Autos

Tesla again dominates the rankings of most American-made vehicles – Auto Remarketing


The most American car on the market is electric — again.

For the second year in a row, Tesla dominated the annual Made in America Auto Index, issued by American University’s Kogod School of Business. The EV brand claimed the top three spots in the rankings outright and had two more models tied for fourth.

In the 2023 index, Tesla vehicles tied for first, second and fourth in the rankings.

The index was created in 2013 by Frank DuBois, a Kogod associate professor and global supply chain expert, as a database to inform consumers about the amount of U.S.-made content in their cars and the extent to which their purchase decisions impact the economy.

Vehicles are ranked on seven criteria — manufacturer’s profit margin, labor, location of research and development, inventory/capital, engine, transmission and body/chassis — which are used to calculate the total domestic content of vehicles sold in the U.S.

This year’s index comes as the global automotive industry faces questions regarding its manufacturing processes amid recent changes to international trade agreements and the prospect of new tariffs.

Tesla’s contingent was led by the Model 3 Performance, which ranked first to earn the title of the most American-made vehicle. The regular Model Y and its Long Range version tied for second, ahead of the third-place Cybertruck. Tesla’s Model S and Model X tied for fourth with three versions of the Ford Mustang GT.

Honda’s Passport AWD and Passport Trailsport tied at No. 5, followed by Jeep’s Wrangler Rubicon and Wrangler Sahara at No. 6, with six vehicles tied for seventh: the Volkswagen ID.4 AWD, two versions of the Chevrolet Colorado and two of the GMC Canyon.

The top 10 also included the Volkswagen ID.4 RWD, Honda Odyssey All, Honda Ridgeline, Honda Pilot All and Lincoln Corsair.

American University noted how the rankings have changed significantly since the index began, with Tesla and foreign manufacturers such as Honda, Toyota, Nissan, Hyundai/Kia and Volkswagen, becoming mainstays — due in part to foreign automakers becoming more likely to increase their U.S. sourcing over the past decade than American-based manufacturers.

But that could soon be changing, Dubois said. With major changes to the global manufacturing landscape looming, domestic automakers might be incentivized to move their sourcing back to the U.S., which would significantly impact the Auto Index rankings.

Other policy factors, such as the tax incentives offered for EV purchases under the Inflation Reduction Act of 2022, could lead to increased efforts by OEMs to source EV batteries and minerals from domestic suppliers.

“Changes to international trade agreements and the possibility of new tariffs on foreign imports will force automakers to develop alternative supply sources for their parts and vehicles,” DuBois said. “In the coming years, we expect to see drastic changes in the amount of American-sourced content in vehicles sold in the U.S., as carmakers adjust to a new reality.”

More information about the Kogod Made in America Auto Index is available here, and the full 2024 rankings are available here.



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