Tuesday, July 28, 2009

Domestic-Parts Content: Where the Automakers Stand

Camarolineup

American-Made Index rates cars built and bought in the U.S. The percentage of domestic content used in each car plays a major role in the index; we use the domestic-parts content rating that’s been required on new-car labels since the mid-1990s. The top-placing Toyota Camry, for example, has an 80% domestic-parts content rating for the 2010 model. But where do automakers’ entire lineups rank against each other in terms of their vehicles’ domestic-parts content, particularly when you weight the cars by how many they sell?

It’s no simple task to determine — you’ll see some wrinkles below — but we took our best shot. Weighted for sales, here’s how the big players measure up in domestic-parts content:

GM: 69%
Ford Motor Co.: 64%
Chrysler Corp.: 60%
Honda/Acura: 58%
Toyota/Lexus/Scion: 44%
Nissan/Infiniti: 31%
Mitsubishi: 25%
Subaru: 20%
Mercedes-Benz: 16%
Suzuki: 12%
Mazda: 11%
Volkswagen/Audi: 9%
BMW/Mini: 5%
Jaguar/Land Rover: 3%
Porsche: 3%

General Motors, which fielded three models in this year’s AMI, leads the pack at 69%. Credit strong sellers like the Chevy Malibu and Pontiac G6 (both 80%). While we disqualified the G6 in the AMI — as it’s being discontinued along with the rest of Pontiac — we didn’t for this list because this one is only concerned with the overall level of domestic parts that automakers’ cars and trucks use. Ford comes in second, even though Volvo (which it owns) has a lineup with minimal domestic-parts content. That drags its parent down roughly 2 percentage points. Chrysler rounds out the top three at 60%. Interestingly, Honda ranks the highest among Japanese automakers, thanks in part to heavy-hitters like the Odyssey (80%), Accord (65%) and Pilot (70%). Toyota landed a record four cars on the AMI, but its aggregate parts content remains a less-impressive 44%. Why? Despite popular cars like the Camry (75% for 2009 model, 80% for 2010), Tundra (80%) and Sienna (85%), the automaker has more than a dozen models with domestic-parts content ratings south of 30%.

The National Highway Traffic Safety Administration publishes a list each model year for domestic-parts content. To see where car companies stand, we weighted NHTSA’s 2009 domestic-parts content ratings against each model’s year-to-date sales through June. You’ll note that NHTSA doesn’t report every brand out there: A handful of brands, from Hyundai/Kia to Smart, haven’t yet been reported. We asked NHTSA why, and we’ll let you know when we get a response.

We aren’t the first group to compile this sort of ranking. The Automotive Trade Policy Council, a Washington, D.C.-based organization that represents the Detroit Three automakers, compiled aggregate domestic-parts content ratings in 2006. Back then, ATPC found Detroit automakers had sales-weighted parts content of 76%, while Japanese companies came to 48%.

Keep these figures in mind as you read the American-Made Index. The Camry may be the most American car this year, but when you’re looking at the domestic-parts content of an entire automaker, Detroit still comes out on top.

Recall Alert: 2005-2006 Subaru Baja

2005subarubaja Subaru is recalling 15,633 Baja sport-trucks from the 2005 and 2006 model years for faulty fuel systems. A fuel hose may crack leading to a fuel leak. Fuel leaks can lead to fires if near any kind of ignition source.

Dealers will replace all necessary parts free of charge. The recall is expected to begin in September. Owners can contact Subaru at 800-782-2783.

Monday, July 27, 2009

Cash for Clunkers Postponed To Monday

6a00d83451b3c669e20115703af20b970c-300wi The government website that lists details on the CAR Allowance Rebate System (informally known as Cash for Clunkers,) has been updated this morning. While the site had said the program would start “around July 24” it now says the program will start on July 27, or Monday.

Many dealers locally are already advertising the federal incentive, and one at least one automaker, Hyundai, is advancing its dealers funds to cover the federal incentive. The company says Clunker sales made up 7 percent of sales in the first week of July.

We’d suggest consumers call their local dealers and ask if they’re already registered with the program and accepting trade-ins if they decide to go car-shopping this week.

We have been covering the program extensively since day one, and have a number of resources that can be found in our Guide to Cash for Clunkers.

Update: According to a Pittsburgh TV station, the program was delayed due to the government's computer system crashing.

Reader Review of the Week: 2009 Ford Flex

Reader Review Franz from Bryan, Ohio, purchased a 2009 Ford Flex after finding that it met a long list of criteria. Surprised at the luxury the Flex offers, Franz nevertheless found fault with a few aspects of the Flex, including its less-than-stellar gas mileage. Read the full review to find out more, then post your own review here.

Flex500

“I was looking for a vehicle that would fit all my needs: stylish, not plain, plenty of room for carrying passengers as well as cargo, good performance and decent gas mileage.

“Ford did a great job with the Flex, but before I bought one I had no idea how much of a luxury vehicle they were. I bought a 2009 SEL with everything except Sync and navigation (wish I would have bought Sync, though). The vista roof is great for passengers and the seating is comfortable. It is roomy enough for hauling students around to events as well as for my family on long trips.

“Gas mileage is all right with an average of 20 mpg in the city and 24 mpg on the highway, but honestly it should be higher. There is plenty of power under the hood to make the Flex get up and go when needed, but using it really affects your gas mileage.

“Handling could be a little better, but it is adequate for daily driving. The Flex is a heavy vehicle. You will feel it in the turns, but it is not top heavy at all, so that is a bonus.

“Since I bought mine, all my friends have ridden in it and love it. One even ran out and bought one for himself. They are great and I am very satisfied with the Flex overall.”