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  • Domestic content?

    Reading about the new trade agreement today got me wondering about percentage US content in our favorite car.

    I didn't find the percentage although it's probably less than 70%, given that the Corvette only ranks 10th on the "percentage US content" list, where the #1 most US-made car is the Jeep Cherokee at 72%. domestic content.

    So where is the 30% coming from? Canada? Mexico?

    Article here https://www.cars.com/articles/carsco...1420700348632/

    Fun fact. 4 of the top 10 most American cars are by Honda.

    2020 C8 Corvette.D.O.B 2/03/2020
    Shadow Grey Metallic on Black
    2LT, Z51 + MRC. GT1 seats.
    Spectra Grey Tridents.
    Carbon flash mirrors and spoiler.

  • #2
    Originally posted by Bikerjulio View Post
    I didn't find the percentage although it's probably less than 70%, given that the Corvette only ranks 10th on the "percentage US content" list...

    So where is the 30% coming from? Canada? Mexico?
    It's nice to see the Vette ranked on another positive Top 10 list.

    The article mentions the Volt (#5 on the list) is at 66%, so the Vette may be in the 50-60% range.

    Canada and Mexico likely are significant contributors, as well as China (?).
    My C8:
    '20 Elkhart Lake Blue 2LT Coupe, Natural Interior, GT2 Two-Tone Seats, Performance Exhaust, Front Lift, Carbon Flash Wheels, Engine Appearance Package 2000 Status December 27, 2019; 3000 Status January 2, 2020; 3400 Status March 10, 2020;TPW March 16, 2020; Built June 4th, 2020 (COVID-19); Delivery July 1, 2020

    Current Vettes:
    '68 Lemans Blue 327/350 Convertible
    '91 Turquoise Convertible with Hardtop
    '14 Lime Rock Green 2LT Convertible, Black Top, Kalahari, 7-Speed, Performance Exhaust

    Comment


    • #3
      Overall the US automakers are happy with the new deal. GM said:

      "General Motors Co. GM -0.18% applauded the accord, saying it has long supported efforts to modernize the existing free-trade pact among the three countries. “This agreement is vital to the success of the North American auto industry,” the auto maker said."

      Thats good enough for me.


      https://www.wsj.com/articles/u-s-aut...act-1538398569
      Last edited by Boomer; 10-02-2018, 09:52 AM.

      Comment


      • #4
        According the American University Annual Study of USA parts content, referred to as the Kogod study in the auto industry, in 2018, the Corvette came out # 1 with 83.5% rating on is parts. Of course, like every study, it depends on how one assigns different values to different items, but being # 1 is still very nice.

        Originally posted by AmericanUniversity
        Made in America Auto Index — 2018 Research by Frank DuBois

        What percentage of your vehicle's value contributes to the overall well-being of the U.S. economy and why does this information matter to you?

        Kogod's 2018 Made in America Auto Index seeks to answer these questions by evaluating the domestic content of vehicles sold in the US. The index takes into account other aspects of vehicle manufacturing that are not accounted for in other measures.

        Seven criteria are considered, including profit margin, labor, and research and development location, among others. Why is the Index important?

        Economic Impact

        Improving Upon the Label

        MEDIA QUERIES

        For interview requests and questions about Frank DuBois’s research, please contact:

        University Communications
        202-885-5950 | [email protected]
        1 General Motors LLC Corvette A/T Chevrolet 67% 1 83.5
        2 General Motors LLC Volt Chevrolet 66% 1 83.0
        3 Ford Motor Company F150-4X2 5.0L Ford 15% 65% 1 82.5
        3 Ford Motor Company F150-4X4 2.7L, 5.0L Ford 15% 65% 1 82.5
        3 Ford Motor Company Continental Lincoln 23% 65% 1 82.5
        4 Fiat Chrysler Automobiles Wrangler JK Sport 4X4 Jeep 74% 0.5 81.0
        5 Fiat Chrysler Automobiles Wrangler JK Unlimited Willys Wheeler 4X4 Jeep 15% 73% 0.5 80.5
        5 Fiat Chrysler Automobiles Wrangler 3.6 Jeep 15% 73% 0.5 80.5
        5 Ford Motor Company Taurus 3.5 Ford 61% 1 80.5
        5 Ford Motor Company MKC Lincoln 20% 61% 1 80.5
        6 Ford Motor Company Explorer Ford 57% 1 78.5
        6 General Motors LLC ATS Sedan AWD Cadillac 19% 57% 1 78.5
        6 General Motors LLC ATS Cadillac 19% 57% 1 78.5
        6 General Motors LLC Camaro 1LT 2.0 Chevrolet 19% 57% 1 78.5
        6 General Motors LLC Acadia AWD Denali GMC 21% 57% 1 78.5
        6 Honda Motor Co., Ltd. Ridgeline AWD/FWD Honda 75% 0 78.5
        6 Honda Motor Co., Ltd. Odyssey EX-L, Elite Honda 75% 0 78.5
        7 Ford Motor Company Mustang A/T Ford 56% 1 78.0
        7 Ford Motor Company Mustang 5.0L GT Coupe (AT) Ford 56% 1 78.0
        8 Tesla Model S Tesla 15% 55% 1 77.5
        9 General Motors LLC Corvette M/T Chevrolet 67% 1 76.5
        10 Honda Motor Co., Ltd. MDX (2WD and AWD) Acura 70% 0 76.0
        10 Honda Motor Co., Ltd. TLX AWD Acura 70% 0 76.0
        10 Honda Motor Co., Ltd. Pilot Honda 70% 0 76.0
        11 General Motors LLC Colorado (Gas and Diesel) Chevrolet 30% 51% 1 75.5
        12 General Motors LLC LaCrosse FWD 2.5 Buick 25% 50% 1 75.0
        12 General Motors LLC LaCrosse Buick 25% 50% 1 75.0
        12 General Motors LLC Malibu LTD Chevrolet 25% 50% 1 75.0
        12 Tesla Model X Tesla 25% 50% 1 75.0
        12 Tesla Model 3 Long Range Tesla 25% 50% 1 75.0
        13 Fiat Chrysler Automobiles Wrangler JK Rubicon 4X4 Jeep 74% 0.5 74.0
        14 Fiat Chrysler Automobiles Wrangler JK Unlimited Sahara 4X4 Jeep 15% 73% 0.5 73.5
        14 Honda Motor Co., Ltd. RDX AWD/2WD Acura 65% 0 73.5
        14 Honda Motor Co., Ltd. TLX AWD FWD A-spec Acura 65% 0 73.5
        14 Honda Motor Co., Ltd. RLX AWD FWD Acura 65% 0 73.5
        14 Honda Motor Co., Ltd. CR-V 2WD 4WD (VIN = 1,4,5) Honda 65% 0 73.5
        14 Honda Motor Co., Ltd. CR-V 1.5 T AWD EX Honda 65% 0 73.5
        14 Toyota Avalon Toyota 65% 0 73.5
        14 Toyota Tundra 4X4 Toyota 65% 0 73.5
        15 General Motors LLC Sierra GMC 44% 46% 1 73.0
        16 General Motors LLC Cruze 4DR Sedan Chevrolet 34% 45% 1 72.5
        16 Tesla Model 3 Tesla 25% 45% 1 72.5
        17 General Motors LLC CTS Cadillac 19% 57% 1 71.5
        17 General Motors LLC XT5 Cadillac 21% 57% 1 71.5
        17 General Motors LLC Traverse FWD 2.0 Chevrolet 21% 57% 1 71.5
        17 General Motors LLC Camaro ZL1 6.2 M/T Chevrolet 19% 57% 1 71.5
        18 Ford Motor Company Mustang 2.3L Ecoboost Coupe M/T Ford 56% 1 71.0
        18 General Motors LLC Escalade Cadillac 44% 42% 1 71.0
        18 General Motors LLC Escalade ESV 4WD Cadillac 44% 42% 1 71.0
        18 General Motors LLC Surburban 4WD 1/2 ton LT Chevrolet 44% 42% 1 71.0
        Showing 1 to 50 of 544 entries
        Previous12345…11Next HOW DOES THE INDEX WORK?

        The index uses seven points derived from publicly available data.

        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.

        The seven criteria are as follows:
        1. Profit Margin - This was measured based on the location of an automaker’s headquarters. If an automaker’s global headquarters is located in the US, the model receives a 6. If it is not, it receives a 0. The assumption here is that (on average), 6% of a vehicle’s value is profit margin, so if it is a U.S. automaker, the profits remain in the country.
        2. Labor - This category 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.
        3. Research and Development (R&D) - This category looks at the location of a car’s R&D activities. If the model is a product of a US 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.
        4. Inventory, Capital and other expenses - If assembly occurs in the US, the model receives an 11; if not, it receives a 0.
        5. Engine - If the engine is produced in the US, the model receives a 14; if not it receives a 0.
        6. Transmission - If the transmission is produced in the US, the model receives a 7; if not it receives a 0.
        7. Body, Chassis, and Electrical Components - 50 % of a vehicle’s score is assigned to this category. The AALA percentage is divided into two to derive this score.
        https://www.midenginecorvetteforum.c...mestic-content
        GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.

        Comment


        • #5
          In response to Bikerjulio’s question above, a good amount of the Corvette’s non U.S. content is from Canada and Mexico. For example, the # 1 rating is for the automatic trans Corvette, while the manual trans is #9 — due to its Tremec being made in Mexico.
          GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.

          Comment


          • #6
            Presumably the cars.com table I posted uses a different scoring system. A little puzzling that they are so different. This sentence implies to me that Canadian parts are included. in the Kogod scoring? It might explain the difference.

            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.
            The cars.com methodology is:

            Sources include AALA data published by NHTSA, regulatory submissions from automakers to NHTSA obtained by Cars.com, automaker sales and production data, Automotive News production data and Cars.com inventory analyses.
            2020 C8 Corvette.D.O.B 2/03/2020
            Shadow Grey Metallic on Black
            2LT, Z51 + MRC. GT1 seats.
            Spectra Grey Tridents.
            Carbon flash mirrors and spoiler.

            Comment


            • #7
              "The tentative deal for North America would require at least 75% of a car’s value be produced from parts and material made in the region, up from 62.5% under the current agreement."

              The "region" is the three countries. Presumably if a car's value from parts and material made outside the region is greater than 25%, the car would be subject to some sort of tariff. So just considering the value of parts and material, it sounds like the Corvette meets the 75% threshold.

              Question: What is the actual percent value of parts and material for the Corvette produced within the three countries?
              Last edited by Boomer; 10-02-2018, 10:39 AM. Reason: correction

              Comment


              • #8
                Am I correct that the percentage increase to 75% does not take effect until five years from now, and if so, some parts’ manufacturers currently out of the three countries, will probably move production locations?
                GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.

                Comment


                • #9
                  For the big 3 I'd think that "Canadian" cars would have no problem meeting the 75% rule even now. The ones I'm not so sure about would be companies like Honda and Toyota, who may be importing drivetrains for instance.

                  It looks to me like the Kogod study uses it's own broad criteria for determining overall economic benefit. A stricter study would utilize the "rules of origin" which is what the old NAFTA and the new USMCA will use, which are a quite different thing and would produce different results
                  2020 C8 Corvette.D.O.B 2/03/2020
                  Shadow Grey Metallic on Black
                  2LT, Z51 + MRC. GT1 seats.
                  Spectra Grey Tridents.
                  Carbon flash mirrors and spoiler.

                  Comment


                  • #10
                    Originally posted by John View Post
                    Am I correct that the percentage increase to 75% does not take effect until five years from now, and if so, some parts’ manufacturers currently out of the three countries, will probably move production locations?
                    My understanding is vehicles that fail to meet the the new rules-of-origin requirement by 2024 would be subject to the existing U.S. automotive tariff rates of 2.5 percent for passenger cars and 25 percent for trucks.

                    Few part manufacturers would be affected. Those that are may keep production facilities where they are, curtail products, go out of business, abandon this "region" for the EU or Asian markets, move to this "region", cook the books on origin, or who knows what.
                    Last edited by Boomer; 10-02-2018, 10:25 PM. Reason: additional

                    Comment


                    • #11
                      Originally posted by John View Post
                      According the American University Annual Study of USA parts content, referred to as the Kogod study in the auto industry, in 2018, the Corvette came out # 1 with 83.5% rating on is parts. Of course, like every study, it depends on how one assigns different values to different items, but being # 1 is still very nice.
                      Yet more hard evidence that the Corvette is, in fact, America's Sports car.
                      My C8:
                      '20 Elkhart Lake Blue 2LT Coupe, Natural Interior, GT2 Two-Tone Seats, Performance Exhaust, Front Lift, Carbon Flash Wheels, Engine Appearance Package 2000 Status December 27, 2019; 3000 Status January 2, 2020; 3400 Status March 10, 2020;TPW March 16, 2020; Built June 4th, 2020 (COVID-19); Delivery July 1, 2020

                      Current Vettes:
                      '68 Lemans Blue 327/350 Convertible
                      '91 Turquoise Convertible with Hardtop
                      '14 Lime Rock Green 2LT Convertible, Black Top, Kalahari, 7-Speed, Performance Exhaust

                      Comment


                      • #12
                        Originally posted by Boomer View Post

                        My understanding is vehicles that fail to meet the the new rules-of-origin requirement by 2024 would be subject to the existing U.S. automotive tariff rates of 2.5 percent for passenger cars and 25 percent for trucks.
                        With the little I have read so far I don't see a negative impact on the Canadian auto industry. The industry association does not seem too worried https://www.newswire.ca/news-release...694837141.html

                        If companies like Toyota and Honda need to bring more manufacturing to Canada because of this, it could turn into a positive.
                        2020 C8 Corvette.D.O.B 2/03/2020
                        Shadow Grey Metallic on Black
                        2LT, Z51 + MRC. GT1 seats.
                        Spectra Grey Tridents.
                        Carbon flash mirrors and spoiler.

                        Comment


                        • #13
                          Originally posted by John View Post
                          In response to Bikerjulio’s question above, a good amount of the Corvette’s non U.S. content is from Canada and Mexico. For example, the # 1 rating is for the automatic trans Corvette, while the manual trans is #9 — due to its Tremec being made in Mexico.
                          The 18" / 19" base model wheels were made in China, I believe. Not sure about the 19"/20" wheels.
                          Delivered 5/29!: Scarlet Fever 2021 2LT HTC, Red Mist Metallic Tintcoat, two-tone Natural w/ suede inserts, Mag Ride, Performance Exhaust

                          Gone but not forgotten: SunKissed, 2015 2LT, 7MT, Black over Daytona Sunrise Orange Metallic, Stingray convertible

                          Proud member of the Old Dominion Corvette Club: https://www.olddominioncorvetteclub.org/

                          Never grow up - It's a trap.

                          Comment


                          • #14
                            Good question meyerweb. I sure do not know where our current wheels are made. Anyone?
                            Enjoying my Shadow gray C8. What a car it is.

                            Comment

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