• Sep 1st 2006 at 3:26PM
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The Level Field Institute - a group consisting of Big 3 retirees - has released a report detailing the impact of domestic and transplant automotive OEMs on the American auto parts industry, and it contains some interesting nuggets of information.

Of the $225B in auto parts purchased from the US last year, approximately 77% was bought by the Big 3. GM led the spending with $85B in purchases, compared to $20B by Toyota. Overall, the domestic content of vehicles from the Big 3 averaged 71%, while Japanese automakers came in at 48% (note that both figures include vehicles that were manufactured elsewhere and imported into the US). Honda has the highest domestic content of any company outside of the Big 3, with 59% of its parts sourced in North America.

As the Level Field Institute points out, if the Big 3 were to drop their domestic parts buying down to the level of import manufacturers, the net loss to the US auto parts industry would be about $83B and 232,000 jobs. On the other hand, if the import manufacturers bring their domestic component buying up to the same level as the Big 3, the gain would be about $47B and 131,000 jobs. In all likelihood, what we'll actually see in the coming years is a convergence of these trends, with domestic manufacturers buying fewer components state-side, and foreign manufacturers increasing their domestic content.

[Source: Level Field Institute]

Warning - the Read link below points to a PDF.

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