American University's Kogod School of Business announced today the release of a new Made in America Automotive Index that evaluates and ranks 253 car models based on country of origin and several factors not addressed by the American Automobile Labeling Act (AALA).
Developed by Kogod Professor Frank DuBois, an international business expert in competition and global supply chain management, the new index uses seven different weighted factors to determine the degree to which cars sold in the U.S. really are "American made."
- \tProfit Margin: Where the automaker's global headquarters is located
- \tLabor: Location of assembly
- \tResearch & Development
- \tTransmission: Location of production
- \tInventory, Capital and Other Expenses: Location of assembly
- \tEngine: Location of production
- \tThe AALA "Domestic Content" Score
Dubois believes these comparisons constitute the most accurate "made in America" index available because American-made can only reflect a percentage of a product's content when a global supply chain is the operating reality of the automotive industry.