GM Tops ‘Made in America’ List and Keeps Most Profits in U.S.

According to a yearly recurring study performed by a renowned business school, General Motors produces the most “American” vehicles in the United States.

What is the ‘Made in America Auto Index?’ An in-depth study by the Kogod School of Business at American University in Washington, DC evaluates the domestic content of vehicles sold in the U.S. 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.

Why does it matter? The auto industry employs over seven million people in the United States directly or indirectly, so a research that shows how the dollars you pay for a vehicle affect (or not) the country’s economy is vital.

Surprisingly, and according to this study, General Motors sells the most number of cars with the highest total domestic content. Meaning that 90% of the vehicle’s parts are manufactured “domestically,” and it also takes in consideration how much of the vehicle’s profit stays here as well.. The Buick Enclave, Chevy Traverse, and GMC Acadia made the top 3 at 90% total domestic content, and various other GMC, Cadillac, Chevy, and GMC vehicles dominated the list. Ford snuck into second place with 85% with the best-selling F-150 pickup.

Remember that according to the American Automotive Labeling Act of 1994, a vehicle with at least 75% of parts manufactured in the U.S. and Canada can be considered a domestic product, so technically it could still have 25% of parts come from south of the border or overseas.

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Story via: [Kogdog Business]