When you’re in the market for a new car, you’re likely focused on fuel efficiency, safety ratings, and features. But have you ever considered where the parts of your vehicle come from? The American Automobile Labeling Act (AALA) mandates that passenger vehicles display labels detailing the percentage of US and Canadian parts content. This guide will help you understand these labels and what they mean for your purchase.
What is the American Automobile Labeling Act (AALA)?
The AALA, enacted in 1994, requires vehicle manufacturers to disclose the North American parts content of their passenger vehicles. This law aims to provide transparency to consumers, allowing them to make informed decisions based on the origin of vehicle components. It applies to passenger motor vehicles, defined as vehicles designed to carry 12 or fewer people and having a gross vehicle weight rating of 8,500 pounds or less. This includes cars, SUVs, and light-duty trucks, but excludes motorcycles and heavy-duty trucks designed primarily for cargo.
These labels must be present on new vehicles at the time of their first retail sale, ensuring that this information is readily available to potential buyers.
Key Information Found on Car Part Labels
Every new passenger vehicle label is required to display six crucial pieces of information, giving you a clear picture of its parts origin:
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Percentage of U.S./Canadian Parts Content: This is the headline figure, indicating the proportion of the vehicle’s equipment (parts) value that originates from the United States and Canada.
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Countries with Significant Parts Contribution (Beyond US/Canada): If any country other than the U.S. or Canada contributes 15 percent or more to the vehicle’s parts content, up to two of these countries must be listed, along with their respective percentage contributions.
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Final Assembly Point: The label specifies the city, state (if applicable), and country where the vehicle was finally assembled. This tells you where the vehicle manufacturing process concluded.
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Country of Origin for the Engine: Knowing where the engine was manufactured is another key piece of origin information provided on the label.
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Country of Origin for the Transmission: Similar to the engine, the label also details the country of origin for the vehicle’s transmission.
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Explanatory Statement: A standard statement clarifies that the parts content percentage excludes costs associated with final assembly (except for engine and transmission), distribution, and other non-parts expenses. This ensures consumers understand what is included and excluded from the parts content calculation.
It’s important to note that the U.S./Canada content percentage, as well as percentages for other countries, are calculated at the “carline” level, not for individual vehicles. A “carline” refers to a group of vehicles with shared construction characteristics, like body and chassis. For example, all models within a specific car nameplate are considered part of the same carline.
How is U.S./Canadian Parts Content Calculated?
Vehicle manufacturers are responsible for calculating these percentages before each model year begins. The process involves estimating production volumes for different vehicle configurations within each carline. The calculation of the U.S./Canadian content percentage for each carline considers:
- U.S./Canadian Content Value of Each Part: The value of each piece of equipment (part) used in assembling vehicles within the carline that originates from the U.S. or Canada.
- Total Value of Each Part: This is the price the manufacturer pays for each part, usually provided by their suppliers.
- Quantity of Each Part: The estimated number of each part needed to assemble all vehicles within the carline during the model year.
When vehicles offer optional equipment, manufacturers estimate the installation rates for each option. For instance, if a carline offers both manual and automatic transmissions, they will estimate the proportion of vehicles expected to be built with each type. These estimations are crucial for accurately calculating the overall parts content percentages.
Where to Find the Car Part Label
The AALA label is designed to be easily accessible to consumers. It must be placed in a prominent location on each vehicle, visible from the exterior when the doors are closed. You can typically find this information in one of three places:
- Monroney Price Information Label: Often integrated into the vehicle’s window sticker that details pricing and features.
- Fuel Economy Label: Sometimes combined with the fuel economy information label, also usually found on the window.
- Separate Label: In some cases, it may be a distinct, standalone label placed on the vehicle’s exterior.
Look for these labels on the windows of new vehicles at dealerships to understand the origin of their parts before making a purchase decision.
Further Resources from NHTSA
The National Highway Traffic Safety Administration (NHTSA) provides these reports as a resource for consumers. You can find further information and data on vehicle safety and origin at NHTSA.gov. This includes details on safety equipment, crash test ratings from the New Car Assessment Program (NCAP), and more.
For those wanting to delve deeper into the original manufacturer submissions or request research on Part 583 submissions related to AALA, you can contact the NHTSA Technical Information Services (TIS). They offer a reading room and assistance for researchers. Contact information for TIS and other resources are available on the NHTSA website for those seeking detailed information about vehicle parts labeling and origin.
Understanding car part labels empowers you to make more informed choices when buying a vehicle, considering not just features and price, but also the origin of its components.
