European and Asian makers will boost output ahead of restructured US firms
23 June 2009

European and Asian car manufacturers are set to build more vehicles in the US than the restructured 'Detroit Big Three' by 2012, according to a study released today.

Industry restructuring advisory firm Grant Thornton say GM, Chrysler and Ford will reduce production by four million units to 7.5 million, while combined output from manufacturers including VW, BMW and Hyundai will reach eight million.

The Detroit Three are slashing jobs and cutting production in a bid to secure their futures.

Chrysler has been sold to a group headed by Fiat after a period under Chapter 11 bankruptcy protection, and GM is expected to sign a deal with the US treasury following similar proceedings.

Kimberly Rodriguez, Grant Thornton principal, said, “A new order is emerging where the Detroit companies may no longer be the volume leaders in their home market.

“Suppliers largely dependent on Detroit will have to present a new value equation to potential customers from Europe and Asia if they want to participate in the accelerated shift that is coming.”

VW and BMW are expected to double their combined output in the US to one million units per year, while Asian manufacturers Toyota, Nissan, Hyundai and Nissan will boost their combined output by 20 per cent, a further million units.

Mark Tisshaw

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