Domestic Content

 

                                   

AAPC ANALYSIS OF THE AMERICAN UNIVERSITY KOGOD 2016 MADE IN AMERICA AUTO INDEX


The U.S. Automakers Uses More Domestic Content

FCA US, Ford and General Motors manufactured vehicles consist of more American-produced materials and content than any of their 13 foreign counterparts. Following the standards of the American Automotive Labeling Act (AALA), two out of three FCA US, Ford, and General Motors models contain 55% or more domestic content. By comparison, two out of three of their foreign competitors’ models contain 5% or less domestic content.

 

2 out of 3 FCA US, Ford, and General Motors models contain 55% or more domestic content. 7 out of 10 foreign automaker models contain 5% or less.

 

2016 AALA Scores


* Only about 1 in 5 models sold in the U.S. in 2015 contained 60% or more domestic content. 7 our of 10 of them were FCA US, Ford, and General Motors.

*2 out of 3 FCA US/Ford/General Motors models contain 55% or more domestic content. 2 out of 3 foreign automaker models contain 5% or less.

*1 in 2 models contain 10% or less domestic content. 1 in 4 models contain 0% domestic content.

 

Sales-Weighted AALA Average (2016 Model Year)


 

To appreciate the scale of this difference, consider what would happen if foreign automakers matched FCA US, Ford, and General Motors’s record. FCA US, Ford, and General Motors’s fleets contain 58% domestic content (on a sales-weighted basis). Foreign automaker fleets contain only 32% domestic content. Had foreign automakers increased their use of domestic content to match FCA US, Ford, and General Motors’s content rate (from 32 to 58%), they would have insourced the equivalent of more than 2.4 million cars’-worth-of-parts last year.