Japanese automobile manufacturers to increase US production in 2012

US automobile sales defied a sluggish economy and increased 10% in 2011.

The big winners were the US ‚Big Three‘: Chrysler, Ford and GM who reported sales increases of 26%, 11% and 13%, respectively. However due to supply chain issues brought on by the Japanese earthquake/tsunami and the recent floods in Thailand, the Japanese ‚Big Three‘ reported mixed results. Toyota reported that its US sales declined 6.7% in 2011. Honda’s sales declined 6.8%, but Nissan’s sales increased 15%. Both Toyota and Honda sales were seriously impacted by the natural disasters from last year, whereas Nissan was less affected.

The three companies, Nissan, Toyota and Honda have all reported interesting strategies to increase their US market share. At the end of 2011, Toyota’s share of the US market declined from 15% to 13%. Honda’s market share slipped from 10.5% to 9% and Nissan’s share was a little over 8%.

Nissan announced plans to shift more automobile manufacturing to the US. In fact, the company’s CEO noted that Nissan believes making cars in Japan is putting it at a competitive disadvantage. This may indeed be the case for all three, particularly as the Japanese currency continues to strengthen against the US dollar.

Toyota plans to increase exports from its US facilities to more countries. In 2011, 100,000 automobiles were exported from North America; this was a milestone for the company, but one it expects to surpass in 2012. According to Toyota, the increased export volumes would probably be those automobiles made only in North America so as not to cannibalize export markets for its factories in Japan. The company also plans to increase production of parts and vehicles in Mexico.

Honda admitted its North American production returned to normal only last month. Its immediate goal is to bring dealer inventories back to pre-earthquake levels and also plans to step up North American production and sourcing. The company is also building a new manufacturing facility in Celaya, Mexico which is scheduled to open in 2014.

As the Japanese ‚Big Three‘ plays catch up in the North American automobile market this year, their supply chains appear to be shifting to a more localized one, emulating those of the US ‚Big Three‘. This is a necessary move as it will reduce supply chain risks and reduces operational costs as more manufacturing is produced in the North America market.

Increased automobile production in North America will bode well for US transportation and logistics providers. Expect an increase in cross-border activity as well as strong rail and port activity.

Quelle: eyefortransport
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