US vehicle exports expected to expand during the next 5 years

Article by Anita Panait, on April 3, 2012

Wondering why auto manufacturers are targeting the United States as one of the prime locations for manufacturing and exporting their vehicles? It’s simple. The reasons are: lowered labor costs, excess plant capacity, currency exchange rates, quality work and free trade pacts. Five years ago, this was not the case, as the recession during that time forced people to spend less on high-cost items like cars, thus the low for demand for vehicles. During that time, US plants hardly reached production capacity. With the excessive capacity, automakers shifted their production to the US. Now, both the US-based and foreign carmakers are exporting their vehicles to other countries.

According to Ed Kim, director of industry analysis at AutoPacific, the strong yen also forced Japanese carmakers like Toyota, Nissan and Honda to shift their production from Japan to the US. The strong yen makes manufacturing more expensive in Japan than in the US. Kim noted that at the moment, the US is a “low-cost manufacturing zone,” encouraging automakers to build their vehicles in the country. Kim added that at the moment, exporting from the US seems to be the right move for car manufacturers.

Nissan exports some models from the US to 46 foreign countries and US territories, according to David Reuter, vice president of corporate communications for Nissan Americas. Reuter disclosed that the Nissan Altima is the number one exported vehicle, with deliveries to Canada, Mexico and the Middle East. Nissan will unveil this week a redesigned 2013 Altima at the New York International Auto Show.  Reuter expects the model to further hike exports from the US. He forecasts that in the next two to three years, the company will almost triple the volume of vehicles exported from the US with the number of destinations increasing to more than triple.

Topics: united states

If you liked the article, share on:

Comments

Recommended

A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 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