The first digit identifies the nation of origin. If the car was assembled from parts produced in different countries, this digit reflects the nation where the car was assembled. Some larger nations are split into regions. For example, cars built in Japan are assigned a J in the first digit. But cars made in the U.S. can have a 1, 4 or 5, depending on the region of its assembly.

The second digit identifies the manufacturer of the vehicle. In the United States, the Society for Automotive Engineers issues manufacturer codes.

The third digit identifies a division within the manufacturer or a general vehicle type. For example, the code for an American-made Ford is 1F, and depending on the type of vehicle, it may be a 1FA, 1FB and so on. A U.S. General Motors vehicle is a 1G. Chevrolet is a division of GM, so the first three digits for a Chevrolet are 1GC.

The next five digits, four through eight, describe the vehicle. The specific use of these digits differs from one manufacturer to another. Here is an example that includes common code elements:
The fourth digit might contain a code that represents the vehicle's weight, horsepower or both.
The fifth digit often identifies the platform of the vehicle, such as van, pickup truck, trailer, sedan, et cetera.
The sixth digit can be a special code used by the manufacturer, or it might identify the specific model of the vehicle, such as Corvette, Durango or Mustang.

The seventh digit can be used to identify body type, such as four-door, two-door, hatchback or convertible.

The eighth digit is used for information about the engine, such as number of cylinders and engine displacement.
Digits four through eight might also be coded for information on the transmission used, the grade of the car (i.e., Accord LX, DX, Si), or other features such as safety belts and air bags.

The next three digits are consistent among all manufacturers:

The ninth digit is always a check digit. The other digits in the VIN go through a series of calculations to obtain the correct check digit. This allows computers to tell immediately if there is an error in the VIN, which often happens when someone transcribes a VIN or enters it into a computer.

The model year digit is the tenth digit. Each year has a code character. From the 1980s until 2000, each year had a letter code, with 2000 assigned Y. 2001 was given code 1, 2002 is code 2, and so forth.

The eleventh digit is the plant code, representing the factory where the car was assembled.

The last six digits, 12 through 17, are production sequence numbers, although small manufacturers that make fewer than 500 cars per year use the 12th, 13th and 14th digits as additional manufacturer identification codes. Production sequence numbers identify the vehicle itself, sort of like a serial number.