Automaker's U.S. Jobs and Investments Influencing Auto Purchase Decisions According to New Level Field Survey
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DETROIT, Jan. 14 -- Three out of four Americans care about where the cars they buy are assembled, where auto parts are made, and how many jobs each automaker supports.
A national survey of 715 likely car buyers (with a margin of error +/- 3.6) found that 79% of Americans are more likely to purchase a car if the manufacturer is based in the United States, while 74% say they are more likely to buy a car if the company producing it employs significantly more U.S. workers than its competitors. Seventy-eight percent of those polled said they pay at least "some" attention to where the parts of an automobile are made.
"While price, safety and quality will always top the typical car buyer's checklist, 'made in America' still matters," said Jim Doyle, President of Level Field. "That's why nearly every automaker doing business here spends a lot of time and money promoting its U.S. jobs and investments."
As car buyers who care about these issues learn more about the differences between automakers, their attitudes about those automakers change -- and so does their purchase intent.
For example, when respondents were informed that Ford, GM and Chrysler use nearly 2.5 times more "domestic" parts, on average, than foreign automakers (including the automobiles that those companies assemble here)(i), the percentage of car buyers likely to consider buying a domestic car or truck jumped 5% (from 79% to 83%). Meanwhile, the percentage of car buyers likely to consider buying a Japanese automaker's car or truck dropped 17% (from 52% to 43%). Consumers' purchase intent related to European cars and trucks changed only slightly with this new information; with those saying they are unlikely to purchase a European car increases from 59% to 62%. Level Field believes the difference between attitudes about Japanese and European automakers is driven by the fact that Japanese automakers have promoted their investments here more effectively than European automakers in recent years. In other words, those favoring Japanese automobiles do so, in part, because they understand that many of their automobiles are assembled here. When those consumers are informed of the difference between domestic automakers and Japanese automakers, their favorability drops.
Based on parts data automakers provide the Federal government each year, Level Field estimates that domestic automaker fleets use 79% domestic content, on average, while foreign automakers fleets contain 35% domestic content, on average. If domestic automakers had reduced their use of domestic content from 79% to match foreign automakers, approximately $95 billion in U.S. parts sales would have moved overseas -- and between 200,000 and 320,000 auto parts jobs could move with them. Economists estimate that each parts job supports nearly five others. Losing $95 billion in parts sales could therefore cost the U.S. about 1.8 million jobs.
About Level Field Institute
Level Field seeks to promote U.S. jobs, R&D and infrastructure investment by offering clear comparisons of how various automakers contribute to the U.S. economy. Established by retirees and families of GM, Ford, DaimlerChrysler, and the suppliers and dealers that support them, the Level Field Institute also has the support of major manufacturers, suppliers, dealers, unions and others who care about these issues. Level Field welcomes foreign automaker investments and supports free trade.
LFI vs. JD Powers Poll Results Methodology
Level Field Institute commissioned a study utilizing 715 national phone interviews made from October 15th through October 19th, 2007 with respondents that own or lease vehicles. The margin of error is +/- 3.6.
Comparative Trends: LFI vs. JD Powers
On a whole, American vehicles are still the most preferred among American auto consumers. Both the LFI and JD Powers polls revealed that auto consumers are most likely to buy an American car or truck, followed by an Asian and then a European car or truck.
How likely are you to
buy a car or truck
manufactured in the
following countries?
% Saying Very likely LFI JD Powers
Total Total
Sample Sample
American 56 49
Asian* 29 40
European 12 11
*Please note: Asian refers to only Japanese manufacturers in the LFI Survey
Correspondingly, European manufactured cars receive the lowest preference and consideration and are the most avoided vehicles by American auto consumers.
How likely are you to buy
a car or truck manufactured
in the following countries?
% Total Not Likely
(Not very + not at all likely) LFI JD Powers**
Total Total
Sample Sample
American 20 18
Asian* 46 17
European 62 46
*Please note: Asian refers to only Japanese manufacturers in the LFI Survey
**Please note: JD Powers study is among total % avoiding (Probably + Definitely would not consider).
Impact of Where Parts Are Produced
Most American auto consumers pay a great deal or some attention to where automobile parts are made. In fact, a quarter (25%) of American auto consumers claims to pay a great deal of attention to where parts are made for automobiles.
How much attention do you pay Overall to where the parts of an automobile Total are made? Sample GREAT DEAL OF ATTENTION 25 PAY SOME ATTENTION 43 NO ATTENTION 31
Overall, American auto consumers are very supportive of the American auto industry. Having operations in the United States -- producing parts, assembling, hiring or being based domestically -- resonates positively among American auto consumers. Automakers that use parts produced in China, India or Korea could raise the ire of nearly three quarters of the American auto buying public.
How does this factor impact your
likelihood to buy a car or truck?
Positive / negative impact
Ranked by National Overall
Total Sample
The parts were produced in the United States 79/16
It was assembled in the United States 79/15
The company producing it is based in the
United States 75/19
The company employs significantly more
U.S. workers than its competitors 74/16
It was assembled in Japan 46/49
The company producing it is based in Japan 44/49
The company producing it is based in Germany 40/52
The parts were produced in China, India or Korea 20/71
(i) American auto manufacturers' vehicles average 79% domestic content (as defined by the [AALA]), while foreign manufactures average 35%.