General Motors Snag Slots in American Content Index

As trade tensions and U.S. auto tariff threats circulate the industry, a study recently released aims to paint an accurate picture of a vehicle’s true American parts content. 

General Motors led the pack in the annual Kogod Made in America Auto Index. The Chevrolet Corvette had the highest score of 83.5 points, followed by the Chevrolet Volt, with 83 points. 

GM placed seven vehicles, including variants, in the top 10. Besides the Corvette and Volt, the Cadillac ATS, the Chevrolet Camaro and the GMC Acadia also placed. 

The index was created in 2013 by Frank DuBois,a ssociate professor of international business at the Kogod School of Business at American University in Washington, D.C.

If the government applies a 25 percent tariff on all vehicle and parts imports, it will drive up costs of vehicle production, which will be passed along to consumers, DuBois said in a statement.

“The price of vehicles will rise and domestic consumption of vehicles will fall. In addition, retaliation by trading partners will make it that much harder for U.S. vehicle exporters and parts producers to win orders in foreign markets,” DuBois said.

The study also builds off several criteria to determine a vehicle’s score, which includes profit margin, labor content, r&d, transmission, inventory capital and other expenses, and body, chassis and electrical components:

• Profit margin: If the manufacturer is based in the U.S., the model receives 6 points, but FCA models receive 3 points because it’s a European-American company. If the manufacturer is based outside the U.S., it receives 0 points.
• Labor content: If the vehicle is assembled in the U.S., it receives 6 points; if it’s not, 0 points.
• R&D: If the model is a product of a U.S.-based automaker, it receives 6 points. A foreign product assembled in the U.S. shaves 3 points off the score. Imports get only 1 point.
• Transmission: If the transmission is produced in the U.S., it receives 7 points;if it’s not, 0 points.
• Inventory capital and other expenses: The model receives 11 points if the vehicle is assembled in the U.S. and 0 points if it’s not.
• Body, chassis and electrical components account for half of the vehicle’s score.
• The index is a cross of multiple factors pulled from research conducted by the Center for Automotive Research, which were used to get a net of total domestic content.

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