Tesla Tops American-Made Index

By Jeffery Bellant June 19, 2024
When it comes to consumer demand for American-made, 56% of in-market car shoppers are willing to pay more for a vehicle if it creates more U.S. jobs When it comes to consumer demand for American-made, 56% of in-market car shoppers are willing to pay more for a vehicle if it creates more U.S. jobs

Cars.com experts independently evaluated more than 400 vehicles to generate this year’s list of 100 vehicles contributing most to the U.S. economy in manufacturing, parts sourcing and employment. Tesla’s Model Y continues its reign as the most American vehicle for the third consecutive year, followed by the Alabama-built Honda Passport taking the No. 2 spot and Tennessee-built Volkswagen ID.4 at No.3.

Austin-based Tesla failed to repeat its 2023 sweep of the top four spots, with the Model X dropping to No. 9 and the Model 3 landing at No. 21 due to changes in workforce and domestic parts content, respectively. Despite this, Tesla still landed four of its vehicles on this year’s Index — three in the top 10 — and was also the only domestic automaker in the top 10.

Tesla's Model Y took the top spot. 

Honda’s Odyssey and Ridgeline — boasting the most American-made minivan and pickup truck — came in at No. 5 and No. 6., while the Toyota Camry and Jeep Gladiator each jumped 19 spots to land at No. 7 and No. 8. The Lexus TX makes a memorable entrance to the index, landing at No. 10. The complete list is available at Cars.com/AMI.

“Over the last year, domestic manufacturing was thrust into the spotlight by the recent United Auto Workers organizing efforts and continues to be a hot topic with the impending presidential election,” said Patrick Masterson, lead researcher for Cars.com’s American-Made Index. “Pundits champion homegrown corporations as the key to investments in local and state economies. However, when it comes to the global automotive industry, the badge on the hood doesn’t always reveal a vehicle’s economic contributions. In fact, 66% of vehicles on Cars.com’s 2024 American-Made Index come from foreign automakers that support communities in Alabama, Indiana, Michigan and Ohio.”

Over half of the vehicles on this year’s list were assembled in the South, outpacing the 45% assembled in the Midwest. Alabama is at the forefront, with 15 vehicles produced in Huntsville, Lincoln, Madison, Montgomery and Vance. Thousands of Alabamians are employed by Japanese-based Mazda, Toyota and Honda, South Korean automaker Hyundai and luxury German automaker Mercedes-Benz.

Honda's Passport SUV came in #2.

In small towns like Lincoln and Vance, with populations of about 7,500 and 2,000, respectively, these foreign automakers have become vital to the local economy, creating jobs and driving economic growth through their investments in these communities. Notably, none of these automakers use UAW-represented labor — only 39% of vehicles on this year’s index were built by the union. This number could change as factory workers weigh joining the UAW.

When it comes to consumer demand for American-made, 56% of in-market car shoppers are willing to pay more for a vehicle if it creates more U.S. jobs — of those, 58% say they are willing to pay at least an extra 10%.  But 60% of Americans say that products need to be built in the U.S. by a company headquartered here to substantially contribute to the American economy. However, the success of Alabama’s auto industry demonstrates that foreign investments are also playing a crucial role in supporting and growing local economies.

Michigan remains a powerhouse for auto assembly, hosting 16 vehicles on the Index. Detroit, home to both GM and Ford, benefits greatly from the auto industry. Both foreign and domestic automakers bolster Michigan’s economy in cities like Flat Rock, Dearborn, Wayne, Lansing, Sterling Heights, Warren and Detroit. Netherlands-based Stellantis has six vehicles on the Index, while Ford and GM each have five vehicles contributing to the state’s economic growth.

GM boasts 18 vehicles on the Index, with five in Michigan and additional assembly locations in Kansas, Kentucky, Missouri, Tennessee and Texas. The highest-ranking GM vehicle is the Chevrolet Colorado, positioned at No. 23. Despite a 10% decrease in AMI representation since 2020, GM consistently has the most representation on the Index. Ford has 12 vehicles on the Index, assembled in Illinois, Kentucky, Michigan and Missouri.

The Lincoln Corsair at No. 29 and Ford Mustang at No. 31 are Ford’s highest-ranking vehicles. Contrary to GM, Ford’s representation on AMI has increased 20% since 2020.

 

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Last modified on Saturday, 22 June 2024 11:49