Consumer Alert: ‘Made in USA’ Cars

Numerous car companies, including Toyota, BMW, Honda, Ford, Mercedes-Benz, Mazda and Tesla, advertise their vehicles as “built,” “manufactured” or “made” in the United States when the cars are assembled in the U.S. using a significant amount of foreign parts.

Pursuant to Federal Trade Commission law, marketing any product as “built,” “manufactured” or “made” in the U.S. means that it contains “no – or negligible – foreign content” – the product must be “all or virtually all” made in the USA. No vehicle sold in the U.S. meets this standard, according to experts. Even the most American car, according to the Kogod 2022 Made in America Auto Index, contains only 72 percent “US/Canada” content.

Those car companies that have assembly plants in the United States have every right to be proud and boast of the American jobs they have created and their importance to the U.S. economy, but they cannot illegally embellish the amount of manufacturing that takes place domestically. American consumers, who prefer products that are made in the U.S. and are even willing to pay a premium for them, deserve truthful origin marketing from the auto industry.

In order to know how much foreign content is in a new car, consumers should carefully read the fine print in marketing materials, as well as the Monroney label affixed to the side of new cars on dealer lots. However, it is important to note that the Monroney label does not differentiate between the percentage of U.S. and Canadian parts; is only required for new vehicles; and is only affixed to passenger vehicles weighing 8,500 pounds or less. The Department of Transportation also makes certain origin information available online.

TINA.org has taken steps to eradicate deceptive origin marketing in the auto industry by notifying numerous car companies that they are violating Made in USA advertising law. To learn about those efforts, click here and here.