GM and Ford Dominate the Top 10 in the 2017 Kogod Made in America Auto Index
Index Provides Accurate Evaluation of Vehicles' True Country of Origin
WASHINGTON, DC - June 8, 2017: The Buick Enclave, GMC Acadia, Chevrolet Traverse, Ford F-150 and Chevy Corvette rank as the top most American-made car models, according to the 2017 Kogod Made in America Auto Index (http://www.american.edu/kogod/autoindex/) . The Enclave, Acadia and Traverse tied for first, with the Ford F-150 and Corvette ranked second and third, respectively.
Developed by Kogod School of Business Associate Professor Frank DuBois, the index ranks 418 car models and provides an accurate picture of the production process for the most popular vehicles on America's roads today. It takes into account the ancillary impact of auto vehicle manufacturing on the U.S. economy and provides an indication of the real economic impact that auto purchases have on the country based on where the vehicle gets designed, assembled, and sold.
Other cars in this year's top-10 include several models of Fiat-Chrysler's Wrangler (4th and 5th), Ford's Expedition (5th also), and Navigator and Taurus at 6th. Cadillac placed two cars at 7th along with the Four Wheel drive Chevy Colorado pickup.Â Jeep's Cherokee is at 8th position and 3 Hondas (the CRV, Pilot and Ridgeline) and the Toyota Camry tied for 9th. Ford's Explorer and the Chevy Malibu Hybrid round out the top 10 for 2017.
"This index is an alternative ranking system that provides consumers with the most accurate reflection of the true country of origin of a car and the impact of its purchase on the U.S. economy, and helps consumers make sense of automakers' marketing claims," said DuBois.
The Kogod Index incorporates American Automotive Labeling Act (AALA) data in its calculation and includes six additional data points, which are:
• Profit Margin: Location of the automaker's global headquarters
• Labor: Location of assembly
• Research & Development: Location of R&D activities
• Engine and Transmission: Location of production
• Inventory, Capital and Other Expenses: Location of assembly
• Body, Interior, Chassis, Electrical, and Other: Location of production
DuBois uses publicly available data to develop the index. In addition to data from the AALA, the index takes into account automakers' annual reports and Form 10-K filings to the U.S. Securities and Exchange Commission. Automakers received up to 100 percentage points based on the scores each received in the six categories noted above.
Due to multiple tie scores, three vehicles tied for the most American made received the same score (85.5). The Acadia, Traverse and Enclave share platforms and have held the top spot for the last 3 years.Â With US/Canadian content up to 70% in 2017, the Ford F-150 Pickup takes the number 2 position.
Fewer cars from non-US headquartered manufacturers made the top-10 this year. Only 5 Japanese cars were in the top-10 this year, 4 Hondas (CRV, Pilot, Ridgeline and RDX at 9th) and the Toyota Camry (also at the 9th position). Fiat-Chrysler did have 4 Wrangler models at the 4th and 5th spots and the Jeep Cherokee at the 8th position.
DuBois said the rating process represents the most accurate "Made in America" index available because it acknowledges that every vehicle is likely to include non-American content, given that global supply chains are the operating reality of the automotive industry.
The manufacture and sale of automobiles is a significant component of the U.S. economy. In 2016, the auto industry directly employed approximately 2.5 million workers and generated a record 17.5 million units in total vehicle sales, accounting for approximately 3.5 percent of the U.S. GDP. This represents a slight increase over 2015 sales.Â Of the 17.5 million vehicles sold in the U.S. in 2016, approximately 65 percent were produced in the United States.
About The Kogod School of Business
American University is known for its distinctive character â€“ as a place where students learn from leaders in their fields and are engaged in active citizenship. Our Washington, D.C. location serves as a laboratory for learning through work, internships, and other forms of experiential education.
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