ANNUAL AUTO INDUSTRY
REPORT TWENTY FIFTEEN
ANNUAL AUTO INDUSTRY
REPORT TWENTY FIFTEEN
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TABLE OF CONTENTS
6-7
How it Works
8-13
Introduction(?)
14-17
The Auto Industry Update
18-19
The Rating System
22-31
The Top 10 Collection
32
Models By Brand
33
Sources
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HOW IT My name is Chris Kilcullen, vice President of Sales for the United States of America. Don’t worry, I am not some government bureaucrat moving paper around with a political agenda; just an average American, frustrated with our economy, trying to do my part to create some jobs for some people who really need them. My agenda is simple: highlight the best products that create the most American jobs and stimulate consumer spending. IBuy4Jobs.com is a site to help you manage your personal Economic Footprint and see the jobs created by your spending, or not. While Made in America is part of this message, this is less about manufacturing and more about revenue. Today, we spend more money on imports than we do on domestic goods and services and our goal is to help you see which products and services create the most American jobs over their competitors. Where you spend your money sends a message to the companies that have done the right thing even taken risks to invest in your economy and when you spend your money with them you are also sending a message to their competitors. We will be studying industries that are in the
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service industry such as banking, insurance and even air travel. Southwest Airlines as an example, has the best economic footprint of any US carrier so your fares have greater economic impact on your economy than any other airline. Southwest buys planes built in America and when you call the airline with a question, you will speak to one of thousands of American employees, part of a team 46,000 employees, each of them buying products and services that create more jobs. Great fares, great customer service and great economic footprint. The fact of the matter is that we do live in a global economy, just like we did whenwe bought tea off ships in the Boston Harbor, but we have to remember that we do not get paid in “globals,” still dollars. I think the best way to get this started is to explain who I am and why this became important to me. As I stated earlier, I am not a politician, nor am I in the manufacturing business, I am an average American, just like you.
MY AGENDA IS SIMPLE: HIGHLIGHT THE BEST PRODUCTS THE CREAT E
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WORKS While I was preparing my offering for this listing, Caterpillar announced they were moving their global engine manufacturing facility to Seguin, investing $170 million to build a plant and bring 1,400 new jobs to this community of 26,000 people, while generating $371 million in direct economic impact. Caterpillar made this decision over two locations in Mexico and that single
decision changed the value of the hotel that I was listing and my paycheck. This plant would bring suppliers, vendors and additional businesses to the community that would create new guests for the hotels located in Seguin and provided the support for an investor to purchase and renovate this asset. American, just like you. I have made a living in the hotel business, most of my career, helping investors and developers build and purchase hotels all over the country. For more than 20 years, I have studied communities all over America to understand the local economic drivers and evaluate if a market has the strength to support a hotel investment. That is $371 billion worth of pizza, insurance, airfare, health care and auto insurance that would the create taxable revenue for the city of Seguin, the State of Texas and the United States of America. These jobs would help employees buy real estate and create taxable revenue for the Seguin school district, sales tax for police, fire, roads and bridges and income taxes for the federal government.
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I have made a living in the hotel business, most of my career, helping investors and developers build and purchase hotels all over the country. For more than 20 years, I have studied communities all over America to understand the local economic drivers and evaluate if a market has the strength to support a hotel investment. Within each project, my job is to uncover who is hiring, what companies are growing, if the economy diversified and if it will sustain the long-term investment needed to generate a return. One of these projects was a former Holiday Inn that I was listing for sale in Seguin, Texas. While we have all seen the stories of communities devastated by manufacturers closing up shop, this is an example of the other side of that equation and one that turned the light bulb on for me.
THE MOST AMERICAN JOBS AND STIMULATE CONSUMER SPENDING.
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This is not Detroit, nor the kind of community that I would have ever recognized as an industrial community, but a great example of how our economy is comprised of hundreds of thousands of local communities that are woven together to form the U.S. economy. We are so big geographically and so enormous financially, that we sometimes forget that we are all connected, every industry and every state, every community and every purchase. What makes this even more interesting is that Seguin,Texas is also is home to one of Continental AG’s manufacturing facilities with 800 employees who walk out every day with paychecks in hand spending money throughout this small Texas community. Continental AG makes electronic sensors for the auto industry, which helps paint a picture of how the parts on your next car touch many more communities than just Detroit or the 35 communities we will discuss later in this report. Every purchase produces paychecks that ripple though this economy helping businesses large and small hire more Americans, and the reason I have created IBuy4Jobs.com.
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This is not just a message of Made in America, this is a mantra for how our economy works and how your spending has a direct impact of the growth of our economy or someone else’s. This is about revenue, the revenue that leaves your wallet, makes its way to a retailer, then creates jobs, and the economic activity behind that retail purchase that you hear about each month in the news. Housing Starts, Existing Home Sales, Durable Goods Orders, Consumer Confidence and other economic indicators that cause our economy to shrink or grow. When the media reports on the state of our economy, they are often referring these indicators and our GDP (Gross Domestic Product). GDP is comprised of three components, Consumer spending, Business Spending and Government Spending. Since the Government’s only source of revenue is taxes from the first two items, we need to focus on the first two items: Consumer spending and Business Spending. With consumer generating 70% of all economic activity, I am going to ask for you to focus your spending on the products and services that will create more consumers.When you help a business succeed, they want to hire more Americans to fill that demand, it’s really that simple.
Our economy is big, but it truly is not very complicated and when we the people become intentional about our spending, we have greater control over the future of our country and our economy. We have the privilege to vote for our leaders every two years and then hope for the best, however, we get to vote for our economy every day and see real results. When you start to care for your economy, we may begin getting leaders to do the same, if they want your vote. We have all heard a great deal about unemployment over the last 5 years but let’s just peel the onion back a few layers because 6% unemployment is less than 1 in 10 people right? The real problem is that the 6% number does not include people who are working one or two part-time jobs to keep food on the table, people who have quit looking for work after years of trying and are now on living off of government, those who retired early or living under a spouse’s income and barley making ends meet. The Labor Participation Rate is just 62%, meaning only 62% of people over the age of 18 are working members of our economy, which translates into a ton of people that are no longer part of the middle, where most companies and people make a living.
THIS IS NOT JUST A MESSAGE OF MADE IN AMERICA, THIS IS A MANTRA FOR HOW OUR ECONOMY WORKS AND HOW YOUR SPENDING HAS A DIRECT IMPACT OF THE GROWTH OF OUR ECONOMY OR SOMEONE ELSE’S.
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When they begin to live off of government assistance, they do not have disposable income and do not buy moving tickets, eating out is a trip through the dollar menu, vacations become stay-cations or none at all, I was there in 2009 and 2010 and it is a horrible place to be. This is the percentage of the population that the Government does not want to recognize and just tries to sweep it under the rug, buried in data called U6 unemployment, choosing only to report U3 unemployment because it sounds better, a lot better. The Clinton Administration started reporting the U3 back when NAFTA was passed, but that is another story for another day. This is not a bash on Democrats as Republicans have had their hands deep into the cookie jar, too. To be clear, this is not a political message at all, this is an American problem and we all need to come together and fix it. There is no real reason to have two sets of numbers, unemployed is unemployed and people working part-time but still looking for full-time work should be rewarded for not living on the Government, not ignored out of convenience.
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Sometime over the last 20 years, both political parties became so focused on beating the other side that they forgot about you and me. Each political season, they have to raise so much money to beat the other guy that they have become obligated to there “investors” and have to pass laws that favor them in order to raise money for the next election. Don’t take this as a conspiracy, just a problem that needs to be fixed and a reason for why they have not been able to fix our economy. The reason I bring this up is that we cannot rely on our leadership to guide the direction of our country, we have to take ownership in our economy and become intentional about our spending, one purchase at a time. If you are a member of the 47% that Mitt Romney entioned a while back, you need to remember that the government only collects taxes from companies producing income in America and the employees they hire. Most of the companies that produce revenue off-shore, building goods in other countries to sell in other countries, do not bring that money back here as taxable revenue. I agree that the government should provide services to help those in need, but we have to remember that the government needs revenue to do so,
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and that does not include borrowing. If you are a member of the other 53%, you need to know that when that 47% moves to 57%, you are going to be in the cross-hairs for higher taxes. With just 60% of Americans in the labor pool and only half of those Americans earning enough money to pay taxes, they will be looking to you when they can’t borrow any more, and that day will come. The government cannot create jobs, they have proven that, businesses create jobs and unless you want a much bigger government doling out more services, you need to look for every opportunity to support the products and companies that will hire more tax paying consumers. Listen to the media, you will hear economists report on Durable Goods, Housing Starts, Auto Sales and other economic indicators describing the health of the economy. You have amazing power and that power starts with a choice, which model you are going to select when shopping for a new car, which cabinets or windows when remolding your home or which pair of new skinny jeans makes your butt look good!
Honestly, there are imports that I love and will continue to buy, I am not telling anyone to exclusively buy American made. We need and want trade, we just need to reduce our trade losses by buying fewer imports and trading with countries that trade with us, fairly. I want to increase trade with countries that buy American by asking you to manage your economic footprint. Each and every day, we the people spend over $1.5 billion on imports, more than we spend on the companies that will hire more. Our goal is to educate the consumer about which products create the most jobs so that we can funnel our spending and reward the products and companies that are investing in this economy. We just want you to pay attention and spend 2015 looking for ways to spend more money domestically than you did last year, that’s it. Today, there are millions of moms and millions of dads walking through the grocery story who canʼt buy enough food to feed their families with 1 in 5 American children struggle with hunger. Today, there are millions of moms and millions of dads who canʼt provide a home in which to raise their children, with more than 600,000 homeless in America, many of them veterans, we
have to start paying attention as teamwork makes the dream work. With more than $1 billion leaving this economy every single day, we want to help consumers make better purchasing decisions that will hire more moms, hire more dads and rebuild the hopes and dreams that have made this country what it is. Lets make 2015 a year to celebrate America and reward the companies that are investing in this economy and with 300 million of us, we can to anything we put our mind to. Lets rebuild the American dream with a little teamwork, we can make the dream work! Behind a Nalgene water bottle, I see real people in Rochester, New York that go home to real families. Some are working at Nalgene as a career, some are working in pursuit of their dreams and working as hard as they can to put food on the table and provide for their childrenʼs dreams. Behind a Chevy Malibu, I see consumers spending hard earned dollars making award-wining cars in Kansas City, Missouri, middle of America and some of the best BBQ in the country!
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2014 The two industries that are great economic indicators are also two industries that are the largest drivers of economic impact: the housing industry and the auto industry. You hear about these two industries each month because of their enormous influence on our economy. We have completed a thorough study of every model, foreign and domestic built by every manufacturer, sold in America and the resulting jobs and spending these models create. Beyond the person at the dealership, there is significant economic activity behind your purchase and our rating system will help you compare these purchases and factor the economic impact of your decision just as you compare gas mileage, features, price and even color to help narrow down your selection to the best car that fits your needs and the needs of your economy. 2014 was a banner year for the auto industry selling more than 17 million vehicles and our goal is to make 2015 even better. Not only are we going to ask you to get out this spring and Test Drive American, we want you to buy and then watch your single purchase ripple back through this country using social media.
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WAS A BANNER YEAR FOR THE AUTO INDUSTRY SELLING MORE THAN 17 MILLION VEHICLES
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THE AUTO In 2014, Americans purchased 17 million vehicles, and within these purchases we have found over $100 billion in economic losses. In 2015, we want to help you move some of these purchases to the 150 models with a direct impact on over 42 communities in America. This spending then expands to communities that make parts for suppliers creating jobs for thousands families generating spending all over this country. Your purchase produces paychecks that ripple back through this economy and, at some point, create revenue for the industry or company that generates income for your family through what we call 6° of economic separation. Our research has also found investments of both foreign and domestic brands of close to $50 billion in manufacturing plants, imports $0. If we want more of this, we need to help make those investments pay off by thanking them for their risk in our economy and stimulating more. We have identified the most popular vehicle categories and rated the top 10. Within each category, we are rating the best domestic and the best import so that you can start with two great choices and work your way though the balance of your criteria. We will then show you information about the communities that these models impact so that you can begin to see the real people and real families impacted by these vehicles. We have then
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list all models built by every manufacturer within each category so you can see how each model ranks in our rating system. We have used a variety of sources to collect this content starting with site visits at dealerships to check the data ourselves, then using data reported to the government, manufacturers web sites and contacting manufacturers directly. Some manufacturers build the same model or variations of a model in multiple plants, or even multiple countries, so this information is noted. This is constantly changing data as new models are announced or moved to different plant throughout the year. We will do our best to keep you updated and revise our rating each time we find a change, if you find one, please let us know and we will verify and update.
INDUSTRY I first began studying the industry about 4 years ago and a great deal has changed. The big three are now the big two, but our perspective should change to the 12 manufacturers (soon to be 13) building more than 150 choices all over America. Both Ford and GM are all global companies and have manufacturing facilities all over the world just as many foreign brands are building here. Chrysler, now a division of Fiat Chrysler Automobiles (FCA), an Italian company, along with Honda and Toyota and Nissan, employ thousands of Americans in multiple plants and states and Hyundai, Kia and Subaru each operating one additional plant respectively . Tesla Motors, based in California the leader in electric technology with its two models, the S and the Model X. With an extremely successful sedan and soon to launch SUV, Tesla offers both a terrific economic footprint combined with an environmental footprint that not only reduces our trade deficit through job creation, but also reduces our trade deficit even further as
it uses no foreign oil. We will discuss this added value in our alternative fuel section. A newcomer in the industry, Elio Motors has taken the keys on a former GM plant in Shreveport Louisiana and will be building a three wheeled passenger vehicle that looks like a great deal of fun and adding 1,500 jobs to the labor force and more using 80% domestic suppliers. Suzuki has pulled out of the U.S. auto market entirely, and with just one model built by Nissan USA, there were not noticeable U.S. jobs losses. Mazda has shut down all domestic manufacturing, choosing instead to import 100% of the “zoom zoom� brand, which we hope will prove to be a poor strategy. Mitsubishi has reduced production from three models with plans to build just one SUV for the U.S. market, importing the balance while exporting your revenue.
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On the luxury side, Audi has again recently enticed many communities across America with the possibility of building its first U.S. factory here, only to pass on America by choosing a plant in Mexico. We hope Mexico is a big market for them as we aim to dramatically reduce Audi sales until they move manufacturing to the market they are trying to sell vehicles in. The biggest news in the luxury market is that Lexus has announced they will be moving production of the ES to America; Georgetown, Kentucky to be exact. To better understand the scope of this single decision, Toyota will invest $360 million to expand the Georgetown plant and add 750 more jobs to the current 6,600 jobs at the plant. Initial production will roll off the line in two years at a pace of 50,000 vehicles per year. Last year, the ES 350 had an average price of $35,000, according to Truecar.com, creating a potential economic impact of more than $1 billion every year depending on the parts content sourced by U.S. suppliers. Acura builds 5 of their 6 models in America, the leading foreign luxury brand sold in America and has picked Marysville, OH to build their new NSX Super-car, an amazing vehicle to compete for those with enough dough for a novelty vehicle to fill some space in their garage.
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Mercedes has announced they are adding a sedan to the family of three SUVs that they build in Vance, Alabama and both of GMĘźs Cadillac and Buick luxury brands have added to their portfolio with some outstanding products. The ATS has been a knockout for Cadillac and the new ATS V is a sedan that we hope to help double in volume adding shifts to one of their two Lansing plants and spending to its community. The Buick LaCross, made in Kansas City has been very well received. Lincoln builds the MKS in Chicago, the Navigator in Kentucky and the balance of their models in Canada or Mexico. The MKZ is a beautiful vehicle and a better choice over any other import creating jobs and spending in Dearborn, Michigan. The luxury segment of the auto industry has the largest opportunity for job creation with most foreign models being imported providing the greatest room for growth of Cadillac, Buick, Lincoln, Acura, Mercedes and BMW models built in America. Luxury buyers have the most to gain helping this category as these high-income earners have the most to lose through higher taxes as we have already started to see.
Fiat entered the market and despite the popular belief that the Italians have swam across the Atlantic, most if not all have merely waded over the Rio Grande from Mexico, where they are made by Fiat. Volkswagen builds the Passat in Chattanooga but every other model is imported making Passat is your only model that leaves a positive economic footprint on your economy. If you must have that cute little Beetle, be prepared to cuddle with it in the event you lose your job in the next downturn. Not one AUDI, not one Volvo, not one Scion, Mazda, Fiat, Jaguar, Porsche, Land Rover, Mini, Smart or are built here so all models leave a negative footprint. Honda is the best foreign car company in America with 9 of 18 models built in America. Building cars in four communities and employing 12,900 people, inside their plants and what we estimate to be 116,100 at suppliers and vendors, all of whom are spending their paychecks in communities all over America. Honda has recently invested $9 million in American plants alone, with additional capital investments in engine facilities building both Honda and Acura models; just a point of reference, Audi has invested zero. These Honda plants currently produce 1.3 million vehicles, which equates to $40 billion in economic activity, or you can buy an import that provides an opportunity for a wire transfer, out of your economy.
Toyota builds 8 of their 18 models in America employing 17,000 Americans in four states and impacting an additional 45,000 through suppliers and vendors. As stated earlier, Toyota, which also owns Lexus, will be building their first model in America in the next couple of year but until then, none made it through our ratings with a positive economic footprint. Scion, the small compact brand built by Toyota, imports 100% of its models. Hyundai and Kia, sister companies from Korea, build five of 20 models in America with a plant in Alabama and a plant in Georgia, the first auto plant in the state! Subaru builds two of its nine models at its one plant in Alabama. I live in Colorado where they are very popular, but hope my fellow residents can limit their purchases to these models to get around in the snow.
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THE RATIN Our economic footprint rating system goes beyond the Made in America label and helps consumers compare which product creates more jobs over the next, even when there are no choices for a product Made in America. We are also giving credit where credit is due by highlighting the foreign manufacturers that have invested billions of dollars in communities all over America, then helping you see which product is built with more domestic parts. The fact of the matter is that the product with the best economic footprint is always going to be an American company using 100% American parts, built in America, but that is not the world that we live in. Remember, we are focused on reducing trade losses so every dollar that we can divert to products or suppliers that create economic activity in America is a win for the U.S. economy, a local community and real families all over this country. Progress, not perfection, sometimes better bad choices may be the best choices to help turn the ship around and put this economy, this nation back on the path to prosperity.
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U.S. MANUFACTURING FIRST STAR
DOMESTIC PARTS SECOND STAR
The first Star in our rating system is the most important star as it is awarded for a plant in America that manufacturers or assembles the product with American workers. This star puts money in the hands of workers who go out and buy real estate, enchiladas and other goods and services from businesses within their communities and industries all over this nation.
This is the one star that encourages manufacturers to source more materials and components from U.S. based parts suppliers. Like the fist star, this represents significant economic impact as it can spider across multiple communities and multiple states creating both consumer and corporate spending. This is also the star that creates a competitive environment among manufacturers to buy more parts locally and achieve the highest rating within each category.
NG SYSTEM
HEADQUARTERED IN AMERICATHIRD STAR
CORPORATE PAYROLL IN AMERICA FOURTH STAR
This star is awarded to American companies and represents the business to business spending that these companies create. This revenue represents the offices buildings,/property taxes, the business travel, professional services, corporate sponsorships and on and on. If you have ever lived in a community anchored by a large business, you know just how important their presence is to the people and businesses in the area.
The final star in our rating system is awarded for the corporate payroll that walks out as that 5:00 whistle blows with paychecks in hand spending their earnings in local businesses throughout the year. This star represents that administrative staff, accounting team, marketing, design and other employees from the mailroom to the CEO all consumers spending money on Black Friday, Small Business Saturday, Cyber Monday and every other day throughout the year. 19
THE TOP TEN Okay, this is really the top 20 because we have added the best foreign and domestic choices in each category. We have picked the top ten vehicle types and also tried to make sense of all the variations within each vehicle categories. People buy vehicles for a variety of reasons, and we want the Economic Footprint of their purchase to become a major consideration as each purchase represents billions of dollars in consumer spending. Our objective is to funnel as much of this revenue through the models that are built in 37 communities and 14 states, producing revenue for your economy. Our rating system is very transparent, and while a domestic model will always have a higher Economic Footprint over a foreign model, the star for domestic manufacturing and star for domestic parts represents billions of economic activity that impacts millions of lives. We want to reward the companies that are investing in this economy, and these plants represent over $40 billion of invested capital that we have been able to trace back to these communities.
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(OR 22 BUT WHO’S COUNTING)
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BEST MID SIZE SEDAN CHEVY MALIBU Kansas City, MO DOMESTIC
3,877 34,893 Direct Jobs
Indirect Jobs
DODGE AVENGER Sterling Heights, MI FOREIGN
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3,260
29,340
Direct Jobs
Indirect Jobs
BEST COMPACT CAR CHEVY CRUZE Lordstown, OH DOMESTIC
4,500 40,500 Direct Jobs
Indirect Jobs
TOYOTA COROLLA Blue Springs, MS FOREIGN
2,000
2,583
Direct Jobs
Indirect Jobs
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BEST SMALL SUV CHEVY EQUINOX Spring Hill, TN DOMESTIC
1,868 16,812 Direct Jobs
Indirect Jobs
JEEP COMPASS Belvedere, IL FOREIGN
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4,887
43,983
Direct Jobs
Indirect Jobs
BEST FULL SIZE PICK-UP FORD F150 Kansas City, MO DOMESTIC
3,877 34,893 Direct Jobs
Indirect Jobs
HONDA RIDGELINE Lincoln, AL FOREIGN
4,000
36,000
Direct Jobs
Indirect Jobs
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BEST MID SIZE LUXURY CADILLIAC CTS Lansing, MI DOMESTIC
1,541 13,869 Direct Jobs
Indirect Jobs
ACURA ILX Greensburg, IN FOREIGN
2,100 Direct Jobs
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18,900 Indirect Jobs
BEST MID SIZE SUV CHEVY TRAVERSE Lansing, MI DOMESTIC
3,651 32,859 Direct Jobs
Indirect Jobs
HONDA PILOT Lincoln, AL FOREIGN
4,000
36,000
Direct Jobs
Indirect Jobs
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BEST MINIVAN TOYOTA SIENNA Princeton, IN FOREIGN
4,500 12,919 Direct Jobs
Indirect Jobs
HONDA ODYSSEY Lincoln, AL FOREIGN
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4,000
36,000
Direct Jobs
Indirect Jobs
BEST SMALL LUXURY CADILLAC ATS Lansing, MI DOMESTIC
1,541 13,869 Direct Jobs
Indirect Jobs
ACURA Somewhere, U.S.A FOREIGN
3,877 Direct Jobs
34,893 Indirect Jobs
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BEST MID SIZE LUXURY SUV BUICK ENCLAVE Lansing, MI DOMESTIC
3,651 32,859 Direct Jobs
Indirect Jobs
GMC ACADIA Lansing, MI DOMESTIC
ACURA RDX East Libertyville, OH FOREIGN
2,500 22,500 Direct Jobs
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Indirect Jobs
3,552
31,968
Direct Jobs
Indirect Jobs
BEST SMALL LUXURY SUV MERCEDES GLK 450 Vance, AL FOREIGN
3,000 27,000 Direct Jobs
Indirect Jobs
CADILLAC SRX Mexico DOMESTIC
0
2,500
Direct Jobs
Indirect Jobs
* There are no domestic models built in America
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RESOURCES All Images Provided by the following:
Cover Photo (Front and Back) Dave Pinter https://www.flickr.com/photos/davepinter/ American Flag (pg. 8-9) http://coolstylewallpapers.com/american-flag-black-and-white-wallpaper-hd/ New York City (pg. 10-11) http://www.flickr.com/photos/ekilby/ http://www.acura.com/ http://www.caranddriver.com/ http://www.chevrolet.com/ http://www.dodge.com/ http://www.toyota.com/ http://www.jeep.com/ http://www.ford.com/ http://www/honda.com/ http://www.cadillac.com/ http://www.acura.com/ http://www.mbusa.com/ http://www.gmc.com/ http://www.automobilemag.com/ http://gmauthority.com/
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