Seeing how more and more Japanese automakers are locating plants in the U.S. ( I think Toyota alone has brought some 200K worth of jobs to America ) and U.S. automakers are locating more and more capacity in Mexico and Canada is the line between "American" and "Foregin" cars getting blurred?

At this point I think it is. There are the rare exceptions where the manufacturers still import the cars over but thats pretty much few and far between at this point.

 

In fact, like you mention, many japanese or foreign manufcatures produce more of there cars in the US then the US automanufacturers.

 

Personally I own a Honda and used to say I'd never buy anything but American, but I love that damn car and my next car will probably once again be a Honda. Just haven't had any problems with it.