Which Cars Built in America Aren't as American as You Think?

Understanding the Complexity of "American-Made" Cars

When it comes to purchasing a car, many Americans prioritize whether the vehicle is made in the United States. While the phrase "American-made" evokes images of cars built in factories across the country, the reality is more nuanced. A car's "American-ness" is determined not just by where it’s assembled, but also by where its parts come from and where its automaker is headquartered. MotorVero’s comprehensive analysis delves into the complexities of determining what truly makes a car “American” in today’s globalized economy.

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The Factors That Shape a Car’s "American-Made" Status

The distinction of being "American-made" is influenced by a variety of factors, including the location of assembly, the origin of key components like engines and transmissions, and the country of origin of the automaker itself. According to the American Automobile Labeling Act, a significant portion of a vehicle’s parts must come from the U.S. or Canada for it to be classified as "American-made." However, global supply chains have made this assessment more complicated, with many parts sourced from around the world.

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Survey Insights: Consumer Views on U.S. Manufacturing

MotorVero’s survey found that an overwhelming majority of U.S. consumers—nearly two-thirds—feel that it’s important for their vehicle to contribute significantly to the U.S. economy. Specifically, 72% of respondents stated that this contribution should come from either assembly in the U.S. or an automaker’s headquarters being based in the country. However, despite these preferences, it’s important to note that the badge on a car doesn’t always tell the whole story. Many cars built in the U.S. feature significant portions of foreign-made components, complicating the true picture of what it means for a car to be "American."

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Examples of Cars Built in America with Low Domestic Content

Despite being assembled in U.S. factories, many vehicles have surprisingly low domestic content. Here are a few examples of cars that are built in America but don’t meet the typical expectation of being “American-made”:

1. Subaru Outback

Assembled in Lafayette, Indiana, the Subaru Outback has only 45% U.S. and Canadian content. Despite being built in the U.S., key components such as the engine and transmission are sourced from Japan. This highlights the complexity behind determining how American a car really is.

2. GM’s Full-Size SUVs

General Motors manufactures its full-size SUVs—including the Chevrolet Tahoe, Suburban, GMC Yukon, and Cadillac Escalade—in the Dallas-Fort Worth area. While these vehicles feature U.S.-made engines and transmissions, the overall domestic content is still just 41%, indicating a significant amount of foreign parts and components.

3. Ford Ranger Pickup

Ford’s new Ranger pickup truck is assembled near Detroit, but its engine is sourced from Mexico, leading to only 35% U.S. and Canadian content. This example demonstrates the global nature of the automotive supply chain and how assembly location doesn’t necessarily equate to high domestic content.

4. Volvo S60

Volvo, which manufactures the S60 in Ridgeville, South Carolina, uses components sourced from multiple countries. Its engine originates from Sweden, while the transmission comes from Japan. As a result, the U.S. and Canadian content of the luxury sedan is a mere 20%.

5. Chevrolet Bolt EV

Despite being built in Lake Orion, Michigan, the Chevrolet Bolt EV relies on a drivetrain sourced from South Korea. The vehicle has just 18% U.S. and Canadian content, underscoring the international nature of its components and assembly process.

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The Impact of Foreign-Made Cars in the U.S. Market

While the vehicles mentioned above are assembled in the U.S., many other models are built entirely abroad, even by companies with deep roots in American culture. Ford’s Fusion sedan and Fiesta subcompact, for example, are built in Mexico, while the Jeep Renegade SUV is manufactured in Italy. Additionally, older models like the Chevrolet Silverado 1500 LD and GMC Sierra 1500 Limited are produced in Canada.

MotorVero’s research into the American-Made Index reveals that foreign-based automakers often have more vehicles built overseas than their U.S.-headquartered counterparts. Notably, Toyota and Honda stand out in this regard, with a significant portion of their vehicles being assembled in the U.S. Honda is a rare exception among foreign-based brands, producing nearly two-thirds of its vehicles in America. However, brands like Toyota, Lexus, and Nissan’s Infiniti division rely heavily on overseas production for their U.S. offerings.

As a result, the American-Made Index assigns reduced values for vehicles with imported sales volumes, often disqualifying those built entirely abroad. This system reflects the complexities of today’s globalized automotive industry, where even cars labeled as “American” may be the product of international supply chains.

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The Broader Economic Contributions of the Automotive Industry

Despite the complexities surrounding the "American-made" designation, all vehicles sold in the U.S.—whether foreign- or domestically built—contribute significantly to the U.S. economy. A 2015 study by the Center for Automotive Research found that 322,000 people were employed directly by the U.S. auto industry at the time. In addition, more than 500,000 people worked in auto parts manufacturing, and the largest group—new-car dealers—employed 710,000 individuals. These jobs are vital to the economy, even for cars that may not be fully manufactured in the U.S.

Furthermore, many foreign-based automakers provide substantial employment within the U.S., creating jobs in assembly plants, dealerships, and service centers across the country. For example, Honda and Toyota, although headquartered outside the U.S., have significant manufacturing operations within the country, providing jobs for thousands of Americans. This underscores the economic importance of the automotive industry as a whole, irrespective of whether cars are fully made in the U.S. or elsewhere.

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The Broader Economic Impact

Overall, while consumers may have strong preferences for cars built in the U.S., it’s essential to recognize that the global nature of the automotive industry means that even foreign-built vehicles play a vital role in supporting U.S. jobs and economic activity. From parts suppliers to salespeople, the impact of the automotive industry extends far beyond the factory floor.

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Conclusion: The Future of "American-Made" Cars

As the automotive industry continues to evolve, the line between "American-made" and "foreign-made" will become increasingly blurred. Global supply chains and multinational manufacturers will continue to shape the vehicles sold in the U.S., making it essential for consumers to look beyond just the place of assembly when determining how "American" a car truly is.

For consumers concerned about supporting the U.S. economy, it’s important to understand the nuances behind the term “American-made” and the significant contributions of both domestic and foreign automakers to the U.S. workforce. Whether a car is built in the U.S. or abroad, its impact on the economy cannot be overlooked, and it’s clear that the automotive industry will remain a cornerstone of American employment and economic activity for years to come.