Corvette has long had the nickname ‘America’s Sports Car’ and according to the annual Kogod Made in America Auto Index, it is also the ‘Most American’ made vehicle. With a top score of 83.5 points, Corvette earned bragging rights by racking up the points within seven criteria including profit margin; labor; research and development; inventory, capital and other expenses; engine; transmission; and body, chassis and electrical components. The research is conducted by the Center for Automotive Research to determine total domestic content.
A total of 24 vehicles finished in the top 10 due to several tie scores, and several vehicle variants. Of those, General Motors had a total of seven vehicles in the top 10 including the Chevrolet Volt, Cadillac ATS, Chevrolet Camaro and GMC Acadia.
The index ranked a total of 544 vehicles and was created in 2013 by Frank DuBois, associate professor of international business at the Kogod School of Business at American University in Washington, D.C. According to DuBois, “It is likely that no vehicle has been truly 100% American since the Model T. And you could argue that some of those parts were mined or manufactured out of the country.” DuBois said the index provides the best current estimation of domestic content for U.S. sold vehicles.
- Profit Margin – This was measured based on the location of an automaker’s headquarters. If an automaker’s global headquarters is located in the US, the model receives a 6. If it is not, it receives a 0. The assumption here is that (on average), 6% of a vehicle’s value is profit margin, so if it is a U.S. automaker, the profits remain in the country.
- Labor – This category considers where the car is assembled. If a model is assembled in the US, it receives a 6. If not, the model receives a 0. We assume that approximately 6% of the vehicle’s value is labor content.
- Research and Development (R&D) – This category looks at the location of a car’s R&D activities. If the model is a product of a US company, it receives a 6. If it is the product of a foreign company but is assembled in the U.S. it receives a 3; if it is a foreign import it receives a 1.
- Inventory, Capital and other expenses – If assembly occurs in the US, the model receives an 11; if not, it receives a 0.
- Engine – If the engine is produced in the US, the model receives a 14; if not it receives a 0.
- Transmission – If the transmission is produced in the US, the model receives a 7; if not it receives a 0.
- Body, Chassis, and Electrical Components – 50 % of a vehicle’s score is assigned to this category. The AALA percentage is divided into two to derive this score.
Koood School of Business
Jibrell, Anisa. 2018 July 25. Chevrolet Corvette, Volt nab top slots for American content. Automotive News