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2015 Made in America Auto Index

Key Points About the 2015 Made in America Auto Index

Kogod's 2015 Made in America Auto Index seeks to answer these questions by evaluating the domestic content of vehicles sold in the US. The index takes into account other aspects of vehicle manufacturing that are not accounted for in other measures. Seven criteria are considered, including profit margin, labor, and research and development location, among others.

How does the index work

The index uses seven points derived from publicly available data.

The components of the index are based on research into the economic value of different components of auto manufacturing that was done by the Center for Automotive Research in Ann Arbor Michigan. For example, the highest ranked cars are made by U.S. based manufacturers using American engines and transmissions, and a with a high AALA percentage of U.S. and Canadian parts.

The seven criteria are as follows:

  1. Profit Margin: This was measured based on the location of an automaker's headquarters. If an automaker's global headquarters is located in the US, the model receives a 6. If it is not, it receives a 0. The assumption here is that (on average), 6% of a vehicle's value is profit margin, so if it is a U.S. automaker, the profits remain in the country.
  2. Labor. This category considers where the car is assembled. If a model is assembled in the US, it receives a 6. If not, the model receives a 0. We assume that approximately 6% of the vehicle's value is labor content.
  3. Research and Development (R&D). This category looks at the location of a car's R&D activities. If the model is a product of a US company, it receives a 6. If it is the product of a foreign company but is assembled in the U.S. it receives a 3; if it is a foreign import it receives a 1.
  4. Inventory, Capital and other expenses. If assembly occurs in the US, the model receives an 11; if not, it receives a 0.
  5. Engine. If the engine is produced in the US, the model receives a 14; if not it receives a 0.
  6. Transmission. If the transmission is produced in the US, the model receives a 7; if not it receives a 0.
  7. Body, Chassis, and Electrical Components. 50 % of a vehicle's score is assigned to this category. The AALA percentage is divided into two to derive this score.

2015 Results

*Data for 2015 was not available. Data used from AALA 2014.

**In 2014, Fiat acquired the outstanding shares of Chrysler. The new entity, Fiat Chrysler Automotive (FCA), is headquartered in the Netherlands with a tax domicile in London, and shares listed on the New York Stock Exchange. As such, because of the hybrid nature of its organizational structure and its large production and R&D presence in the U.S., we assigned a value of 3 for profit margin and R&D, rather than a 6 or 0.

2015 Results