Quote:
Originally Posted by fielderLS3
I've noticed that many "American" cars have gone from about 90% US/Canadian parts to generally about 60% in just the last few years. (Meanwhile, many Japanese cars have increased to 80% US/Canadian content). This may have a lot to do with the bankruptcies of the part suppliers. Many companies that made parts 5 years ago when American cars were at 90% went bankrupt too (and out of business, not bailed out), leaving them scrambling to find new suppliers. Hopefully this means some of these part contents can come back up a bit once all the financial problems are sorted through.
This leads into another important point. A lot of stuff produced by outsourcing hasn't gotten any cheaper (cars have continued to go up through it all), anything still made in the US has simply gotten much more expensive much faster (without the outsourcing, the "true" inflation rate would shock us all). Outsourcing has become a means for producers to keep their products affordable with inflation outpacing wage gains. So in my book, the Fed deserves a good piece of the blame along with the unsustainable union deals.
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What?
http://www.levelfieldinstitute.org/fact_kit.html
- The average Big 3 car used more than twice as much domestic content as the average foreign car, including those built in the U.S.
- 8 out of the 10 vehicles that Ford, GM, and Chrysler sell in the U.S. are made in the U.S., while only half of the cars other automakers sell here are made here.
There are very few foreign cars that are 90% "American" made as you claim, which the only one being that I can think of right now is the Toyota Camry.