U.S. Market: Sales recovering to pre-financial crisis levels

Automakers investing in fuel-saving powertrains and products

2014/08/13

Summary

U.S. Light Vehicle Sales
Sales recovering to pre-depression levels

 The U.S. market has nearly recovered to the levels before the 2008-2009 global financial crisis. According to LMC Automotive's forecasts, the light vehicle sales in the U.S. in 2014 will total around 16.3 million units. Although still below the 17.4 million units mark in 2000, the sales are steadily increasing due to the recovery of labor markets and consumer sentiments. It appears that the sales will top the 17 million mark within a few years.

Huge changes seen in unit sales and shares among automakers

 Sales data for 2000-2013 by automaker indicates a significant plunge for General Motors, Ford and Chrysler. The Detroit Three's sales totaled 11.64 million units in 2000, and decreased by more than 4.5 million units to 7.07 million units in 2013. In contrast, a significant growth in sales was marked by Japanese automakers, Toyota, Nissan and Honda, and Hyundai-Kia in South Korea.

 The Detroit Three also lost their shares significantly in 2000 to 2013. The Detroit Three's total market shares accounted for 66.9% in the U.S. light vehicle market in 2000 but fell by 21.5 percent points to 45.4% in 2013. Again, shares increased significantly for Japanese automakers, Toyota, Nissan and Honda, and Hyundai-Kia in South Korea.

Brisk launches of new models in 2014

 New models are being launched one after another in 2014. For instance, Ford is launching 16 all-new or facelifted models in 2014. Other automakers are also launching their new models.

Investing to develop more fuel-efficient powertrains and revamp product lineup in the U.S.

 Having slashed their excess production capacities in the U.S. after the global financial crisis, the Detroit Three's investment in the home markets is made for expanding capacities of their existing plants but not for building new assembly facilities. Their investments in the U.S. in 2014 are mainly aimed at the renewal of fuel-efficient powertrains and product lineup.

 
Related Reports:
US Pickup Truck Market: On the rebound (Nov. 2013)
New U.S. models increase adoption of features like rear view cameras (Aug. 2014)



Unit sales in 2000 to 2013 by OEM

OEM Sales Volume Unit sales data by OEM in 2000 to 2013 shows that GM sold 4.92 million units in 2000 but its sales started to plunge sharply in 2006 to only 2.07 million units in 2009. Although its sales are picking up, GM only sold 2.79 million units in 2013, barely more than half the figure in 2000. Likewise, Ford sold 4.2 million units in 2000 but its sales plunged to 1.68 million units in 2009. Its sales are slowly recovering but Ford's unit sale in 2013 was only 2.49 million units, 1.7 million units fewer than the number sold in 2000. Chrysler sold 2.52 million units in 2000 to leave Toyota far behind but Toyota caught up in 2005. After the most difficult time in 2009 with only 0.93 million units sold, Chrysler's sales are recovering although the company sold only 1.8 million units in 2013, down 0.7 million units compared to the 2000 level. While the Detroit Three experienced a sharp plunge in unit sales, Japanese automakers, Toyota, Nissan and Honda, and Hyundai-Kia in South Korea registered a sharp increase in their respective sales.

 

U.S. market shares in 2000 to 2013 by OEM

 Data for market shares from 2000 to 2013 by automaker shows that GM was leading all others at 28.2% in 2000. However, its share started to decline in 2004. It fell below the 20% mark in 2009 and to 17.8% in 2013. GM still remains 10.3 percent points below its market share it once held in 2000. Likewise, Ford once held a high market share of 24.2% in 2000 but it plunged to 15.1% in 2008. Ford fell behind Toyota for three years in a row from 2007 to 2009. It caught up with Toyota in 2010 after which the company holds the second position in the market share competition. However, Ford's share in 2013 was still low at 15.9%, 8.3 percentage points lower than the figure it held in 2000. Chrysler also lost 2.9 percentage points in its market share from 2000 to 2013.

 

OEM Market Share Development

OEM Market Share Change

 

 The Detroit Three lost their shares to Hyundai-Kia in South Korea and Japanese automakers: Toyota, Nissan and Honda. Hyundai, in particular, only had a 2.3% market share in 2000 but the company kept gaining momentum since then. Its share rose to 5% in 2008 and gained even more momentum during the global financial crisis. Its share reached 8.9% in 2011 after which it lost its share to the Japanese automakers. Hyundai held a market share of 8.1% in 2013, which is 5.8 percentage points higher than the share it held in 2000.

 Toyota held a market share of 9.3% in 2000. Its share kept rising steadily since then and reached 16.9% in 2009. However, Toyota lost its share after 2010 due to a number of factors including the yen's appreciation, the earthquake and recalls. As a result, its share plunged to 12.9% in 2012. In 2013, the impact of the recalls subsided and Toyota's share recovered slightly to 14.4%. Honda held a market share of 6.7% in 2000 which rose to 9.8% in 2013. Likewise, Nissan's market share grew from 4.3% in 2000 to 8.0% in 2013.

 Looking at the U.S. light vehicle market share in the first half of 2014, GM and Ford lost their shares slightly while Chrysler enjoyed an increase. Ever since GM announced the recalls for the ignition switch in February, the company has been criticized by the National Highwway Traffic Safety Administration (NHTSA) of the Department of Transportation and the Congress. These prosecutors have pointed out that the company's internal process regarding safety was not functioning well. The review of the safety process resulted in the unprecedented 60 recalls covering approximately 29 million vehicles. People thought that the recalls would decrease GM's sales. The company, nevertheless, succeeded in making the consumers believe that the recalls were for old GM cars that were released before its bankruptcy in 2009. Consumers also believe that the vehicles delivered by the new GM after 2009 were being rated high by the Consumer Reports. Hence, despite a slight decline in the market share, GM is enjoying unexpectedly steady sales. Ford is launching a total of 16 all-new or face-lifted models in North American markets. This is causing an extended production down-time at its plants, which inevitably affects the company's sales. In the meantime, the popularity of SUVs and pickup trucks is increasing in the market as a whole. Chrysler is benefiting from the market situation and is enjoying robust sales of its Jeep SUVs and the Ram pickup trucks. As a result, Chrysler's market share for the first half of 2014 soared to 12.5%.

 As for the Japanese automakers, Nissan's market share increased from 8.0% in 2013 to 8.6% in the first half of 2014. Honda's market share declined from 9.8% to 9.1% while Toyota's share also decreased by 0.1 percent point to 14.3%. Hyundai-Kia's market share kept declining after it peaked at 8.9% in 2011. The declining trend seems to have stopped as the group has a market share of 8.1% in the first half of 2014 as it did in 2013.

 

 



Brisk new model launches from major automakers

 

GM's new model launches

OEMs Launch
timing
Outlines of new models
GM 2013 * Chevrolet Corvette Stingray: The 2014 model (7th-generation) of the sports car, Corvette Stingray, was released for sale in September 2013. For this model, GM started its first production of aluminum bodies at its own plant.
2014 * Cadillac ELR: The all-new high-end plug-in-hybrid coupe went on sale in January 2014. The 2014 model has a starting price of USD 75,995 including shipping costs, but it will be USD 68,495 after the application of the USD 7,500 federal tax credit. The price is set in reference to the Tesla S (85kWh type) which is sold for USD 69,900.
* Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, GMC Yukon XL, GMC Yukon Denali, Cadillac Escalade: The new large-size SUV based on the heavy-duty pickup truck was released for sale in the spring of 2014. Both standard and long-wheelbase versions are available.
* Cadillac ATS Coupe: GM announced plans to launch the coupe version of the small-size luxury sedan, Cadillac ATS, in the summer of 2014.The model is designed to attract young customers to the Cadillac brand.
* Chevrolet City Express: The small Chevrolet van supplied by Nissan is produced at Nissan's Cuernavaca plant in Mexico and modified at GM's Ramos Arizpe plant. It is slated for release in the fall of 2014.
* Chevrolet Colorado, GMC Canyon: The all-new mid-size pickup is produced at the Wentzville plant in Missouri, the U.S. It is slated for release as a 2015 model in the fall of 2014.
2015 * Chevrolet Trax: The small-size SUV based on a subcompact car is a sibling to the Buick Encore that was launched in 2013. It will be released for sale in early 2015.
* Chevrolet Cruze: The all-new model of the global compact sedan, Cruze, is slated for release as a 2016 model at the end of 2015.

 

Ford's new model launches

OEMs Launch
timing
Descriptions
Ford 2013 * Lincoln MKZ: The mid-size entry-level Lincoln sedan is a sibling to the Ford Fusion and Ford Mondeo. It is built at the Hermosillo plant in Mexico and was released for sale in early 2013.
2014 * Lincoln MKC: The all-new high-end small-size SUV is produced at the Louisville plant in Kentucky, the U.S. It was launched in May 2014.
* Transit Connect: On May 2, 2014, Ford announced the release of the Transit Connect Wagon, an all-new small commercial vehicle for North American markets. It is produced at the Valencia plant in Spain and exported to North America. It is imported as a wagon to avoid the 25% customs duty and is also modified as a van in North America.
* Transit: In April 2014, production of the new large-size commercial van that replaces the E Series started at the Kansas City plant in Missouri, the U.S. Its sales started in June. It is available in four vehicle types (van, wagon, chassis cab and cutaway), three roof heights, two wheelbases, and two trims (the XL and XLT).
* Mustang: The 2015 model of the all-new sports car was unveiled on December 5, 2013, in five cities in the world. Order-taking started in May 2014 and the Mustang is slated for release in the fall of 2014.
* F-150: The 2015 model of the F-150 was announced at the 2014 Detroit Auto Show. The new model of Ford's best-selling truck has an aluminum body adopted for weight reduction. Its production will start at the Dearborn plant in Michigan in the fourth quarter of 2014, and at the Kansas City plant in Missouri, the U.S., in 2015. It will be released for sale at the end of 2014.
2015 * Edge: The 2015 model (2nd-generation) of the midsize SUV will be sold as a global model. It will be released for sale in North America in the first quarter of 2015 before it is launched in other markets. The Edge will be produced at the Oakville plant in Canada. The plant has been refurbished as Ford's global production site at the cost of USD 700 million.
* Lincoln MKX: The all-new high-end midsize SUV is a sibling to the Ford Edge. It will be produced at the Oakville plant in Canada and released for sale as a 2016 model in 2015.
* F Series Super Duty: The 2015 models of the F Series Super Duty have been announced. The all-new F-250, F-350 and F-450 are driven by new diesel engines.
* F-650, F-750: Production of the 2016 all-new medium-duty trucks will start at the Avon Lake plant in Ohio, in the spring of 2015. The ongoing models are currently produced by Blue Diamond Truck LLC in Mexico.  Blue Diamond Truck LLC was established in 2001 as a joint venture between Ford and  Navistar. This partnership will be dissolved, and production will be transferred to the Avon Lake plant.

 

Chrysler's new model launches

OEMs Launch
timing
Outlines of new models
FCA 2013 * Dodge Durango: The 2014 Dodge Durango SUV with substantially revamped three-row seat layout was released for sale at the end of September 2013. The SUV has a new appearance, and features an all-new 8-speed automatic transmission with a paddle shifter, and advanced safety technologies such as the forward collision warning and adaptive cruise control.
* Jeep Cherokee: The 2014 Jeep Cherokee was released for sale in October 2013. It is a successor to the Jeep Liberty midsize SUV, that was discontinued in August 2012. The 2014 Jeep Cherokee features advanced technologies such as the segment's first 9-speed automatic transmission, two types of engines with highly improved fuel efficiency, and three types of all-wheel drive systems. Chrysler has high hopes for the sales of the new model.
* Ram ProMaster: The large-size van, a newcomer among the Ram-brand commercial vehicles, is based on the Fiat Ducato. Production of the 2014 ProMaster started at the Saltillo plant in Mexico in September 2013. Its sales in the U.S. started in October, 2013.
2014 * Chrysler 200: The all-new Chrysler 200 was unveiled at the the Detroit Auto Show in January 2014. It is a successor to the previous Chrysler 200, as well as  the Dodge Avenger whose production was discontinued this year. The 9-speed automatic transmission, never found on midsize sedans before, is a standard feature. The Chrysler 200 was released for sale in June 2014.
* Alfa Romeo 4C: FCA announced the re-entry of the Alfa Romeo brand in North America with the all-new small sports car. It will be launched in the U.S. in the summer of 2014. The Alfa Romeo 4C is produced at the Modena plant in Italy. It will be released for limited sales due to limited supply of the carbon fiber cockpit and other components.
2015 * Jeep Renegade: The all-new subcompact SUV is designed as an entry model under the Jeep brand. Its main target is the young people with adventurous spirit. It will be introduced in the global markets. It will be produced at the Melfi plant in Italy and its sale in North America will start in early 2015.
* Ram ProMaster City: The small commercial van is a newcomer to the Ram brand and is based on the Fiat Dublo. It will be produced at the Bursa plant operated by TOFAS, Fiat's joint venture in Turkey. It will be imported in the U.S. as a wagon to avoid import duty. The van type Ram ProMaster City will be modified at the Chrysler Group Transformation Center located in Baltimore, Maryland. It will be released for sale in early 2015.

 

Toyota's new model launches

OEMs Launch
timing
Outlines of new models
Toyota 2013 * RAV 4: The all-new (4th-generation) small-size SUV was released for sale in January 2014. It is produced at the Woodstock plant in Ontario, Canada. Toyota expects to sell 200,000 units a year and predicts that two thirds of the annual quantity will be the all-wheel drive model.
* Tundra: The significantly redesigned 2014 model of the heavy-duty pickup was unveiled at the Chicago Auto Show. It was released for sale in September 2013.
* Lexus IS: The 2014 (3rd-generation)  high-end compact sports sedan was released for sale in the summer of 2013. It features a bold-looking spindle grille in the front.
* Corolla: The 2014 model (11th-generation) was launched in August. Its dynamic exterior is designed after the "Iconic Dynamism" theme. It is built at the Blue Springs plant in Mississippi, the U.S.
2014 * Highlander: The 2014 model (3rd-generation) was released for sale in January 2014. It is produced at the Princeton plant in Indiana, the U.S. Its production was transferred from the Miyata plant in Kyushu, Japan. The all-new Highlander, a 7- or 8-seat middle-class SUV, is 3 inches longer and 1.5 inches wider than the previous model.
* Lexus RC F: The high-performance coupe has been developed as a core model in the Lexus F sports family. It is driven by a 5.0-liter direct-injection V8 engine (450PS or higher) and will be released for sale in the second half of 2014.
* Lexus NX: The newcomer in the Lexus lineup, the NX compact SUV, was unveiled at the Beijing Motor Show. It will be launched in the fall of 2014 as a 2015 model. It will be produced at the Miyata plant and available with a 2.0L turbocharged engine or a hybrid system.
2015 * FCV: Toyota's new fuel-cell vehicle (FCV) was announced. It will be released for sale in California in the summer of 2015.
* Prius: Toyota's main hybrid compact sedan has been developed under Toyota's new development approach, Toyota New Global Architecture (TNGA). The Prius will be the first TNGA model. The new model will have an all-wheel drive version as well.
* Lexus RX: The all-new (4th-generation) midsize luxury crossover SUV will be produced at the Cambridge plant in Canada. It will be released for sale in the fall of 2015.

 

Honda's new model launches

OEMs Launch
timing
Outlines of new models
Honda 2013 * Acura RLX: The Acura RLX is a successor to the RL, the highest grade large-size sedan carrying the Acura brand. The front wheel drive RLX was released for sale as a 2014 model in March 2013.
* Acura MDX: The 2014  (3rd-generation) 7-seater high-end SUV was released for sale in June 2013. It was developed focusing on the highest fuel efficiency in class, a new level of driving comfort and the highest safety in class.
2014 * Fit: The all-new (3rd-generation) subcompact car for North American markets is produced at the Celaya plant in Mexico starting in the spring of 2014. It will be released for sale in the summer of 2014.
* Acura TLX: The all-new high-end midsize sedan is produced at the Marysville plant in Ohio, the U.S. It will be released for sale in August 2014. The two-wheel drive version features the next-generation technology, Precision All-Wheel Steer (P-AWS). The 3.5-liter all-wheel drive version features the next-generation technology, Super Handling All Wheel Drive (SH-AWD).
2015 * HR-V: The subcompact SUV is a new addition to the Honda brand lineup. The all-new HR-V shares a platform with the Fit and both models are produced at the Celaya plant in Mexico. The HR-V will be launched in early 2015.
* Acura NSX: The all-new high-end sports car is being developed by Honda R&D Americas in Raymond, Ohio, the U.S. It will be produced at the Performance Manufacturing Center near the Marysville plant. The Acura NSX will be released for sale in 2015.
* Ridgeline: Honda announced that the all-new midsize sports utility pickup truck will debut within two years. The current model is being produced at the Lincoln plant in Alabama, the U.S., but its production will be discontinued in mid-2014.
* FCX: The FCX is a fuel-cell vehicle (FCV) available for lease in Japan and the U.S. It is leased to individuals in the southern California. The concept model of the FCV slated for release in mid-2015 was exhibited at the Los Angeles Motor Show in November 2013.

 

Nissan's new model launches

OEMs Launch
timing
Outlines of new models
Nissan 2013 * Versa Note: The global model of the all-new compact hatchback went on sale in June 2013. It is a sibling to the Note sold in Japan and Europe. Its model name was changed to the Versa Note. It is produced at the Aguascalientes plant in Mexico.
* Infiniti Q50: The all-new sports sedan, the Infiniti Q50, was released for sale in August 2013 as a next model of the G sedan. It is driven by a 3.7-liter V6 engine. A hybrid version fitted with a 3.5-liter V6 engine is also available.
* NV200, NV200T: Global models of small-size vans. The NV200T is a taxi version that was chosen as the new yellow cab fleet by the city of New York. Delivery started in October 2013. It is produced at the Cuernavaca plant in Mexico.
* Rogue: The all-new small-size SUV was released for sale in November 2013. Its production was transferred from the Kyushu plant in Japan to the Smyrna plant in Tennessee, the U.S. The Rogue is the second  Nissan-brand production model after the Altima. Production of the previous model is continued at the Kyushu plant and it re-debuted as the Rogue Select in January 2014.
2014 * Murano: This is a global model of the 5-seater midsize crossover SUV that was designed in North America. The all-new Nissan Murano SUV will be launched at the end of 2014.
2015 * Titan: The all-new 2016 heavy-duty pickup will be released for sale at the end of 2015. The new Titan will be driven by Cummins' V8 turbocharged diesel engine or the conventional V8 gasoline engine.
* Armada: The large-size SUV based on a heavy-duty pickup will most likely be released for sale together with the heavy-duty Titan pickup truck.
* Infiniti Q30: Nissan will launch a small version of the Infiniti using the platform supplied by Daimler, one of its partners. It will be produced at Nissan's U.K. plant and will be launched at the end of 2015.

 

Hyundai and Kia's new model launches

OEMs Launch
timing
Outlines of new models
Hyundai-Kia 2013 * Kia Cadenza: Kia's new high-end sedan was released for sale in the second quarter. The Cadenza shares many mechanisms with the Hyundai Azera. It is known as the K7 in Korea and produced at the Hwasung plant in Korea.
* Kia Forte: The all-new compact car under the Kia brand was launched in the second quarter of 2013. It is sold as the K3 in Korea and produced at the Hwasung plant in Korea.
* Kia Soul: The five-door compact MPV was released for sale in October 2013. The unique boxy style is inherited in the new Soul. It is Kia's main model along with the Optima.
2014 * Hyundai Genesis: The high-end sedan by Hyundai went on sale in the spring of 2014. The rear-wheel drive full-size sedan is driven by a 3.8-liter V6 or a 5.0-liter V8 engine. It is produced at the Ulsan plant in Korea.
* Tucson FCV: The FCV variant of the small SUV, Tucson, was released for lease sales in the spring of 2014. It is produced at the Ulsan plant in Korea.
* Hyundai Sonata: The front-wheel drive midsize sedan is Hyundai's global model. The Sonata was released for sale in North America at the end of May. It is produced at the Montgomery plant in Alabama, the U.S. The Sonata is Hyundai's best-selling car that sold over 200,000 units for three consecutive years since 2011.
* Kia K900: Kia's flagship sedan shares the platform with the Hyundai Equus. It was released for sale in the U.S. in March 2014. It is produced at the Sohari plant in Korea.
* Kia Sedona: The all-new 3-row minivan will be released for sale in the fall of 2014. It is sold as the Carnival in Korea and produced at the Sohari plant in Korea.
2015 * Tucson: The small-size SUV carrying the Hyundai brand is produced at the Ulsan plant in Korea. The all-new Tucson will be released for sale in 2015.
* Kia Sportage: The small-size SUV is a sibling to the Hyundai Tucson. It is produced at the Gwangju plant in Korea. The all-new Kia Sportage will be launched in 2015.
* Kia Sorento: The Kia-brand midsize SUV is a sibling to the Hyundai Santa Fe. It is produced at the West Point plant in Georgia, the U.S. The all-new Sorento will be released for sale in 2015.
* Kia Optima: The Kia-brand midsize sedan is twin to the Hyundai Sonata. It is produced at the West Point plant in Georgia, U.S. The all-new Optima will be launched in 2015.

 

 



Investing in more fuel-efficient powertrains

 

OEMs Outlines of investment
GM * Lordstown plant (Ohio):  GM announced on May 2, 2014, that it was investing USD 50 million in production of the new Chevrolet Cruze. The launch timing of the all-new Chevrolet Cruze will be announced later.
* Detroit-Hamtramck plant and Brownstown battery assembly plant (Michigan):  GM announced on April 10, 2014, that it was investing a total of USD 449 million in two plants. This includes USD 384 million in building a new auto-body plant in the Detroit-Hamtramck plant and producing the next Chevrolet Volt and two future models. The remaining USD 65 million will be allocated to the Brownstown battery assembly plant for producing the next-generation lithium-ion batteries.
* Parma Metal Center (Ohio):  GM will invest USD 14 million in stamping machinery for manufacturing molds and stamping parts. The machines will be operational toward the end of 2014 or early 2015. GM plans to improve product quality and productivity by introducing the new machinery.
* DMAX, a diesel engine manufacturing subsidiary (Ohio):  GM announced on February 16, 2014, that it was investing USD 60 million in meeting future emissions regulations. DMAX is a joint venture company by GM and Isuzu.
* Five plants in mid-western states:  GM announced on December 16, 2013, that it was investing approximately USD 1.3 billion to produce new V6 engines and new 10-speed and 6-speed automatic transmissions and install additional facilities at five mid-western U.S. plants.
* Arlington plant (Texas):  GM announced on October 14, 2013, that its new stamping plant started operations with 180 newly-hired employees. The company had invested USD 200 million in the new plant.
* Spring Hill plant (Tennessee):  GM announced on August 5, 2013, that it was investing additional USD 167 million (USD 350 million in total) to start producing two all-new midsize cars.
Ford * Increasing capacities in North America by 200,000 units:  With brisk sales in North American markets, Ford announced plans to increase production capacities in the U.S. by 200,000 units. Plans will be implemented at assembly plants in Chicago, Flat Rock and Kansas City. Ford will hire some 3,500 hourly employees needed for the additional capacities. Plans were announced on May 22, 2013.
* Flat Rock plant (Michigan):  Production of the midsize sedan, the Fusion, started on August 29, 2013. Ford invested USD 555 million to install a new flexible assembly line and revamping the painting line.
* Buffalo stamping plant (New York):  Ford announced on November 21, 2013, that it was investing USD 150 million to add a third shift at the plant to increase production. This will create jobs for 350 new employees.
* Kansas City (Missouri):  Ford announced on January 16, 2014, that it had hired one thousand employees in preparation of producing the all-new Transit.
* Lima engine plant (Ohio):  Ford announced on March 28, 2014, that it was investing USD 500 million to start producing all-new 2.7-liter EcoBoost engines.
FCA * Trenton plant and Dundee plant (Michigan):  FCA announced on August 7, 2013, that it was investing USD 52 million to increase production capacity of the 4-cylinder Tigershark engines.
* Tipton plant (Indiana):  FCA announced on May 13, 2014, that Chrysler invested USD 162 million and reopened the Tipton plant that had been closed. The plant has started producing new 9-speed automatic transmissions.
* Warren stamping plant (Michigan):  FCA announced that it would invest USD 63 million in the plant to increase production capacity. New facilities will start production in December 2015.
Toyota * Princeton plant (Indiana):  Toyota will invest USD 30 million in the plant to increase annual production of the midsize SUV, the Highlander, by 15,000 units starting in 2014.
* Buffalo plant and Bodine Aluminum foundry (West Virginia):  Toyota announced that it was investing USD 102 million in the plant to increase monthly capacity of the 6-speed automatic transmissions by 20,000 units in early 2015.
* Princeton plant (Indiana):  Toyota announced on December 5, 2013, that it had invested USD 430 million to transfer production of the all-new Highlander from the Miyata plant in Japan to the Princeton plant in the U.S.
* Production increase plans for 2014 (announced on January 9, 2014)
  (1) To increase production of the Highlander by 15,000 units at the Princeton plant in the
       second half of 2014.
  (2) To increase production of the V6 engines by 215,000 units at the Alabama plant.
  (3) To increase production of the Lexus RX350 gasoline-fueled and hybrid versions by
       30,000 units in total at the Cambridge plant in Ontario, Canada.
  (4) To install a new line with capacity to produce 240,000 units of the 6-speed automatic
        transmissions at the West Virginia plant.
Honda * Performance Manufacturing Center (Ohio):  Honda announced that it was investing USD 70 million to build a new plant in Ohio state called Performance Manufacturing Center. The new plant will start producing the all-new Acura NSX in 2015 with approximately one hundred employees chosen from its existing plants in Ohio.
* Anna engine plant (Ohio):  Honda announced on August 7, 2013, that it was investing USD 215 million to increase capacity at the engine plant and to open a training center.
Nissan * Nissan's production capacity in the Americas exceeded two million units in 2014. Nissan North America Inc. had announced that its production capacity in the U.S., Mexico and Brazil combined would reach two million units by early 2014. Nissan will invest over USD 5 billion and hire more than 10,000 employees to build new plants.
* Smyrna plant (Tennessee):  Production of the all-new Rogue was transferred from the Kyushu plant in Japan to the Tennessee plant in the U.S. It was based on the company's strategy that 85% of its vehicles sold in the U.S. be produced in North America. Nissan hired 900 additional employees to achieve the target.
* Canton plant (Mississippi):  To coincide with the launch of the 3rd-generation Murano, its production will be transferred from the Kyushu plant in Japan to the Mississippi plant in the U.S. Production transfer will take place at the end of 2014 and Nissan will hire 500 new employees.
Hyundai-Kia * No investments have been made for production facilities in the U.S. during the past year.

 

 



Production Forecast by LMC Automotive: US Light Vehicle Production will grow steadily over 2017

(LMC Automotive、June 2014)

LMC Automotive U.S. Production Forecast Based on the Global Automotive Sales Forecast (2Q, 2014), in 2014 US Light Vehicle sales are expected to reach 16.2 million units. US light vehicle market showed strong recovery in 2Q reaching near 17 million units on a seasonally adjusted annual sales basis, after the poor sales in 1Q due to severe snowy weather. 2015 US Light Vehicle sales are expected to rise 1.9% from 2014 to over 16.5 million units.


 Light Vehicle sales in 2016 are expected to be 16.7 million, which is a 1.1% increase from 2015. The growth rate will level off past 2016 to more conservative and stable 1-2% range, fueled by household creation, delayed retirement and replacement demand.

 Accordingly based on the Global Automotive Production Forecast (June, 2014), the 2014 North American production is expected to increase by 3% to 16.6 million units. The US is expected to account for 11.3 million units, Mexico is expected to build 3.1 million units, and Canada is expected to build 2.2 million units.


 The US production will continue to grow steadily over 2017, following solid vehicle sales for the period. LMC Automotive is considering upward correction for both sales and production volume forecast by 100,000 and 200,000 respectively. Looking at OEMs, most of them are expected to increase production in the US. Exceptions are FCA, Honda and Nissan. Recently Honda and Nissan opened their additional plants in Mexico to complement the US production capacity.

 

US Production Forecast by Make

2011 2012 2013 2014 2015 2016 2017
Ford Group 1,886,930 2,082,725 2,301,030 2,325,770 2,434,310 2,381,762 2,368,148
  Ford 1,864,100 2,058,391 2,279,523 2,276,614 2,362,864 2,304,183 2,291,786
  Lincoln 22,830 24,334 21,507 49,156 71,446 77,579 76,362
GM Group 1,877,455 1,992,098 2,022,439 2,088,856 2,370,232 2,425,431 2,542,586
  Buick 166,152 175,987 173,173 166,004 159,489 146,256 133,818
  Cadillac 98,183 99,780 109,197 143,128 177,280 243,484 310,528
  Chevrolet 1,278,765 1,385,201 1,381,057 1,443,950 1,695,541 1,682,385 1,745,119
  GMC 334,355 331,130 359,012 335,774 337,922 353,306 353,121
FCA 1,162,549 1,330,823 1,498,217 1,592,331 1,527,572 1,420,219 1,440,554
  Chrysler 122,625 151,639 130,786 164,417 185,000 218,778 244,206
  Dodge 243,020 237,081 282,055 166,346 138,447 145,986 151,647
  Jeep 603,152 714,648 793,911 973,480 930,568 777,602 742,559
  RAM 193,752 227,455 291,465 288,088 273,557 277,853 302,142
Honda Group 823,650 1,219,146 1,309,912 1,305,931 1,241,470 1,179,533 1,200,156
  Acura 55,140 107,251 151,856 193,755 215,017 217,345 223,232
  Honda 768,510 1,111,895 1,158,056 1,112,176 1,026,453 962,188 976,924
Toyota Group 793,272 1,201,120 1,288,717 1,308,489 1,429,886 1,529,797 1,562,168
  Lexus 0 0 0 0 10,282 49,364 50,961
  Toyota 793,272 1,201,120 1,288,717 1,308,489 1,419,604 1,480,433 1,511,207
Renault-Nissan 561,026 643,019 791,591 917,573 888,176 868,915 844,997
  Infiniti 0 32,578 45,590 43,345 39,739 43,408 41,520
  Nissan 561,026 610,441 746,001 874,228 848,437 825,507 803,477
Hyundai Group 610,431 719,547 768,534 771,417 776,486 848,731 844,137
  Hyundai 429,282 459,439 505,507 500,155 499,891 500,841 501,079
  Kia 181,149 260,108 263,027 271,262 276,595 347,890 343,058
BMW Group 275,020 301,519 297,114 344,090 365,173 369,205 387,778
  BMW 275,020 301,519 297,114 344,090 365,173 369,205 387,778
Daimler Group 163,236 195,950 198,765 236,949 283,268 306,819 304,980
  Mercedes 163,236 195,950 198,765 236,949 283,268 306,819 304,980
Fuji Heavy 161,716 184,783 169,163 172,993 182,739 192,428 293,529
  Subaru 161,716 184,783 169,163 172,993 182,739 192,428 293,529
VW Group 40,401 152,543 137,662 125,571 124,383 149,477 207,068
  VW 40,401 152,543 137,662 125,571 124,383 149,477 207,068
Mitsubishi 37,150 37,019 67,362 59,316 75,773 90,738 88,674
  Mitsubishi 37,150 37,019 67,362 59,316 75,773 90,738 88,674
Tesla Motors 795 3,259 20,395 25,153 32,750 42,642 64,819
  Tesla 795 3,259 20,395 25,153 32,750 42,642 64,819
Other 791 1,552 0 0 0 0 0
  VPG 791 1,552 0 0 0 0 0
Mazda Motors 43,527 37,366 0 0 0 0 0
  Mazda 43,527 37,366 0 0 0 0 0
Suzuki Group 1,341 1,625 0 0 0 0 0
  Suzuki 1,341 1,625 0 0 0 0 0
Total 8,439,290 10,104,094 10,870,901 11,274,439 11,732,218 11,805,697 12,149,594
Source: LMC Automotive "Global Automotive Production Forecast (June, 2014)
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

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