With Mergers, Acquisitions, and Bankruptcies in the Auto Industry this past year going around like a common cold, shoppers who want to support a Domestic Auto Economy are left wondering: Is there any Car Industry to support?
Toyota is totally commited and is vital to the U.S. Domestic Economy. With this brief article let us look at Toyota’s domestic content and even compare it to U.S.-based brands. Then let us bring it full circle as to what it all means to concerned shoppers.
WHAT IS “DOMESTIC”?
Auto companies have to report information to the government about the origin of their vehicles. These reporting requirements have two components: What Is Assembled, and Where It Is Assembled
Domestic Content: What Is Assembled?
- Calculate the dollar value of the parts needed to assemble the vehicle
- Calculate the percentage of value from U.S. or Canadian suppliers(Domestic Content)
- Calculate the percentages coming from suppliers in other countries.
Final Assembly Point: Where It Is Assembled?
- Where did parts roll down the assembly line?
The government requires new cars have a label disclosing that information and more. the label includes:
- Percentage of domestic content
- Other countries supplying 15% or more of total value.
- Final assembly point
- Origin of engine and transmission
Many of us may not realize just how much of the value in many Toyotas comes from domestic suppliers. Take a look:
50% Tacoma, Corolla
75% Sequoia, Camry
80% Venza, Avalon, Tundra
Also, Toyota partners with hundreds of American companies that supply domestic content. Camshafts, Fuel Pipes, Brakes, Bumpers,Meters,Relays,Engine Components, and Interior Components are some of the many components manufactured for Toyota by American Companies.
PUTTING IT ALL TOGETHER
It is somewhat illuminating to compare a “domestic-brand” vehicle to an “import-brand” vehicle using government data.
Minivans: Chrysler Town&Country:Domestic Content 71% Toyota Sienna:Domestic Content 85%
Mid-size Sedans: Ford Fusion: Domestic Content 55% T Toyota Camry:Domestic Content 75%
Compact Cars: Saturn Astra: Domestic Content 2% T ToyotaCorolla:Domestic Content 50%
Full-size Pickups: Ford F-150 : Domestic Content 75% T Toyota Tundra:Domestic Content 80%
While this type of comparison doesn’t hold true for every vehicle, it does highlight two important points. First, a shopper shouldn’t rely on the nameplate for information about the origin of a vehicle. Second, Toyota produces a number of models that have high levvels of domestic content, and many of them are assembled in this country.
AND WHAT VEHICLES ARE BUILT IN THIS COUNTRY?
- Avalon- Georgetown, Kentucky
- Camry- Georgetown, Kentucky and Lafayette, Indiana
- Corolla- Freemont, California
- Sequoia- Princeton, Indiana
- Sienna- Princeton, Indiana
- Tacoma- Freemont, California
- Tundra- San Antonio, Texas
- Venza- Georgetown, Kentucky
Americans want to do right with their community and their national economy by supporting the domestic auto industry.
What’s important to know is that Toyota is an established part of the American Domestic Auto Industry. The company directly supports thousands of U.S. workers’ jobs; through its large domestic supply chain it supports thousands more. Toyota contributes to American communities that are alive, active, and vibrant because of its presence. Toyota is a vital part of the U.S. Domestic Economy. These are things everyone can feel good about.