In LA, an Industry Thrives (It's Not the Movies)

There is a thriving industry in the Los Angeles area, and it's not filmmaking.

It's automotive.

L.A. has become a motor city of sorts. It is a local industry that is generating billions of dollars in business activity and creating high quality jobs, according to the Los Angeles County Economic Development Corp.

But neither locals nor outsiders truly understand the vast benefit of this activity, according to the agency's new report, “The Automotive Industries in Southern California.”

“Leaders in Los Angeles need to pay a little more attention to this industry, because of the multiple benefits it yields,” says Jack Kyser, the development corporation's chief economist.

He adds, “Tennessee clearly recognized them,” referring to Nissan North America Inc. moving from LA to Nashville, which offered various incentives and cost savings.

That relocation is one of metro LA's few automotive setbacks. The area is North American headquarters of eight foreign auto makers, including Toyota Motor Sales U.S.A. Inc., American Honda Motor Co. Inc. and Hyundai Motor America Inc.

These firms employ nearly 15,000 people and generated nearly $45 billion in sales in Los Angeles County alone.

Supporting the auto makers are 14 research, design and development facilities in Southern California, plus two proving grounds. In the works are Honda's Advanced Design Studio and Acura's Design Studio.