Auto Makers Still Rolling in L.A.

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L.A.’s auto industry is dead. Right? After all, the last car rolled off a local assembly line 15 years ago.


Not according to a recent report by the Los Angeles County Economic Development Corp, which says the industry retains a formidable presence in Southern California, contributing $86 billion to the local economy.


Despite the much-publicized departure of Nissan Motor Corp.’s North American headquarters for Nashville, Tennessee, eight foreign auto makers still have their U.S. headquarters in Southern California, including Toyota Motor Sales USA Inc., American Honda Motor Co. Inc. and Hyundai Motor America Corp.


Together, these firms employ nearly 15,000 people and generate nearly $45 billion in sales in Los Angeles County alone, according to the report.


“We all know that autos play a huge role here, but this report shows just how big and deep the auto industry is in Southern California,” said George Huang, the LAEDC economist who researched and wrote the study.


Supporting these and other auto makers are 12 research, design and development facilities that chose to locate in the car capital of the world. Among these are General Motors, BMW, Mercedes-Benz, Mazda, Isuzu and Hyundai. In addition, Honda is opening an advanced design studio in Pasadena in the next few months, while Acura Honda’s luxury vehicle line is opening its own design shop in Torrance early next year.


“It’s not just that there are so many cars on the roads. This is also the place where people tinker with their cars, and the automakers want their design folks here to pick up on this,” Huang said.


The report also notes the presence of 1,600-plus new and used car dealers in the Los Angeles area, by far the most of any region in the country, generating nearly 70,000 jobs and a $3.6 billion payroll. And no wonder: in Southern California, there are 12.8 million registered vehicles, or 1.2 vehicles for every licensed driver, one of the highest ratios in the country.


The auto makers also have used the region’s advertising and marketing talent to sell these cars to buyers in Southern California and across the nation. The report does not quantify the economic activity this generates.


For auto buyers who want a little extra on their vehicles, the report notes there are over 400 parts manufacturers in the region, mostly catering to the auto aftermarket. Throw in all the auto repair shops, tire dealers and other assorted facilities and that’s another 50,000 jobs generating $2.3 billion for the local economy.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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