Starting in 2012, due to the significant drop in production and massive layoffs in the American auto industry, foreign-owned automakers will likely make more cars in the United States than American-owned automakers will. Automotive News reports:
European and Asian automakers are expected to build more vehicles in North America than the Detroit 3 in 2012 following a sweeping restructuring of the domestic industry, according to a study released today.
General Motors, Ford Motor Co., and Chrysler Group LLC are expected to reduce assembly capacity in North America by more than 4 million units, or 35 percent, to 7.5 million vehicles by 2012, according to the study by industry restructuring advisory Grant Thornton.
In the same period, all other automakers combined — including Volkswagen AG, Toyota Motor Corp. and Hyundai Motor Co. — will increase capacity about 20 percent to more than 8 million units, Grant Thornton said.
That’s more bad news for Michigan, which has more American automobile plants than any other state. Plants owned by foreign companies tend to be located in other states.