The TechMobility Podcast

Weathering the Automotive Supply Storm and Exploring Patriotic Vehicles

April 22, 2024 TechMobility Productions Inc. Season 2 Episode 25
Weathering the Automotive Supply Storm and Exploring Patriotic Vehicles
The TechMobility Podcast
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The TechMobility Podcast
Weathering the Automotive Supply Storm and Exploring Patriotic Vehicles
Apr 22, 2024 Season 2 Episode 25
TechMobility Productions Inc.

Drop me a text and let me know what you think of this episode!

Dive headfirst into the undercurrents of auto industry struggles with me, Ken Chester, as we unearth the gripping saga of "dead ships" and their dire impact on global commerce. Feel the tension build as we scrutinize the delicate dance between automakers and their suppliers, harking back to Chrysler's SCORE program—an exemplar of collaborative success. As we unravel these intertwined tales, we're not just rehashing history; we're dissecting today's supplier relations and their far-reaching implications for the economy.

Weather the storm of escalating homeowners' insurance premiums with actionable insights and strategies to batten down the hatches of your finances. The surge in nature's fury and tightening regulations add pressure, but I'm laying out a lifeline with practical tips to mitigate the downpour on your wallet. It's not just about survival; it's about navigating the choppy waters of the insurance industry with a captain's wisdom and foresight.

Finally, flag up your patriotic pride as we cruise through the Kogod 2023 Made in America Auto Index. Discover which vehicles truly wear the stars and stripes on their engines and why supporting local industry can accelerate us towards a brighter future in manufacturing. The Index isn't just a list; it's a roadmap to understanding the heart and soul of American auto production. Join the convoy and empower yourself with knowledge that drives the spirit of the homeland.

Support the Show.

Be sure to tell your friends to tune in to The TechMobility Show!

Show Notes Transcript Chapter Markers

Drop me a text and let me know what you think of this episode!

Dive headfirst into the undercurrents of auto industry struggles with me, Ken Chester, as we unearth the gripping saga of "dead ships" and their dire impact on global commerce. Feel the tension build as we scrutinize the delicate dance between automakers and their suppliers, harking back to Chrysler's SCORE program—an exemplar of collaborative success. As we unravel these intertwined tales, we're not just rehashing history; we're dissecting today's supplier relations and their far-reaching implications for the economy.

Weather the storm of escalating homeowners' insurance premiums with actionable insights and strategies to batten down the hatches of your finances. The surge in nature's fury and tightening regulations add pressure, but I'm laying out a lifeline with practical tips to mitigate the downpour on your wallet. It's not just about survival; it's about navigating the choppy waters of the insurance industry with a captain's wisdom and foresight.

Finally, flag up your patriotic pride as we cruise through the Kogod 2023 Made in America Auto Index. Discover which vehicles truly wear the stars and stripes on their engines and why supporting local industry can accelerate us towards a brighter future in manufacturing. The Index isn't just a list; it's a roadmap to understanding the heart and soul of American auto production. Join the convoy and empower yourself with knowledge that drives the spirit of the homeland.

Support the Show.

Be sure to tell your friends to tune in to The TechMobility Show!

Speaker 1:

It's time for the Tech Mobility Show with Ken Chester. Ken is a veteran journalist who doesn't always color between the lines, so here he is, the host with the electrified personality Ken Chester.

Speaker 2:

Real facts, real opinions, real talk. Welcome to the Tech Mobility Show, your program for news, information and perspective at the intersection of mobility and technology. You and I have plenty to cover during this visit, so let's get started On the docket. Dead ships, deadly results, homeowners insurance, higher costs versus lower premiums, and results from the Kogod 2023 Made in America Auto Index. To add your voice to the conversation, be it to share an opinion, ask a question or even suggest a topic for a future visit, call or text the Tech Mobility hotline, that number, 872-222-9793, or you can email the show. Talk at techmobilityshow, and that is talk at techmobilityshow. And let me add this I love to hear from my listeners, and some of you have in fact reached out, but I'm going to encourage those of you that choose to disagree, and you certainly have that right. If you're going to reference and call me out, I'd love to see your corresponding proof for your point of view, because, after all, I'm open to change, but I can't change if all you're going to do is rant and not share what you're basing the rant on. I think it's only fair and I'm willing to admit when I'm wrong, so reach out. But if you're going to go that way, please reach out with some facts or at least a premise, so that I can do the research and find out and learn more, and then we'll both know more. Thank you so very much From the Tech Mobility News Desk. Very much From the TechMobility News Desk Stellantis pricing disputes with suppliers in peril, key, jeep, ram products. There's so much to unpack here. This is from Automotive News and it is amazing how far the old Chrysler brands have fallen when it comes to supplier relations. If you have not already realized, any auto manufacturer I don't care who it is works with hundreds, if not thousands, of different suppliers, in fact so many. They have different tiers Tier one, which works directly with the OEM, which is what the automakers are called, and that's short for original equipment manufacturer, and they work directly, one-on-one directly with the auto manufacturer. Then there are Tier 2 and Tier 3 vendors. They're smaller than a mom and pops. They work with the Tier 1s and sometimes directly with the automakers, and it's a whole tiered system based on size and importance.

Speaker 2:

Back in the early 1990s Chrysler was going through some stuff and trying to get their act together and Chrysler Management developed a novel program. It was called SCORE and it was launched in August 1989. It was called Supplier Cost Reduction Effort. Basically what Chrysler said we're going to turn our suppliers into partners. If you could find a million dollars in savings without and still hit your targets your quality targets, your profit targets, your performance targets for this part, this piece, this assembly, we'll split it with you 50-50. So basically, for every dollar you find in cost reductions, you're going to get 50 cents back. Over the period of that program and it ran through about 1997, for 1989, not quite 10 years Chrysler reviewed 12,000 supplier ideas, saving $3.7 billion. Because instead of having the typical adversarial relationship with their suppliers in other words, lowest price and always trying to beat them up for still lower price they had a collaborative relationship with their suppliers. Suppliers were encouraged to reduce prices, share it with the manufacturer, get part of that back. So everybody won and they were on board because then it removed any incentive for them not to do their best work, not to bring their best product, not to do what was in the best interest of both them and Chrysler.

Speaker 2:

In the auto industry generally for many years it was always lowest cost provider. The supplier who brought it in at the lowest cost got the contract. The problem with that is it left no incentive and no room for the supplier to want to do more. And unfortunately, back in that day, even when you came in at the lowest price, it got the contract. You had certain programs like what gm had at the lowest price and got the contract. You had certain programs like what GM had at the time which was 3-2-2, it was called Even when you got the contract from General Motors back in that day, in the first year after getting the contract, GM expected a 3% price reduction the first year and then the second year they wanted 2% more, and then the third year they wanted 2% more, which meant over the first three years you had to get 7% better at what you were doing and squeeze costs out of your own program to make sure you hit your targets to be able to keep the contract with GM. It did not yield a wonderful relationship with suppliers, not when they're always looking for cost reductions.

Speaker 2:

Let's fast forward to today. Chrysler had a program that was working. In fact during that time Chrysler Corporation in the mid 90s was making more money than Ford and GM. People forget that Not only did they have new products, they also had a winning program with their suppliers. That incentivized them to lower their costs and provide good or better product Either advantages of costing less to manufacture, costing less to assemble, higher quality rates, less warranty work. They're att tune to $3.7 billion over the life of the program and I know this because they used to put out a newsletter and I tripped up and by some miracle ended up getting on the mailing list for that newsletter. So I knew what they were doing every month because they would highlight all their successes in the newsletter that I got for a while. They would highlight all their successes in the newsletter that I got for a while.

Speaker 2:

Today, stellantis enjoys the lowest or the worst relationship with their supplier base of any auto manufacturer. It is not a good place to be because if you're a tier one, if you're a tier two, if you're a mom and pop tier three, you're going to go where it makes economic sense for you to go and the better relationship you have with an automaker that they'll help you, nourish you, support you. That's where you're going with the idea You're not going to the place that's beating you up and giving you a hard time. Right now, the Jeep Wrangler, the Ram 1500 are the two that are at risk. And right now Wrangler sales have been off and I can tell you who's eating their lunch the Ford Bronco, because it is that good. And if Chrysler, if Stellantis excuse me can't produce, to at least stay in the game, because they kind of mitigated the slide from last year and it's up just a little bit this year. But if they're not building vehicles that people can't buy them, they're going to buy something else.

Speaker 2:

Two companies One's a tier, one, it's called Chemax. They are a German fastener maker. They wanted from Stellantis a 26% price increase. That's unheard of in the industry, and for them to even think that they would even get it meant that Stellantis must have really, really, really squazzed their supplier base. And we went through this About 24 years ago at the turn of the century. A lot of suppliers were going broke because the automaker squazzed everything out of them. There was nothing left to give and they couldn't survive. And here we are again In 2001,. Gm told their suppliers and I quote, it was the headline in automotive news that year china price or else. Meaning you either, as a supplier, match the price that I can buy this item in gross from a chinese company or you lose the contract. A lot of them went broke trying and some just walked away. Another company is Illinois based and they are let's see, let me see if I can find them. They provide gears for both the Wrangler and the Ram 1500. They're McLean Fog Component Solutions. They provide pinions and gears for transmissions and key vehicles, including the Ram 1500, jeep Wrangler and Grand Cherokee. They want a price increase.

Speaker 2:

So what did Stellantis do? Did Stellantis sit down with their supplier to try to work stuff out? So everybody won? No, they took K-Max to court. Court ruled on their side. Then Stellantis allegedly reneged on the revised agreement that they hammered out, so they stopped shipping again. In fact, and this is unusual, there is a number of companies currently supplying Stellantis now that are actually considering walking away from their contracts. This is not a good place to be when you are in a capital-intensive business like automobile manufacturing. Yo, stellantis, take a note from the old Chrysler. That's one thing they did right. You might go back and try to remember that these suppliers are your partners, not your enemies, and as long as you both walk in the same direction, it works out. In recent years, the cargo ship that struck the Francis Keyes Bridge in Baltimore has not been alone with losing power once underway. You are listening to the Tech Mobility Show.

Speaker 3:

Are you tired of juggling multiple apps and platforms for meetings, webinars and staying connected? Look no further than AONMeetingscom, the all-in-one browser-based platform that does it all. With AONmeetings, you can effortlessly communicate with clients, host virtual meetings and webinars and stay in touch with family and friends all in one place and for one price. Here's the best part you can enjoy a 30-day free trial. It's time to simplify your life and boost your productivity. Aonmeetingscom, where innovation meets connection. Get started today and revolutionize the way you communicate.

Speaker 2:

Social media is the main place to be these days, and we are no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Facebook videos, from my latest vehicle reviews to timely commentary of a variety of mobility and technology-related topics. These short features are designed to inform and delight. You be sure to watch, like and follow us on facebook. You can find us by typing the tech mobility show in the search bar. Be sure to subscribe to our facebook page. Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology related topics. These short features are designed to inform and delight. You Be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.

Speaker 2:

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week, shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show, from Apple Podcasts to iHeartRadio and many podcast platforms in between. We got you covered. Just enter Tech Mobility Topics in the search bar, wherever you listen to podcasts.

Speaker 1:

Please be seated. The performance is about to begin. The 32-valve, 280-horsepower Lincoln Mark VIII. It's like Beethoven with an attitude Drive everything else first.

Speaker 2:

The Lincoln Mark VIII In the 1990s. It was the last two-door coupe Lincoln ever made. It was a big car, a lot of people loved it and it was the last word in the traditional personal coupe. When I say personal, that's a stretch, because these things are big. So it was rather, if you'll pardon the pun, a rather expansive definition of personal. But yeah, it carried two people for sure, four people in a pinch, despite its size. Yeah, very comfortable, very personal, very elegant. The Lincoln Mark VIII.

Speaker 2:

A recent analysis by the Washington Post into the lost propulsion by large cargo ships within the navigable waters of the United States revealed that over the past three years, 424 cargo ships longer than 600 feet in length have reported losing propulsion, meaning they were shut down. Around Baltimore alone, ships lost propulsion nearly two dozen times in the three years before the current tragedy. That happened with the collision of the dally at the Francis Scott Key Bridge on March 26. Yikes, this is Topic A by now. You've heard of the tragedy in Baltimore. In the Bay, people killed, bridge, mangled, tons in the water. It'll take months to straighten it out. What's not known is the fact that these large cargo ships, these large ocean-going cargo ships with thousands of containers on them regularly would fail, break down, stop. And I had to stop him and I'm like wait a minute, wait a minute, wait a minute. You're transferring, you are transporting billions of dollars of cargo in tight deadline situations to get into a port because you've got a time to be in that port in that slot. You cannot miss it. Yet you're going to skimp, you're going to go light, you're not going to make maintenance of the ship, operation of the ship, a priority. That makes me wonder. 424 times in the last three years around the United States.

Speaker 2:

You noticed I said ships larger than 600 feet. We are talking about commercial ships and just for reference, when the Scott Key Bridge was built in the 1970s, the typical commercial going ocean, going cargo vessel was barely 600 feet. Today they're double that. In fact, the dally that hit it was 1100 feet long. You may not realize that. Number one there are no standard federal laws regarding when a ship comes into a port, how it should be handled, how it should be escorted, no federal regulations regarding what happens if it dies in the middle of the port, like these 424 ships did, or even the two dozen that happened in Baltimore in the last three years. I'm not talking 20, 30 years, three years now. The one thing they have to do when they lose propulsion is notify the Coast Guard. That they're supposed to do.

Speaker 2:

But in terms of when one of these ships requires tugboats, and how many, given that renting a tugboat, using the services of a tugboat or tugboats plural in the case of these large ships, runs thousands of dollars per hour, a lot of these ports leave those decisions up to the owners of the ships. In some cases, like the port of New York, new Jersey, they do have rules and because each port is different, a lot of ports do require their own what they call pilot, and what that is is. They actually have a qualified, certified person on the bridge that knows that port and can navigate that ship in to port, and that's great for getting it navigating in and out. But that doesn't cover anything about the mechanical condition of these ships coming in and out. That is outside the purview of the authorities that govern these ports. Some of these ships require and in fact if you go into the port of New York, new Jersey, you are required to be escorted in with tugboats plural, again, thousands of dollars.

Speaker 2:

But yet these ships which carry you name it from all over the world to ports in the United States, we now have to question their seaworthiness, or at least their seaworthiness regarding the port. So here's what happens you can lose propulsion, which is engine power, and not lose electrical power, which it also generates to run other things in the ship. Or in some cases, you lose both electrical and propulsion, which is the case of the dally. The day that it hit the Scott Key Bridge, it lost both. What that means is, without powering the boat, without the boat having to be able to power, it becomes at mercy of the waves and the wind, and if there's a strong wind, it's going to blow it where it wants to go. And again, remember I said earlier, just a few minutes ago, most of these ships now are so much bigger than the infrastructure that was built and I'm talking bridges and ports and docks and all that stuff Simply overwhelming. They're big and I need to correct I said that the Dali was 1,100 feet. Excuse me, it's 984. They believed that in its case it lost the ability to propel itself forward as it suffered a more widespread power outage, so it lost electrical power and propulsion. The one thing to their credit is they were able to notify the powers that be. That stopped a number of people from crossing the bridge and mitigated what could have been a greater loss of life, even at 1 30 in the morning. So there's that.

Speaker 2:

Here's something you may not have realized about this terrible tragedy. And I add this just so you know the fbi has opened a criminal probe that will look, at least in part, of whether the crew left the port knowing the vessel had serious system problems. That would be criminal. You left knowing it was not capable and may break down at any moment. They talk about this Coast Guard when they investigated all these numbers. Talk about this Coast Guard when they investigated all these numbers. Many causes for propulsion loss records show, in some instances, total loss of electrical power. Electrical system stayed on line but propulsion was lost because of mechanical or equipment failures valves malfunctioned, seals failed, filters were clogged. That's called maintenance. People Maintenance and if they're not making a priority to do the minimum maintenance, you're not going to make it. Homeowner's insurance is up, but we have some ways you may be able to mitigate paying more.

Speaker 2:

This is the Tech Mobility Show. Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you've missed any of our weekly episodes on the radio, our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere you can enjoy podcasts. Be sure to follow us from Apple Podcasts, iheart Radio and many platforms in between. We are there. Just enter the Tech Mobility Podcast in the search bar. Wherever you listen to podcasts, social media, it's the place to be, and we're no exception. Hi, I'm Ken Chester, host of the Tech Mobility Show. Several times a week, I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Mobility Show on TikTok. Check it out.

Speaker 2:

You don't have to live in a part of the country where extreme weather is running rampant to see what is happening to your homeowner's premiums. They're up and for many, by double digits, and that's all over the country. There's a reason for that, but, more importantly, there are things you can still do to mitigate the increases. This is topic B. Still do to mitigate the increases. This is topic B. Let's be clear. If you're looking for a miracle and you're living in a high risk area, let me be the one to tell you no, no, that's not going to happen. Part of what's going on. Let's just cut to the bone on this issue. Insurance companies across the country are unable to raise premiums the way they need to to cover the additional risks brought on by more extreme weather being more often and more extreme, and that's all. Over. The United States Insurance companies and you may not know this mitigate their risk when they write a policy to cover you.

Speaker 2:

They turn around and buy insurance to mitigate any losses that may come out from a group of policies that is called the reinsurance industry, which is basically simply insurance companies selling insurance to insurance companies, and it helps them to spread the law, stay healthy, and it makes good economic sense because the more they can spread the potential liability, the less it's going to hit them and the more they can stay in business because they don't have to take the hit if something does go incredibly south. Here's the problem. The problem is retail insurance industries like State Farm, allstate, american Family are usually regulated at the state level. That means there are limits on how and why they can raise rates. The flip side of that the reinsurance industry, where they go to buy insurance reinsurance is not under the same requirements as the insurance industry, which means they can do future forecasting, see what's going to happen and they can raise their rates accordingly, which is at a rate usually more and faster than the insurance companies that buy the reinsurance. So now you've got retail insurance companies caught in a squeeze. Even if they're doing the modeling and they see what's coming, they are usually unable to raise prices even to the extent they needed to to cover for what's coming, because they can't cover the cost of policies they're trying to buy from the reinsurance industry to mitigate the risk. So what happens? What happens is what's going on in California right now, because those particular companies are limited to how much they can raise rates in the face of an increasing risk due to drought, wildfires, earthquakes and the like, they have no choice but to bail. So that if you happen to be like the lady we talked about, beth Pratt, last week, you did everything right. You spent your own money to harden your home and make it less prone to fire or disaster of almost any kind. She spent the money and it wasn't pennies, and after 30 years of being with an insurance company, they're canceling her insurance, not because she didn't do it, not because she was not proactive, but because of the regulatory climate caught the insurance company in a squeeze. That's them.

Speaker 2:

If you live on a coast in the United States of America the Gulf of Mexico, the Atlantic Ocean, the Pacific Ocean If you're right on the coast, I'm probably telling you right now you're having trouble getting homeowners insurance at any price, which means that's not news. But what about the rest of us? Looking at the average cost of homeowners insurance in the United States, it's increased 21% nationwide since 2015. Some states, including those on the front lines of climate-driven disasters such as wildfires and hurricanes, have seen premiums rise even more dramatically. On the average, most of the states are looking at a 10% to 19% increase in rates. Let me throw a curve at you. The states that are showing more than 20 percent a lot of them aren't even nearer coast. I'm going to let that sink in a minute. 20 percent or more increase in homeowners premiums since 2015. Arizona, arkansas you would expect California, so be it. You would expect Connecticut to run a coast? So be it. Idaho, iowa, kansas, minnesota, missouri, new Mexico, oklahoma yeah, these are states nowhere near Now. There are other states in that list, but they are on a coast, so they're already seeing the impact of more extreme weather, that is, more an extreme.

Speaker 2:

Let me talk about four common sense things, and you may be doing this already, and, if you are, good for you. If you're not, maybe this is a reminder for you. Four ways you can lower your rates. Number one improve home security. Do you have a ring camera? Probably do. Home security systems, smoke detectors and fire alarms all prove home security, and a lot of times you can get a discount for that.

Speaker 2:

Your best thing to do, though, check with your insurance company, check your insurance policy, to find out where you can get a deal on Improve your home's disaster preparedness. This is prickly, because if you're already in a high risk area, even if you spent the money again, like the lady we talked about she's one of many wasn't enough. While no home is disaster-proof, it can become more disaster-resistant. Before you do that, check your policy. Figure out where you're at. Are you in an area that is going to be prone to wildfires or more extreme weather? Because even if it is, this may not be enough.

Speaker 2:

And here's something else that you need to know, and I'm sure if you're a homeowner you already know this you cannot buy flood insurance from an insurance company. You can only buy flood insurance from the government. Flood insurance is one of the first things they bailed out of because they could not make it work. You need to check to see number one if your home is in a floodplain, if it is, get flood insurance Full stop because you're going to get jammed up. If you're on the coast, you might check to see if even it's available anymore, because when the government did a revamp we talked about this two years ago of the flood insurance program, they actually identified areas where it was so risky they weren't going to sell it at all.

Speaker 2:

And we're getting to that point that, no matter what you're willing to do, there are some parts of the United States of America that will not be fit to live because you cannot insure a home at any price on that stretch of land. That is becoming a thing and you might want to check. But yeah, the number one thing folks get jammed up about is flooding. Check for home insurance discounts, bundling stuff, age, all that kind of stuff. If you're over 65, you can get a discount. Check, check, check, check and then finally renew.

Speaker 2:

Review your policy every year. Take a look at it. Sit down down with your agent. Things do change and sometimes it gets better for you and sometimes, particularly if you're dealing with an independent agent, like we do out here in Iowa, they might be able to find you a company for lower rates. But the same thing all things that you can do to save money in real time but the best thing is don't be in an area that is prone to extreme weather, because, no matter what you do at some point you don't be in an area that is prone to extreme weather Because, no matter what you do, at some point you won't be able to insure it at all, and that's a problem which automakers dominated in the annual Kogod Made in America Auto Index for 2023?.

Speaker 2:

We are the Tech Mobility Show. To learn more about the Tech Mobility Show, start by visiting our website. Hi, I'm Ken Chester, host of the Tech Mobility Show. The website is a treasure trove of information about me and the show, as well as where to find it on the radio across the country. Keep up with the happenings of the Tech Mobility Show by visiting techmobilityshow. That's techmobilityshow.

Speaker 4:

You can also drop us a line at talk at TechMobilityshow.

Speaker 2:

Did you know that TechMobility has a YouTube channel? Hi, I'm Ken Chester, host of the TechMobility show. Each week, I upload a few short videos of some of the hot topics that I cover during my weekly radio program. I've designed these videos to be informative and entertaining. A few short videos of some of the hot topics that I cover during my weekly radio program. I've designed these videos to be informative and entertaining. It's another way to keep up on current mobility and technology news and information. Be sure to watch, like and subscribe to my channel. That's the Tech Mobility Show on YouTube. Check it out.

Speaker 3:

Are you tired of juggling multiple apps and platforms for meetings, webinars and staying connected? Look no further than AONmeetingscom, the all-in-one browser-based platform that does it all. With AONmeetings, you can effortlessly communicate with clients, host virtual meetings and webinars and stay in touch with family and friends all in one place and for one price. Here's the best part you can enjoy a 30-day free trial. It's time to simplify your life and boost your productivity. Aonmeetingscom, where innovation meets connection. No-transcript.

Speaker 2:

Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos From the latest vehicle reviews to timely commentary on a variety of mobility and technology-related topics. These short features are designed to inform and delight you. Be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.

Speaker 2:

The Made in America Auto Index was created in 2013 by Frank Dubois, a professor in the Information Technology and Analytics Department at Washington DC's American University's Kogod School of Business. The vehicles are ranked on their US and Canadian content published by the National Highway Traffic Safety Administration, that's NHTSA. This is Topic C. Let me start with a disclaimer. You notice I said US and Canadian content and I didn't say Mexican content, because right now the law does not require the disclosure of that content made in Mexico, and that law I'm talking about is the American Automotive Labeling Act. It's not collected, but they do collect information on the US and Canada A little bit in the weeds. The reason why not just the United is the automakers, when that law went into effect in 1994, screamed and hollered that their supply chains were so intertwined between Canada, united States and Mexico that it was literally impossible to identify by car line every little item. So they got a little sliding room. So it may even be better to say the Made in North America Auto Index, but I digress. The ranking Vehicles are ranked on seven criteria, including the manufacturer's profit margin, labor, location of research and development, inventory and capital. Engine, transmission, body and chassis.

Speaker 2:

Debois said that the goal was to calculate the quote total domestic content of the vehicles sold in the United States for consumers who are inclined to purchase American-made cars. And, as I said earlier, mexican data is not included because the American Automotive Labeling Act does not mandate those disclosures. So what does it mean? Yeah, the government puts out made-in-America numbers, but it does not include all this information. Also, every Mulroney sticker, which is the new vehicle sticker in the window of new vehicles that are sold in the United States, are only required to have the following information the percent of US Canadian content exclusive. The engine and transmission. What country it's made in. The location assembly that's final assembly of where the vehicle is actually put together and rolls out of the plant and the source of the engine and transmission. That's it, that's all it requires, and that's certainly a good start. But the Kogod index goes further with these seven criteria and I wanted to start there. And there's another little quirk that they're going to correct next year. But I'm going to get into the numbers first and then we can circle back around there.

Speaker 2:

In the top 10 rankings there are 26 vehicles and no, my math is not bad. There's a number of vehicles that tie in position. For example, there's two tied for number one. Both are Teslas Model 3, long range, model Y, long range. That makes sense because Model Y is based on a Model 3. In second place, again, tesla Model 3, performance Model Y. In third and fourth place. Third place, jeep Cherokee Altitude Luxe 2.4 liter, and it owns that all by itself. But in fourth place is the Cherokee Latitude 4x4, tesla Model S, tesla Model X, honda Passport all-wheel drive, which is made final assembly in Lincoln, alabama. Honda Passport Trail Sport, also in that same plant, and number five, which these two Hondas are number five plus Volkswagen's ID.4 Pro-S rear-wheel drive with the 82-kilowatt-hour electric battery. Reason is they moved that production to Chattanooga last year.

Speaker 2:

That's just the top five. There's one Lincoln, the Corsair, another Honda, the Odyssey, acura, mdx, ford you'll like this the Mustang, but not just any Mustang the Mustang GT, corvette, stingray, camaro, which is now out of production. One LS Coupe, turbo. The Honda Ridgeline more Hondas and Acuras. One Toyota in ninth place, camry, se, all-wheel drive and, believe it or not, one Cadillac Of all the Cadillacs, the Cadillac Lyric makes the top 10 list in the number 10 slot. And a newcomer, the Lucid Air, which is built in Arizona, also top 10. And that kind of rounds out all 26.

Speaker 2:

I don't know if it matters to you. In the state I live in, in Iowa, we like doing business with each other, we like doing business with Iowans. And for all the talk about made in America, how many of you actually read the sticker on the window when you're looking at a vehicle? Does it matter where the engine and transmission are manufactured? Does it matter where the vehicle is made? Does it matter the level of content for America? And I'm asking. I'm not judging. The information is there and this particular survey goes deeper. Carscom has one too, but it doesn't go as deep as this one, because they look at everything and they go into detail. Let me bounce this off you.

Speaker 2:

You may be wondering what automaker has the highest amount of total domestic content when you're looking at between 2015 and 2023. Right now, again, number one as a company Tesla, and it's 81%. Second place after that would actually be Honda at 67%, and that correlates with the vehicles that I just mentioned. In third place, general Motors, and they actually slipped from 66% in 2015 to 58%, but it's still good enough to get them in third place. Fourth place, stellantis 56% now used to be 60%, and then Ford went from 65% domestic content to 52%.

Speaker 2:

Now, how does that happen? A lot of times it's trim levels, it's actual components in the vehicle. You could still you're not moving these necessarily between factories, but what components you put in the vehicle and where you source those materials, those parts, where they come from could very easy sweep this around and turn it around. The one major change that this survey will be making is they saw some inequities relative to where the EV components were sourced, relative to the gasoline versions, and they're going to be making changes to the thing next year so they can more accurately track that and we'll see if Tesla is able to keep their number one ranking of American-made or made in America.

Speaker 2:

But yes, this is certainly worth looking at. It's called the Kogod Made in America Auto Index for 2023. It is very inclusive. I didn't even go into all the others, because it lists a lot. I mean, it goes down to the top 100. And it's worth you looking at. If Made in America is an issue for you when it comes to your vehicle, take a look at the survey and draw your own conclusions, and then we'll go from there. But I just wanted to equip this because we talk about this every year, and this year is no exception. Yep, total domestic content. It's a thing that brings us to the end of this visit. Be sure to join me again next time. Right here, you have been listening to the Tech Mobility Show.

Speaker 1:

The Tech Mobility Show is a copywritten production of Tech Mobility Productions Incorporated. Any rebroadcast, retransmission or any other use is prohibited without the written consent of Tech Mobility Productions Incorporated.

Speaker 2:

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week, shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show. From Apple Podcasts to iHeart heart radio and many podcast platforms in between, we got you covered. Just enter tech mobility topics in the search bar. Wherever you listen to podcasts, social media it's the place to be. We're no exception. Hi, I'm Ken Chester, host of the tech mobility show. Several times a week, I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Mobility Show on TikTok. Check it out. To learn more about the Tech Mobility Show, start by visiting our website. Check it out by visiting techmobilityshow. That's techmobilityshow. You can also drop us a line at talk at techmobilityshow.

Speaker 2:

Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you've missed any of our weekly episodes on the radio. Our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere. You can enjoy podcasts. We'll see you next time.

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