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September 1, 2014, 10:18 pm

American Blacks can ride the auto revival

“Osama bin Laden is dead and General Motors is alive” should be the Obama 2012 campaign slogan. President Barack Obama’s role in the death of bin Laden troubles some, but his decision early in his presidency to extend billions in loans to General Motors and Chrysler has paid off. Just months ago, the American auto industry was on the brink of collapse. Now, it has rebounded and begun to making vehicles of, and for, America’s future.

Plants are hiring more workers, manufacturers are returning to profitability, exports of U.S. vehicles are increasing and some of the most technologically advanced vehicles are now being designed and produced in this country. The $80 billion bailout was President Obama’s “bet on the American worker” and there have been ample signs of success in the automotive industry since Obama’s bailout.

The news coming out of the U.S. automotive industry has been good for Black Americans. The automotive industry’s financial crisis was more devastating for African Americans than any other community and eroded a half-century’s economic gains by the Black middle class. From Blacks who left behind subsistence jobs in the South for high-paying factory jobs in the North during the Great Migration, to entrepreneurs and contractors in automotive businesses, the automotive industry has been a major factor in formation of the Black middle class. In 1945, Blacks comprised 15 percent of the automobile industry workforce, by the late 1970s, one of every 50 African Americans was working in the auto sector.” From 1979 to 2007, Black employment in the auto industry fell to about one in 100.

At the recent Washington Auto Show, President Barack Obama declared that “the U.S. auto industry is back.” After hitting a 30-year low in 2009, U.S. auto sales are poised for a second straight year of growth — the result of easier credit, low interest rates and pent-up demand for cars and trucks created by the Great Recession.

Black groups and activist should move to forge increased employment, contracting and community partnerships with U.S.-based carmakers as they crank up their factories and add thousands of jobs. In addition to the expanded plant operations and employment opportunities occurring among Detroit’s Big Three, foreign-owned auto companies such as Toyota, Honda, Nissan, Hyundai, Kia, Volkswagen and BMW have invested $44 billion in their U.S. operations to account for 80,000 direct vehicle-manufacturing jobs and 500,000 dealer and supplier jobs.

Automotive manufacturing can again help Blacks. The industry is adding jobs at a faster pace than airplane manufacturers, shipbuilders, health care providers and the federal government. Americans spent $40 billion more on new cars and trucks in 2011 than in 2009. The momentum in auto sales is likely to continue because people need to replace aging cars (the average age is 11 years old).  A substantive number of Americans are feeling more comfortable about their employment outlook and where they’re going. Domestic vehicle sales are expected to reach 17 million around 2018 as 70 million “Millennials” — born between 1981 and 2000 — buy cars and set up households.

These customer purchases will generate manufacturing activities that have the potential of reviving long-distressed populations and industrial sectors. Increasing manufacturing can turn long-suffering Rust Belt cities such as Anderson, Ind., Youngstown, Ohio, Lansing, Mich. and Kokomo, and Elkhart-Goshen, Ind., into revived and fast-growing sectors. The industry’s growth enhances Black Americans’ job and contracting opportunities.

It’s time Black Americans take Obama’s bold “bail-out move” to the next level. Innovation through education and research is vital to building a manufacturing economy. Creating a qualified workforce of technicians and engineers is essential to ensuring future success of America’s automotive industries. Black leaders and teachers must make sure workers have the skills they need for today’s and tomorrow’s jobs. We need to train our people with skills that will lead directly to jobs for them. Above politics, we each need to engage in development programs and policies that help people get and hold jobs. — (NNPA)

 

William Reed is head of the Business Exchange Network and available for speaking/seminar projects through the Bailey Group.org.