Domestic content?

[Bikerjulio]

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.

[Mobius]

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 (?).

[Boomer]

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

[John]

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.

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

[John]

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.

[Bikerjulio]

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.

[Boomer]

"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?

[John]

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?

[Bikerjulio]

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

[Boomer]

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.

[Mobius]

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.

[Bikerjulio]

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.

[meyerweb]

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.

[Shadow]

Good question meyerweb. I sure do not know where our current wheels are made. Anyone?