North American vehicle production expected to grow modestly
Canadian PlasticsCanadian Plastics
Vehicle production in North America declined slightly in 2005 but is expected to grow modestly from 2005 through 20...
Vehicle production in North America declined slightly in 2005 but is expected to grow modestly from 2005 through 2008, according to a report compiled by the Automotive Parts Manufacturers Association.
Overall, North American assembly is expected to be in excess of 17.7 million units in 2008. The report says it is likely, given recent announcements by General Motors, Ford and Daimler-Chrysler, that all new capacity announcements for North America in the years ahead will come from New North American Manufacturers.
Given these projections, the report concludes that Canadian parts suppliers will not be able to depend on the North American market for new business. In general, the report notes, Canadian parts suppliers must be ready to move where capacity is growing, for example emerging markets in Asia, and look to the growing number of assemblers in the area that are doing more local sourcing.