Focused on models built and sold in the US and based on several criteria such as components, labor or R&D efforts, a recent study pointed out what are the true “made in America” cars.
American University’s Kogod School of Business released this week the 2016 Kogod Made in America Auto Index report, a study that aims to offer a full picture of the production process for the most popular vehicles built and sold in the United States. And the top spots are evidently dominated by local automakers, with GM’s sister SUVs Buick Enclave, Chevrolet Traverse and GMC Acadia were jointly ranked as the most American-made 2016 car models. Ford’s F-150 grabbed the second place, while Chevrolet Corvette ended up in third. The Japanese automakers have managed to break down the Detroit top 10 supremacy through Honda and Toyota.
Kogod claims that its ranking methodology is an improvement from that of the American Automotive Labeling Act (AALA). Since the enactment AALA in 1994, automakers are required to provide information on the window labels with the ratio between US and Canadian parts, the country of assembly, and the engine and transmission origins. “AALA data, while useful, is not the most accurate means of assessing a vehicle’s contribution to the U.S. economy. It presents a number of limitations; U.S. and Canadian content are combined into one number, and automakers are allowed to round-up a part that is potentially only 70% U.S./Canadian to 100% U.S./Canadian,” the study noted.
Therefore, Kodo’s Index includes more comprehensive criteria, such as profit margin, labor, research and development, inventory, capital and other expenses, engine, transmission, body, chassis and electrical components.