Featured Research

from universities, journals, and other organizations

New auto index redefines which cars are really 'made in America'

Date:
April 30, 2013
Source:
American University
Summary:
Researchers have revealed a new Made in America Automotive Index that evaluates and ranks 253 car models based on country of origin and several factors not addressed by the American Automobile Labeling Act (AALA).

American University's Kogod School of Business announced today the release of a new Made in America Automotive Index that evaluates and ranks 253 car models based on country of origin and several factors not addressed by the American Automobile Labeling Act (AALA).

Related Articles


Developed by Kogod Professor Frank DuBois, an international business expert in competition and global supply chain management, the new index uses seven different weighted factors to determine the degree to which cars sold in the U.S. really are "American made."

• Profit Margin: Where the automaker's global headquarters is located

• Labor: Location of assembly

• Research & Development

• Transmission: Location of production

• Inventory, Capital and Other Expenses: Location of assembly

• Engine: Location of production

• The AALA "Domestic Content" Score

Dubois believes these comparisons constitute the most accurate "made in America" index available because American-made can only reflect a percentage of a product's content when a global supply chain is the operating reality of the automotive industry.

"If you break down a single "American-made" transmission, you'll find many smaller parts, each stamped with its own country of origin. You may well find 80 percent of the parts inside that transmission didn't come from the U.S," said Dubois.

According to Dubois, the AALA is meant to help consumers "buy American," but the data it provides is limited in several ways. Aside from designating parts manufactured in Canada as "domestic," some automakers file incomplete reports, omitting various models in any given year. As illustrated in the table below, the differences between the AALA and Dubois's metrics result in a significant degree of variance when comparing two indices.

DuBois used all publicly available data to develop the index, including from the AALA, automakers' annual reports, and Form 10-K filings to the U.S. Securities and Exchange Commission. Automakers received up to a total of 100 percentage points based on the level of domestic outcomes.

Dubois argues that his index provides a more accurate assessment of a vehicle's true country of origin: "All that automakers are required to do is abide by the terms of the AALA, and I would argue the AALA is a flawed measure."

For a complete listing of the index, visit http://kogodnow.com/autoindex/ (scroll down)


Story Source:

The above story is based on materials provided by American University. Note: Materials may be edited for content and length.


Cite This Page:

American University. "New auto index redefines which cars are really 'made in America'." ScienceDaily. ScienceDaily, 30 April 2013. <www.sciencedaily.com/releases/2013/04/130430194048.htm>.
American University. (2013, April 30). New auto index redefines which cars are really 'made in America'. ScienceDaily. Retrieved March 28, 2015 from www.sciencedaily.com/releases/2013/04/130430194048.htm
American University. "New auto index redefines which cars are really 'made in America'." ScienceDaily. www.sciencedaily.com/releases/2013/04/130430194048.htm (accessed March 28, 2015).

Share This


More From ScienceDaily



More Science & Society News

Saturday, March 28, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Why So Many People Think NASA's Asteroid Mission Is A Waste

Why So Many People Think NASA's Asteroid Mission Is A Waste

Newsy (Mar. 27, 2015) The Asteroid Retrieval Mission announced this week bears little resemblance to its grand beginnings. Even NASA scientists are asking, "Why bother?" Video provided by Newsy
Powered by NewsLook.com
Indiana Permits Needle Exchange as HIV Cases Skyrocket

Indiana Permits Needle Exchange as HIV Cases Skyrocket

Reuters - US Online Video (Mar. 26, 2015) Governor Mike Pence declares the recent HIV outbreak in rural Indiana a "public health emergency" and authorizes a short-term needle-exchange program. Rough Cut (no reporter narration) Video provided by Reuters
Powered by NewsLook.com
AAA: Distracted Driving a Serious Teen Problem

AAA: Distracted Driving a Serious Teen Problem

AP (Mar. 25, 2015) While distracted driving is not a new problem for teens, new research from the AAA Foundation for Traffic Safety says it&apos;s much more serious than previously thought. (March 25) Video provided by AP
Powered by NewsLook.com
Obama: Affordable Care Act 'saving Lives'

Obama: Affordable Care Act 'saving Lives'

AP (Mar. 25, 2015) Speaking at a White House event marking the fifth anniversary of the Affordable Care Act, President Barack Obama says the law is "saving lives that touch all of us." (March 25) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins