Article Abstract:
“Buy American”
By: John McElroy
America is based on the notion of freedom of choice-that includes car preferences, but buying from the Big Three is better for the American economy. Even though foreign manufacturers have done a good job of outsourcing to America by opening factories of foreign cars on American land. They are doing their share of paying taxes and employing Americans, and in some cases their domestic content is more than their American counterparts.
Having foreign automakers is undoubtedly helping the American economy. The profit margin on foreign cars made in America is 10%. That leaves the other 90% of every dollar made on the foreign cars remains in America. However, all the contributions the foreign companies make to America still does not compare to the Big Three.
The foreign companies still do not do their core engineering in the U.S. They do not create platforms in America and they do not design their powertrains, drivetrains, chassis, or suspensions. There not developing electronic architectures and doing their crash testing in America, all of that is done in their countries. None of that profit margin is aiding the U.S.
And most importantly they are not recruiting college graduates in American Universities or buying American made computers and employing Americans to administer them. The Big Three are adding the most to the American life by supporting the communities and doing their computational fluid dynamics here before they go into their wind tunnels; this is where they do their manufacturing engineering.
Perhaps, the big three offshore, lay-off workers and even import cars, but the size of their contribution to the American economy still trumps the efforts the foreign auto makers are doing. The American ways, is the freedom to chose, but if you want your money to help the American economy, buy American.
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