Once you put down the flags and shut off all the television ads with their Heartland, apple-pie America imagery, the truth of the car business is that it transcends national boundaries. A car or truck sold by a “Detroit” auto maker such as GM, Ford or Chrysler could be less American — as defined by the government’s standards for “domestic content” — than a car sold by Toyota, Honda or Nissan — all of which have substantial assembly and components operations in the U.S.
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as of 2006 about 25% of the parts used in vehicles assembled in the U.S. came from overseas, and another 25% were manufactured here by foreign-owned parts makers. The Detroit companies wave the Stars and Stripes when they advertise their wares or look for loans in Washington, but when they talk to investors or the business press, they stress their aggressive efforts to promote “global sourcing,” a code for, “Buy More Parts from China and Mexico.”
What’s An “American” Car?
January 27, 2009 by smallin
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