Monday, May 21, 2018 Detailed Auto Topics
You May Also Like
AGCO Auto Quick Tip:

Try our new Category View for Detailed topics segregated by their topic.

Now it's even easier to find the information you need.

AGCO Auto Quick Tip:

You can also receive our Detailed Auto Topics, delivered to your computer, as soon as they are written.

AGCO Automotive Detailed Topic Blog

Please click this image to subscribe.

Detailed Topics

In August of 1992 the American Automobile Labeling Act (AALA) was introduced by the Senate. While the purpose was never clearly stated, it was heavily supported by the Big-Three and UAW. It was passed into law on 6 October 1992. In theory it informs vehicle buyers about domestic content in their vehicle. In practice it has several deficiencies.

The law appears to be crafted to hide the high imported content of the Big-Three.  Just a few instances include:
  • The Big-Three have significant vehicle assembly in Canada.  In AALA, US and Canadian production are combined as though they were all US.  A vehicle totally assembled in Canada can be listed as domestically built, even though no US workers were employed. 


  • The Big-Three can list imported parts from "Allied" U.S. suppliers as domestic content.  This means even though the parts are produced in China, India, Mexico, etc. and imported by a subsidiary of the Big-Three, they can still count as US parts.


  • Production is averaged for imported vehicles.  If a Toyota is 100% assembled in the US, using 100% domestic content, it would be listed as 50% domestic, if an equal number were also built in Japan.


  • Labor content is NOT included in content percentage, only dollar value of parts.  The Big-Three could supply imported parts, bought through an "Allied" U.S. supplier, have them assembled in Mexico and count them as Domestic content.


The National Highway Traffic Safety Administration (NHTSA) estimates U.S. taxpayers spend about $4,700,000.00 annually for this information
Maybe we should at least have a look?  These figures are for the 2009 model year. (Please click on images for closer view) 

AALA figures 2009 Chrysler

Foreign and domestic content in 2009 Ford products

Foreign and domestic content in 2009 GM products

Foreign and domestic content in 2009 GM products II

Foreign and domestic content in 2009 Toyota products

For more eye opening information on vehicle content also see our articles What Would Henry Think and U.S. and Foreign Vehicles.





Post or Read Comments (0)

Please click the link above to leave your comments

 

Registered visitors are always invited to leave their comments and thoughts by using the form above. If you need to you can login here or register here.

You can also win a free AGCO coffee cup, by reporting any errors you find, with this form.