Ford and General Motors are being joined by foreign automakers with factories in the United States in boosting production in the third and fourth quarters of the year in the wake of the cash for clunkers success and signs that the automobile market may have bottomed out and is heading in the right direction. Automotive News reports:
General Motors, Toyota and Volkswagen are among automakers joining Honda in boosting North American production as supplies of some models shrink…
Ford is adding another 10,000 units in the third quarter, primarily of the Ford Escape and Focus. That brings planned North American production for the period to 495,000 vehicles, up 18 percent from year-earlier levels. Ford also plans to produce 570,000 vehicles in the fourth quarter, up 33 percent from a year earlier…
Toyota says it is increasing production by 65,000 units of its most popular vehicles.
Honda had earlier announced that it was adding overtime shifts at two American factories to increase production. GM says its third quarter production quotas are set and can’t be altered quickly, but it is boosting its fourth quarter production quotas.
This is all very good news, not only for American auto workers but for state and local governments where those plants are located. Those governments have struggled with reduced tax revenue and increased spending as a result of rising unemployment.