Where the jobs are

Nissan Xterra SUV made in Smyrna, Tennessee

To cut transportation costs and avoid potential import limitations, Japanese auto companies have increasingly opened manufacturing and assembly plants in this country. Honda and Toyota each have about 15,000 autoworkers in their U.S. plants. Nissan, another big Japanese company, has begun building its pickup trucks and Xterra sport utility in Smyrna, Tennessee. Among European manufacturers, BMW builds its Z3 sports car and X5 sport utility in Spartanburg, S.C. And Daimler-Benz, even before its takeover of Chrysler, had begun to make its ML320 sport utility in Tuscaloosa, Ala.

For their part, Detroit companies long have had plants in Canada, especially in the nearby province of Ontario. They then began to expand into Mexico in towns just over the U.S. border. That trend has accelerated since the ratification of the North America Free Trade Agreement, which eliminated most trade barriers with Canada and Mexico. New models like the Chrysler PT Cruiser and the Chevrolet Avalanche pickup/ SUV hybrid are especially likely to be built in Mexico.

Where the profits go

Jeep Liberty

It's very nice that Japanese companies hire American workers, critics say, but when you buy a Honda or Toyota, the profits ultimately go back to Japan. And as we have mentioned, since the DaimlerChrysler merger, buying a Jeep, a Dodge minivan, or a Chrysler sedan is sending profits -- if any -- to a corporation headquartered in Stuttgart, Germany. (Seventeen percent of DaimlerChrysler's stock is still held by "U.S.-identified shareholders," according to a company spokesperson.).

But in today's global auto industry, this is not a one-way street. Ford and General Motors long have built and sold cars in Europe, Latin America, and parts of Asia. But in recent years, they also have begun acquiring smaller companies. Ford now owns Volvo, Jaguar, and Range Rover. Saab belongs to General Motors. So those autoworkers in Sweden or Great Britain are likewise generating profits for far-off corporate headquarters -- this time in Detroit.

Who's cooperating

Ford Escape made in Kansas City, Mo.

It may seem odd, but in this new globally interconnected world, joint agreements among competitors result in the same vehicle being sold with both Japanese and American brand names, usually with a few cosmetic tweaks. The small sport utilities Ford Escape and Mazda Tribute offer a prime example. The two vehicles were engineered together but given different exterior design. They are both made in Kansas City, Mo. Escape is selling four times as many as Tribute but both are counted successes.

Ford has an ownership interest in Mazda. Even normally bare-knuckled antagonists General Motors and Toyota have a cooperative manufacturing agreement in a plant in Fremont, Calif. This dates back to 1984 when Toyota wanted to start manufacturing in this country and GM hoped to learn from Toyota manufacturing methods. Now, both the mechanically identical Chevrolet Prizm and Toyota Corolla are made there. So if you want an American brand made by Americans -- but have a sneaking desire for Toyota's vaunted reliability -- try a Prizm.

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