Friday, May 18, 2012

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“GM is a Car Built by Americans for Americans” has been one of the most iconic slogans in automotive history. But that was in a different time, a different era.

An increasingly global economy has changed the way manufacturing is done. These days, it’s normal for cars to have parts made in different countries. It’s no longer as simple as saying “Made in America” or “Made in Japan.” There is probably a “Made in China (or Mexico, Canada etc.)” somewhere in between.

Still, banking on nationalism is always an excellent marketing angle. At a time when imports are the norm, Chrysler brand CEO Olivier Francois stated that Chrysler is proud to be “imported from Detroit.”

But how much of a car is really “imported” from Detroit?

The U.S. government states that a car has to contain at least 75% of its parts from the U.S. in order to be labeled “American” and avoid being subject to import tax. The Chrysler 300, on the other hand, has 73% of its parts made in the U.S.

However, there is nothing wrong with that. Manufacturing and importing parts from other countries allow companies to reduce production cost without sacrificing quality. Lower costs lead to more affordable prices.

American car companies don’t want to stress this fact too much. Many U.S. brands simply refer to “North American” production to make their products feel more American. But technically, “North America” also includes Canada and Mexico. 

Below is a top ten list of American cars with the least number of parts made in the U.S.A. This list is from “Car and Driver.”

  1. Chevrolet Aveo – Built in San Luis Potosi, Mexico – 2% of parts from U.S.
  2. Ford Fiesta – Built in Cuautitlan Izcalli, Mexico – 10% of parts from U.S
  3. Ford Fusion/Lincoln MKZ – Built in Hermosillo, Mexico – 20% of parts from U.S.
  4. Cadillac SRX – Built in Ramos Arizpe, Mexico – 21% of parts from U.S.
  5. Mercury Milan – Built in Hermosillo, Mexico – 25% of parts from the U.S.
  6. Chevrolet HHR – Built in Ramos Arizpe, Mexico – 37% of parts from U.S.
  7. Dodge Journey – Built in Toluca, Mexico – 38% of parts from U.S.
  8. Chevrolet Volt – Built in Hamtramck, Michigan – 40% of parts from U.S.
  9. Chevrolet Cruze – Built in Lordstown, Ohio – 45% of parts from U.S.
  10. Ford Expedition/Lincoln Navigator – Built in Louisville, Kentucky – 50% of parts from U.S.

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