Understanding Car Part Labeling: Your Guide to US/Canadian Content in Vehicles

When purchasing a new vehicle, have you ever wondered where its parts come from? The U.S. National Highway Traffic Safety Administration (NHTSA) provides valuable reports to help consumers understand the origin of vehicle components. These reports detail the percentage of U.S. and Canadian parts content in passenger vehicles, information that manufacturers are required to disclose under the American Automobile Labeling Act (AALA). This guide will help you navigate car part labeling and understand what it means for your vehicle purchase.

What is the American Automobile Labeling Act (AALA)?

The American Automobile Labeling Act (AALA) is designed to increase transparency for consumers by requiring automakers to label passenger motor vehicles with information about their U.S./Canadian parts content. According to AALA, a passenger motor vehicle is defined as any vehicle 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 vehicles not primarily designed for passenger transport, such as delivery trucks.

The AALA ensures that every new passenger vehicle displays a label indicating the percentage of its parts originating from the U.S. and Canada, along with other crucial details about its assembly and component origins, right up to the point of its first retail sale.

Decoding the Car Parts Content Label: Key Information to Look For

Every new passenger motor vehicle label is mandated to present six essential pieces of information, providing a clear snapshot of the vehicle’s origin and composition:

  • U.S./Canadian Parts Content Percentage: This is the headline figure, showing the total percentage of equipment (parts) value originating from the United States and Canada.
  • Major Foreign Parts Content (15% or More): The label must list up to two countries, other than the U.S. and Canada, that contribute 15 percent or more to the vehicle’s parts content individually. The percentage of content from each of these countries must also be specified.
  • Final Assembly Point: The city, state (if applicable), and country where the vehicle was finally assembled are clearly stated.
  • Engine Origin: The country of origin for the vehicle’s engine is identified.
  • Transmission Origin: Similarly, the country of origin for the vehicle’s transmission is provided.
  • Important Disclaimer: A statement clarifies that the parts content percentage excludes costs associated with final assembly (except for engine and transmission), distribution, and other non-parts expenses.

It’s important to note that the U.S./Canada parts content percentage, along with percentages for other countries, are calculated on a “carline” basis, not for each individual vehicle. These percentages are typically rounded to the nearest 5 percent. “Carline” refers to a group of vehicles sharing significant commonality in construction, such as body and chassis. For instance, light-duty trucks are considered different carlines from passenger cars, and a carline encompasses all vehicles under a specific nameplate.

How is the US/Canadian Content Percentage Calculated?

Vehicle manufacturers are required to calculate these equipment content percentages for each carline well before the start of a model year. This process involves estimations and detailed evaluations:

  1. Vehicle Production Estimates: Manufacturers estimate the number of vehicles and different subgroups within each carline they plan to produce, considering variations like base models and high-line models.
  2. U.S./Canadian Content Valuation: For every part used in assembling vehicles within a carline, manufacturers determine the value of the U.S./Canadian content.
  3. Total Equipment Value: They calculate the total value of each equipment item, which is typically the price they pay to their suppliers.
  4. Quantity of Equipment Items: Manufacturers project the total number of each equipment item that will be used across the entire carline production for the model year.

When vehicles within a carline offer optional equipment, manufacturers also estimate the installation rates for these options. For example, if a carline offers both manual and automatic transmissions, they will estimate the proportion of vehicles expected to be built with each transmission type.

Where to Find the Car Parts Content Label on Your Vehicle

The AALA mandates that the parts content label be placed in a prominent location on each vehicle, easily readable from the exterior when the doors are closed. This label can be integrated into:

  • Monroney Price Information Label: Often referred to as the “window sticker,” this label provides comprehensive pricing and features information.
  • Fuel Economy Label: This label details the vehicle’s fuel efficiency ratings.
  • Separate Label: In some cases, the parts content information may be presented on a standalone label.

You can typically find the vehicle type (e.g., passenger car, MPV) on the certification label, which is usually located on the driver’s side door or doorjamb.

Accessing NHTSA Reports and Further Information on Car Part Labeling

NHTSA compiles the information submitted by vehicle manufacturers into reports, making it accessible to the public. These reports are designed to help consumers make informed decisions by providing insights into the U.S./Canadian content of various vehicle carlines.

NHTSA offers these reports in different formats:

  • Part 583 AALA Reports, Alphabetical: Organized alphabetically by manufacturer and further categorized by year, these reports allow you to easily find information for specific automakers.
  • Part 583 AALA Reports, Percentage: These reports are structured by the percentage of U.S./Canadian parts content, broken down by year, enabling you to compare vehicles based on their domestic parts percentage.

Beyond parts content information, NHTSA’s website, NHTSA.gov, offers a wealth of additional resources, including data on vehicle safety equipment, systems, and crash test ratings from the New Car Assessment Program (NCAP). For direct assistance, you can contact the NHTSA Auto Safety Hotline at 888-327-4236.

For those seeking in-depth information or wishing to review original manufacturer submissions, NHTSA’s Technical Information Services (TIS) is available. The TIS Reading Room in Washington, DC, is open to the public, and TIS staff can assist with research. For remote inquiries requiring extensive searches, you can submit a written request to TIS, detailing your needs and authorizing a fee search.

Contact Information for NHTSA Technical Information Services (TIS):

  • Address: Technical Information Services (NPO-411), National Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., East Building (E12-100), Washington, DC 20590
  • Phone: 888-327-4236 (General inquiries answered by Vehicle Safety Hotline representatives) or 202-366-2588 (TIS Reference Desk for escort to Reading Room)
  • Email: [email protected] (for written requests)
  • Fax: 202-493-2833 (for submitting requests)
  • TIS Services & Fees: TIS Services

Understanding car part labeling empowers you to make more informed choices when purchasing a vehicle. By utilizing NHTSA’s resources and understanding the AALA guidelines, you can gain valuable insights into the origins of your vehicle’s components.

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