Japanese auto makers surpass GM in North America

[Variance]

Japanese auto makers surpass GM in North America

Tue Apr 4, 12:07 PM ET

Japanese automakers overtook US car giant General Motors in North American car and truck production in 2005 and all signs point to Asian dominance of the industry soon, a report showed.

Faced with growing losses in market share, GM reduced its production in the region to 4.6 million vehicles in 2005 while Japanese automakers boosted their assembly plant output in the region by 12 percent to 4.8 million cars and light trucks last year.

It is the first time on record Japanese car and truck manufacturers have surpassed the biggest of the so-called Big Three US automakers in North America, according to the report by Scotia Economics.

Meanwhile, a significant shift is underway globally that will make Asia -- already the world's largest vehicle-producing region -- the big winner as its share of global manufacturing capacity increases to an estimated 37 percent by the end of the decade, up from 34 percent in 2004, said Scotia Economics car analyst and report author Carlos Gomes.

"Despite rising North American vehicle output by foreign automakers, the region is losing its global dominance in vehicle assemblies," he said.

By late 2008 -- once GM and Ford's restructurings are complete -- North American assembly capacity will decline to an estimated 17 million units from the current 18 million, he said.

"At that point, North America will represent less than 20 percent of world capacity, down from 25 percent of output in 2005, and more than 30 percent as recently as the turn of the century."

Japanese manufacturers first started to produce vehicles in North America in 1985. General Motors assembled 7.4 million cars and trucks then, 6.8 million more than offshore manufacturers with assembly plants in the region.

In recent months, both GM and Ford have announced plans to close several facilities and eliminate about 2.4 million units of North American capacity through 2008.

"Once these restructuring initiatives are complete, North American capacity for the 'traditional' Big Three will likely drop below 10 million units, down from over 12.5 million in 2005," Gomes said.

In contrast, Japanese automakers have signaled plans to further expand their North American facilities.

Scotia Economics estimates that the assembly capacity of offshore manufacturers will climb by nearly 40 percent through 2008, lifting Asian and European assembly capacity to roughly 7.3 million units here.

While all three major Japanese car makers are expanding their North American capabilities, Toyota is the "most aggressive," according to the report.

Its facilities operated at 117 percent of normal capacity last year and it plans to boost its current 1.1 million capacity to 1.81 million units by 2008, Gomes said.

Toyota is building a new light truck plant in San Antonio, Texas and will add a new facility in Woodstock, Ontario. The new Canadian plant will ramp up production in 2008, and will have the capacity to produce 150,000 RAV4 crossover utility vehicles, Gomes said.

Korean automakers are also racing to catch up. Hyundai began production at its new facility in Montgomery, Alabama last year, and Kia Motors will follow in 2009.

Link: http://news.yahoo.com/s/afp/20060404/bs_af...wN5bnN1YmNhdA--

[FUTURE_OF_GM]

Okay, so now we're comparing GM's numbers to *AT LEAST* 7 'japanese' companies combined?!?!?

God I should hope they outproduced GM!!!!

so-called Big Three US automakers

Cute.

Meanwhile, a significant shift is underway globally that will make Asia -- already the world's largest vehicle-producing region -- the big winner as its share of global manufacturing capacity increases to an estimated 37 percent by the end of the decade, up from 34 percent in 2004, said Scotia Economics car analyst and report author Carlos Gomes.

That's what happens when your GOVERNMENT is 1) worth of $h! in the first place and 2) backing you with national healthcare, closed market tactics and currency manipulation.

***What's even more sad is that THIS is blatant proof that AMERICA as a whole is crumbling, yet the majority of it's citizens are either 1) So inept that they're clueless to it or 2) Don't care enough to change it.

The empire crumbles...

'traditional' Big Three

Another underhanded insult.

"Once these restructuring initiatives are complete, North American capacity for the 'traditional' Big Three will likely drop below 10 million units, down from over 12.5 million in 2005," Gomes said.

WOW!!! Impressive! Looks like the media has done it's job well!! Self loathing americans; this is your finest hour!!!

***THis is further proof that it's over folks! Japan Inc has surpassed GM and Ford and NEXT the media will push Korea (That Azzera is apparently BETTER than that Lucerne and that SOnata is apparently better than that Fusion----Remember everyone?!?!?!?)

The whole tone and purpose of this article is biased against GM and Ford... (Notice how it makes them out to be 'so last year' and the title SUGGESTS that the japanese are somehow superior in nature AND notice all of the underhanded 'big three' references YET Chrysler is NEVER mentioned?!?!? (Remember, they get exempted from most criticizm of "domestics" now because we whored them out to the Germans)

I guess Detroit has been doing TOO well lately, so more propaganda "study" pieces are needed in the news.... Well, either that or Toyota didn't have ENOUGH of a "record setting" month.

[BrewSwillis]

Even though he is not stupid.

I think domestic auto companies should hire people to write articles that try to ruin the careers of "so-called" journalists. I thought the objecitive of "traditional" journalists was to report either news or write editiorials, and not a combination of both? I guess this story would be considered a hybrid.....since those seem to be so popular these days. And just like hybrids, this article was not worth the price I paid to read it......which was free.

[Sixty8panther]

If people were buying millions of cars like the Lexus IS/GS, Infiniti

M45/G35 coupe/FX45 & Mazda RX8 it would be slightly insulting that

Japan's stronghold on the USA marketplace is growing.

But what pisses me off is that it's $h!boxes like the Honda Accord,

Toyota Camrys & Lexus ES that are selling like hotcakes. WTF!?!?!

[The O.C.]

But what pisses me off is that it's $h!boxes like the Honda Accord,

Toyota Camrys & Lexus ES that are selling like hotcakes. WTF!?!?!

Uh......the Accord, Camry, and Lexus ES are "$h!boxes" compared to exactly WHAT GM products.....?

[carstar]

***What's even more sad is that THIS is blatant proof that AMERICA as a whole is crumbling, yet the majority of it's citizens are either 1) So inept that they're clueless to it or 2) Don't care enough to change it.

The empire crumbles...

sadly with every new generation it crumbles a little more.

Uh......the Accord, Camry, and Lexus ES are "$h!boxes" compared to exactly WHAT GM products.....?

we can talk s--- about them but we have little to back up.

Gm should have the majority of the public perception that their products a great

rather than some J.D. awards.

[siegen]

But what pisses me off is that it's $h!boxes like the Honda Accord,

Toyota Camrys & Lexus ES that are selling like hotcakes. WTF!?!?!

Because people need cars like those. People don't need cars like the Corvette, GTO, or Mustang, or any of those luxury cars you mentioned.

[Flybrian]

So...all the Japanese brands combined finally outproduced General Motors?

Ohkay?

[Drew Dowdell]

In other news, GM, Ford, and Chrysler out produce Mitsubishi.

[Camino LS6]

Weak article. The premise is not backed-up in the body of the piece with the actual numbers involved as demanded by the headline. Nowhere did I see the required word "combined" used as necessitated by the headline. Nowhere in the piece did I see a listing of exactly which japanese companies comprise the totals. The references to other non-japanese asian makes is off-topic. Further, the insinuation made by the slant of the article is that this is more bad news for Detroit. Nothing could be further from the truth, a reduction in capacity at Ford and GM is generally viewed by anyone with a clue as a GOOD thing. These reductions of capacity are a major step for both Ford and GM in returning to profitability, not some harbinger of disaster. Whoever wrote this sad bit of drivel should be ashamed.

[bowtie_dude]

So...all the Japanese brands combined finally outproduced General Motors?

Ohkay?

Thats exactly my thoughts on the article, and why its not worth reading past the first sentence.