Originally Posted By: AZjeff
I read a book that addressed this question. It said that #1 was USA company/USA made, #2 USA company/foreign made, #3 foreign company/USA made, #4 foreign owned/made. The reasoning for #2 & 3 was that corporate profits are more beneficial than USA made. In other words the money Honda pays in labor per car built here is less that the corporate profit that goes to Japan.
I prefer USA made/owned but it's hard to do and in some categories impossible. The Made in USA label is easy to find, the country of ownership harder. I buy parts at NAPA because it's an American company, even though the parts aren't usually.
This seems accurate to me. I work in a engineering facility in the Detroit suburbs. I am regularly exposed to engineering business relationships. I work at a Japanese company that sells its products primarily to the big three. I have no statistics or factual arguments, because as mentioned here, the statistics are long and complicated and not readily available.
Take a single car for example. Every part has to be designed by an engineering team. The truth is, most of the OEM companies DO NOT design and engineer most parts aside from the drivetrain. Big name engineering suppliers compete with each other to build the cheapest, and best performing component for OEM business. OEMs plain and simple just can not afford to own all the resources required to develop and engineer every component of a car. There are several seatbelt companies that design, assemble, and sell the seat belt assemblies to the OEMs. The seatbelt companies can be American, Japanese, German, etc. And let’s be clear, most of the profits made on parts goes to the engineering companies, not the people who install the parts at an assembly line. There are exceptions, like welders, who make 6 figures, but even then it isn’t true that assembly line workers make more money cumulatively tive than the engineering companies.
OEM assembly line factories do employ more people (in terms of number of jobs) than engineering companies, but did you know that most engineering companies also employ their own factories? Take a Bosch ABS system. When Toyota enters a contract with Bosch to build and design an ABS system, Bosch will not send a bunch of parts to Toyota, requiring them to assemble it in a factory. No, Bosch has their own factories that assemble the module, and then ship that module to Toyota for installation at the factory. Car parts are highly Modularized today. So buying a foreign assembled car can actually support American blue collar workers if the engineering company has factories in the US.
So global economy has made the “Support American jobs vs Foriegn profits” hard to really know, but the general trend I have noticed agrees with the poster above. American badge/foreign made supports America better than Foreign badge/American Made. But the degree to how much that helps America as a whole is hard to do without studying an OEMs part suppliers. I can say this though, If everyone stopped buying American Badge, the region most heavily devastated in terms of job loss numbers would be Michigan and Ontario/Canada area. If everyone stopped buying Japanese, Japan would be most heavily devasted. But the trickle down effects would be worldwide. It’s all a spectrum.
The economy is too hard to sum up in buying a Ford supports Americans better than a Toyota. But the odds are stacked against you if you think buying a Toyota supports America better than a Ford, because Engineering/R&D companies are largely localized near the OEM headquarters. But even though buying a GM or Ford helps my company the most (which is Japanese), I would just tell people to buy the better product, be it a foreign make or domestic. Competition has helped the big 3 make much better cars than 20 years ago. And we still need competition to improve. But ultimately, buying a new car keeps the industry alive. So buy whatever you want. Buying new will keep the OEMs and their suppliers alive, while buying used will keep mechanics and aftermarket suppliers alive.
As for my preference, I go with Domestic badge/Foreign made. But of course American badge/American made is the best hands down for keeping profits in the states.