Cars…. Domestics. Imports. What’s the difference?

I am not stating anything brilliant when I write The car industry is important to the United States economy.  Jobs. Revenue.  Jobs. GDP.  Jobs. Etc… The US is giving  or lending money to Chrysler and General Motors (GM).  (IMHO they are still going about this in the wrong way. Please see my previous post Buy Cars – A message to Washington on the stimulus.)

As the topic of  assisting the car manufacturers takes place, without a doubt, the subject of protectionism arises.

But these days, what is a domestic car?  What is an import?  Does it matter to our economy? Both domestics and imports provide jobs in the United States.  They both use varying degrees of  US materials. They both use US services like transportation.

From AutomotiveAddicts.com  Made in America

As a result, it’s hard to tell what really an American-made car is, and perhaps even why it matters. Car buyers who wish to buy American have a confusing maze of information to navigate: there’s the location of the assembly plant, the percentage of parts content, the ideal of that name on the grille, and, finally, where the pocket is that will take the profit and re-invest it into future cars and products. Each element weighs differently to each person, to be sure, so we have attempted to create a comprehensive guide to understanding what it is that makes a car an American car. Because it’s jobs and investment that matter most, we rank the assembly and parts makeup of a vehicle as most important, followed by the location of the corporate parent and, finally, the name of the brand.

Also from the same article:

The US Government defines domestic vehicles in two basic ways: where they’re assembled and the percentage of parts content comes from an American source. We add the final two criteria to clear the air on confusing issues regarding ownership. For example, you may think that the Dodge Ram is an American vehicle, but it’s really not: Because Dodge is owned by a German company, DaimlerChrysler, and because its parts content does not reach the US threshold of 75 percent, it’s actually an import. We also recognize the value of a brand, and the cultural importance they play in the lives of Americans. For example, Ford is more than just a car company; it’s a family with a historic legacy that covers assembly line production and automobiles. Regardless of recent struggles, the name and brand of Ford, Chevrolet, Cadillac or others resonates with people as a part of their lives.

So, the bottom line is What is a domestic car? We should just be working towards selling cars… period.

The US government determines a domestic vehicle by using a combination of (a) The Assembly Plants and (b) The Parts and Content.

So… did you know the Toyota Camry is considered a domestic vehicle?  Did you know the Chevy Tahoe is considered an import?

Let’s just buy and sell cars!!!

<Made in America is a must read>

(photo treehugger.com)