How Foreign is an “American” Car?

We keep talking about the bailout of the American auto industry but for years now the domestic content (the amount of American materials and labor used to make that car) of the Big Three has been falling while the domestic content of the “foreign” companies has been growing. 

Here’s an interesting stat.  The Toyota Camry (one of the most popular cars, by sales volume, in the United States) is produced in Lexington Kentucky and consists of 80% American content, the Honda Accord (another one of the most popular) has 70%.  The all-American muscle car, the Ford Mustang, consists of 65% American content. Surprised?  Well then check out this study by The Federal Reserve Bank of Chicago (one could argue a “pro-American” organization).

One noteworthy quote from that study is:

“Today the distinction between “American” and “foreign” vehicles is not so clear:  Some models produced by the American-owned Detroit Three carmakers have a smaller share of domestic parts than models produced by foreign-owned carmakers.”

So ask yourself is a bailout of the Big Three truly a bailout of the American automobile industry or just a bailout of the worst American auto industry players?  Also ask, does Toyota get a bail-out as well so they can retool their American factories to build more fuel-efficient cars?  Oh, that’s right they already have, my Camry Hybrid came from that Lexington Kentucky plant OVER TWO YEARS AGO.