STATE ECONOMIC IMPACT STUDY

INDIANA

Toyota

Honda

Subaru

Mercedes-Benz

2

186

INTERNATIONAL AUTOMAKERS IN INDIANA

LAFAYETTESUBARU OF INDIANA AUTOMOTIVE, INC.

• OPENED in 1989

• PRODUCES the Legacy, Outback, and Impreza

• EXPORTS the Legacy, Outback, and Impreza

SUBARU RESEARCH AND DEVELOPMENT

• OPENED in 1993

MISHAWAKAAM GENERAL, LLC (MERCEDES-BENZ)

• OPENED in 2015

• PRODUCES the R-class

• EXPORTS the R-class

PRINCETONTOYOTA MOTOR MANUFACTURING, INDIANA, INC.

• OPENED in 1996

• PRODUCES the Highlander, Highlander Hybrid, Sequoia, and Sienna

• EXPORTS the Highlander, Sequoia, and Sienna

PRINCETONTOYOTA MOTOR MANUFACTURING, INDIANA, INC.

• OPENED in 1996

• PRODUCES the Highlander, Highlander Hybrid, Sequoia, and Sienna

• EXPORTS the Highlander, Sequoia, and Sienna

Manufacturing Facilities

R&D Facility

Dealership Franchises

GREENSBURGHONDA MANUFACTURING OF INDIANA, LLC

• OPENED in 2008

• PRODUCES the Civic Sedan

• EXPORTS the Civic Sedan

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IMPACT ON INDIANA’S WORKFORCE 113,400 JOBS CREATED IN INDIANA For every one direct job created by international automakers, approximately 9.4 additional jobs were created in Indiana.

INTERNATIONAL AUTOMAKERS’ INVESTMENT IN INDIANA

Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015.

10,954direct jobs

102,446indirect jobs

113,400 jobs represents 4.4%

of Indiana’sprivate sector employment

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KEEPING HOOSIERS HEALTHYInternational automakers offer their workers a range of medical, dental, vision, and pharmaceutical insurance. Access to preventive care, coordination of care, and patient safety improves the health of the overall community.

BUILDING & EDUCATING A STRONGER WORKFORCEInternational automakers offer innovative workforce development programs to provide workers training and support needed to help advance their careers and increase their incomes.

INTERNSHIP OPPORTUNITIES: Subaru of Indiana Automotive’s internship program is a collaboration between Subaru, Vincennes University and the Purdue Polytechnic Institute to provide students with an internship opportunity in computer integrated manufacturing, combining classroom education with real-world, hands-on work experience.

CO-OP PROGRAMS: Honda Manufacturing of Indiana’s co-op program offers real-world training for students at designated universities. Students develop business and engineering skills and gain valuable feedback from professional in a leading manufacturing environment.

TECHNICAL TRAINING: Toyota’s Advanced Manufacturing Technician Program includes a two-year Associate degree in Advanced Manufacturing Automation Technology that combines a cutting-edge curriculum and best practices with paid work experience.

CONTINUING EDUCATION: Working with the Purdue Polytechnic Institute, Subaru associates are able to attend classes at the company’s manufacturing plant campus that fit their individual work schedules.

COMMUNITY INVOLVEMENT: Honda associates actively participate in community projects and organizations, and visit local schools to generate interest among students in STEM-oriented careers.

K-12 EDUCATION PIPELINE: Toyota USA & Project Lead the Way partner in developing manufacturing pathways through project based learning. The program includes a two year $1 million grant to expand STEM education in elementary, middle and high schools.

INDIANA COMMUNITY BENEFITS

INTERNATIONAL AUTOMAKERS’ PAYROLL IN INDIANA

INTERNATIONAL AUTOMAKERS CONTRIBUTED $6.6 BILLION TO HOUSEHOLD INCOMES IN INDIANA IN 2015.

$6.6 billion employee compensation

Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015.

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INDIANA EXPORTS MOTOR VEHICLES

• International automakers exported vehicles manufactured in Indiana to 40 countries and territories around the globe.

• Six Indiana-made models are exported: Honda Civic Sedan; Subaru Legacy and Outback; Toyota Highlander, Sequoia and Sienna

$6.6 billionin vehicles exported

INTERNATIONAL AUTOMAKERS MOVE INDIANA FORWARD

WE’VE HELPED GROW INDIANA BY $13 BILLION The operations and related activities of international automakers in the U.S. contributed $13.0 billion to the Indiana State Product (GSP) in 2015 — accounting for 3.9 percent of the state’s total GSP.

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International automakers contributed

$13.03 billion to Indiana’s GSP

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$13.17billion

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$11.80billion

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$10.92billion

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$5.287billion

$5.62billion

INTERNATIONAL AUTOMAKERS PRODUCE NEARLY ONE MILLION VEHICLES IN INDIANA

PASSENGER CAR AND LIGHT TRUCK VOLUME1 mil

900k

800k

700k

600k

500k

400k

300k

200k

100k

0

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2014

*Production data from WardsAuto InfoBank for Honda, Subaru, and Toyota. Vehicles are made, built, or manufactured in the United States using domestic and globally sourced parts.

905,225 Vehicles Produced in 2015

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2015

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Type of Tax State Local

Individual Income $217 million $52 million

Motor Fuel, Alcoholic Beverages, Tobacco, Utility Services

$153 million $10 million

Sales $296 million $0

Other $23 million $5 million

Corporate Income $34 million $0

Property $0 $277 million

Motor License $15 million $4 million

Total Tax Receipts $738 million $348 million

INTERNATIONAL AUTOMAKERS GENERATE $1.1 BILLION IN STATE TAXES The economic activity generated by international automakers in Indiana is estimated to have produced $1.1 billion in state and local tax receipts in 2015.

INTERNATIONAL AUTOMAKERS’ SALES IN INDIANA

Data based on 2015 calendar year. Capital investment total is cumulative through December 31, 2015.

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INTERNATIONAL AUTOMAKERS CONTRIBUTE $1.7 BILLION TO FEDERAL REVENUESThe economic activity of international automakers in Indiana generated $1.7 billion in federal tax receipts and other revenues for the federal government in 2015.

Type of Revenue Total

Federal Insurance Contributions (FICA) $750 million

Corporate Income Tax $445 million

Personal Income Tax $415 million

Federal Excise Tax $59 million

Customs Duty $22 million

Federal Revenues Total $1.691 billion

METHODOLOGY: This study was conducted by M. R. Press Consulting, LLC using the IMPLAN economic impact model. The IMPLAN model is used by more than 500 universities and government agencies to estimate the economic and fiscal impacts of investments and/or changes in industry, and forecast tax revenue and employment generation within specific geographic areas.

IMPLAN is an input-output model. Input-output accounting describes commodity flows from producers to intermediate and final consumers. Input-output analysis quantifies the multiple economic effects resulting from a change in the final demand for a specific product or service. For example, a person being paid to work on a highway project will spend some of those wages to buy goods and services. The money he or she spends shows up as sales and wages to other parties, who spend the money elsewhere, and so on. This chain of effects, known as the “multiplier,” captures the distributive effects of the independent economic event, in this case, the production and sale of motor vehicles in the U.S. by International Automakers across a broad range of industries.

From these economic impacts, the fiscal implications are derived by reference to the observed relationships between state and local tax revenues in Indiana with its Gross State Product. Specific taxes are forecast to flow in the same proportions as observed in the State as a whole for 2013 (the most recent data available from the U.S. Census Bureau, Census of Governments).

SOURCES USED TO COMPILE THE DATA USED IN THIS REPORT: American International Automobile Dealers Association’s (AIADA) membership roster, the 2015 Global Automakers and AIADA Economic Impact Survey, NADA DATA, WardsAuto InfoBank, IHS Automotive, U.S. Census Bureau (County Business Patterns and Census of Governments), American Fact Finder, and the Minnesota IMPLAN Group.

Automobile manufacturers participating in the 2015 Global Automakers and AIADA Economic Impact Survey: BMW Group, Honda, Hyundai, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru, Toyota, Volkswagen Group, and Volvo.

Here For America tells the story of international automakers, their ever-growing impact on the U.S. economy, and the benefits they provide to local communities. The contributions of international automakers and dealers are integral to the success of today’s U.S. auto industry, the most vibrant and competitive auto market in the world.

Here For America is an initiative of the Association of Global Automakers to increase public education about the importance of international automakers to American job creation, economic growth, technological innovation, and strong communities.

LEARN MORE ABOUT THE ECONOMIC CONTRIBUTIONS IN ALL 50 U.S. STATES AT HereForAmerica.com

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