Foreign Companies will produce more Cars on the North American Market than the Local
European auto manufacturers and Asians could build more cars in North America than the three big companies in Detroit, Ford, Chysler and General Motors (GM), until 2012, following the restructuring of national industry, shows a study published Monday, according to Reuters.
The three big Detroit manufacturers are expected to reduce assembly capacity in North America with over 4 million vehicles, or 35%, to 7.5 million vehicles by 2012, according to study published by Grant Thornton, the company that give advice on restructuring in the industry.
Meanwhile, all other auto companies, including Volkswagen, Toyota Motor Corp. and Hyundai Motor Co. will increase production capacity by approximately 20% to over 8 million vehicles, more shows Grant Thornton.
The three manufacturers with headquarters in Detroit reduces production and close factories to alignment of supply to demand in the market low profile.
Chrysler came out in June for protection under the laws applied bankrupt institutions, the conclusion of a sale to a group led by Italian auto company Fiat. In turn, GM filed on June 1 application for entry in bankruptcy and wants to reach an agreement on the sale of a new company headed by U.S. Treasury until the end of August.
Dramatic restructuring of the three producers also assumes that North American suppliers of spare parts will have to increase balance, to buy companies in November and conclude contracts with several European and Asian manufacturers.
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Although organizers are announcing this, the president of America will not come from auto event of the year in the U.S..
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Hyundai-Kia Group is currently the fourth largest manufacturer in the automotive world hierarchy, after the first half of 2009. But this year the top is not a result of loss of sales but more reduced. Also, Toyota is in danger of being outrun by GM, which recorded lower losses and increased production.
Toyota Motor Corp., Which benefits from excess production capacity in North America in a period when sales decline, will spend about 500 million dollars to re-equip a factory in Indiana, being the largest investment in 2009, reports Bloomberg .
Toyota sold in 2008 a total of 8972 million vehicles in the world whereas the historical leader General Motors (GM) reported its sales dropped 21 percent in 2008 in North America. Total sales slumped 11 percent, the company said, according to Reuters. Shares of GM were up 4.29 percent or 15 cents to $3.65 each in premarket trading at 9:12 a.m. at the New York stock Exchange.
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