Thursday, April 14, 2011

Top Ten 2011 "American-Sourced" Content Cars

2011 NorthAmerican-Sourced Content
1.Dodge Avenger83%
2.Chrysler 20081%
3.Toyota Camry80%

Toyota Avalon80%

Honda Accord80%
4.Chevrolet Impala77%
5.Cadillac CTS76%

Buick Lucerne76%
6.Chevrolet Malibu75%

Chevrolet Corvette75%

Lincoln Town Car75%

Acura TL75%
7.Dodge Caliber73%

Chrysler 30073%
8.Dodge Charger70%

Dodge Challenger70%

Honda Civic70%
9.Chevrolet Camaro66%
10.Toyota Matrix65%

Cadillac STS65%

Cadillac CTS65%

Ford Taurus65%

Ford Mustang65%

Motor Trend -- "When “Made in America” is the most important consideration in purchasing a new car, consumers would be wise to head to a Dodge dealership and test drive an Avenger. That sedan, according to a 2011 report by the National Highway Traffic Safety Administration, has 83 percent of its parts content from the U.S. and Canada.

Above, we’ve compiled a list of the top cars with the most North American parts content list below comes from data required of automakers by law thanks to the American Automobile Labeling Act."

MP: When compiles its list of "American-made" vehicles, it doesn't include parts from Canada as "domestic content," and the composition of the top ten is much different.  Last year, the Toyota Camry and Honda Accord took the top two places on Top Ten 2010 domestic-parts content rankings, and together the two Japanese automakers captured five of the top 10 places.   

Even with this ranking that includes Canadian parts, it's interesting that the Toyota Camry and Honda Accord are far "more American" (80% domestic content) than American icons like the Ford Mustang, Cadillac STS and Cadillac CTS (only 65% domestic content). 

This does some serious damage to the protectionist, "Buy American" philosophy that motivates Americans to buy American-made products under the illusion that if you "buy American" products like Ford Mustangs your dollars will "stay in the country," and if you buy foreign-made products, or even products made in America by foreign automakers like Toyota or Honda, your dollars will "leave the country" for Japan.  

And if U.S. companies like Ford or GM finds it in their best economic interest to purchase 35% of their parts for Mustangs and Cadillacs from outside the U.S. and Canada, you should feel no guilt if you spend 35% of your money on products produced in China, Mexico or Brazil. 

HT: Jody Church


At 4/14/2011 7:58 PM, Blogger Benjamin Cole said...

Re trade: Since WWII, we have seen several nations roar forward on exported-oriented trade polices, such as Japan, South Korea, Taiwan, and now China. I suppose you could add the oil-thug states such as Saudi Arabia.

Such nations have exported their way to prosperity.

I can't think of any nation that imported its way to prosperity.

Oddly, Taiwan, S. Korea, Japan and China all went to strong national planning and exporting--the antithesis of Western free-trade and free-market models--and all have prospered (with the late exception of Japan, suffocating under a too-tight monetary policy).

What can explain the success of such nations, for decades, in the face of Western prescriptions?

Why is that?

At 4/14/2011 8:27 PM, Blogger Benjamin Cole said...

I went to the link, but no clarity on this issue: Is domestic content determined by value, or volume or weight?

For example, I thought Toyota exported the motors and trannies from Japan, which is really the value parts of a car. Some have sneered that Tennessee is just an assembly plant for Japan

Anybody know the real deal?

At 4/14/2011 8:54 PM, Blogger Mark J. Perry said...

Benjamin: Countries don't trade, companies, individuals and households trade. Would you also say that "no company ever imported its way to prosperity?" What about Starbucks or Walmart? Or would you say that "no household ever imported its way to prosperity?" My household has become very prosperious by imports foreign cars, clothes, food, wine, beer, vodka, foreign travel, foreign movies, etc.

And even at the country level, the U.S. has run trade deficits for much of the 19th and 20th Centuries, and became prosperous in the process.

You're sounding a lot like Ian Fletcher.

At 4/14/2011 9:09 PM, Blogger James said...

The Lexus and the Mulberry Tree

See how Toyota became a successful car company company here

At 4/14/2011 11:02 PM, Blogger Benjamin Cole said...

Dr. Perry-

Well, I have been accused of worse, and on this very blog!

Interesting that you say that it is companies, not countries that trade--is that correct, when a nation has a five-year national economic plan, holds majority ownership in all large companies through a political party, and closely manages trade (China)?

In all the nations I mentioned -S Korea, Japan, Taiwan and China--the line between government, business and trade is blurry, to say the least. They all see exports as a way to build wealth, and they have all succeeded.

I am not advocating their model for the USA. I think would it sink under the weight of corrupttion and sloth here.

The "Japan Model" may ossify there as well--how long can a nation not allocate resources by the price signal and get away with it? (Of course, we just allocated $3 trillion to Iraqistan...we have our own misallocation problems).

Lastly, I certainly salute you in importing beer, wine and vodka to your household, and I hoist a brew to you and your excellent blog.

At 4/15/2011 6:30 AM, Blogger Paul Freet said...

Mexico is in North America too (last time I checked)

At 4/19/2011 4:22 PM, Blogger VangelV said...

Such nations have exported their way to prosperity.

They saved and invested their way to prosperity. You can't export if you do not have productive capital to produce goods. And that productive capital comes from saving and investing. Germany, Japan, and Korea prospered because their citizens saved money and those savings financed capital accumulation that provided jobs.

I can't think of any nation that imported its way to prosperity.

When nations import a great deal more than they export they usually wind up paying for those exports by depleting savings, which makes it hard to accumulate capital. And without capital it is hard to create jobs for people and to make a nation prosperous.

Most people are confused because they look at the standard of living and assume that it is sustainable. But as we have seen with the US, a high standard of living that is based on borrowing and consuming brings massive risks that are bound to end very badly. Even if Americans wanted to, they would find it difficult to reverse the economic trends because they have little in the way of savings that can be the basis of capital formation.


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