The Texas Automotive Manufacturing
Passenger Vehicles....... 10
Heavy Duty Trucks 16
Automotive Parts.... 20
The reports cover photos above are courtesy of the companies. From top left: Toshiba HEV motor, Peterbilt Model 579 truck, Cadillac Escalade, Toyota Tundra, Chevrolet Suburban, Load Trailer gooseneck trailer, Peterbilt Model 567 truck, Caterpillar C7 truck engine, Toyota Tacoma
Texas Auto Manufacturing Headlines
Jobs in Texas auto manufacturing sector surge over 29% since 2010
See Page 3
Texas automotive exports jump 49% over past five years
See Page 7
See Page 13
Toyota announces two new Texas auto suppliers, ASI and Forma Automotive
Caterpillar to close South Carolina plant, move C7 engine assembly line to Texas
See Page 22
Texas ranks No. 7 nationally for automotive manufacturing employment
See Page 3
Peterbilt celebrates 75 years in Denton, Texas
See Page 17
Toyota selects Texas for its new U.S. headquarters
See Page 12
See Page 11
General Motors Arlington assembly plant celebrates 60 years
These sectors include the assembly of complete cars
and trucks, as well as the manufacturing of motor
vehicle frames, chassis, cabs, utility trailers, military
vehicles, and automotive gasoline engines. The U.S.
governments North American Industry Classification
System (NAICS) classifies the auto industry under the
Automotive Manufacturing Sectors
Motor Vehicle Manufacturing/Assembly
Motor Vehicle Body & Trailer Manufacturing
Motor Vehicle Parts Manufacturing
Automotive Manufacturing in Texas
T exas is home to a well-established automotive manufacturing sector that, unlike in many other states, has continued to grow in the 21st century. A right-to-work state,
Texas is nationally ranked in the
top ten for automotive manufactur-
ing employment and establish-
ments, the size of its vehicle
retail market, and the number
of vehicle registrations. Texas is
also part of the growing NAFTA
auto corridor, where billions of
dollars of assembled vehicles and
auto parts are shipped between
Mexico and the Lone Star State.
The state is home to two major
passenger vehicle assembly plants,
operated by global leaders General
Motors (GM) and Toyota. GMs
Arlington plant has operated for 60
years and currently produces SUVs,
while Toyota began production of full-
size pickups at its San Antonio plant in
The automotive manufacturing industry
encompasses makers of cars and trucks,
motor vehicle bodies, and auto parts.
2014 Chevrolet Suburban
Major Automotive Manufacturers in Texas
Automotive Manufacturing Employment in Texas 2014 First Quarter
Sector (Industry Code) Employees Firms Average
Motor Vehicle Manufacturing (3361) 12,096 29 $75,752
Motor Vehicle Body & Trailer Manufacturing (3362) 7,424 168 $41,392
Motor Vehicle Parts Manufacturing (3363) 16,288 269 $53,300
TOTALS 35,808 466 $58,753
Source: Texas Workforce Commission
Texas ranks No. 7 nationally for automotive manufacturing
- U.S. Bureau of Labor Statistics (2012)
Top Automotive Manufacturing Employers In Texas (2013)
1 General Motors (Arlington): 4,500+
2 Toyota (San Antonio): 2,900
3 Peterbilt Motors: 2,200
4 Toshiba International Corp. 2,000
5 Caterpillar (Engine Assembly): 1,160
Although it is outside the traditional automotive belt
of the Midwest and Southeast, Texas is currently one
of the top ten states in the U.S. by number of automo-
tive workers and number of auto manufacturing
establishments. More than 466 automotive manufac-
turing firms directly employ over 35,800 workers in
Texas. Workers at these companies earn an average of
around $58,700 annually (see table below).
Auto Manufacturing Workforce
Employment has increased steadily over the past four
years, growing over 23.6% from 2010 to 2014 (see
chart on page 3).
The table below provides a snapshot of employment
in the Texas automotive manufacturing industry in the
first quarter of 2014. The motor vehicle parts manu-
facturing sector accounts for 45% of the states
automotive manufacturing employment (see chart at
Chart Source: Texas Workforce Commission
Texas Automotive Manufacturing Employment, by Sector
In 2012, Texas ranked No. 5 nationally for
automotive manufacturing establishments and No. 7
nationally for automotive manufacturing
employment (see table to right).
Between 2010 and 2014, overall employment in the
Texas automotive manufacturing industry increased
steadily, as the national
and global recession
receded and the
rebounded (see chart
above). Among the
three subsectors of the Texas automotive
manufacturing industry, the motor vehicle
manufacturing sector has led the way with
employment gains of more than 29.4% since 2010.
Motor vehicle body & trailer manufacturing
employment during the same period saw gains of
28.9%, while motor vehicle parts manufacturing
employment increased by 16.7%.
Source: Texas Workforce Commission Data from first quarter each year
Five-Year Trends: Texas Automotive Manufacturing Employment, 2008-2012
Motor Vehicle Parts Mfg.
Motor Vehicle Mfg.
Motor Vehicle Body & Trailer Mfg.
2010 2011 2012 2013 2014
The motor vehicle manufacturing sector has increased employment over 29.4 % since 2010
Source: U.S. Bureau of Labor Statistics
Texas Ranks No. 7 in the U.S. in Total Auto Manufacturing Employment
From electronics to fuel economy to tire perfor-
mance, a wide range of automotive technologies are
developed and tested by Texas companies.
Dallas-based electronics giant Texas Instruments
designs semiconductors for a range of
automotive applications, including body
electronics, power trains, hybrid chargers,
brakes, and infotainment systems.
Freescale Semiconductor, based in Austin, has
designed and manufactured automotive
semiconductors since the 1950s. As one of
the worlds leading suppliers of automotive
processors, microcontrollers, and sensors, Free-
scales technology is utilized in many new vehicles,
including GMs Texas-built hybrid SUVs. Freescale
has been a GM supplier for nearly 30 years.
Spansion, based in California with a major manu-
facturing site in Austin employing about 860,
expanded its share of the automotive market
with the 2014 debut of its Traveo line of
microcontrollers for electric and hybrid
vehicles. Spansions ARM-based dual-core chips are
designed to be used for electric vehicles, battery
management, air conditioning and heating systems,
and automotive displays.
Multiple smaller semiconductor firms in Texas also
supply the auto industry. These firms include
SMSC, which develops and supplies microelectron-
ics for automotive multimedia systems at
its Austin, design center, and Silicon
Labs, an Austin-based industry leader in the
development of mixed-signal integrated
circuits optimized for automotive applications.
Research & Development Automotive Test Facilities Near Fort Stockton, Texas, midway between El Paso
and San Antonio, lies Bridgestone Americas Texas
Proving Ground (TPG). Estab-
lished in 1955, TPG is more than
6,000 acres of flat land that
features a variety of test tracks and driving environ-
ments, where tires and vehicles can be tested in real-
German manufacturer Continental Automotive
Systems operates a state-of-the-art test track
facility in Uvalde, Texas. The
5,000-acre Uvalde Proving
Grounds rural location, com-
bined with high security, make it ideal for testing
top secret components and vehicles for ride, han-
dling, durability, and more. The facility was origi-
nally built by General Tire in 1959.
Also located in West Texas, the Goodyear Tire
Proving Grounds near San Angelo, provides the
leading tire maker with product
test facilities. Built in 1957, the
7,000-acre site is one of only
three proving grounds Goodyear operates in the U.S.
In Laredo, Texas, a 2,000-acre facility owned by
German firm MBTech Group offers a
variety of special tracks and surfaces
for vehicle and tire testing. The
company is a joint subsidiary of
AKKA Technologies, an industrial research and
development firm based in France, and Daimler, the
German parent company of Mercedes-Benz.
The Texas A&M Transportation Institute owns and
operates the Proving Grounds Research Facility, a
2,000-acre complex where
researchers test vehicles for all
kinds of clients and a wide spectrum of vehicles,
ranging from subcompacts to tractor-trailer rigs.
The facility performs crash tests and also tests
roadside safety devices.
T he Southwest Research Institute (SwRI), headquartered in San Antonio, Texas, is one of the nations oldest and largest independent, nonprofit, research and development organizations. Employing over 2,800, the institute occupies over two million sq. ft. of laboratories, test facilities, and offices. Its 2013 revenues exceeded $592 million.
SwRIs world-class Office of Automotive Engineering coordinates operations with automotive clients. Among these operations is the Engine, Emissions and Vehicle Research Division, which designs and tests a wide range of automotive technologies, including powertrains, fuel cells, and diesel systems. The Fuels and Lubricants Research Division helps clients get automotive component and fluid products to market and improve them during their lifespan. Additionally, SwRIs Automotive Fleet Testing program provides comparative data for vehicle performance under actual operating conditions.
SwRI currently operates seven automotive industry consortia to support its clients, as well as the U.S. Army TARDEC (Tank Automotive Research Development & Engineering Center) Fuels and Lubricants Research Facility, a government-owned facility in operation since 1957. The institute also maintains automotive operations abroad in India and in China through the Tianjin-based SwARC Automotive Research Laboratory, a joint venture with state-owned China Automotive Technology and Research Center (CATARC).
San Antonio Institute Puts Automotive Technologies to the Test
Automotive fuel performance evaluation
Engine oil oxidation testing at SwRI
R&D Credit Regulation In June 2013, Gov. Rick Perry signed HB 800 into law,
reinstating the R&D tax credit for Texas companies.
Both the sales tax exemption and research credit are
extended through 2026 and are expected to be a
boost to Texas manufacturing and high-technology
industries, including automotive. The law went into
effect in January 2014.
HB 800 reinstates franchise tax credits for companies
conducting qualified research activities (QRAs) within
the state. The new law provides Texas companies
the option of selecting either a sales tax exemption
on property purchased by persons engaged in QRAs
or the franchise tax credit, but not both.
Sharing the longest border with Mexico of any U.S.
state, Texas is uniquely positioned for international
trade with this significant emerging market in the
industry. Billions of
dollars in automotive
goods are shipped from
Texas has become an
important part of the
realigned North American auto alley, now running
north from Mexico through a number of
southern U.S. states, to the Midwest rust
belt. The traditional U.S. auto corridor
radiating from Detroit has rapidly shifted
toward the U.S. South since the 1980s.
Almost all the North American
automotive plants built in the last two
decades were located in a southern U.S.
state or Mexico. Many foreign-owned
automotive firms, such as Toyota,
Nissan, Subaru, Volkswagen, Mercedes-
Benz, BMW, and Kia, have located their
operations in southern right-to-work
states, away from the traditional center of
U.S. automotive manufacturing.
Spurred by the 1992 North American
Free Trade Agreement (NAFTA), Texas
serves as a primary link between
Mexicos automotive plants and the rest
of the U.S. automotive industry. The
NAFTA superhighway, which runs
through Texas as Interstate 35, serves as
a main artery for the southern U.S. and
northern Mexicos auto manufacturing
industry. The regions large, skilled, and
cost-effective labor pool, coupled with
the NAFTA provision that qualifies any
product with at least 62.5% American,
Mexican, or Canadian parts to be duty-free, has made
Texas a highly competitive location for automotive
manufacturers. The shaded region on the map below
represents the NAFTA superhighway corridor.
NAFTAs impact is evident in northeastern Mexicos
growing automotive cluster, located near the border of
Texas. Manufacturers with facilities in this region of
Mexico include GM, Toyota, Peterbilt, Freightliner,
and Navistar International. Some of these firms also
have facilities in Texas, which are detailed on the map
on page 1 of this report.
M E X I C O
T E X A S
Auto Manufacturing in the Texas-Mexico Corridor
Tier 1 OEM Suppliers
Map courtesy of Bexar County Economic Development
The Texas-Mexico Automotive Corridor
Texas serves as a primary link between Mexicos auto plants and the rest of the U.S. auto industry
In 2013, Texas ranked as the No. 3 state for transpor-
tation equipment exports, with a value of over $24.4
billion, according to the U.S. Census Bureau.
NAFTA partners Mexico and Canada were the top
two destinations for Texas transportation exports.
Over the past five years, Texas automotive exports
have increased almost 49% from around $9.2 billion
in 2009 to over $18.1 billion in 2013. Two of the
three major motor
segments grew during
this period (see chart
below), despite the 6%
decrease in the motor vehicle manufacturing segment
between 2012 and 2013. Motor vehicle parts is the
largest of the three segments and experienced the
strongest growth, increasing 50.6% from over $5.8
billion in 2009 to over $11.8 billion in 2013.
In 2013, Texas ranked No. 3 nationally for transporta-
tion equipment imports, with a value of over $27.1
billion, according to the U.S. Census Bureau. Mexico and Germany were the top two countries importing
transportation equipment into Texas.
Foreign Trade & Logistics
Over the past 5 years, Texas automotive exports increased 49%
Five Year Trends: Texas Automotive Exports, 2009-2013
Source: U.S. Census Bureau, Foreign Trade Division
Hisun Motors selects McKinney for New N.A. Headquarters
In April 2014, China-based Hisun Motors