Guide to American Car Buying

Will buying an “American” car, or more specifically a Chrysler, GM or Ford model, really have an impact on the Detroit economy? After all, some “foreign” car models are actually assembled in the U.S. with U.S. parts, while some big-three models are assembled in other countries.

The fact is that the hub of the domestic auto industry is located in Detroit, which means that, regardless of where a particular big-three model is assembled, Detroit benefits from its sale. For instance, the headquarters, management and support staff for Chrysler, Ford and General Motors (GM) are all located in the Metro-Detroit area, not to mention the automakers' engineering, research & development and marketing divisions. Additionally, a host of auto-related businesses -- part suppliers, marketing research firms -- are also located in the Metro-Detroit area and depend upon the continued viability of Chrysler, Ford and GM.

According to a Center for Automotive Research study, the big-three automakers directly employ over twice as many people in the United States than their foreign competitors. If indirect and spin-off employment is factored into the mix, the domestic auto industry is expected to provide the country approximately three million jobs in 2009 -- many of which are in Detroit.

More Information:

• What makes a car American? by Ashley Fantz / CNN (12/12/08)
• The Impact on the U.S. Economy of a Major Contraction of the Detroit Three Automakers / Center for Automotive Research (11/4/08)