@jkuvakas - I seem to be going off on a tangent here but it's interesting to me so... We worked on gross margins of 15% (when developing new products) so say US autos (made in the US) are roughly 15-20% GM, so that part of the sales price goes back to the company. The rest is raw material, parts, manufacturing, labor, logistics, R&D, sales and marketing, etc. Maybe it is a philosophical question more than a dollars question. Do I want a car made in the US or a car where I support an American company. Both valid criteria that go into buying a car.
@karl, all good points and well made. Ultimately, we have to decide for ourselves what our buying motivations are. But, even then, they should be informed. In 1961, it was very likely a Chevrolet was made here in the States with raw materials and components sourced domestically. Everything began to change when the steel companies began to outsource their products. When that occurred, even domestically-produced cars were made with foreign-produced steel, the profits for that going overseas. Over time, parts, components, and even complete cars were outsourced.
The global economy has impacted nearly everything. Now, if a boycott of Hondas were successful, tens of thousands of people would lose their jobs, some carriers would shut down, suppliers would downsize, dealerships would close...the list goes on and on.
In the final analysis, if someone feels better buying from what was once considered to be a domestic manufacturer, that's a good decision. The important factor in all this is that we enjoy our vehicles. If you like your and the reasons you bought it, that's fantastic. But none of us should be made to feel that we are unpatriotic for not buying from one of the big three. Nor should anyone see themselves as being more patriotic is they do.
By the way, our Blazer was made in Mexico, with 49% of the parts coming from Canada and 25% from Mexico. Go, Canada! Our GMC Terrain was made in Canada, with 20% of the parts coming from Canada and 42% from Mexico. We love both of them!
@jkuvakas Thanks JK and others for this discussion, which I thoroughly enjoyed and learned from. Bottom line IMHO is that it is a very different economy now (for most consumer products) and has shifted well away from that of the times we were raised in unfortunately. Relative to automobile production, I would love it if the quality of North American vehicle production had remained the same as in the 1960s; I suspect the wholesale change in market share would be much better today if it hadn't. QC issues opened the door for change to occur and it sure did....and fast. The truth is manufacturing, because of outsourcing etcetera, has changed so much since the '60s that IMHO it is impossible for the average consumer to even be able to apportion where percentages of profits ultimately end up and how the numbers of domestic jobs are created or lost as a result. Domestic economy of the past vs. international economy of the present.
Just picked up an interesting book in a local charity shop. "Car Guys vs Bean Counters". Bob Lutz (formerly a senior GM vice-president) doing a pretty ruthless analysis of how GM product planning, design and quality control went down the tubes, leading to increasing customer dissatisfaction and declining market share.
Haven't launched into it yet but it promises to be a fascinating read.
@bob-jackman, as I know you know, "Buy American" has changed. With most manufacturing being accomplished here, almost all makes are bolstering our economy. Nearly all formerly non-domestic manufacturers are now incorporated here in North America. For the last ten years or so, the car with the most American content has been the Toyota Camry. You can buy a new Chevy or Ford and think you're buying American, but it's likely it was built in Mexico. Here's an eye-opening article concerning the top 100 vehicles ranked by their American content. Check the list and see where the traditionally thought-to-be domestic nameplates show up. Meanwhile, check out this map.
I have never for the life of me understood why Musk set up a major assembly plant in Fremont California, in the region I used to live in, except for the fact he got a sweetheart deal for the ex NUMMI plant from Toyota. California has to be one of the most expensive and highly regulated states in the nation to do manufacturing. GM, Ford, Chrysler and International all left the state decades ago.
The cold reality is that sadly the North American car makers got what they deserved and as I stated yesterday, it is incredible that they could have been so arrogant and out of touch to not have seen the threat to their well being coming from Japan.
100% agreed! Corporate attitude and culture is everything. Between 2004 and 2018, I owned three Mazda6s (two of which were assembled in the Flat Rock Assembly Plant in Michigan), and three Mustangs assembled in the same plant. All three of the Mazdas were stellar in every way, and all three Mustangs were abysmal (I should have learned my lesson after my first Mustang, but nooooo....I just kept telling myself that "they are better now"). Of those 14 years, 11 were spend driving the Mazdas. I could only tolerate the Mustangs for around a year at a time. Again, I should have learned, but my lifelong passion for Mustangs had to be beaten out of me. I was cured forever of Mustang Fever by 2018.
These two models were produced on the same line, by the same people, at the same time (see photo). Yet judging by the quality chasm, you would think the they were made on different planets! The only variable is the corporate culture. One company values good engineering, and the other does not. The guys on the line will assemble whatever they are given to work with, so it is definitely Garbage In - Garbage Out. I always imagined the Mazda QC people swarming each Mazda in lab coats looking for imperfections as it came off of the line, while the Ford "QC" people were...um....wait...does Ford even have QC people?
My experience with Ford leaves me with the same opinion of them that everyone now has of Boeing. How did this happen, and how, precisely, do these people sleep at night? The behavior of both companies is literally the definition of "sociopathic". So, to heck with them all (pardon the language). I guess some manufacturing companies don't need engineers, as long as they have enough attorneys and marketing experts, right?
I am neither pro-import nor pro-American; I just buy what I like. I have owned many Japanese "brand" cars (some assembled in Japan, and some in the US), but I am currently driving a Assembled-in-Detroit Jeep, and love it. And don't get me wrong...I LOVE Fords as long as they are smaller than 1:1!!
@daveg This comparison of two brands BUILT IN THE SAME PLANT is very interesting indeed.....surprising new info for me. Thanks!
It was a complete coincidence that I ended up buying a bunch of cars in a row that were assembled in the same plant, but it sure made for an interesting case study!
In my humble opinion Ford, because of it two class share system dating from its IPO in 1956 has a sclerotic board of directors with little change possible due to the Ford family control with the class B stock. But I still collect Ford models.
We had 2 Fords - a 1996 Taurus SHO and a 1997 Mustang Cobra. My wife loved the SHO, it was very pleasant to drive and the interior was decent (albeit quirky with the oval theme carried to the dash). It lasted 14 years before she had to go on assignment in Asia for a couple of years. The Mustang had a great engine but the interior was subpar. When it came to replacing the SHO, Ford no longer had a decent sedan so we went Korean. As for the Mustang, it was supplanted by a Mini Cooper JCW which was a blast.
I bought a '97 Mustang GT convertible two years old and kept it for six years with no issues. In '93 I bought a new Ford Explorer and had it for 235000 miles. It needed a transmission rebuild once at 110000 miles but at 1 1/2 cents per mile it was excellent transportation. No other problems with the car in 26 years of ownership. I also bought new a 2005 Ford Escape which now has 180000 miles on it with no problem. I bought my son a 2006 Mustang with a six in it and he still has it with no issues. At least for these years I've had no problem with Ford products. I've had friends with Toyota's with issues but usually they are good cars, so it just depends.
https://www.pinterest.com/pin/315744623870067415/ 
