A knock-down kit (also knockdown kit, knocked-down kit, or simply knockdown or KD) is a collection of parts required to assemble a product. The parts are typically manufactured in one country or region, then
export
An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...
ed to another country or region for final assembly.
A common form of knock-down is a complete knock-down (CKD), which is a kit of entirely unassembled parts of a product. It is also a method of supplying parts to a market, particularly in shipping to foreign nations, and serves as a way of counting or pricing. CKD is a common practice in the automotive,
bus
A bus (contracted from omnibus, with variants multibus, motorbus, autobus, etc.) is a road vehicle that carries significantly more passengers than an average car or van. It is most commonly used in public transport, but is also in use for cha ...
, heavy
truck
A truck or lorry is a motor vehicle designed to transport cargo, carry specialized payloads, or perform other utilitarian work. Trucks vary greatly in size, power, and configuration, but the vast majority feature body-on-frame construction ...
, and
rail vehicle
The term rolling stock in the rail transport industry refers to railway vehicles, including both powered and unpowered vehicles: for example, locomotives, freight and passenger cars (or coaches), and non-revenue cars. Passenger vehicles can be ...
industries, as well as electronics, furniture and other products. Businesses sell knocked-down kits to their foreign affiliates or licensees for various reasons, including the avoidance of import taxes, to receive tax preferences for providing local manufacturing jobs, or even to be considered as a bidder at all (for example, in
public transport
Public transport (also known as public transportation, public transit, mass transit, or simply transit) is a system of transport for passengers by group travel systems available for use by the general public unlike private transport, typical ...
projects with "buy national" rules).
A semi-knocked-down kit (SKD) or incompletely disassembled kit (although it has never been assembled) is a kit of the partially assembled parts of a product. Both types of KDs, complete and incomplete, are collectively referred to within the auto industry as knocked-down export (KDX), and cars assembled in the country of origin and exported whole to the destination market are known as built-up export (BUX).
Technically, the terms "knock-down", "incompletely disassembled kit" and "kits of parts" are all
misnomer
A misnomer is a name that is incorrectly or unsuitably applied. Misnomers often arise because something was named long before its correct nature was known, or because an earlier form of something has been replaced by a later form to which the name ...
s, because the knock-downs were never built up in the first place, and the shipments of parts are often not in the form of kits, but rather bulk-packed by type of part into
shipping container
A shipping container is a container with strength suitable to withstand shipment, storage, and handling. Shipping containers range from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes. In the context of ...
s. The degree of "knock-down" depends on the desires and technical abilities of the receiving organization, or on government import regulations. Developing nations may pursue trade and economic policies that call for
import substitution
Import substitution industrialization (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production.''A Comprehensive Dictionary of Economics'' p.88, ed. Nelson Brian 2009. It is based on the premise that ...
or local content regulations. Companies with CKD operations help the country substitute the finished products it imports with locally assembled substitutes.
Knock-down kit assembling plants are less expensive to establish and maintain, because they do not need modern robotic equipment, and the workforce is usually much less expensive in comparison to the home country. The plants may also be effective for low-volume production. The CKD concept allows firms in developing markets to gain expertise in a particular industry. At the same time, the CKD kit exporting company gains new markets that would otherwise be closed.
Automotive
In the automotive industry, the most basic form of a vehicle in KD kit lacks the wheels,
internal combustion engine
An internal combustion engine (ICE or IC engine) is a heat engine in which the combustion of a fuel occurs with an oxidizer (usually air) in a combustion chamber that is an integral part of the working fluid flow circuit. In an internal combus ...
battery
Battery most often refers to:
* Electric battery, a device that provides electrical power
* Battery (crime), a crime involving unlawful physical contact
Battery may also refer to:
Energy source
*Automotive battery, a device to provide power t ...
. They are either supplied as ''parts'' for assembly (a "complete" kit) or obtained from third parties (an "incomplete" kit); all of the interiors are already installed at the originating factory. The term SKD for semi-knocked-down refers to a kit with a complete, welded car body, usually coated or already painted. To gain some extra tax preferences, the manufacturer needs to further ''localise'' the car, i.e. increase the share of parts produced by local manufacturers, such as tires, wheels, seats, headlights, windscreens and glass, batteries, interior plastics, etc., even down to the engine and transmission. At some point, the steel body could be pressed, welded, and painted locally, which effectively makes KD assembly only a couple of steps away from full-scale production.
By the time that
Henry Ford
Henry Ford (July 30, 1863 – April 7, 1947) was an American industrialist, business magnate, founder of the Ford Motor Company, and chief developer of the assembly line technique of mass production. By creating the first automobile that mi ...
co-wrote his 1922 memoir, ''My Life and Work'', the Ford Motor Company was already shipping car parts from its Michigan plants for final assembly in the regions of the United States or foreign countries where the cars would be sold.
During
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, a great number of US- and Canadian-built vehicles — most notably light and heavy trucks like Willys MB/
Ford GPW
Ford commonly refers to:
* Ford Motor Company, an automobile manufacturer founded by Henry Ford
* Ford (crossing), a shallow crossing on a river
Ford may also refer to:
Ford Motor Company
* Henry Ford, founder of the Ford Motor Company
* Ford ...
/GPA, GMC-353/ CCKW and vehicles from the CMP family — were crated and shipped overseas in KD form, in various degrees of completeness, to Allied countries, in order to sustain their war effort. Assembly lines were preferably set up in local automotive factories where appropriate tooling and equipment could be easily found but, where needed, other types of buildings could be used, especially in on-the-field situations, and on occasion even open-air rebuilding camps were set up, managed by military personnel. Owing to male mobilization, sometimes a female workforce was employed. CKD military vehicles could be stored for shipment in one-vehicle-per-crate form (or SUP, Single Unit Pack), or as several vehicles (usually two to three) divided in two or more crates. Vehicles shipped to certain countries could be lacking some items, such as cabs, beds or tires, that were built and provided locally.
Mahindra & Mahindra Limited in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
began its business in 1947 with assembling CKD
Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
s. Mahindra expanded their operations to include domestic manufacture of Jeep vehicles with a high level of local content under licence from
Kaiser Jeep Corporation
Kaiser Jeep was the result of the 1953 merger of Kaiser Motors, an independent passenger car maker based in Willow Run, Michigan, with the Toledo, Ohio-based Willys-Overland Company.
Willys-Overland had been at one point before World War II t ...
and later
American Motors
American Motors Corporation (AMC; commonly referred to as American Motors) was an American automobile manufacturing company formed by the merger of Nash-Kelvinator Corporation and Hudson Motor Car Company on May 1, 1954. At the time, it was the ...
(AMC).
In the 1950s and 1960s, Lotus Cars sold its
Lotus Seven
The Lotus Seven is a small, simple, lightweight, two-seater, open-top, open-wheel, sports car produced by the British manufacturer Lotus Cars (initially called Lotus Engineering) between 1957 and 1972.
It was designed by Lotus founder Colin Cha ...
car in CKD form to avoid the UK purchase tax that applied to sales of fully assembled vehicles.
By 1959, and with the introduction of the
Mini
The Mini is a small, two-door, four-seat car, developed as ADO15, and produced by the British Motor Corporation (BMC) and its successors, from 1959 through 2000. Minus a brief hiatus, original Minis were built for four decades and sold during ...
, the products of BMC were still either imported or assembled from CKD kits in several international markets.
In 1961,
Renault
Groupe Renault ( , , , also known as the Renault Group in English; legally Renault S.A.) is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured ...
began negotiations for a first partnership agreement with AMC for assembly of
Rambler
Rambler or Ramble may refer to:
Places
* Rambler, Wyoming
* Rambler Channel (藍巴勒海峽), separates Tsing Yi Island and the mainland New Territories in Hong Kong
* The Ramble and Lake, Central Park, an area within New York City's Centr ...
automobiles in
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
. Beginning in 1962, and continuing until 1967, AMC also sold CKD kits of its passenger cars to Renault. They were assembled in Renault's factory in
Haren, Belgium
Haren ( Dutch and French, sometimes written ''Haeren'' in French) is an old municipality of Brussels in Belgium, that was merged into the municipality of the City of Brussels in 1921. It is an outlying part of the municipality of the city and is s ...
Austria
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
,
Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
,
France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
, the
Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
, and
Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
. The deal allowed AMC to sell its cars in new markets without having to make a major
Foreign Direct Investment
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct co ...
(FDI). The arrangement was good for the French automaker because its product range was lacking large cars and it needed to offer an "executive" model in its European markets. The situation had changed by 1977. It was now AMC that sought outside support for a new car in the United States sub-compact market segment, which led to the first of many agreements with Renault.
Volvo's Halifax Assembly Plant, which opened 1963, completed vehicles in CKD form from Sweden for North American consumers. Halifax Assembly closed in December 1998.
In 1967,
Rootes Group
The Rootes Group or Rootes Motors Limited was a British automobile manufacturer and, separately, a major motor distributors and dealers business. Run from London's West End, the manufacturer was based in the Midlands and the distribution and de ...
UK began exporting CKD Hillman Hunters to Iran where they were sold as the
Paykan
The Paykan ( fa, پيکان meaning ''Arrow'') is the first Iranian-made car produced by Iran Khodro (formerly called "Iran National") between 1967 and 2005. The car was very popular in Iran from its introduction until its discontinuation. I ...
(meaning "arrow" in
Persian
Persian may refer to:
* People and things from Iran, historically called ''Persia'' in the English language
** Persians, the majority ethnic group in Iran, not to be conflated with the Iranic peoples
** Persian language, an Iranian language of the ...
). Bought by Chrysler in 1967 and then part of the sale to the
PSA Group
The PSA Group (), legally known as Peugeot S.A. (Peugeot Société Anonyme, trading as Groupe PSA; formerly known as PSA Peugeot Citroën from 1991 to 2016) was a French multinational automotive manufacturing company which produced automobiles ...
by the
Chrysler Corporation
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...
of its European operations in late 1978, the Rootes business basis in Iran became the primer for the very significant PSA Peugeot Citroën business in Iran involving engine and CKD deliveries, particularly from the 405, introduced in 1990 and facelifted as the Pars in 1999 and 206 introduced in 2001. In 2004, Peugeot's partner Iran Khodro produced 281'000 Peugeot vehicles, securing a 36% market share.
In 1967 as well,
Peugeot
Peugeot (, , ) is a French brand of automobiles owned by Stellantis.
The family business that preceded the current Peugeot companies was founded in 1810, with a steel foundry that soon started making hand tools and kitchen equipment, and the ...
introduced CKD-based production of a light pick-up vehicle based on the Peugeot 403 in Peugeot's Berazategui factory (in
Buenos Aires
Buenos Aires ( or ; ), officially the Autonomous City of Buenos Aires ( es, link=no, Ciudad Autónoma de Buenos Aires), is the capital and primate city of Argentina. The city is located on the western shore of the Río de la Plata, on South ...
) under the name Peugeot 4TB. In 1973, this model was replaced by the 404 pick-up and later (1990) by the 504 pick-up. The 404 and 504 were massively marketed worldwide through local CKD assembly shops: the 404 was assembled, besides France and Argentina, in
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
, Belgium, Canada (at the SOMA plant shared with Renault), Chile, Ireland, Kenya, Madagascar, Malaysia,
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
, Nigeria, Portugal, Perú, Rhodesia, South Africa, and Uruguay; the 504, mainly in Argentina, Egypt, Nigeria, Kenya, South-Africa, Australia, and China by the
Guangzhou Peugeot Automobile Company The Guangzhou Peugeot Automobile Company (GPAC) is a former automobile manufacturer located in Guangzhou, China. It was a joint venture between the Guangzhou municipal government and the Peugeot brand of the French automobile manufacturer PSA Peuge ...
which developed a specific crew cab version.
In 1968, the independent German automotive firm,
Karmann
Wilhelm Karmann GmbH, commonly known as simply Karmann, was a German automobile manufacturer and contract manufacturer based in Osnabrück.
Founded by Wilhelm Karmann in 1901, the company specialized in a variety of automotive roles, includi ...
, began assembly of CKD kits of AMC's newly introduced
Javelin
A javelin is a light spear designed primarily to be thrown, historically as a ranged weapon, but today predominantly for sport. The javelin is almost always thrown by hand, unlike the sling, bow, and crossbow, which launch projectiles with th ...
for distribution in Europe. American Motors also provided
right-hand drive
Left-hand traffic (LHT) and right-hand traffic (RHT) are the practices, in bidirectional traffic, of keeping to the left side or to the right side of the road, respectively. They are fundamental to traffic flow, and are sometimes referred to ...
versions of their automobiles to markets such as Australia, New Zealand, and
South Africa
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
. The components were shipped in containers to Australia from AMC's plants in
Kenosha, Wisconsin
Kenosha () is a city in the U.S. state of Wisconsin and the seat of Kenosha County. Per the 2020 census, the population was 99,986 which made it the fourth-largest city in Wisconsin. Situated on the southwestern shore of Lake Michigan, Kenos ...
, or
Brampton, Ontario
Brampton ( or ) is a city in the Canadian province of Ontario. Brampton is a city in the Greater Toronto Area (GTA) and is a lower-tier municipality within Peel Region. The city has a population of 656,480 as of the 2021 Census, making it th ...
. Assembly of Rambler and AMC vehicles in Australia was done by
Australian Motor Industries
Australian Motor Industries (AMI) was an automobile assembly firm that was significant in the early history of the automotive industry in Australia.
Start of production
The origins of Australian Motor Industries can be traced back to 1926 w ...
(AMI) in
Port Melbourne, Victoria
Port Melbourne is an inner-city suburb in Melbourne, Victoria, Australia, south-west of Melbourne's Central Business District, located within the Cities of Melbourne and Port Phillip local government areas. Port Melbourne recorded a populatio ...
. Local content requirements were met by using Australian suppliers for the interiors (seats, carpeting, etc.) as well as for lights, heaters, and other components. Various Rambler models were assembled in New Zealand from the early 1960s until 1971 by Campbell Motors in
Thames
The River Thames ( ), known alternatively in parts as the River Isis, is a river that flows through southern England including London. At , it is the longest river entirely in England and the second-longest in the United Kingdom, after the R ...
(later
Toyota New Zealand
Toyota New Zealand Limited is the importer and distributor of new Toyota and Lexus vehicles to New Zealand. It also imports used vehicles from Japan and refurbishes them at its former assembly plant in Thames.
Until 1998 it also assembled a va ...
), which had also built
Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
, Datsun (later known as Nissan), Hino, Renault, and Peugeot cars.
New Zealand had developed a car assembly industry as a means of
import substitution
Import substitution industrialization (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production.''A Comprehensive Dictionary of Economics'' p.88, ed. Nelson Brian 2009. It is based on the premise that ...
and providing local employment, despite the small size of the local market. Following economic reforms in the 1980s, including the lowering of import tariffs, the ability to import Australian-built vehicles duty-free under the CER agreement, many car companies ended assembly in New Zealand and switched to importing completely built up vehicles from
Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
, Australia, or Europe. More significantly, the easing of import restrictions led to a large number of Japanese used imports, which were far cheaper than locally assembled used cars, and continue to outnumber so-called 'NZ New' vehicles. The last companies to assemble CKD kits in New Zealand were Toyota, Nissan,
Mitsubishi
The is a group of autonomous Japanese multinational companies in a variety of industries.
Founded by Yatarō Iwasaki in 1870, the Mitsubishi Group historically descended from the Mitsubishi zaibatsu, a unified company which existed from 1870 ...
, and
Honda
is a Japanese public multinational conglomerate manufacturer of automobiles, motorcycles, and power equipment, headquartered in Minato, Tokyo, Japan.
Honda has been the world's largest motorcycle manufacturer since 1959, reaching a product ...
, which closed their plants in 1998, when the government announced plans to abolish import tariffs on cars.
More recent examples include
Ukraine
Ukraine ( uk, Україна, Ukraïna, ) is a country in Eastern Europe. It is the second-largest European country after Russia, which it borders to the east and northeast. Ukraine covers approximately . Prior to the ongoing Russian inv ...
, which has almost prohibitive import taxes on finished cars. AutoZAZ assembles CKD kits of some Lada,
Opel
Opel Automobile GmbH (), usually shortened to Opel, is a German automobile manufacturer which has been a subsidiary of Stellantis since 16 January 2021. It was owned by the American automaker General Motors from 1929 until 2017 and the PSA Grou ...
,
Mercedes-Benz
Mercedes-Benz (), commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG (a Mercedes-Benz Group subsidiary established in 2019) is headquartere ...
, and
Daewoo
Daewoo ( ; Hangul: , Hanja: , ; literally "great universe" and a portmanteau of "dae" meaning great, and the given name of founder and chairman Kim Woo-choong) also known as the Daewoo Group, was a major South Korean chaebol (type of conglomerat ...
cars. It went as far as adopting a version of
Daewoo Lanos
The Daewoo Lanos is a compact / sedan car produced by the South Korean manufacturer Daewoo from 1997 to 2002, and thereafter produced under license agreements in various countries worldwide. It has also been marketed as the Daewoo Sens, ZAZ Sens ...
for full-scale production and equipping it with a domestic engine. The German automotive giant -
Volkswagen Group
Volkswagen AG (), known internationally as the Volkswagen Group, is a German multinational automotive manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. The company designs, manufactures and distributes passenger and commercial ...
also produces SKDs in the Ukraine at its
Solomonovo
Solomonovo ( uk, Соломоново; hu, Tiszasalamon, Salamon) is a village in Uzhhorod Raion (district) of Zakarpattia Oblast (province) in western Ukraine. It is located west of the Chop railway station. It had a population of 1,342, accor ...
plant, producing cars under its
Škoda
Škoda means ''pity'' in the Czech and Slovak languages. It may also refer to:
Czech brands and enterprises
* Škoda Auto, automobile and previously bicycle manufacturer in Mladá Boleslav
** Škoda Motorsport, the division of Škoda Auto respons ...
marque
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
s.
In
Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
, the most well-known KD assembling facilities are owned by
Avtotor
Avtotor (russian: Автотор) is an automobile manufacturing company located in Kaliningrad Oblast, Russia. Avtotor was established in 1996. By 2008, it was one of the largest producers and assemblers of cars in the world. Industry publicati ...
, which produces
Hummer H2
The Hummer H2 is a large SUV that was marketed by Hummer and built in the AM General facility under contract from General Motors from 2002 to 2009. It is based on a modified GMT820 GM three-quarter-ton pickup truck in the front and a half-ton 1 ...
,
BMW 3 Series
The BMW 3 Series is a line of compact executive cars manufactured by the German automaker BMW since May 1975. It is the successor to the 02 Series and has been produced in seven generations.
The first generation of the 3 Series was only avail ...
and
BMW 5 Series
The BMW 5 Series is an executive car manufactured and marketed by BMW since 1972, succeeding the New Class Sedans, and currently in its seventh generation.
The 5 Series was initially available as a sedan, with a wagon/estate body style (market ...
in
Kaliningrad
Kaliningrad ( ; rus, Калининград, p=kəlʲɪnʲɪnˈɡrat, links=y), until 1946 known as Königsberg (; rus, Кёнигсберг, Kyonigsberg, ˈkʲɵnʲɪɡzbɛrk; rus, Короле́вец, Korolevets), is the largest city and ...
, and
Renault Logan
Logan may refer to:
Places
* Mount Logan (disambiguation)
Australia
* Logan (Queensland electoral district), an electoral district in the Queensland Legislative Assembly
* Logan, Victoria, small locality near St. Arnaud
* Logan City, local gover ...
in
Moscow
Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...
using facilities that once belonged to
AZLK
AZLK (''АЗЛК - Автомобильный завод имени Ленинского Комсомола'' in Russian, Avtomobilny Zavod imeni Leninskogo Komsomola) Soviet and Russian automobile manufacturer ( Moscow), the maker of the Moskv ...
. In
Kaluga
Kaluga ( rus, Калу́га, p=kɐˈɫuɡə), a city and the administrative center of Kaluga Oblast in Russia, stands on the Oka River southwest of Moscow. Population:
Kaluga's most famous resident, the space travel pioneer Konstantin Tsiol ...
, Volkswagen Group had a plant which was expected to have an annual output of 150,000 units.
Daimler AG
The Mercedes-Benz Group AG (previously named Daimler-Benz, DaimlerChrysler and Daimler) is a German multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg, Germany. It is one of the world's leading car manufacture ...
has a CKD assembly plant in
South Carolina
)''Animis opibusque parati'' ( for, , Latin, Prepared in mind and resources, links=no)
, anthem = " Carolina";" South Carolina On My Mind"
, Former = Province of South Carolina
, seat = Columbia
, LargestCity = Charleston
, LargestMetro = ...
that re-assembles
Mercedes-Benz Sprinter
The Mercedes-Benz Sprinter is a light commercial vehicle (van) built by Mercedes-Benz Group AG of Stuttgart, Germany as a large van, chassis cab, minibus, and pickup truck. In the past, the Sprinter had been sold under the Mercedes-Benz, Dod ...
vans for sale in the United States and Canada at Mercedes-Benz and Freightliner dealers, along with
Dodge
Dodge is an American brand of automobiles and a division of Stellantis, based in Auburn Hills, Michigan. Dodge vehicles have historically included performance cars, and for much of its existence Dodge was Chrysler's mid-priced brand above P ...
Chrysler Group LLC
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...
— essentially to circumvent the 25% tariff on imported light trucks known as the " Chicken Tax". The Sprinter was eventually replaced in the Dodge/
Ram
Ram, ram, or RAM may refer to:
Animals
* A male sheep
* Ram cichlid, a freshwater tropical fish
People
* Ram (given name)
* Ram (surname)
* Ram (director) (Ramsubramaniam), an Indian Tamil film director
* RAM (musician) (born 1974), Dutch
* ...
lineup with the similar Ram ProMaster, a rebadged Fiat Ducato. Unlike the CKD Dodge Sprinter, the ProMaster is fully imported to the US from a Chrysler plant in
Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
, which is part of the
North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA ; es, Tratado de Libre Comercio de América del Norte, TLCAN; french: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that crea ...
and not subject to the Chicken Tax.
In 2009, Mahindra & Mahindra Limited announced that it would export pickup trucks powered by
diesel engine
The diesel engine, named after Rudolf Diesel, is an internal combustion engine in which ignition of the fuel is caused by the elevated temperature of the air in the cylinder due to mechanical compression; thus, the diesel engine is a so-call ...
s from India to the United States in knockdown kit (CKD) form, again to circumvent the chicken tax. Mahindra planned to export CKDs to the United States as complete vehicles that will be assembled in the United States from kits of parts shipped in crates. However, Mahindra's United States CKD and export plans never materialized and were subject to several lawsuits.
In 2013, Tesla started operating an assembly plant in
Tilburg
Tilburg () is a city and municipality in the Netherlands, in the southern province of North Brabant. With a population of 222,601 (1 July 2021), it is the second-largest city or municipality in North Brabant after Eindhoven and the seventh-larg ...
, Netherlands. It is used for the assembly of their
Model S
The Tesla Model S is a battery-powered liftback car serving as the flagship model of Tesla, Inc. The Model S features a dual-motor, all-wheel drive layout, although earlier versions of the Model S featured a rear-motor and rear-wheel drive l ...
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
, but not all of Europe since only cars imported to the EU benefit from circumventing the 10% import duty (e.g. cars to Norway are shipped directly from the United States). For the most part the car is still manufactured in the
Tesla Factory
The Tesla Fremont Factory is an automobile manufacturing plant in Fremont, California, operated by Tesla, Inc. The facility opened as General Motors' Fremont Assembly in 1962, and was later operated by NUMMI, a GM–Toyota joint venture. Tes ...
in
Fremont, California
Fremont is a city in Alameda County, California, United States. Located in the East Bay region of the San Francisco Bay Area, Bay Area, Fremont has a population of 230,504 as of 2020, making it the fourth List of cities and towns in the San Fra ...
. During the final assembly in the Netherlands various parts are added to the car most notably the rear subframe with the drive train as well as the battery pack.
Buses
*
Motor Coach Industries
Motor Coach Industries (MCI) is a North American multinational bus manufacturer, specializing in production of motorcoaches. Best known for coaches produced for intercity transit and commuter buses, MCI produces coaches for a variety of appli ...
opened its
Pembina, North Dakota
Pembina () is a city in Pembina County, North Dakota, United States. The population was 512 at the 2020 census. Pembina is located south of the Canada–US border. Interstate 29 passes on the west side of Pembina, leading north to the Canada ...
, assembly plant in 1963, as part of an expansion into the US market. Unfinished KD (knocked down) coach bodies are shipped from
Winnipeg, Manitoba
Winnipeg () is the capital and largest city of the province of Manitoba in Canada. It is centred on the confluence of the Red and Assiniboine rivers, near the longitudinal centre of North America. , Winnipeg had a city population of 749,6 ...
, by flatbed trailer and completed, outfitted, and delivered at Pembina. This practice simplifies
US Customs
The United States Customs Service was the very first federal law enforcement agency of the U.S. federal government. Established on July 31, 1789, it collected import tariffs, performed other selected border security duties, as well as conducted c ...
and meets the " Buy America Act" provisions (49 USC 5323(j) and 49 CFR Part 661) for public agencies purchasing new equipment with federal funds.
*
North American Bus Industries
NABI Bus, LLC (NABI) is a former manufacturer of heavy-duty transit buses with its headquarters, bus manufacturing and assembly operations, located in Anniston, Alabama. Its products ranged from 31-feet to 60-feet in length, and were sold to ...
opened operations in
Anniston, Alabama
Anniston is the county seat of Calhoun County in Alabama and is one of two urban centers/principal cities of and included in the Anniston-Oxford Metropolitan Statistical Area. As of the 2010 census, the population of the city was 23,106. Acco ...
, in 1993, with incomplete buses shipped from
Budapest
Budapest (, ; ) is the capital and most populous city of Hungary. It is the ninth-largest city in the European Union by population within city limits and the second-largest city on the Danube river; the city has an estimated population ...
,
Hungary
Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croatia a ...
, to Anniston for final assembly. NABI expanded production operations in Anniston to allow full production with its first fully domestically produced bus unit in 2008.
Rail
*The practice of selling "knocked down" railcars, called by that name, pre-dates the 20th century, as evidenced by an advertisement by
JG Brill Company
The J.G. Brill Company manufactured streetcars,Young, Andrew D. (1997). ''Veteran & Vintage Transit'', p. 101. St. Louis: Archway Publishing. interurban coaches, motor buses, trolleybuses and railroad cars in the United States for almos ...
in the ''Street Railway Journal'' from 1898.
*Many rail equipment builders have used kits or incomplete vehicles, often to meet local assembly and production requirements or quotas, or to satisfy tariffs. Some examples include:
**Between 1938 and 1951, the
St Louis Car Company
The St. Louis Car Company was a major United States manufacturer of railroad passenger cars, streetcars, interurbans, trolleybuses and locomotives that existed from 1887 to 1974, based in St. Louis, Missouri.
History
The St. Louis Car Company ...
shipped
PCC streetcar
The PCC (Presidents' Conference Committee) is a streetcar (tram) design that was first built in the United States in the 1930s. The design proved successful in its native country, and after World War II it was licensed for use elsewhere in the ...
body shells and trucks north for assembly by
Canadian Car & Foundry
Canadian Car and Foundry (CC&F), also variously known as "Canadian Car & Foundry" or more familiarly as "Can Car", was a manufacturer of buses, railway rolling stock, forestry equipment, and later aircraft for the Canadian market. CC&F history g ...
. The
Toronto Transit Commission
The Toronto Transit Commission (TTC) is the public transport agency that operates bus, subway, streetcar, and paratransit services in Toronto, Ontario, Canada, some of which run into the Peel Region and York Region. It is the oldest and largest ...
(TTC) PCC fleet was purchased and delivered in this method.
** Bombardier ships incomplete cars from its plant at
La Pocatière
La Pocatière is a town in the Kamouraska Regional County Municipality in the Bas-Saint-Laurent region of Quebec, Canada.
Demographics
In the 2021 Census of Population conducted by Statistics Canada, La Pocatière had a population of living ...
Quebec, to
Plattsburgh, New York
Plattsburgh ( moh, Tsi ietsénhtha) is a city in, and the seat of, Clinton County, New York, United States, situated on the north-western shore of Lake Champlain. The population was 19,841 at the 2020 census. The population of the surrounding ...
, and (until 2002)
Barre, Vermont Barre, Vermont may refer to:
*Barre (city), Vermont
*Barre (town), Vermont
Barre ( ) is a town in Washington County, Vermont, United States. The population was 7,923 at the 2020 census, making it the 3rd largest municipality in Washington County ...
, facilities for final assembly. These are to meet Buy America Act provisions for US public transit agencies and tariff rules. Since 2009 the Plattsburgh assembly plant has full stainless steel welding and fabrication capability, allowing for cars to be fully assembled and completed on-site.
**
Kawasaki Heavy Industries
(or simply Kawasaki) is a Japanese Public company, public multinational corporation manufacturer of motorcycles, engines, Heavy equipment (construction), heavy equipment, aerospace and Military, defense equipment, rolling stock and ships, headq ...
Qingdao, China
Qingdao (, also spelled Tsingtao; , Mandarin: ) is a major city in eastern Shandong Province. The city's name in Chinese characters literally means " azure island". Located on China's Yellow Sea coast, it is a major nodal city of the One Belt ...
, that carried out final assembly of first 10 sets of
China Railways CRH2
The CRH2 Hexie (simplified Chinese: 和谐号; traditional Chinese: 和諧號; pinyin: Héxié Hào; literally: "Harmony") is one of the high-speed train models in China. The CRH2 is based on the E2-1000 Series Shinkansen design from Japan wit ...
high-speed trains, itself derived from
E2 Series Shinkansen
The is a Japanese high-speed Shinkansen train type operated by East Japan Railway Company (JR East) on the Tohoku Shinkansen high-speed lines in Japan since 1997. They are formed in 8- and 10-car sets. The 8-car sets were used on the Hokuriku ...
, using parts shipped from
Kobe, Japan
Kobe ( , ; officially , ) is the capital city of Hyōgo Prefecture Japan. With a population around 1.5 million, Kobe is Japan's seventh-largest city and the third-largest port city after Tokyo and Yokohama. It is located in Kansai region, which ...
. Later the plant was tasked with the local manufacturing of further CRH2 train orders, through technology transfer from Japan.
**
Alstom
Alstom SA is a French multinational rolling stock manufacturer operating worldwide in rail transport markets, active in the fields of passenger transportation, signalling, and locomotives, with products including the AGV, TGV, Eurostar, Avelia ...
's
Hornell, New York
Hornell is a Administrative divisions of New York#City, city in Steuben County, New York, Steuben County, New York (state), New York, United States. The population was 8,259 at the 2020 census. The city is named after the Hornell family, early set ...
, assembly plant produces final completed cars using stainless body assemblies shipped from the Lapa plant in
Sao Paulo
SAO or Sao may refer to:
Places
* Sao civilisation, in Middle Africa from 6th century BC to 16th century AD
* Sao, a town in Boussé Department, Burkina Faso
* Saco Transportation Center (station code SAO), a train station in Saco, Maine, U.S ...
,
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
. The same production method was used by Morrison-Knudsen when it built new passenger cars at the Hornell shops in the 1990s.
**From their first US order from the
South Shore Line
The South Shore Line is an electrically powered interurban commuter rail line operated by the Northern Indiana Commuter Transportation District (NICTD) between Millennium Station in downtown Chicago and the South Bend International Airport ...
in 1982 until the opening of a full-body manufacturing and assembly line in
Rochelle, Illinois
Rochelle is a city in Ogle County, Illinois. The population was 9,446 at the 2020 census. Rochelle is approximately west of Chicago and south of Rockford.
History
Originally named Hickory Grove, the town sits at the intersection of two rail ...
, thirty years later,Nippon Sharyo sent commuter train bodies from Japan to US finishers, including an American unit of Sumitomo.
**
Hyundai Rotem
Hyundai Rotem (founded in 1977) is a South Korean company that manufactures rolling stock, defense products and plant equipment. It is a part of the Hyundai Motor Group. Its name was changed from Rotem to Hyundai Rotem in December 2007 to refl ...
opened an assembly facility in
South Philadelphia
South Philadelphia, nicknamed South Philly, is the section of Philadelphia bounded by South Street to the north, the Delaware River to the east and south and the Schuylkill River to the west.Columbus Boulevard. Car shells are assembled, outfitted, and completed for delivery at this site, which is served by
Conrail
Conrail , formally the Consolidated Rail Corporation, was the primary Class I railroad in the Northeastern United States between 1976 and 1999. The trade name Conrail is a portmanteau based on the company's legal name. It continues to do busin ...
London Underground
The London Underground (also known simply as the Underground or by its nickname the Tube) is a rapid transit system serving Greater London and some parts of the adjacent ceremonial counties of England, counties of Buckinghamshire, Essex and He ...
1995
File:1995 Events Collage V2.png, From left, clockwise: O.J. Simpson is O. J. Simpson murder case, acquitted of the murders of Nicole Brown Simpson and Ronald Goldman from the 1994, year prior in "The Trial of the Century" in the United States; The ...
and 1996 Stock fleets have aluminium bodies built by
Alstom
Alstom SA is a French multinational rolling stock manufacturer operating worldwide in rail transport markets, active in the fields of passenger transportation, signalling, and locomotives, with products including the AGV, TGV, Eurostar, Avelia ...
in
Barcelona
Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within ci ...
with assembly completed at the
Metro-Cammell
Metro-Cammell, formally the Metropolitan Cammell Carriage and Wagon Company (MCCW), was an English manufacturer of railway carriages, locomotives and railway wagons, based in Saltley, and subsequently Washwood Heath, in Birmingham. Purchased ...
works in
Washwood Heath
Washwood Heath is a ward in Birmingham, within the formal district of Hodge Hill, roughly two miles north-east of Birmingham city centre, England. Washwood Heath covers the areas of Birmingham that lie between Nechells, Bordesley Green, Stec ...
,
Birmingham
Birmingham ( ) is a city and metropolitan borough in the metropolitan county of West Midlands in England. It is the second-largest city in the United Kingdom with a population of 1.145 million in the city proper, 2.92 million in the West ...
.
**
British Rail Class 385
The British Rail Class 385 ''AT200'' is a type of electric multiple unit built by Hitachi Rail for Abellio ScotRail. A total of 70 units have been built, divided into 46 three-car and 24 four-car sets. Based on the design of the Hitachi A-train ...
fleets have aluminium bodies built by
Hitachi
() is a Japanese multinational corporation, multinational Conglomerate (company), conglomerate corporation headquartered in Chiyoda, Tokyo, Japan. It is the parent company of the Hitachi Group (''Hitachi Gurūpu'') and had formed part of the Ni ...
in Kasado, Japan, with assembly completed at the
Newton Aycliffe
Newton Aycliffe is a town in County Durham (district), County Durham, England. Founded in 1947 under the New Towns Act 1946, New Towns Act of 1946, the town sits about five miles to the north of Darlington and ten miles to the south of Durham, E ...
works in
Country Durham
A country is a distinct part of the world, such as a state, nation, or other political entity. It may be a sovereign state or make up one part of a larger state. For example, the country of Japan is an independent, sovereign state, while th ...
.
Aircraft
Unserviceable military
aircraft
An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...
are also sold as "knock-downs" after they have ended their
service life
A product's service life is its period of use in service. Several related terms describe more precisely a product's life, from the point of manufacture, storage, and distribution, and eventual use.
Service life has been defined as "a product li ...
, packaging them with serviceable aircraft. This allows them to be used for cannibalization of
spare part
A spare part, spare, service part, repair part, or replacement part, is an interchangeable part that is kept in an inventory and used for the repair or refurbishment of defective equipment/units. Spare parts are an important feature of logistic ...
s.
The European aircraft manufacturer
Airbus
Airbus SE (; ; ; ) is a European Multinational corporation, multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace manufacturer, aerospace products worldwide and manufactures aircraft througho ...
uses knock-down kits to assemble
A320 family
The Airbus A320 family is a series of narrow-body airliners developed and produced by Airbus.
The A320 was launched in March 1984, first flew on 22 February 1987, and was introduced in April 1988 by Air France.
The first member of the fami ...
aircraft outside Europe. The Airbus A320 final assembly line in
Tianjin
Tianjin (; ; Mandarin: ), alternately romanized as Tientsin (), is a municipality and a coastal metropolis in Northern China on the shore of the Bohai Sea. It is one of the nine national central cities in Mainland China, with a total popul ...
,
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
assembles fuselage, wing, and tail sections made in Europe with
avionics
Avionics (a blend word, blend of ''aviation'' and ''electronics'') are the Electronics, electronic systems used on aircraft. Avionic systems include communications, Air navigation, navigation, the display and management of multiple systems, ...
and
engines
An engine or motor is a machine designed to convert one or more forms of energy into mechanical energy.
Available energy sources include potential energy (e.g. energy of the Earth's gravitational field as exploited in hydroelectric power g ...
made in the EU or the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
and locally sourced components for interiors. Airbus has opened a similar A320 final assembly line in the United States in September 2015, located in
Mobile, Alabama
Mobile ( , ) is a city and the county seat of Mobile County, Alabama, United States. The population within the city limits was 187,041 at the 2020 United States census, 2020 census, down from 195,111 at the 2010 United States census, 2010 cens ...
; again using European-made fuselages, wings, and tail sections. However, the Mobile final assembly line will use more locally sourced components than the Tianjin line; engines, interior components, and avionics will be sourced mainly from American suppliers. Both the Airbus Tianjin and Mobile plants receive their fuselages, wings, and tail sections from Europe via ocean freight using specially designed
ship
A ship is a large watercraft that travels the world's oceans and other sufficiently deep waterways, carrying cargo or passengers, or in support of specialized missions, such as defense, research, and fishing. Ships are generally distinguished ...
s, as the plants are located in
port
A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as Ham ...
cities.
Housing
A 1908 advertisement in ''
Popular Mechanics
''Popular Mechanics'' (sometimes PM or PopMech) is a magazine of popular science and technology, featuring automotive, home, outdoor, electronics, science, do-it-yourself, and technology topics. Military topics, aviation and transportation o ...
'' attests that knock-down kits for houses were on the market by the early 20th century, if not before.
Furniture
See also
*
Rules of origin
Rules of origin are the rules to attribute a country of origin to a product in order to determine its "economic nationality". The need to establish rules of origin stems from the fact that the implementation of trade policy measures, such as tari ...