(James Hood @ ConsumerAffairs) Americans are pretty accustomed to driving around in German or Japanese cars while yakking on smartphones made in Asia. But Google's Motorola Mobility says it will start buiding a new phone, the Moto X, in Fort Worth, Texas, a place you might associate more with steerhorns than with high-tech manufacturing.

"There are more than 130 million smartphones in use in the U.S., but not one of them is made here. That changes with Moto X," Motorola spokesperson Danielle McNally said, according to TechNews/World.

Motorola Mobility CEO Dennis Woodside, speaking at the All Things D conference said Motorola will completely revamp its product line-up by October. 

It's expected the Moto X will compete primarily with Apple's iPhone and the more advanced Samsung models. It's expected to feature what's called "context aware" technology that "knows" where it is -- whether traveling in a car or train or being taken out of the user's pocket at home or at work.  

But can Motorola really build an all-American phone cheaply enough to compete effectively with Samsung and Apple? The answer lies with how consumers respond to the idea of a Made-In-USA phone.

Consumers in the Midwest and Northeast traditionally respond better to products they perceive as being made in the U.S. Motorola says it will also be applying some pretty advanced technology to the manufacturing process, which may help lower the assembly costs. 

Besides, Woodside said, Google and afford to take a smaller profit margin than the other companies. 

And just to be perfectly clear, the Moto X won't be entirely manufactured on these shores. The processors will come from Taiwan and its screens from Korea but the company says 70 percent of the assembly will happen in Fort Worth. Motorola Mobility has said it will hire 2,000 workers at the Moto X plant.