Feel patriotic? Here’s how to buy American

By Bengt Halvorson

updated 10:36 a.m. ET July 2, 2008

American automakers are struggling.

Sales of consumer-oriented cars and trucks at General Motors slid 15.9 January through May compared to the same period last year. Ford and Chrysler are seeing similar troubles with declines during the first five months of 11.2 percent and 19.3 percent, respectively.

Car buyers interested in giving the domestic automakers and by extension, the American economy, a lift can do so with their next vehicle purchase. The challenge is that neither the government nor auto manufacturers make it easy to figure out which vehicles have the greatest impact on the American economy.

Here's the bottom line: The best way to boost the economy with your next new-car purchase is to buy a domestic-branded model manufactured in North America with the highest percentage of American-made parts. But figuring out exactly which models fit that criteria isn't easy.

Automakers must specify on each vehicle’s window sticker how much of its content comes from American or Canadian suppliers, where its engine and transmission were built, and its final assembly point.

The stickers divulge some surprising — and potentially bewildering — information.

For instance, the Chevrolet Equinox, which is assembled in Ontario, has an engine made in China and a transmission from Japan, which brings its domestic content down to 55 percent. The Chrysler PT Cruiser is assembled in Mexico, has a Mexican-made engine and only 37 percent domestic content.

Yet the Japanese-branded Toyota Sienna minivan, with a West Virginia-built engine and transmission, and a final assembly in Indiana, boasts 85 percent domestic content.

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The international patchwork of auto parts is nothing new, says Paul Ryan, director of government affairs for the Association of International Automobile Manufacturers (AIAM). The group represents 14 foreign-based automakers and four parts suppliers.

“The industry is the poster child of the global economy, and it has been for many years,” he says.

To help patriotic car buyers hone in on the best domestic models that will have the most impact on the United States economy, we’ve compiled a list of vehicles from American automakers assembled in North America with the highest percentage of domestic parts. Read on to find out why domestic-branded vehicles with the most domestic-sourced parts are best for the economy, or skip the discussion and see the full list of the Most Patriotic Vehicles in the slideshow.

The list includes our best picks per category, including sedan, coupe, convertible and so on. We used safety ratings, fuel economy and cumulative analysis from test drives to break ties and have listed runners-up for each category.

Despite the hodgepodge of parts in most vehicles, experts say there are compelling reasons to buy from American brands, regardless of whether a particular vehicle was born on American soil.

John Wolkonowicz, senior automotive analyst for Global Insight, says to simply consider one question: Where does the profit of the car purchase accrue?

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“You buy a Toyota and the profit accrues in Tokyo,” he says. “You buy a GM made in Canada and the profit still accrues in Detroit. Buyers of foreign-branded cars take delight in knowing that their cars are assembled in the U.S. But the value added in the assembly process is not all that great. At the end of the day, it’s where the profits accrue that really matters.”

Another way to look at economic impact is in terms of the number of jobs an automaker creates. As foreign car manufacturers expand operations in the United States and employ more Americans, the lines start to blur. But ultimately it’s still the domestic brands that create the most jobs for Americans.

“A Ford Fusion built in Mexico supports all the same jobs in Dearborn, Mich., that a car built in the U.S. does,” says James Doyle, president of the Level Field Institute, a group that represents the interests of the so-called “Big Three” American automakers — Chrysler, Ford and General Motors — along with their domestic suppliers and dealers.

GM alone employs more Americans than all foreign automakers combined; 40 percent of GM’s worldwide workforce is in the United States, compared to only 11 percent of Toyota’s.

Chrysler employs about 83 workers for every 2,500 vehicles sold, Ford employs 80 and General Motors 71, according to the Washington-based Level Field Institute. By comparison, Toyota employs 33 American workers for every 2,500 cars sold.

Buying a vehicle with the highest percentage of domestic parts possible helps the U.S. economy by invigorating the national auto parts industry, which provides 1.8 million jobs domestically.

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