Federal Register - November 8, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 213 / Monday, November 8, 2021 / Notices Figure 20, U.S. engine manufacturers have, in large part, transitioned to
assembly operations and away from manufacturing and innovation.109
BILLING CODE 3510DRP
Figure 20: U.S. Engine Production for Domestic Use vs. Imports of Engine Parts 10,000
9
9,000
8,000
7,000
6,000
S,000
J
!i
0
4,000
3,000
2,000
1,000
0
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
-Engine Production Left Axis
2010
2011
2012
2013
2014
2015
2016
2017
-Imports of Engine Parts Right Axis
Source: Wards Intelligence InfoBank; Department of Commerce, Census Bureau. Domestic
With respect to automobile transmissions, the United States has long been a significant importer of completed transmissions. From 1989 to 2017, the United States imported, on average, 50 percent of transmissions used in domestic automobile manufacturing.110 In 2017, automobile manufacturers in the United States imported 5.1 million completed transmissions representing 47 percent of domestic demand while domestic production captured the remaining 53
percent.111 As with engines, American-
owned producers sourced TEXT
REDACTED of transmissions domestically in the United States whereas foreign-owned producers sourced TEXT REDACTED of their transmissions in the United States in 2015.112
In addition to import penetration by transmissions displacing domestic production, transmission producers in the United States have increasingly shifted to foreign suppliers for the parts needed to build transmissions. As shown in Figure 21, in 2000 the United
States imported $457 in parts per transmission produced domestically. By 2017 imports had increased to $1,226 in parts per transmission produced domestically.113 U.S. transmission producers are increasingly becoming assemblers; they are not developing emerging technologies associated with next-generation transmissions, and thereby are reducing the availability of the skills, equipment, and R&D needed to maintain global leadership in this important component of automotive production and defense mobility.
109 Id. Although the value and complexity of automobile engines has increased over this period, the relative rate of growth of the average unit value of imported engines up 179 percent from 1989 to 2017 and imported parts per domesticallyproduced engine 370 percent from 1989 to 2017
indicates that there is an increased reliance on imported parts by U.S. engine manufacturers.
110 Department of Commerce, Census Bureau;
Wards Intelligence InfoBank. Department of Commerce calculations.
111 Id.
112 U.S. Producers Survey Responses, Question 6.
2015 is the most recent year for which data were available.
113 Department of Commerce, Census Bureau;
Wards Intelligence InfoBank. This represents nominal figures, which do not take into account inflationary and foreign exchange changes over time. Appropriate real figures are not publicly available. Includes HS10 codes 8708996700, 8708996790, and 8708996890 in addition to the transmission parts listed in Section VIII to create a more consistent time series.
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use refers to use in automobiles produced and sold in the United States.
