Sixty-one new or redesigned models will be presented in the U.S. market in 2013, which is 50% higher than any year since 2006. This means that potential buyers get more choices but suppliers may have a difficult time in keeping up. Jeff Schuster, senior vice president of forecasting at Troy, Mich.-based LMC, said that as the demand rises, they are considering some market areas that may be running short when it comes to supply. This may then put off the launch of new models. He explained that this poses a risk since the buyer wants to get the vehicle now. When the industry collapsed, thousands of auto workers lost their jobs and many factories were shut down. Meanwhile, those who survived are currently very stretched after a three-year period of at least 10% U.S. vehicle-sales increases.
Hurt by the recession, many automakers are wary about increasing their engineering or manufacturing capacity. Schuster said that the pressure rises further as introduction of new models may increase to 74 next year as opposed to the usual 40. Dennis DesRosier, president of DesRosiers Automotive Consultants in Richmond Hill, Ontario, said that several companies are panicking and so they’re releasing the products into the market slightly too early.
Since boosting production raises the risk of defects, he referred to the 2013 Detroit auto show as the "riskiest" he has seen. Plenty of the top-selling models of the 2013-14 product wave were seen at the auto show. In General Motors’ stand, visitors saw new versions of the Chevy Silverado and GMC Sierra pickups, which will begin selling in the second quarter. Toyota Motor Corp. displayed a concept design for its next Corolla while Honda's Acura presented its new MDX sport-utility vehicle.