The Differences Between Domestic and Imported Cars Are Unclear

In the early days of vehicles being imported around the world it was easy to know the difference between domestic and imported cars.

Today, cars that were once thought of as strictly imports are actually made in the markets where they are sold. America has some of the strictest regulations and safety standards in the world, which is good for our protection on the road but has led to some automakers creating American-only models and offering some models that never make it to the United States. Let’s see if we can unwind this ball of yarn and understand the differences between various types of cars.

What is an American Domestic Car?

Technically, a car that’s made by an American-based automaker is a domestic vehicle. Typically, we think of these automakers by starting with the Detroit Big Three, which are Ford, GM, and Chrysler. But wait, Chrysler is nothing more than a car brand and falls under the Stellantis umbrella. Stellantis isn’t headquartered in the United States. Does this mean the Jeep, Ram, Dodge, and Chrysler vehicles that we admire as being American, aren’t actually American at all? If you’re going to say that Stellantis is fairly new and recently bought FCA, you’d be right, but FCA wasn’t truly domestic either.

In fact, FCA was an Italian company, the F stands for Fiat, and brought the former Chrysler brands under its umbrella. Unfortunately, these blurred lines don’t offer truly domestic cars like they did in the past. In fact, some GM vehicles have more foreign parts on them than those from foreign automakers.
For the sale of this conversation, we’ll maintain the domestic brands are:

• Buick
• Cadillac
• Chevrolet
• GMC
• Chrysler
• Dodge
• Jeep
• Ram
• Ford
• Lincoln

We can go on all day about how the lines are blurred, but when you see these brands, you immediately think of them as domestic names and not foreign brands.

What are Import Cars?

Import cars are vehicles made by automakers that aren’t headquartered in America. While all of these automakers have offices and factories in America, they all have their main operations in another country. The fact that you know there’s a Honda assembly plant in Ohio, a Toyota truck factory in Indiana, and a Mercedes-Benz facility in Mississippi does make things a bit confusing. In fact, recent studies found that Toyota used more American parts in its vehicles than some Chevrolet models; how wild is that to think about.

Typically, when we think of foreign brands, the names that come to mind right away are:

• Honda
• Nissan
• Toyota
• Hyundai
• BMW
• Audi
• Porsche
• Subaru
• Volkswagen
• Mercedes-Benz

There are more we can add to the list, but you get the idea.

What is a Parallel Import Vehicle?

As mentioned, some vehicles are made for other countries and never made for the United States. These cars weren’t expected to make it to our shores but can be imported here, typically at the owner’s expense, if the customer desires that car. If you see a car that seems out of place, it could be a parallel import. One sure indicator of such a car is if the steering wheel is on the opposite side of the car than what we’re used to.

What Makes Parallel Imports Tricky?

Unlike direct imports and domestic vehicles, a car that’s a parallel import isn’t made to meet any of the safety or emissions standards in the United States. That could mean a car that’s street legal in other countries isn’t in America.
Some cars can be tested and deemed street legal in the US, which makes them legal to ship in their original condition, but many are required to undergo modifications to make them legal to drive on American roads. This was the case with the Nissan Skyline from the 1990s. Initial company testing indicated the car was safe when it wasn’t.

Isn’t There an Age Rule for Parallel Imports

Yes, there is a rule that helps those drivers with enough patience and desire to drive some of the foreign cars that were never meant for domestic rods. This rule is the Age Rule which allows a car that’s 25 years old or greater to be imported to America legally as a classic car. This rule allows these cars to be imported without a safety or emissions inspection, even if they don’t meet DOT standards.

It was a satisfying day for many drivers when the 25-year mark finally passed, and they knew they could bring the 1990s Nissan Skyline models across from Japan. The challenge for Americans that waited for these cars was finding an owner in Japan willing to part with this incredible sports car.

Should You Spend the Money for a Parallel Import?

If you want a car that was never made for the United States as a collector’s item, it can certainly be worth the cost. On the other hand, if you’re simply looking to have a domestic version of a foreign car on American soil, such as a Miata made for Japan, it’s not worth the extra cost. The Miata in the United States is almost entirely the same as the one made for Japan.

A Little More About the American-Made Imports

Yes, you know all about the vehicles that are manufactured in America, by American workers, under the umbrella of a foreign company that operates its headquarters in another country. This is not something new, and our domestic brands do the same thing. In fact, Ford has 42 manufacturing plants outside the United States. Honda operates 12 facilities in America.

Some of our domestic vehicles are made in Canada and Mexico, which should technically make them foreign cars, right? How can a Honda made in Ohio be an imported vehicle and the Mexican Chevrolet be a domestic vehicle? This doesn’t make sense, but neither does the separation of foreign and domestic cars in the auto world.
To dial it down and finish this dizzying conversation:

• • • Domestic cars refer to vehicles from a company with its main headquarters in the United States
    • Imported cars refer to vehicles from a company with its main headquarters outside of the United States
    • Parallel imports are vehicles made for other markets that do not meet United States safety and emissions regulations

Everything else is gibberish in the automotive world, with blurred lines between where cars are built.