One of American University's associate professors is shining a light on a topic we've been keeping an eye on for the past several years. The Washington DC-based university has been doing this since 2013.
That is, taking a closer look at which automakers are producing the most American vehicles.
Looking at 2016's index, it's interesting. That's because General Motors (GM) has a commanding presence on the ranking.
The rationale behind this exercise is that American University is actually trying to better understand the vehicles that are specifically making an impact on the U.S. economy. We're all for that getting a much-need boost.
That said, take a look below at the Top 10 vehicles that are driving the U.S. economy, at least according to American University's look into the data.
Conclusion
The index shows that vehicles produced by automakers headquartered in the US rated higher overall in the index. This is for two reasons: (1) profit derived from their sale was more likely to return or remain in the United States; and (2) a majority of a U.S. company’s R&D activities are located in the US.
The index also finds that foreign companies were more likely to use fewer US-produced parts, even if they utilize American manufacturing locations. US economic impact is lower, as the vehicle’s home country receives much of its profits. While the data contained in the AALA is important, a true index of “localness” must recognize other things such as company’s country of origin, as well as the location of its research and development activities.
