How Made in America is "Made in America" among Luxury Car Brands?

[Bruce Nunnally]

The Kogod index ranks models based on seven weighted data points including several factors unaddressed by the American Automotive Labeling Act (AALA), the basis for “made in America” automotive studies. Press Release

Kogod's method improves on AALA data by incorporating a more comprehensive research methodology, providing consumers with a more accurate view of their vehicle's composition. The Kogod study considers:The seven criteria are as follows:

1. 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.
2. 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.
3. 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.
4. Inventory, Capital and other expenses. If assembly occurs in the US, the model receives an 11; if not, it receives a 0.
5. Engine. If the engine is produced in the US, the model receives a 14; if not it receives a 0.
6. Transmission. If the transmission is produced in the US, the model receives a 7; if not it receives a 0.
7. 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.

In either study, Cadillacs had the highest Made in America content among luxury brands; Lexus and Infiniti had the lowest -- in cases around 1%.

The Escalade, ATS, CT6, and CTS scored above 80%.  The ELR & XTS were at 54% and 51.5%, and the SRX was lowest at 29.5%.

BMW ranged from 3.5% (i8) to 32.5% (X6 X-drive 35i).  Mercedes ranged from 1% (SLK-Class) to 61.5% (C Class). Lexus ranged from 1% (RC F) to 56% (ES350).

This appears to be a good method to determine just how much US content each model has, and provides factual content for consideration.  The complete table by model is available at the link.