Wednesday, July 8, 2009

Where is Your Car Made??

So you think you know where your car is made? Maybe not.

Essex County Council recently passed a motion supporting a buy Canadian policy. The motion was loudly supported by the two weakest performers on the County Council, the Mayor and Deputy Mayor of Tecumseh. These two have recently become famous over dog poop, read my post of June 25/09.

The "dog poop duo" were promoting a resolution that was making the rounds at the behest of the Windsor and District Labour Council. So it wasn't even their idea, just playing to the grandstands. Canada is an exporting country: we sell more than we buy, so we need to be very careful about stuff like this.

The United States Congress passed the American Automobile Labeling Act, in 1992. This legislation requires automakers to disclose the percentage, by cost, of U.S. and Canadian parts in most cars and light trucks. In the U.S. you can find the numbers listed on the window stickers. The Americans are running huge trade deficits, so I understand their motivation, and it's nice that they include Canada as part of U.S. content. But the legislation in my view is a nightmare.

The folks over at the Center for Automotive Research (CAR) in Ann Arbor, Michigan, are focused on the auto industry, world wide. While serving as Chairman of the Board of the Windsor Essex Development Commission (WEDC), I and the Commission staff worked very closely with the Center for Automotive Research. They are an important group, both on a regional and international scale. I hope the new WEDC board, when appointed, continues to foster a close working relationship with CAR.

The Center for Automotive Research recently stated that things like research, design, and assembly and where these things are done is also important information for consumers. Currently this is not factored into the content rules. So, in addition to research and design, excluded from this U. S. legislation, is something as basic as the value of the labour of autoworkers assembling the vehicle. This is not Fair Play, if the goal is to do a comparison, and for sure gives a distorted view of where the car is made. So, as you can see, trying to figure out where your car is made is complicated.

Just one more thought before I conclude. The Honda Accord, is built in Ohio, for a company headquartered in Japan. The Ford Fusion is built in Mexico for a corporation based in Dearborn, Michigan. Both cars are similar in size, quality and price. Under the new rules passed by the Essex County Council, which car must be purchased??