Tuesday, October 24, 2017

Tesla the Most American Car Company




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Tesla the Most American Car Company

Tesla

Last year Tesla was the only car company to assemble 100% of their cars in America. The only others that came close were Jeep, Caddilac, and Dodge which barely broke 80%. When I was up at the Tesla factory this past June, I learned that Tesla makes 100% of their cars here in California. It got me thinking, are they the most American car company?

When it comes to measuring how American a car is, there are two variables to consider. The first variable is where the company sources the materials and the other is where they assemble the final product. The National Highway Traffic Safety Administration publishes a report each year listing the percentage of a vehicles engine, transmission, and assembly that originate in either the US or Canada. 



The American Automobile Labeling Act (AALA) defines a passenger motor vehicle as a motor vehicle designed to carry not more than 12 persons with a gross vehicle weight rating not higher than 8,500 pounds (3,800kg) and includes multipurpose passenger vehicles and light duty trucks. So we have two categories here and three measurements. The first we can call content origin, then the second we can call assembly.

The ALA breaks these two variables down by each model, so we need to roll that up by the manufacturer to see those numbers at the company level.

First, let’s answer the question about where these companies assemble their cars. As I mentioned I had to aggregate this data up to the manufacturer level so that we’re not looking at individual models from the survey, and as it turns out, maybe you guessed, Tesla is the most American car company when it comes to assembly location.




We’re looking at this by Manufacturer, and as you can see it’s a stark contrast from first to second place, but if we drill down to the brand it’s a bit closer. Tesla still ranks #1 but Jeep is a close second, and right behind them you have Acura making up the only 3 with over 80% of their cars made in America.




Assembling the car is one thing, but where those parts come from is another. If we look at which cars are the most American based on the source of their parts, Tesla falls to #3 behind Fiat Chrysler and Honda.




Coming in at #1 you may have guessed it; Tesla is the most American car company overall. When looking at it by the manufacturer we have Honda coming in second, Fiat Chrysler third, GM fourth, and Ford rounding out the top 5.




source: www.linkedin.com/pulse/tesla-most-american-car-company-pretty-much-ben-sullins


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