Buy American- What Does That Mean?

July 13, 2015

Industry Week Reports that “Ford Plans Move for Compact Car Production Out of US.” What exactly does “Buy American” mean these days?

032609_buy_american.jpg

In 2009 , While two of the three  bankrupt thinking Detroit firms were using the government to bully their way through Bankruptcy, running roughshod on their suppliers and creditors, I wrote a piece about “The New Domestics.”

Here are a few points that I made in that article:

  • More than 70 percent of the value added in a new car is provided by the suppliers, not the assemblers;
  • More than 300 companies have created jobs in Ohio as a result of the state’s “New Domestic” auto industry;
  • Honda has plants or major operations in Alabama, California, Connecticut, Colorado, Georgia, Indiana, Iowa, Michigan, New Jersey, North Carolina, Ohio, South Carolina, Tennessee and Texas.
  • Mercedes has a plant in Alabama too.
  • And BMW has a plant in South Carolina.
  • Volkswagen has broken ground for an assembly facility in Chattanooga, Tennessee. (It’s been making cars since 2011, employs 2000 people)

So what is an American Car?

  • One made by my friends and neighbors;
  • Made from materials and parts purchased locally;
  • One that the first digit of the VIN is a “1”;
  • One that has more than 50% “domestic content;”

Want to know more about American Cars in 2015?

The MOST AMERICAN CARS

What is the US’s leading auto exported abroad?

Surprise Answer

Industry Week Article

Thanks to Draplin Design for the neat graphic.

Camry Photo

Postscript- Not to diminish the role of Canadian Manufacturers- nor their vehicle assembly plants.  PMPA members in Canada produce high volumes of high technology systems parts for the automotive markets- fuel injectors, anti-lock brake parts,  fluid power system components and much, much more. But the irony of the whole Ford “Wrap ourselves in the flag while we really export your jobs” marketing  is really the “driver” behind this post.


Administration Wins One On Trade!

February 10, 2010

A tentative agreement reached between the U.S. and Canada would provide Canadian suppliers access to state and local public works projects under the American Recovery and Reinvestment Act of 2009. At the same time, US suppliers will now have access to provincial, territorial, and municipal supply contracts in Canada.

Reciprocal rights to sell in US and Canada means win win.

Originally, the  Buy American provisions of the ARRA had mandated that all steel and manufactured goods purchased with the stimulus funds be made in the United States or in countries with U.S. agreements on government procurement. Local-level projects were also mostly confined to U.S.-made goods.

 Canadian Officials contested these provisions, despite Canada’s exclusion of US suppliers from bidding on provincial and territorial  supply contracts.

Guaranteed Reciprocal Access

According to the  february 5, 2010 agreement, Ottawa will also provide U.S. suppliers with access to construction contracts across its provinces and territories, as well in as a number of municipalities – a breakthrough according to US officials.

This administration made clear to Canada from the outset that any agreement to provide Canada with expanded access to U.S. procurement absolutely must provide guaranteed reciprocal access for US exporters to supply goods and services to Canada through provincial and territorial procurement contracts,” USTR Ron Kirk, the top U.S. trade official, said. “USTR has won that access for American firms, and I look forward to signing the agreement soon,” he said. “The value of new job-supporting contracts open to US firms will be tens of billions of dollars.”

Nice to see that win-win based on mutual respect and mutual opportunity can be the basis of trade. Trade  doesn’t just have to be beggar thy neighbor.

Ooops, wrong Kirk.

Hey Kirk, how about taking that line  of reasoning to Beijing?

Kirk Comments.

US Canada Joint Statement.

Infrastructure Photo Credit.

Capt. Kirk Photo credit.

Share