Foreign Investment:

Japanese-Affiliated Automakers' 1989 U.S. Production's Impact on Jobs

NSIAD-91-52: Published: Oct 17, 1990. Publicly Released: Nov 16, 1990.

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Pursuant to a congressional request, GAO estimated the possible effects of automobile production by Japanese-affiliated automakers in the United States on 1989 U.S. employment.

GAO found that the production of Japanese-affiliated automakers in the United States led to approximately 11,000 net job losses in 1989. In addition, GAO found that the 1989 estimate was based on assumptions that: (1) 68 percent of the Japanese affiliates' production in the United States displaced other U.S.-produced autos; and (2) the remaining 32 percent made up the difference between Japan's voluntary export restraint level and auto imports from Japan. GAO also found that a key factor in the net job loss estimates was that Japanese-affiliated automakers bought 50 percent of their parts from U.S. sources in 1989, up from 38 percent in 1988.

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