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German cars are built in the US with global parts.
No.
BMWs built in South Carolina have 5%, that's right, 5% US content. Even many Subarus have 0 to 5% domestic content. So dispense with the myth that cars are all global now. On average, American brands have far more domestic content than the imports.
BMWs built in South Carolina have 5%, that's right, 5% US content. Even many Subarus have 0 to 5% domestic content. So dispense with the myth that cars are all global now. On average, American brands have far more domestic content than the imports.
According to the factory sticker, my wife's made in the USA 2018 Subaru Outback has 45 percent US/Canadian content and 40 percent Japanese content. No word on the remaining 15 percent. My made in Mexico 2016 Chevy Silverado is 45 percent US/Canadian content and 51 percent Mexican content. No mention about the other four percent.
According to the factory sticker, my wife's made in the USA 2018 Subaru Outback has 45 percent US/Canadian content and 40 percent Japanese content. No word on the remaining 15 percent. My made in Mexico 2016 Chevy Silverado is 45 percent US/Canadian content and 51 percent Mexican content. No mention about the other four percent.
More than likely your sticker's percentage is inflated due to the way subassemblies are treated. This is a very common issue with many imports and it can cause the domestic content calculation to be WAY off.
According to the factory sticker, my wife's made in the USA 2018 Subaru Outback has 45 percent US/Canadian content and 40 percent Japanese content. No word on the remaining 15 percent. My made in Mexico 2016 Chevy Silverado is 45 percent US/Canadian content and 51 percent Mexican content. No mention about the other four percent.
Quote:
Originally Posted by iamweasel
More than likely your sticker's percentage is inflated due to the way subassemblies are treated. This is a very common issue with many imports and it can cause the domestic content calculation to be WAY off.
Inflating or misstating information on a Monroney sticker is a good way to land in legal hot water. Look at inflated MPG claims as an example.
Inflating or misstating information on a Monroney sticker is a good way to land in legal hot water. Look at inflated MPG claims as an example.
Subaru or whoever is not intentionally mis-labeling the stickers. The automakers are calculating it correctly but there is a loophole in the calculation that inflates the numbers.
Basically it works like this:
1) A supplier in Japan sends 50 interior parts (50 different part numbers) from their Japanese plant to a building they own in the US, usually within a few miles of the OEM plant they are supplying.
2) They take these 50 parts and assemble them into one component, such as an instrument panel, on US soil.
3) Now instead of selling the 50 individual parts to Subaru or whoever separately, they sell Subaru one part, the instrument panel, which has a different part number than any of the 50 previous part numbers.
4) Since the "end-item" part number for the instrument panel was assembled in the US they get to claim 100% of the cost of that part as domestic content - even though none of the parts were actually from the US.
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Quote:
Originally Posted by HappyRider
Even many Subarus have 0 to 5% domestic content.
Not sure where your numbers come from but my Indiana-built 2015 Subaru Outback is right at 50%. The only major assemblies that are foreign / Japanese are the engine and transmission. Quite a bit higher than 0%.
Not sure where your numbers come from but my Indiana-built 2015 Subaru Outback is right at 50%. The only major assemblies that are foreign / Japanese are the engine and transmission. Quite a bit higher than 0%.
BRZ, Crosstrek, Forester and WRX all have 0-5% domestic content. My point stands. Overall, the American brands have a higher domestic content than the transplants. So no, I am not confused about what is American and what is not.
Probably not possible to define "American Made" cars anymore since all the companies have global components. This includes the Big Three too. They source from wherever gives them the best price to maximize profits.
Probably not possible to define "American Made" cars anymore since all the companies have global components. This includes the Big Three too. They source from wherever gives them the best price to maximize profits.
If one car has 80% domestic parts versus another with 20%- that’s a huge difference and it matters.
Plus, not every OEM is able to buy products that give them the best price to maximize profits. Some suppliers won’t do business with certain automakers. It’s not a level playing field out there...
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