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 December 22, 2014 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 December 22, 2014).

Share This


More From ScienceDaily



More Science & Society News

Monday, December 22, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Can Bitcoin Survive 2015?

Can Bitcoin Survive 2015?

Newsy (Dec. 22, 2014) Bitcoin's stock has tumbled significantly this year, but more companies now accept it, leading supporters and critics alike to weigh in on its future. Video provided by Newsy
Powered by NewsLook.com
Could Cheap Oil Help Fix U.S. Roads?

Could Cheap Oil Help Fix U.S. Roads?

Newsy (Dec. 21, 2014) As falling oil prices boost Americans' spending power, the U.S. government is also gaining flexibility from savings on oil. Video provided by Newsy
Powered by NewsLook.com
After Sony Hack, What's Next?

After Sony Hack, What's Next?

Reuters - US Online Video (Dec. 19, 2014) The hacking attack on Sony Pictures has U.S. government officials weighing their response to the cyber-attack. Linda So reports. Video provided by Reuters
Powered by NewsLook.com
Sierra Leone Bikers Spread the Message to Fight Ebola

Sierra Leone Bikers Spread the Message to Fight Ebola

AFP (Dec. 19, 2014) More than 100 motorcyclists hit the road to spread awareness messages about Ebola. Nearly 7,000 people have now died from the virus, almost all of them in west Africa, according to the World Health Organization. Video provided by AFP
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