Japanese manufacturers preparing the largest North American output expansion

Article by Christian A., on November 28, 2012

The automakers in Japan are preparing for the largest wave of North American output expansion in 10 years. Their goal is to get back the market share that they lost due to the natural disasters that took place in Japan in 2011. They also aim to increase sales in the most robust market in the world and avoid the impact of a dollar-yen exchange rate that hurts profits from Japan. While Japanese automakers have revived their North American production to record heights, a shortage in the stock is the most significant obstacle to increasing sales. That’s why the officials of nearly all Japanese companies are working to increasing their capacity in what is referred to as their most major market. Construction is ongoing for several plants.

The CEOs of Nissan Motor Co., Honda Motor Co. and Subaru parent Fuji Heavy Industries Ltd. have recently outlined new capacity increases for North America, building on those that were announced in the past year. This month, Toyota Motor Corp. said that it will boost its North American output by 50,000 units. It will accomplish this by encouraging Mazda Motor Corp. to add capacity at Mazda's plant being constructed in Mexico and produce a compact car there that will wear a Toyota badge.

boss of Mitsubishi Motors Corp., which recently stopped producing four vehicles at its money-losing Illinois plant, hopes to expand its output there next year. Automakers seem to be in a frenzy to construct factories. Construction is at its busiest since 2000-03.

This was the time when Honda’s Lincoln, Alabama plant was being built while it expanded its Alliston, Ontario plant. This was also when Nissan constructed a plant in Canton, Mississippi, and underwent the expansion for the Smyrna, Tennessee plant. Toyota almost doubled its capacity at its Indiana plant and has revealed plans for a pickup plant in San Antonio. Subaru has also boosted the capacity at its lone North American plant.

Topics: japan, north america

If you liked the article, share on:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries