jobs, bringing its SC plant employment total to 1,650 people.

Where: ZF Transmissions Gray Court LLC * 2846 North Old Laurens Road * Gray Court, SC 29645

When: Apply now. A plant expansion is underway to accommodate increased demand.

How: Use the company’s online application process to search and apply for jobs.

Notes: ZF is an important supplier to the Chrysler Group which has been using its 8-speed and soon 9-speed transmissions in many of its vehicles. The industry trend is toward more fuel efficient transmissions with manufacturers such as Chrysler using the company as its supplier.


Who: Magneti Marelli Automotive Lighting

What: Automotive lighting ranging from headlamps, daytime running lights to tail lights.

Where: Pulaski, Tenn.

When: The automotive lighting plant, the first of its kind in the United States, was inaugurated in June 2013. At its beginning 90 people were already employed, but the company expects to have 850 people employed within four years.

How: Stay tuned. As of Aug. 2013, the company has listed job opportunities for its Michigan location, but not for Tenn. You can send your resume to the company at: 181 Bennett Drive, Pulaski, TN 38478

Notes: The company has won orders from Mercedes-Benz, the Chrysler Group and GM. The first order was for the 2014 Jeep Grand Cherokee that gets Marelli’s halogen, bi-Xenon and LED daytime running lamps.

Filed Under: Special Tagged With: AUTOMOTIVE ENGINEER, AUTOMOTIVE JOBS, CAREERS, EMPLOYMENT, Ford, GM, WORK, ZF

Ford Announces Plans to Hire 2,200 Salaried Employees

January 11, 2013 by admin 1 Comment

The U.S. auto industry has been in a hiring mood of late with job announcements made from Honda, Nissan, General Motors, Volkswagen and Toyota coming out in just the past few months. The Ford Motor Company should also be named among the car manufacturers that are hiring as it announced today that it would bring on 2,200 salaried workers in 2013. That announcement follows on the heels of other hiring initiatives conducted by Ford throughout 2012.

Hiring Spree

Ford says that its planned salaried worker hiring spree represents its largest one in more than a decade. The company cites increased demand for its products and a need to fill critical openings in engineering and other areas. Ford added more than 8,100 hourly and salaried positions in the United States in 2012, as part of its campaign to hire 12,000 new hourly workers by 2015. Ford signed an agreement with the UAW in 2011 to add assembly line workers.

Ford Motor CompanyJohn Hinrichs, Ford president of the Americas, credits the company’s One Ford plan for creating profitable growth or the engine that is leading to the current hiring spate. One Ford is an initiative announced by Ford management in 2008 to share more models across its markets, especially by bringing several European models to the North American market. Those models include Transit Connect, Focus, Fiesta, Escape and C-Max models, enabling Ford to spread its costs globally.

Ford Sales

Ford’s U.S. sales rose by 2 percent last year, but the company lost market share. However, the company still sees strong growth in the Asia-Pacific market and expects its U.S. sales to climb in 2013 on the strength of several new Ford and Lincoln models. Ford is also working diligently to offset deep losses in Europe, a market that is currently in steep economic decline. In Europe, Ford continues to cut jobs and is consolidating its manufacturing capacity.

Nearly three-quarters of the new Ford jobs will come in three areas: product development, manufacturing and information technology. The company is making its current job announcements through social media, utilizing Facebook, LinkedIn and Twitter to get the word out. Ford is also targeting military veterans as possible future employees. You can learn about Fords U.S. openings on its People & Careers page as well.

Employment Opportunities

Ford also features employee profiles and lists positions for current college students and recent graduates. The company offers Ford College Graduate, Leadership and Co-op programs, and is seeking summer interns students must have completed their junior year of college and meet other hiring criteria.

See Also — GM Announces Plans to Hire 1,000 High-Tech Workers and Ford Recruiters on Hand at Detroit Auto Show

Filed Under: Automotive News Tagged With: EMPLOYMENT, Ford Motor Company, HIRING, JOBS, SALARIED WORKERS, SOCIAL MEDIA

The Average Salary of Automotive Body Technicians

September 30, 2012 by admin 5 Comments

Information updated January 22, 2019.

What automotive body technicians earn.

By Charles K. Green

Automotive body technicians are tasked with repairing and refinishing automotive vehicle bodies. They may also straighten vehicle frames. Such professionals report to a supervisor to find out which parts are to be restored or replaced. Technicians must examine damage reports and will provide estimates for repairs. These professionals will sand body areas, fit and weld replacement parts, prime and paint repaired surfaces and remove damaged areas of the vehicle with the appropriate tools. Some technicians may also handle interior damage including torn upholstery, soiled carpeting, broken accessories and damaged electrical equipment.

Average Pay for Automotive Body Technicians

According to federal government data, the median wage for auto body technicians and mechanics was $19.02 per hour or $39,550 per year as of 2017. Average pay ranged from $22,610 for those in the 10th percentile to $65,430 for technicians in the 90th percentile. Those workers in the 25th percentile earned $29,370 per year on average and those in the 75th percentile made $53,590 per year.

Largest Industries

Overwhelmingly, the largest employer industry for auto body technicians is the retail trade industry. Most technicians work for automotive body shops or for car dealerships. Some are self-employed, operating their own shops or businesses.

By Location

car crashPay understandably varies around the nation. In California, auto body technicians earn more than the national average, coming in at an average salary of $46,680 per year. Across the board, California averages are higher ranging from $26,420 to $76,020 from the 10th to 90th percentile. Other states where pay exceeds the national average include New Jersey, Virginia, Hawaii, Maryland and Wyoming.

States with lower wages for automotive body technicians include Idaho, West Virginia and Mississippi. Indeed, in Mississippi, starting pay is as low as $23,700 per year and tops out around $61,470 annually. The median pay is $38,230 or $3,740 below the national average.

Automotive Body Technicians Training

Approximately one-quarter of automotive body technicians do not have a high school diploma. Nearly one-half of such technicians have a high school diploma or a GED and about 28 percent have training beyond high school.

The U.S. Bureau of Labor Statistics recognizes three apprenticeship specialties that are associated with this occupation including automobile-body repairer, service mechanic and a truck-body builder. A number of schools offer formal training leading to a certificate in autobody technology. These students take courses in refinishing, metal repair, autobody welding, collision repair and paint matching according to the Education Portal website.

Many programs are offered through public community or technical colleges that also may offer a two-year or associate of applied science degree in autobody technology. Students may find better pay and opportunities by completing a formal program.

Job Outlook

As of 2017, there were 749,900 people categorized as automotive body and related repairers including auto body technicians. The BLS expects that through 2026, 45,900 people will find employment, reflecting a 6 percent increase in jobs. That increase roughly parallels the projected job growth forecast for all careers.

Additional Salary Articles

What Diesel Service Technicians and Mechanics Earn

The Average Salary of Automotive Engineering Technicians

The Average Salary of Automotive Glass Installers and Repairers

The Average Salary of Automotive Engineers

The Average Salary of Automotive Service Technicians

Sources

O*NET OnLine: Summary Report for: 49-3021.00 – Automotive Body and Related Repairers

U.S. Bureau of Labor Statistics: Automotive Body and Glass Repairers

Filed Under: Automotive Career Tagged With: AUTO BODY TECHNICIAN, AUTOMOTIVE INDUSTRY, BUREAU OF LABOR STATISTICS, EDUCATION, EMPLOYMENT, MEDIAN PAY, TRAINING

The Average Salary of Automotive Service Technicians

December 8, 2011 by admin 7 Comments

Information updated January 2016.

By Charles K. Green

What automotive technicians and car mechanics earn.

Automotive service technicians and mechanics are trained to diagnose, adjust and repair vehicles, performing work ranging from accomplishing oil changes to handling complex engine and transmission overhauls. These professionals, numbering more than 740,000 people as of 2014, often receive training through technical schools with follow up training on the job or through select training programs. As of 2014, the U.S. Bureau of Labor Statistics reports an average annual wage of $39,980 for such professionals.

Automotive Service Technicians Average Pay

sparksPay for automotive professionals including mechanics and service technicians ranges from $20,800 per year for those in the 10th percentile to $62,280 for those in the 90th percentile. Most workers likely made somewhere between the 25th and 75th percentile, earning $27,270 to $49,780 per year. The median average salary for these workers was $37,120 according to the BLS.

Largest Industries for Employment

Nearly two-thirds of all technicians and mechanics are concentrated in three industries: automotive repair and maintenance businesses; automobile dealers; and automotive parts, accessories, and tire stores. Those working in the first industry earned an annual mean wage of $37,060; those employed in the second industry earned $44,000 on average. Those employed in the third-largest industry earned $34,580 per year on average.

Other industries employing significant numbers of technicians and mechanics included local governments such as towns and cities, where these individuals could expect to earn $49,320 per year on average. Gasoline and related service stations paid $35,420 per year on average.

Salaries By Location

Where you live can have a huge bearing on what you can earn as an automotive service technician or car mechanic.

Among states, Alaska offered the highest wages, with such workers earning $52,050 per year. New Jersey, Massachusetts followed with average pay ranging from $44,950 to $46,240 per year. On the lower end of the pay spectrum were such states as West Virginia where wages averaged $31,370 per year. Maine at $36,710 and Montana at $37,940 were other states where average salaries were well below the national mean.

Training Requirements

Important for this industry is the training such professionals earn, usually learned at the high school or technical college level. Many employers look for automotive service technicians who have completed such training and may require National Institute for Automotive Service Excellence certification as a condition of employment. Some car manufacturers and franchised automotive dealers sponsor associate degree programs at postsecondary schools across the United States. Such programs typically allow students to alternate their schooling with working in a service department, allowing students to earn a salary and to receive training concurrently.

BLS Job Outlook

The BLS has forecast a 5 to 8 percent growth rate in the number of jobs available for the 10-year period from 2014 to 2024. This rate is slightly below the national growth average for all jobs. For those who complete their secondary training and obtain ASE certification, their prospects are expected to be very good. Possessing superior diagnostic skills and familiarization with today’s complex vehicle systems, including hybrid drivetrains is a bonus. Expect positions to continue to open as older workers retire. And, with people keeping their cars longer, the need for trusted mechanics to help keep these vehicles running should remain strong.

Additional Salary Articles

The Average Salary of Automotive Body Technicians

What Diesel Service Technicians and Mechanics Earn

The Average Salary of Automotive Engineering Technicians

The Average Salary of Automotive Glass Installers and Repairers

The Average Salary of Automotive Engineers

Filed Under: Automotive Career Tagged With: AUTOMOTIVE SERVICE TECHNICIANS, CAR MECHANICS, CAREER, EMPLOYMENT, PAY, SALARIES

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