Are American-made Cars a Thing of the Past?

Hardly. Right from my own work parking lot, I can see a BMW from Spartanburg, South Carolina, a few Toyotas from Georgetown, Kentucky, several Hondas from Marysville, Ohio, and a couple of Hyundais from Montgomery, Alabama.

With General Motors (GM) cutting back many brand names and Ford stating they will no longer manufacture cars, it appears that American-branded car manufacturing is on shaky ground. However, the production of foreign brands in the U.S. may not be as severely affected.

The Reality of American Manufacturing

Yes, the Big Three auto manufacturers still build cars in America, and so do foreign automakers like BMW, Mercedes-Benz, Volkswagen, Toyota, Honda, Nissan, Subaru, Kia, and Volvo. These companies are investing significantly in the U.S. to produce their vehicles.

Is it true that I will never buy a “Union Made” vehicle, or a car made in Canada or Mexico? Not necessarily. In Alabama, we produce vehicles for various brands like Mercedes-Benz, Honda, Toyota, Mazda, and Hyundai. In fact, a new $1.6 billion Toyota plant will open this year near Huntsville, Alabama. The state trains prospective employees as temps until they are hired and pass their Probation Period. As a “Right to Work” state, these plants are non-union, and the Japanese three-tier workforce is utilized—line worker, team leader, and plant manager. Each employee can stop the production line if deemed necessary.

The Future of the U.S. Auto Industry

The era of mass production of tangible goods in the U.S. may well be a thing of the future rather than the past. Following the financial sector collapse exacerbated by the economic impact of COVID-19, the U.S. will need to shift towards manufacturing more goods domestically. The previous paradigm, involving large and ever-growing foreign trade deficits funded through significant and increasing U.S. consumer debt, will no longer be sustainable.

List of Automotive Assembly Plants in the U.S.

Here is a list of automotive assembly plants in the United States:

BMW: Spartanburg, South Carolina Toyota: Georgetown, Kentucky, Huntsville, Alabama Honda: Marysville, Ohio, Montgomery, Alabama Mazda: Clinton, Indiana Subaru: Normal, Illinois (now in Indiana) Ford: Dearborn, Michigan (now sourced from Mexico) Nissan: Arlington, Tennessee, Opp, Alabama Hyundai: West Columbia, South Carolina, Montgomery, Alabama Volkswagen: Charlottesville, Virginia, Chattanooga, Tennessee Mercedes-Benz: Altoona, Pennsylvania, Tuscaloosa, Alabama

The Global Supply Chain

Depends on your definition of “American cars.” The Subaru I drive was manufactured in Indiana by a Japanese company. The Camry I used to own was made in Georgetown, Kentucky. I almost bought a Ford, but then I found out it was manufactured in Mexico.

Today, all vehicles are produced with components sourced from around the world. Even if a vehicle is assembled in the U.S., it still incorporates parts from Canada and Mexico, which in turn have components from various global suppliers. This global supply chain is a reality that the auto industry must adapt to and continue to leverage.

In conclusion, American-made cars are not a thing of the past. Despite industry challenges, foreign automakers and the Big Three continue to invest in U.S. manufacturing. The future of the U.S. auto industry lies in strategic investment and embracing a new era of mass production of tangible goods. The global automotive landscape, with its complex and interconnected supply chains, will undoubtedly continue to evolve in the coming years.