Information Gleaned from Domestic Content Labels

This is a result of the American Automotive Labeling Act (AALA), not NAFTA. NAFTA itself was an expansion of a law that was agreed upon with Canada (the agreement is technically not a treaty).

The AALA also is known as the VIN first digit requirement act, and specifies that the first digit of the VIN reflect the US content of the vehicles, not just the US/Canadian content.

This sort of answers the question about parts made in the US from foriegn material: It seems that if something is transformed in the US, then it counts as made in the US. I would think stamping steel into a bumper counts.

I was yanking your chain about the VINs. Couldn't resist. The whole idea that the VIN represents content is a figment of someone's imagination. Unless he dreams in color, in which it is a pigment of his imagination.

That's good. Ford needs to sell every car it can.

So what this says is the Camry car line has a higher percentage of 'domestic' parts than the Mustang?!?! Cool!

And that also explains why a Camry with a "J" VIN had 75% Domestic content (in 2005)

CONSUMERS' AWARENESS AND INFLUENCE BY THE AALA LABELS

In a survey of 646 people who had bought or leased new vehicles during the past 6 months or were planning to do so within 3 months:

• 23%* knew of the existence of the AALA label

• 15%* said they had seen an AALA label

• 7%* had read the label at a dealership

• 5%* said they were influenced by the label to any degree whatsoever

• 2%* were moderately or strongly influenced by the label because it identified the vehicle's country of assembly

! * nobody said they used the labels to comparison-shop among make-models according to their percentages of U.S./Canadian parts content

I do. If I'm buying a Japanese car, I *WANT* a Japanese car!!!!

One of the reasons I bought a Scion: Percentage of Domestic parts: 0%

I would guess that a Mustang GT Automatic probably has a domestic content closer to 85%, and the V-6 Automatic is probably less that 60%. But that is only a guess.

I imagine a "J" Camrys actually had a Domestic Content of 0%. The Domestic Content label has nothing to do with the domestic content of any particular Camry, just the theoretical average Camry sold in the US. This implies that US built 2005 Camrys must have had a Domestic Content of around 80% to offset the imported Camrys low domestic content.

Ed

Also, some parts probably came from the US. Toyota actually imports catalytic convertors into Japan.

While cats are expensive, that probably doesn't explain the 75% figure, though.

Jeff

Well, like CE said, the sticker covers the entire car line, not the car itself. That's why I was wondering why a Camry with a "J" VIN had the same content as one made in KY...

Well after looking at the domestic content labels, I have pretty much written them off as useless at best and at worst deliberately misleading. IF you actually cared about where the money was going for the car you are buying, the information presented is not nearly detailed enough. The Camry is a good example. If you were nationalistic and wanted to make sure your Camry had the highest possible US content, the labels don't tell you enough. The labels for all Camrys list exactly the same domestic content (however they do list the country of origin for the engine and transmission, and the final assembly location). With modern computers and inventory control, it would not be all that hard to print the actual domestic content on the window sticker for the car you are considering. However, based on the NHTSA link previously posted, it seems most Americans don't even know the labels exist, and even fewer actually care. And in some cases, I think the labels hurt the sale of "domestic" vehicles since some people apparently would refer their car to be assembled in Japan by Japanese workers. I guess they like the idea of being an economic colony of Japan. I guess I am lucky to have at least part of my income provided by providing raw materials / food. I am sure the Japanese will need to continue to import soybeans.

Ed

Since about 20% of Camrys are still built in Japan, this implies the existence of Camrys that are 100% American.

So, if I want an American car, I should run down to my Toyota dealer and simply pick one that was assembled here.

Thanks for the tip.

[snip]

To put a label on the car that says, "the domestic content of THIS car is XX%" would require additional work that some car companies probably don't want to do. Wouldn't surprise me if their lobbyists worked against such a requirement.

Are ALL of those assembled in Mexico or is there a US factory, too? The Hermosillo plant is profiled in the "Bold Moves" video on the Fusion but whether or not there's also a US plant is unclear.

Now, if the run of the mill Camry is 80% domestic and most are also assembled here, is that car more or less "American" than a Fusion built of

50% non-US parts that is then assembled in Mexico?

The NAP content label is indeed misleading and you are correct, it applies to the vehicle line. If a manufacture buys steel in the US and stamps parts in the US from that steel, it counts as US content as well as NAP. If the steel is imported and the stamping is done in Canada, or the US, it counts as NAP but those parts are NOT US content for the VIN designation of the number '1,' by the US Department of Commerce

The stamped part, or the steel, or the component parts, of any part that is ONLY finally assembled in the US or Canada from imported components it counted on the NAP label but does NOT count as US content. If the US content of base materials, steel, plastics, rubber, glass, engineering , R&D, etc., fall below 70% the VIN assigned is a '4,' if it falls below 40% the VIN assigned is a '5'

For example the Accord get a '1' and the Camry a '4.'

Ford is going to have to start building the Fusion in a second plant. The Hermosa plant does not have the build capacity.to meet the current growth in demand

mike

Evidence please. The VIN designation is required by the Deparment of Transportation, not the Department of Commerce. The Department of Transportation (through the National Traffic Highway Safety Administration) has contracted with the Society of Automotive Engineers to assign the WMI (the first three characters of the VIN).

Here is a link to the US code that is involved:

Exactly. Honda was assigned a WMI (world manufactuer identifier) beginning with '1,' which indicates that it was made in the US, and Toyota begins with a '4', which indicates it was made in the US.

The first digit of the VIN indicates nothing else.

If I am incorrect, you can prove it by posting the URL that demonstrates this.

Excellent. Hopefully this will help Ford come out of their financial mess. I hope they can figure out how to build good cars that people want.

Jeff

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Ed, you're absolutely right that content information on the Origins Sticker refers to the entire car *line*, not the individual car. I swung by the Toyota dealership early this morning, and noticed that the Origins Sticker is worded quite differently this year for the new '07 Camrys.

The new wording leaves room for no ambiguity. Unlike last year's stickers, the new stickers now include the following phrase that clears up any confusion:

"Parts Content information for vehicles in this *CARLINE*: U.S./Canada parts content: 75%

The old stickers mentioned nothing about "Carline."

So Hachi, regarding the J-Vin Camrys, you can be excused for thinking last year that [QUOTE]: "the bodies are assembled in the US minus the drive trains, and then put on one of the Marus and sent back to Japan for final assembly. The reason? Who knows? Perhaps Toyota has to manufacture a certain amount of autos in Japan to still be considered a Japanese auto maker (?). My only other guess is that they are sending parts to Japan and then assembling them there." [END QUOTE]

Until the new Origins Stickers came out with the clear wording, we were all confused. But Hachi, buddy, you offered the wildest theories :-P

You are free to believe whatever you choose but as one might expect you are incorrect, not all Hondas assembled in the US have a '1.' Not all Toyotas have a '4' Does it not make you curious as to why Toyota would be assigned a '4' and '5,' as a world manufacturer as you want to believe, and Nissan who began assembly in the US long after Toyota would gets a '1?' Don't you find it strange, following your logic that ALL of the '1s' would be assigned before they 'ran out' of '1s' as you believe, before they would issue 4 and

5? I told you a dozen times were to search. I could not care less whether you do so, or not

mike

What I find curious is that you have provied no verifiable evidence that anything you say is correct.

Why does Ford make nearly identical vehicles on the same assembly line, but if they are Fords, they get a '1', if the brand begins with an M, they get a 4, and if it begins with L, they get a '5'? They are nearly identical vehicles.

Why is that each type of vehicle sold as a particular brand gets only one WMI (the first three digits of the VIN)? Would there have to be two or three, for at least some (I mean to account for different models that have different content)?

You're right. I am free to believe what I want. And I believe that you have no clue what you are talking about.

Why don't you show us that I am making an ass out of myself by posting the URL that shows that the first digit of the VIN reflects US content?

Jeff

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Believe it or not, if I had to put my chips down on this "1, 4, 5" debate, I would wager on Mike Hunter. Never underestimate a smart Black Jew like the great Mike Hunter :-) Or you could end up experiencing, as the great African-American author James Baldwin once said, "the fire next time."

Sure Mike may sometimes stumble on the percentage numbers (is it 65 % or 75 % ?) and sometimes he'll refer to Camry VINs as beginning with "5" instead of "4," but when it comes to the big picture, the overall argument, I would not underestimate Mike Hunt. Mr. Hunter is probably right regarding the mystical meanings of 1, 4, and 5.

I just wish he would verify it for us with a citation from the Congressional Record, or even "TV Guide" :-)

You know I love ya, Mike. Nobody here knows more about this automotive sourcing topic than you do :-)

Doesn't bother me a whole lot. Hate to say it, but the Japanese made cars are made better...

What the Hell?!?! You archiving my posts for future reference?!?!? ;)

The stickers now say "For this car line" They didn't then, so I just made a wild guess. Hey, I was wrong before. And, you snipped the part where I said it was speculation!!!

Once...

***BULLSHIT WARNING***

Mike Hunter is living in an alternate universe where the first digit of the VIN is tied to the domestic contnet. In "our" universe this is not true (or at least Mike cannot prove that it is true).

Ask Mike why Lincoln Navigators have a "5" for the first digit while Ford Expeditions have a "1" for the first digit even though they are built in the same plant with parts mostly sourced from the same locations. Ask Mike why Mercury Mariners get a "4" for the first digit while the almost identical Ford Escapes get a "4". Ask ask Mike why Mustang V-6 Automatics still get a "1" for the first digit even though they don't include enough domestic parts to be considered domestic vehicles.

And most improtantly, ask Mike where's the proof of his claim that the first digit of teh VIN has anything to do with domestic content.

Ed

Mike's wrong. Ford, Mercury, Mazda and Lincoln all makes trucks and SUVs on the same assembly lines. All the Fords have '1', all the Mazdas and Mercuries have a 4, and all the Lincolns have a 5. Originally, the US was assigned just '1's. Then they ran out. The VINs not only apply to cars and trucks, but they apply to all types of vehicles, like fire trucks, buses, ambulances, bulldozers, trailers, motorbikes and off-road vehicles (the off-road vehicles have their own VIN system now). The VINs are also for vehicles no longer in produciton, like Olds, Plymouth, Eagle, AMC, Divco, and a whole bunch of others that have gone out of business.

Now, the first three digits of the VIN are called the WMI for world manufacturer indentifier. The first digit )identifies the country of origin. The second and the third digit have 31 possible values each (i, o, q, u, z are not used) for a total of 961 WMIs for that were assigned to the US. The US had some many vehicle makers, that they ran out of WMIs. Twice.

That's why, I think, that Mercury and Mazda have VINs that begin with 4 for their trucks. When Ford went to get new WMIs for these vehicles, they got

4's. And when Ford went to WMIs for the Lincoln trucks and SUVs, they 5's.

Mike's conjecture doesn't hold water.

There is not one instance I know of where a manufacture uses two WMIs that are the same, except for the first digit. If, say, Ford made cars with parts that had engines made in Canada one year and Michigan the next, well, the content might go over the 70% market. Considering that Ford has an average content near 75%, you would expect some vehicles are made with less than 70% and some with more than 70% US content. But, there's not one vehicle that has a VIN with a 1, and then a similar vehicle with a VIN that's a 4 in a different year or coming from a different plant or a different model (like Focus and Fusion).

The kicker is that there is absolutely no evidence that Mike has been able to find that suggests that the first digit of the VIN means anything other than the vehicle was built in the US. There is nothing about it in the US Code. And there is nothing about it on the National Highway Safety Traffic Administration website (NHSTA responsible for VINs; SAE is contract by them to do it for the US).

Finally, if the VINs, which were started with the ISO in 80s or so, started with the US having three digits, don't you think they would be consequetive, like 1, 2, 3, rather than 1, 4, 5, like they would be if they were add-ons?

Jeff

Of course I do. Where would my Camry be without the Meguiar's Number-26 you recommended?