Purchasing a new vehicle involves numerous considerations, from performance and safety ratings to fuel efficiency. One aspect that might be less obvious but equally important for informed consumers is the origin of vehicle parts. Thanks to the American Automobile Labeling Act (AALA), new passenger motor vehicles in the U.S. are required to display labels detailing the percentage of U.S./Canadian parts content. This guide, brought to you by cardiagxpert.com, will help you understand these labels and what they reveal about your vehicle’s origins.
What is the American Automobile Labeling Act (AALA)?
The American Automobile Labeling Act (AALA) is a regulation in the United States that mandates vehicle manufacturers to disclose the North American parts content of their passenger vehicles. This act defines a passenger motor vehicle as any motor vehicle designed to carry 12 passengers or fewer and having a gross vehicle weight rating of 8,500 pounds or less. This includes cars, multipurpose passenger vehicles, and light-duty trucks, but excludes motorcycles and trucks not primarily designed for carrying passengers, such as delivery trucks.
The core purpose of the AALA is to provide consumers with transparent information about the origin of vehicle components. By requiring a label that clearly states the percentage of U.S./Canadian parts, and identifies other significant countries of origin, the AALA empowers buyers to make more informed decisions based on parts sourcing. This label must be present on all new vehicles intended for retail sale in the U.S.
Decoding the Parts Label: 6 Key Information Points
Every new passenger motor vehicle label provides six essential pieces of information to help you understand where its parts come from. Let’s break down each component:
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Percentage of U.S./Canadian Equipment (Parts) Content: This is arguably the most prominent piece of information on the label. It indicates the percentage by value of vehicle equipment (parts) that originated from the United States and Canada. This figure is calculated based on the total value of parts used in the vehicle’s assembly.
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Names of Other Significant Countries of Origin: Beyond North America, the label also lists up to two countries, other than the U.S. and Canada, that contribute 15 percent or more to the vehicle’s equipment content. For each of these countries, the label will also specify their percentage contribution. This helps identify major global sources of parts in the vehicle.
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Final Assembly Point: The label clearly states the location where the vehicle was finally assembled, including the city, state (if applicable), and country. Knowing the assembly point provides insights into the vehicle’s manufacturing location.
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Country of Origin of the Engine: The country where the vehicle’s engine was manufactured is specifically identified. The engine is a critical component, and its origin is separately disclosed.
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Country of Origin of the Transmission: Similar to the engine, the country of origin for the vehicle’s transmission is also listed. The transmission is another key system, and its manufacturing location is provided.
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Disclaimer Statement: Finally, the label includes a statement clarifying that the parts content percentage does not encompass the costs of final assembly (excluding engine and transmission assembly), distribution, or other non-parts expenses. This ensures consumers understand what is included and excluded in the parts content calculation.
How is US/Canadian Content Calculated?
It’s important to understand that the U.S./Canadian content percentage is not calculated for each individual vehicle but rather on a “carline” basis. A “carline” refers to a group of vehicles sharing common construction elements, such as body and chassis. Light-duty trucks and passenger cars are considered different carlines. Essentially, a carline includes all vehicles under a specific nameplate.
Manufacturers calculate these percentages before each model year begins. They estimate the production volume for each carline and its subgroups, like base and high-line models. The calculation involves:
- Determining the U.S./Canadian content value for every piece of equipment used in assembling vehicles within a carline.
- Calculating the total value of each equipment item – the price the manufacturer pays to suppliers.
- Estimating the total quantity of each equipment item needed for the carline’s production during the model year.
When vehicles within a carline offer optional equipment (e.g., manual or automatic transmission), manufacturers estimate the installation rates for each option to accurately reflect the overall parts content of the carline. The calculated percentages are often rounded to the nearest 5 percent for label clarity.
Accessing NHTSA’s AALA Reports
The National Highway Traffic Safety Administration (NHTSA) compiles reports based on information submitted by vehicle manufacturers regarding their vehicles’ U.S./Canadian parts content. These reports are publicly available and offer a valuable resource for consumers seeking detailed information.
NHTSA provides these reports in two primary formats:
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Part 583 AALA Reports, Alphabetical: These reports are organized alphabetically by manufacturer and further broken down by year. This format is useful for quickly locating information for a specific manufacturer or model year.
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Part 583 AALA Reports, Percentage: These reports are categorized by U.S./Canadian parts content percentage and then by year. This arrangement allows users to easily compare vehicles based on their North American parts content.
These reports, accessible on the NHTSA website, include key information extracted from the labels, such as the U.S./Canadian content percentage, vehicle type (passenger car, MPV, etc.), and manufacturing locations (U.S./Canada, elsewhere, or both). You can find your vehicle’s specific type on its certification label, usually located on the driver’s side door or doorjamb.
For those seeking even more detailed information, NHTSA’s Technical Information Services (TIS) offers access to original manufacturer submissions and research services. You can visit the TIS Reading Room in Washington, D.C., or submit written requests for fee-based research. Contact information for TIS is available on the NHTSA website.
Conclusion
Understanding the Parts Of A Car Labeled under the American Automobile Labeling Act provides valuable insights into a vehicle’s manufacturing and origin. By decoding these labels and utilizing NHTSA’s resources, consumers can make more informed purchasing decisions that align with their preferences regarding domestic or international parts content. For further information and to explore detailed reports, visit NHTSA.gov and utilize their resources for vehicle safety and origin information.
