Captive Import - Exceptions

Exceptions

Not every vehicle that appears to be a captive import really is. A vehicle which is foreign-designed or badged but assembled in the market where it is sold does not fall into this category. Such vehicles are frequently the result of joint venture or strategic alliance arrangements between automakers.

For example, the Renault Alliance, which was sold through American Motors (AMC) dealers in the 1980s, was actually assembled by AMC as part of the brief tie-up between the two companies. The 1985-1988 Chevrolet Nova and the later Geo Prizm, though it was a Toyota design and shared the Chevrolet showroom with many captives, was built domestically by the GM/Toyota NUMMI joint venture. The Eagle Talon and Plymouth Laser, both sisters to the Mitsubishi Eclipse, were manufactured in the U.S. by Diamond-Star Motors, a Chrysler/ Mitsubishi Motors joint venture. Australia's Holden, although it often shares planning and hardware with the rest of GM's global empire such as Opel and Isuzu, has generally preferred to assemble its versions of such vehicles locally. Rover and Honda have co-produced models for the European market, as have Alfa Romeo and Nissan. None of these would be considered imports.

In the United States, a vehicle that is assembled in Canada or Mexico and is distributed domestically by a Big 3 automaker is not considered a captive import. This is due to the integration of manufacturing operations by the Big 3 in these countries due to the hospitable trade environment created by the North American Free Trade Agreement (and before NAFTA, the US-Canada Auto Pact), coupled with the proximity of these nations to the U.S. Also, vehicles made and marketed by European automakers that were eventually acquired by the Big 3 automakers, such as Land Rover, Volvo, and Saab, are generally not considered to be captive imports. The Opel vehicles sold in the 1960s and 1970s are exceptions to this rule because they were sold through the Buick distribution channel, while retaining the Opel brand name. Thus, they are captive imports.

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