Developed by Associate Professor Frank DuBois, an expert in global supply chain management, the index ranks 318 car models based on seven weighted data points. These criteria include several factors unaddressed by the American Automotive Labeling Act (AALA). The criteria include:
• Profit Margin: Location of the automaker’s global headquarters
• Labor: Location of assembly
• Research & Development: Location of R&D activities
• Transmission: Location of production
• Inventory, Capital and Other Expenses: Location of assembly
• Engine: Location of production
• The AALA "Domestic Content" Score
DuBois used publicly available data to develop the index, including data from the AALA, automakers’ annual reports, and Form 10-K filings to the US Securities and Exchange Commission. Automakers received up to 100 percentage points based on the scores each received in the seven categories noted above.
The top six vehicles (several received the same score) in the 2014 Kogod Made in America Auto Index, based on a 100 point scale, are the Ford F-Series Pickup the Chevrolet Corvette, the Buick Enclave, the Chevrolet Traverse, the GMC Acadia and the GMC Acadia Denali.
Professor DuBois believes the Kogod Index represents the most accurate "made in America" index available because it acknowledges that every vehicle is likely to include non-American content, given that a global supply chain is the operating reality of the entire automotive industry.
According to DuBois, the AALA is meant to help consumers "buy American," but the data it provides is limited in several ways. Since the 1994 passage of the AALA, automakers have been required to affix a label documenting the percentage of "American" content in each vehicle sold in the US While this data is useful, it has some limitations.
"This index provides the public with a more accurate reflection of the true country of origin of a car and the impact of its purchase on the US economy," said DuBois. "And hopefully, it holds vehicle manufacturers accountable for the claims they make in marketing to US consumers."
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