2016 American University KOGOD Made in America Auto Index

Discussion in 'In the News' started by xcel, Jun 21, 2016.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] In 2015, 65 percent of the 17.5 million vehicles sold in the U.S. were produced in the U.S.

    [​IMG]Wayne Gerdes – CleanMPG – June 21, 2016

    Chevrolet Traverse line in Lansing, Michigan.

    According to the American University KOGOD School of Business, the auto industry was directly responsible for approximately 1.55 million employees and supports an additional 5.7 million jobs in repair shops, part supply stores, and car dealerships.

    Since the enactment of the American Automotive Labeling Act (AALA) in 1994, automakers are required to provide information on the label detailing the amount of U.S. and Canadian parts content, the country of assembly, and the engine and transmission’s country of origin.

    Unfortunately AALA data is not as accurate as it could be so the Business School added and refined criteria to make a better assessment of the American automotive business sector.

    For one, U.S. and Canadian content is combined into one number, and automakers are allowed to round-up a part that is potentially only 70 percent U.S./Canadian to 100 percent U.S./Canadian.

    The components of the index are based on research into the economic value of different components of auto manufacturing that was done by the Center for Automotive Research in Ann Arbor Michigan. For example, the highest ranked cars are made by U.S. based manufacturers using American engines and transmissions, and a with a high AALA percentage of U.S. and Canadian parts.

    GM’s U.S. Production and Content Lead

    For the fourth consecutive year, GM vehicles lead the Made in America Automotive Index.

    The Buick Enclave, Chevrolet Traverse and GMC Acadia together tied for No. 1, while 17 other GM vehicles ranked in the Top 10.


    KOGOD measurement and list improves on AALA data by incorporating a more comprehensive research methodology, providing consumers with a more accurate view of their vehicle's composition. The Kogod study considers:
    1. Profit Margin: Location of Global HQ
    2. Labor: Where the vehicle is assembled
    3. Research and Development: R&D activity location
    4. Inventory, Capital, and Other Expenses: Assembly location
    5. Engine: Location of production
    6. Transmission: Location of production
    7. Body, Chassis and Electrical Components
    According to the AALA, if 75 percent or more of a car’s parts by value come from the U.S. or Canada, it’s considered a domestic product.

    I am not sure how #1 fits into the equation so here is the KOGOD School’s reasoning:

    The labor segment measure considers where the car is assembled. If a model is assembled in the US, it receives a 6. If not, the model receives a 0. We assume that approximately 6% of the vehicle’s value is labor content.

    R&D considers the location of a car’s R&D activities. If the model is a product of a U.S. company, it receives a 6. If it is the product of a foreign company but is assembled in the U.S. it receives a 3; if it is a foreign import it receives a 1.

    If assembly occurs in the US, the model receives an 11; if not, it receives a 0.

    If the engine is produced in the US, the model receives a 14; if not it receives a 0.

    Transmission. If the transmission is produced in the US, the model receives a 7; if not it receives a 0.

    Body, Chassis, and Electrical Components. 50 percent of a vehicle’s score is assigned to this category. The AALA percentage is divided into two to derive this score.

    All-in, 0s and full scores plus a simple commingling of data does no tell the whole story but it is another way of looking at American made. With NAFTA in force and the rush to manufacture in Mexico, Audi, BMW, Ford, GM, Mazda, and Nissan to name a few, maybe this list will mean more as the industry moves forward.
  2. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    America’s Best Selling Car is Still Most “American Made”

    As a counterpoint to the story above, the best-selling car in America for 14 years running is recognized as the most American made. For the second year in a row and sixth time overall, the Toyota Camry claims the top position as American-Made Index according to Cars.com.

    2016 Toyota Camry

    30th anniversary of the model with this new Camry rolling off the line.​

    The American-Made Index rates vehicles built in the U.S. Factors include the percentage of parts considered domestic under federal regs, whether the car is assembled in the U.S. and U.S. sales. Models with a domestic parts content rating below 75 percent are disqualified along with models built exclusively outside the U.S. or models soon to be discontinued without a U.S.-built successor. According to NHTSA, the U.S.-sold domestic content for Camry is 75 percent.

    The Camry is assembled at Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) in Georgetown, Ky., and more than 270 supplier locations in the United States provide content for the current generation. TMMK is Toyota’s largest vehicle manufacturing plant in the world with annual capacity to produce 550,000 vehicles and 600,000 engines.

    Toyota’s Georgetown plant just north of Lexington, Ky, home of the Camry, covers more than 1,300 acres. The facility is 8.1 million sq. ft., all under one roof. In addition to Camry and Camry Hybrid, TMMK assembles the Avalon, Avalon Hybrid and Lexus ES 350, which began production last fall, the first time a Lexus vehicle has been produced in the U.S. The plant also produces axles, steering components, machined blocks, cylinder heads, crankshafts, camshafts and rods and axle assemblies. Since vehicle production began in 1988, more than 10 million vehicles have rolled off the Georgetown assembly line where full-time employment is nearly 8,000.

    In addition to manufacturing, a significant amount of design and engineering of both Camry and Sienna took place in the United States at Calty Design Research, Inc. and Toyota Technical Center (TTC), respectively. Calty is headquartered in Newport Beach, Calif., with a production design studio in Ann Arbor, Mich., and TTC is based in York Township, Mich. Both Camry and Sienna have American chief engineers.

    Toyota has five assembly plants in the United States, which produced 1.34 million vehicles in 2015, and another five manufacturing facilities that produce vehicle engines, parts and components. Toyota annually purchases $35.3 billion of parts/components and goods and services in the United States.

    Toyota has nearly 35,000 direct employees in the U.S., which includes nearly 25,000 in manufacturing.

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