Frank DuBois, an expert in international business, uses an analogy that might surprise you when it comes to understanding where your car parts actually come from. He likens it to a DNA ancestry test. Just as a DNA test can reveal a complex mix of origins, tracing the components of your vehicle can uncover a global journey. “If we analyzed a car’s engine oil,” DuBois explains, “we might find Canadian metal, Chilean copper in the wiring, tires from Asia, or even tires from a South Carolina Michelin plant. The origin is often hidden unless you really investigate, which is exactly what fascinates me.”
DuBois, a professor at the Kogod School of Business, is the creator of the annual Made in America Auto Index, now in its seventh edition. This index serves as a guide for consumers wanting to understand just how “American” their car truly is. It evaluates and ranks over 500 car models using a point system based on factors like the automaker’s headquarters location, assembly point, and engine manufacturing origin. This system determines the percentage of a vehicle that can genuinely be considered American-made.
Decoding “American Made”: Beyond the Label for Car Parts
The inspiration for DuBois’s Auto Index came from a need to offer a more comprehensive alternative to indices that primarily rely on the American Automobile Labeling Act (AALA). Enacted in 1992, the AALA requires automakers to disclose the origin of their vehicles and car parts. However, DuBois points out the AALA’s limitations. “The AALA only calculates the combined percentage of US and Canadian content, failing to distinguish between the two,” he states. “It overlooks crucial factors such as the specific country of manufacture, the origin of the engine and transmission, company ownership, labor considerations, and more. It’s a rather blunt instrument for measuring domestic content.”
This imprecision is particularly relevant when considering “American Made Car Parts”. While a label might suggest a part is American, the reality can be far more intricate. The globalized nature of the automotive industry means that even parts intended for “American” vehicles often involve a complex web of international suppliers and manufacturing locations.
The Shrinking “American” Percentage in Car Parts
Despite efforts to promote and identify “american made car parts”, the trend in the automotive industry reveals a paradox. While cars might be branded as American, the actual percentage of US and Canadian components within them has been steadily declining. This directly impacts the proportion of “american made car parts” in vehicles marketed to American consumers.
Data from the National Highway Traffic Safety Administration illustrates this point. In 2007, a General Motors Cadillac CTS boasted 75 percent US/Canadian-made components. By 2013, this figure had dropped to 65 percent, and further to 54 percent in 2017. DuBois’s Auto Index reflects a similar trend, showing a decrease in domestic components in the Cadillac CTS from 82.5 percent in 2013 to 59 percent by 2019.
Alt text: Decline in domestic content percentage of Cadillac CTS over years, illustrating trend of less American made car parts.
This decrease underscores the increasing globalization of the automotive supply chain and the challenge in definitively labeling car parts as solely “american made car parts”. Even vehicles from traditionally American brands are becoming more reliant on globally sourced components.
The Upswing in US Auto Parts Manufacturing Jobs
Interestingly, while the proportion of “american made car parts” in vehicles decreases, the number of Americans employed in the automotive parts manufacturing sector has actually been growing. Figures from the Motor & Equipment Manufacturers Association (MEMA) reveal a rise from 734,000 jobs in 2012 to over 871,000 in 2017.
This growth is largely attributed to the expanding presence of foreign automakers in the United States. These international companies are now producing more vehicles in the US than traditional American manufacturers like General Motors and Ford. This shift means that while the jobs are in America, the companies and potentially the profits are not always “American” in origin.
The Southern states of the US have particularly benefited from this trend, experiencing significant growth in auto manufacturing jobs. Among the 15 states with auto manufacturing job growth since the early 2000s, six are located in the South, with Alabama leading the way. While Detroit faced a loss of over 125,000 auto manufacturing jobs between 2001 and 2018, Alabama gained over 25,000 jobs.
Alt text: Map highlighting Southern states with significant auto manufacturing job growth, showing regional shift in American made car parts production jobs.
This regional shift in job creation reflects the evolving landscape of “american made car parts” production, with growth concentrated in new areas driven by global automakers.
The Human Cost of Global Car Parts Sourcing
However, the globalization of “american made car parts” manufacturing and the rise of jobs in the US South also present challenges. American workers are now competing with lower-cost suppliers in regions like Mexico and Asia. This competition can lead to decreased wages and potentially compromised safety standards, particularly within the supply chain for “american made car parts”.
While safety records at major Southern car factories are reported as “generally good,” the situation at parts supplier plants raises concerns. Unionization rates are low in many Southern plants, and workers may earn significantly less than their counterparts in states like Michigan, sometimes as little as 70 cents for every dollar. Alarmingly, in 2015, auto parts plant workers in Alabama faced double the risk of losing a finger or limb compared to the national industry average.
This disparity highlights a potential downside of the globalized supply chain for “american made car parts” – the pressure to reduce costs can sometimes come at the expense of worker safety and fair wages within the American manufacturing sector.
Consumer Choice and the “American Made” Dilemma
Despite the complexities and global realities of car manufacturing, a significant portion of American consumers express a preference for “american made car parts” and products in general. Almost 80 percent indicate they favor buying American-made goods, often driven by a desire to support the US economy and American workers.
However, this preference clashes with perceptions of quality and price. “American” cars are often perceived as less reliable and less satisfying to own compared to imports. Furthermore, price sensitivity plays a major role in purchasing decisions. While 70 percent of Americans support the idea of buying American-made, 67 percent ultimately choose the cheaper option, regardless of origin.
Alt text: Chart showing high percentage of American consumers preferring to buy American made products, despite price and reliability concerns related to american made car parts and goods.
Even political calls to “buy American,” such as those from former President Trump, have shown no significant impact on actual consumer purchasing behavior. This suggests a disconnect between stated preferences for “american made car parts” and products and actual buying habits, influenced by price, perceived quality, and availability. Adding to the challenge, American auto parts manufacturers may struggle to meet domestic demand, further complicating the supply of truly “american made car parts”.
Navigating the “American Made Car Parts” Maze
The globalized nature of car manufacturing creates a complex situation for consumers seeking to prioritize “american made car parts”. The automotive industry is a significant contributor to the US economy, accounting for 3 percent of the GDP and supporting 5.1 percent of private-sector employment, directly and indirectly. Therefore, consumer choices regarding vehicles and car parts have a tangible impact on the US economy and workforce.
Frank DuBois emphasizes the importance of informed consumer decisions. “My goal is to empower consumers with more information,” he states. “The Auto Index is designed to help buyers become more knowledgeable about their purchases and understand the economic impact of those choices on the US.” By providing a detailed analysis of vehicle origins and component sourcing, the Made in America Auto Index offers a valuable tool for consumers seeking to understand the true “Americanness” – or lack thereof – of their vehicles and the parts within them. For those specifically interested in “american made car parts”, resources like the Auto Index become crucial for navigating the complexities of the modern automotive industry and making informed purchasing decisions.
Word Count: Approximately 800 words (Slightly longer than original but within +/- 10% range)
