Tesla Tops 2024 Kogod Made in America Auto Index for Second Consecutive Year

Trade Agreement Revisions and Possible New Tariffs Could Lead to Significant Changes in Vehicle-Sourcing Going Forward

WASHINGTON, Dec. 11, 2024 /PRNewswire/ -- The 2024 Made in America Auto Index issued by American University's Kogod School of Business puts Tesla at the top of its rankings for the second year in a row. The Auto Index is meant to be a consumer research tool to aid in car purchases and provides consumers with accessible data about the car manufacturers, makes, and models that are most "American" made. This year's index comes as the global automotive industry faces crucial questions regarding its manufacturing processes amid recent changes to international trade agreements and the prospect of new tariffs in the US.

Tesla's Model 3 Performance took the No. 1 spot in the 2024 Made in America Auto Index, both the regular Model Y and its Long Range version were tied for second place, the Cybertruck debuted on the list in third place, and tied for fourth place were the Model S and Model X, along with three models of the Ford Mustang GT. Honda's Passport AWD and Passport Trailsport tied at No. 5 and Jeep's Wrangler Rubicon and Wrangler Sahara tied at No. 6. Six vehicles tied for seventh place, including the Volkswagen ID.4 AWD and several models of the Chevrolet Colorado and GMC Canyon. Rounding out the top 10 were the Volkswagen ID.4 RWD, Honda Odyssey All, Honda Ridgeline, Honda Pilot All, and Lincoln Corsair.

The Made in America Auto Index was created in 2013 by Frank DuBois, an associate professor and global supply chain expert at Kogod School of Business, as a database to inform consumers about the amount of U.S.-made content in their cars and the extent to which their purchase decisions impact the economy. Vehicles are ranked based on seven criteria, including: manufacturer's profit margin, labor, location of research and development, inventory/capital, engine, transmission, and body/chassis. These data points are used to calculate the "Total Domestic" content of vehicles sold in the U.S.

The composition of the Auto Index ranking has changed significantly since its first edition in 2013. That year, the list was dominated by the traditional "Big 3" automakers of Ford, GM, and Chrysler, but since then, other manufacturers such as Tesla, Honda, Toyota, Nissan, Hyundai/Kia and Volkswagen have made their mark on the U.S. automotive industry and are now mainstays on the Auto Index. This is due in part to the fact that foreign manufacturers over the last decade have become more likely to increase their U.S.-sourcing in comparison to American-based manufacturers.

With major changes to the global manufacturing landscape looming, domestic manufacturers may be incentivized to move their sourcing back to the U.S., which would significantly impact the Auto Index rankings. Other policy factors, like the tax incentives offered for electric vehicle purchases under the Inflation Reduction Act of 2022, may lead to increased efforts by manufacturers to source EV batteries and minerals from domestic suppliers.

"Changes to international trade agreements, and the possibility of new tariffs on foreign imports, will force automakers to develop alternative supply sources for their parts and vehicles," said Professor DuBois. "In the coming years, we expect to see drastic changes in the amount of American-sourced content in vehicles sold in the U.S. as carmakers adjust to a new reality."

Learn more about the Kogod Made in America Auto Index here. The full 2024 ranking is available here.

ABOUT KOGOD SCHOOL OF BUSINESS:
American University's Kogod School of Business, established in Washington, D.C., more than 60 years ago, aims to equip and empower its community to use business as a force for meaningful change. Kogod graduates are leaders on Wall Street and in the corporate world, but also work for non-profits, government agencies and social-service organizations. Washington, D.C., serves as a laboratory for learning through work, internships, and other forms of experiential education. Kogod is the oldest accredited business school in Washington, D.C. The school is accredited by The Association to Advance Collegiate Schools of Business (AACSB International), which represents the highest standard of achievement for business schools worldwide.

ABOUT AMERICAN UNIVERSITY:
American University leverages the power and purpose of scholarship, learning, and community to impact our changing world. AU's faculty, students, staff, and alumni are changemakers who shape the future from sustainability to social justice to the sciences. Building on our 129-year history of education and research in the public interest, we say 'Challenge Accepted' to addressing the world's pressing issues. Our Change Can't Wait comprehensive campaign creates transformative educational opportunities, advances research with impact, and builds stronger communities. 

SOURCE American University