According to a study by industry restructuring advisory Grant Thornton, European and Asian auto manufacturers are expected to build more vehicles in North America than Detroit’s Big 3 by 2012. As General Motors and Chrysler go through their aggressive restructuring and as Ford Motor Co. looks to cut cost, the Big 3 are expected to cut production by more than 4 million vehicles, or 35 percent to 7.5 million vehicles by 2012.
“A new order is emerging where the Detroit companies may no longer be the volume leaders in their home market,” said Grant Thornton LLP Principal Kimberly Rodriguez, co-leader of the firm’s global automotive practice.
“Suppliers largely dependent on Detroit OEMs will have to present a new value equation to potential customers from Europe and Asia if they want to participate in the accelerated shift that is coming,” said Rodriguez.
During the same time in 2012, other automakers including Volkswagen AG, Toyota Motor Corp. and Hyundai Motor Cop., are expected to increase output by 20 percent or 8 million units, reports Automotive News.
– By: Omar Rana