The True Cost of a Fully American-Made Car
A white 2025 Ford Expedition recently rolled off the assembly line in Louisville, Kentucky—assembled by American workers from frame to finish. But despite appearances, this SUV is far from being fully "Made in the USA."
In fact, more than half of its parts were made outside the U.S., including 22% from Mexico. Even its engine—the heart of the vehicle—was produced abroad. It’s a prime example of the deeply global nature of the auto industry and the near impossibility of building a truly American-made vehicle.
The Tariff Push and Domestic Manufacturing
Former President Donald Trump’s tariffs on foreign vehicles and parts aimed to boost U.S. manufacturing. Automakers responded by promoting domestic investment, but industry experts warn that reshoring entire supply chains isn't economically viable.
According to Ford CEO Jim Farley, localizing all production would drive prices sky-high. “If every Ford is $50,000, we’re not going to win,” he said. With the average new vehicle already approaching $48,000, pushing for 100% American content could add another $10,000–$20,000 or more per car.
Why It’s So Expensive
It’s not just about assembly. Many key parts—like semiconductors, wiring harnesses, and fasteners—come from overseas suppliers. Manufacturing those components in the U.S. would require new factories, raw material processing facilities, and skilled labor—a process that could take more than a decade and cost billions.
Martin French of Berylls Strategy Advisors notes that even with tariffs, some foreign-made parts are still cheaper to produce. Other materials, like aluminum, steel, and platinum, would need entire industries built from scratch in the U.S. to meet demand.
What’s Realistic Instead?
Industry insiders say that 100% U.S.-made vehicles are not feasible at scale. The highest realistic threshold today is around 75–90% domestic content—and even that requires massive investments.
Cars.com’s 2024 “American-Made Index” showed that vehicles with the most U.S. and Canadian content range from about 64% to 69%. Only a few vehicles, including select Teslas and Hondas, cross the 75% mark.
Interestingly, legacy automakers like Ford and GM didn’t place in the top 10. Their vehicles, while built in America, often rely heavily on foreign-sourced parts—another testament to the industry’s global dependency.
The Bottom Line
While the idea of a fully American-made car is appealing, it’s a logistical and financial stretch. Consumers may want domestic products, but few are willing to pay significantly more for them. Until U.S. infrastructure catches up, the "Made in the USA" label will remain more marketing than manufacturing reality.