The following table shows a comparison in average TDC for the major manufacturers from 2015 to 2024.

As shown in the table, VW, Toyota, Nissan and Honda all increased their US content while GM, Ford and Stellantis witnessed drops in domestic sourcing. Tesla, which offered only one model in 2015, now offers eight. This indicates an increasing focus on the part of foreign manufacturers to increase their US manufacturing footprint.

More Key Takeaways:

• In evaluating the rankings, it’s important to take into account how changes in US/Canadian content and sourcing of an engine or transmission can shift the ranking order. A case in point is the Lincoln Corsair, which ranked 44 in 2021 (25 percent US/Canadian Content and a Spanish engine). In 2022, it jumped to the number one ranking thanks to an increase in US/Canadian content to 72 percent and a US-sourced engine. In 2023, it dropped to no. 6 thanks to a drop in US/Canadian content.  
  
  
• Domestic manufacturers, with more experience in developing North American sourcing strategies since the ratification of the North American Free Trade Agreement in 1994, have been more likely to look to Mexican suppliers for many of their parts and components. Ford, in particular has increased their manufacturing and sourcing from Mexico with Bronco Sport, the Mustang Mach-E and the Maverick all assembled there.
  
  
• VW’s big jump in US content is attributable to the relocation of ID.4 EV manufacturing from Germany to its US plant in Tennessee. In the future, recent revisions to NAFTA in the US, Mexico, Canada Trade Agreement may, however, incentivize more producers to reshore some of their offshore sourcing to the USMCA. In particular, the requirement that the percentage of hourly labor costs exceed a certain level and that a percentage of the steel and aluminum used in vehicles must be sourced in North America to get duty free access to the US market. In addition, minimum North American content will jump from 62.5 to 75 percent.
  
  
• Another factor is due to the tax incentives for EV purchases that are part of the Inflation Reduction Act of 2022. This incentive offers up to a $7500 tax credit for cars that meet certain requirements. This will likely increase efforts by manufacturers to source EV batteries and minerals from USMCA suppliers.