The Complex Reality of "Made in the USA": Ford Expedition Highlights Global Supply Chain Challenges

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Michael Wayland

In a striking illustration of the intricacies of the global automotive supply chain, the newly assembled 2025 Ford Expedition SUV, complete with bronze exterior trim, has rolled off the assembly line at Ford Motor Company’s Kentucky Truck Plant. While the vehicle is assembled by American workers, a significant portion of its components at least 58% are sourced from outside the United States, including 22% from Mexico. This includes the crucial Ford-engineered 3.5-liter twin-turbocharged V-6 Ecoboost engine, which serves as the vehicle's heart.

The situation underscores a broader reality: even vehicles produced by quintessentially American companies like Ford are heavily reliant on non-domestic content. The Kentucky assembly plant, employing over 9,000 workers to build the Expedition, F-Series pickup trucks, and Lincoln Navigator SUVs, exemplifies the facilities that former President Donald Trump urged automakers to establish in the U.S. through aggressive tariffs.

Following the imposition of 25% tariffs on imported vehicles and many automotive parts, automakers have been compelled to emphasize U.S. investments and localize their supply chains. However, experts caution that while the U.S. could benefit from increased jobs and economic output, achieving a fully domestic supply chain is not feasible. Martin French, a veteran supplier executive and partner at Berylls Strategy Advisors USA, noted that some parts are still more cost-effective to manufacture abroad, even with tariffs in place.

The lack of processing and production plants for essential materials such as steel, aluminum, and semiconductor chips in the U.S. poses a significant challenge. Establishing new facilities or mines for these materials could take a decade or more, according to experts. Additionally, the increased costs associated with a 100% U.S.-made vehicle could deter consumers from purchasing new vehicles, potentially leading to decreased demand and lower production levels.

Ford CEO Jim Farley emphasized the balancing act automakers face, stating, “We can move everything to the U.S., but if every Ford is $50,000, we’re not going to win as a company.” He highlighted that 15% to 20% of commoditized vehicle parts are currently difficult, if not impossible, to source in the U.S., including small fasteners and labor-intensive wiring harnesses.

S&P Global Mobility reports that an average vehicle contains approximately 20,000 parts, which can originate from 50 to 120 countries. For instance, the Ford F-150, which shares a platform with the Expedition, is exclusively assembled in the U.S. but comprises around 2,700 main billable parts, excluding smaller components.

While the Trump administration could potentially alleviate higher prices for American-made vehicles through tax breaks or consumer incentives, the costs associated with achieving a 100% American-made vehicle are substantial and complex. Automakers are required to report a combined percentage of U.S. and Canadian content, making it challenging to track the exact origin of parts.

Experts estimate that sourcing components from the U.S. and Canada could add thousands of dollars to a vehicle's price, significantly impacting automakers' profits and forcing price increases for consumers. Mark Wakefield, a partner at AlixPartners, stated that the investment needed to achieve a 100% “Made in the USA” vehicle would increase exponentially as companies approach that target.

Achieving a vehicle with 75% U.S. and Canadian parts is a more realistic goal, according to Wakefield, as it does not necessitate economically unfeasible measures. However, reaching this threshold would still require billions of dollars in new investments from automakers and suppliers.

The trend toward less U.S./Canadian content has been ongoing for decades, driven by the globalization of supply chains and the increasing use of Mexico as a source for parts. The American Automobile Labeling Act of 1992 mandates that U.S./Canada percentages are calculated on a “carline” basis, which can obscure the actual content of individual vehicles.

As the automotive industry continues to navigate these complexities, the 2025 Ford Expedition is expected to score higher on the “American-Made Index” than its predecessor, reflecting an increase in domestic content. However, experts agree that achieving a fully American-made vehicle remains an elusive goal, with significant challenges ahead.