Posted on 12/14/2007 9:53:02 AM PST by Incorrigible
 Honda may be a Japanese brand, but it makes cars in Ohio, where it employs more than 15,000 workers, including Lori Dennis. She believes her job in Marysville is as American as those who work for Ford, General Motors and Chrysler. (Photo by Thomas Ondrey) |
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Buy American doesn't mean what it once did. Not in the auto industry.
Honda's best sellers come from plants in Ohio while Ford imports cars from Mexico. Toyota opened a plant in Texas this year while Chrysler brought in cars from Europe.
And vehicles assembled in the United States are made with a growing number of foreign parts.
"Ten years ago, it was a much more regional business," said Dave Cole, chairman of the Center for Automotive Research.
Parts suppliers once clustered around U.S. plants making General Motors, Ford and Chrysler vehicles. Now, Detroit's Big Three comb the globe for high-quality parts at the cheapest price.
For buyers, these changes have blurred the emotional, decades-old conflict between domestic and foreign cars.
Which is which these days? How can a Honda made in America, by Americans, be foreign? How can a Chevrolet with a large share of foreign parts be American? The questions will only grow more difficult as automakers grow more global. And as more young people, lacking the us-versus-them allegiance, become car buyers.
The trend seems unlikely to retreat.
The Big Three still have more domestic content — defined as made in the United States or Canada — on average than their foreign-owned competitors. But the gap has closed considerably since Honda quietly opened the first Japanese vehicle plant in the United States in Marysville, Ohio, some 25 years ago.
Honda and Toyota still get a substantial volume of components from Japan, although those numbers are shrinking. Meanwhile, imports from Mexico, largely to the Big Three, are rising.
Chinese imports also are increasing, but those generally go to parts stores and repair shops. That's starting to change as General Motors and others use those parts in new cars and trucks.
Two-thirds of the value of a car lay in parts produced by independent suppliers, said Jim Rubenstein, a Miami University professor who has co-authored a soon-to-be-released book called "Who Really Made Your Car?"
"In other words, there really isn't that much Toyota or that much Ford in your car," he said.
That percentage has increased over the years as producers have looked to outsource as much production as possible to lower costs.
The trend has both helped and hurt domestic auto production.
Visteon, Ford's former parts division, and Delphi, GM's former parts division, have both found new work making parts for Honda, Toyota and Nissan plants in the United States. But much of the work those companies used to do for Ford and GM has gone overseas.
For all of the Asian-Pacific countries combined, imports of auto parts to the United States totaled $16.1 billion in the first half of 2007, up 4.2 percent over the same period last year. Mexico's jumped 6.4 percent to $14.4 billion.
Still, groups such as the United Auto Workers would like to see Americans avoid cars from those companies. It releases a list each year of vehicles it recommends from union-staffed plants in Canada and Mexico. That list includes two Toyotas built at a GM/Toyota joint venture in California and eliminates imported Ford, GM and Chrysler vehicles.
Toyota countered in 2005 and last year with a series of commercials that advertised its investments in U.S. plants, research centers and sales offices.
For all but the staunchest of "Buy American" advocates, the level of foreign-made parts in a vehicle is largely unimportant. Most Americans don't care about domestic content or whether a car was assembled at a union plant or a nonunion plant, said Rubenstein, the Miami University professor.
They are partial to certain brands, however. The most loyal American buyers drive Ford and Chevrolet pickups, Rubenstein said, but when it comes to cars, the Japanese brands have the edge.
That said, the buying habits of American consumers do transcend their own personal enjoyment.
While the Japanese do more than just make cars in the United States, evidenced by the 1,000 engineers working for Honda of America near Marysville, a purchase from one of the Big Three means that all the profits go to an American company. It also lends support to a greater number of U.S. workers producing parts.
The Level Field Institute, an organization formed by former UAW members, publishes reports on employment levels by foreign-owned automakers. The institute encourages buyers to consider the domestic content even when deciding between a Honda and a Volkswagen.
Honda makes cars in Ohio and Alabama out of parts produced in this country. VW imports all of its cars.
"Buying a Honda supports nearly 2.4 more U.S. jobs per car than a VW," the institute says on its Web site.
Rubenstein would take the argument further.
"Buying a car made by Ford, GM or Chrysler, on balance, is putting more money into the American economy than buying a Toyota or Honda," Rubenstein said.
(Peter Krouse and Robert Schoenberger are reporters for The Plain Dealer of Cleveland. They can be contacted at pkrouse(at)plaind.com and rschoenb(at)plaind.com.)
Not for commercial use. For educational and discussion purposes only.
I bought an ‘05 Chrysler T & C when the new models came out in ‘04 - I was happy to be “buying American” - looked at the sticker after we got it home - made in Canada.
When Japan apologizes for Manchuria, China, Pearl Harbor, Burma, and other atrocities maybe I will consider buying their cars
The Chevy Equinox didn’t interest me, it gets worse mileage than the Acadia, and doesn’t come close on interior room. The 3.6L V6 is American made, essentially the same engine as is used in the Cadillac CTS, although I believe the Cadillac has direct injection.
Not true.
I’ll stack up the HP in my 6 cylinder Nissan Frontier against the HP in a V8 Dodge Dakota and win every time.
More HP and better gas mileage. And the bonus?
I’m not driving a Dodge!
And you can give me a list of federal inspectors that verify this! Oh, but wait it is the honor system and we know these companies would never bend the rules. Sure!
Your original assertion, despite it being stated as fact, is just your opinion. I am under no obligation to participate in whatever wild-goose chase you think up.
I’ve had a really good experience so far with my ‘04 Honda Accord. The only thing that needed fixing was a VTEC sensor that they replaced on a recall, and subsequently was the cause of a small oil leak, which was fixed on my next service visit. Overall I’m really happy with the quality, reliability, materials, fit and finish of it. However, it’s just now getting into that territory where the warranties are all running out - the next couple of years will really tell just how good it is, reliability and durability-wise. I’d buy another Honda.
Don't get too cocky, Nissan is owned by Renault, lol.
I bought a new Honda Accord in 2005, and I really like it. I was surprised when I looked at the sticker and saw that it was made in Ohio.
My wife’s 2003 Honda Pilot was made in Canada.
My last Big Three car was a new 1986 Chevy K-5 Blazer. The design seemed okay, but the craftsmanship was terrible. I took it back several times under warranty, and had several expensive repairs after that. It eventually failed the smog check, and needed a new carburator. When I took it to a Chevy dealer for repair, I was told that the part was no longer available through GM. Since they are only allowed to use GM parts, they said they could not repair the Blazer.
I won’t do any more business with GM.
here’s the list of cars made in the USA by “import” manufacturers
so do not need pay 6.5% duty tax
canadian or mexico manuf cars are not listed:
Acura TL – Marysville, Ohio
BMW X5 – Spartanburg, South Carolina
BMW Z4 – Spartanburg, South Carolina
Honda Accord – Marysville, Ohio
Honda Civic – East Liberty, Ohio
Honda Element – East Liberty, Ohio
Honda Odyssey – Lincoln, Alabama
Honda Pilot – Lincoln, Alabama
Mercedes-Benz M-Class – Vance, Alabama
Mercedes-Benz R-Class – Vance, Alabama
Mazda 6 – Flat Rock, Michigan
Mazda B-Series – Minneapolis, Minnesota
Mazda Tribute – Kansas City, Missouri
Hyundai Sonata – Montgomery, Alabama
Hyundai Santa Fe – Montgomery, Alabama
Infiniti QX56 – Canton, Mississippi
Isuzu Ascender – Moraine, Ohio and Oklahoma City, Oklahoma
Isuzu i-Series Pickup – Shreveport, Louisiana
Mitsubishi Eclipse – Normal, Illinois
Mitsubishi Endeavor – Normal, Illinois
Mitsubishi Galant – Normal, Illinois
Mitsubishi Raider – Warren, Michigan
Nissan Altima – Smyrna, Tennessee and Canton, Mississippi
Nissan Armada – Canton, Mississippi
Nissan Frontier – Smyrna, Tennessee
Nissan Maxima – Smyrna, Tennessee
Nissan Pathfinder – Smyrna, Tennessee
Nissan Quest – Canton, Mississippi
Nissan Titan – Canton, Mississippi
Nissan Xterra – Smyrna, Tennessee
Saab 9-7X – Moraine, Ohio
Subaru Baja – Lafayette, Indiana
Subaru B9 Tribeca – Lafayette, Indiana
Subaru Legacy – Lafayette, Indiana
Subaru Outback – Lafayette, Indiana
Toyota Avalon – Georgetown, Kentucky
Toyota Camry – Georgetown, Kentucky
Toyota Camry Solara – Georgetown, Kentucky
Toyota Corolla – Fremont, California
Toyota Sequoia – Princeton, Indiana
Toyota Sienna – Princeton, Indiana
Toyota Tundra – Princeton, Indiana
Toyota Tacoma – Fremont, California
Where has this guy been? It’s been this way for at least 20 years.
Didn’t Reagan encourage the first Japanese car factories in the US?
Hopefully they will get the kinks out. We looked at one when we were test driving this summer. When I researched problems with them I found that the feds may make Chrysler recall almost 150,000 of these because they mysteriously shut down when they reach 55 mph. Scary! I have no regrets with our choice. I love my Titan.
If you do, will you change your screen name to Liberty2009
??????
It was not a matter of annexation. The Canadian and American governments developed a treaty where the Canadian auto industry was basically absorbed by the American, but we kept several factories to build fine American automobiles at the cost of a few Canadian brands.
The treaty was known as the “AutoPact”. Look it up and learn, rather than cast unwelcome aspersions on your neighbour.
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