Auto production in North America is back–and on track to break previous production records.
From The Windsor Star:
Mexico and the southern United States have been the big winners for auto investment in recent years. But rising vehicle demand across North America has boosted production on the continent, including Canada, to the highest level in nearly a decade, leaving some plants bursting at the seams, said Gomes.
North America vehicle production will exceed 16 million units this year for the first time since 2005, he said. “Furthermore, conditions will continue to tighten as the replacement-led recovery lifts North American vehicle production to 17 million units in 2014 and a record 17.6 million by mid-decade, surpassing the previous peak set at the turn of the millennium. We estimate that ongoing output gains will lift North American capacity utilization to an unsustainable 95 per cent by mid-decade, putting pressure on automakers to add new capacity.”
Rising capacity constraints and rising global demand for its vehicles are among the reasons Ford Canada recently announced plans to invest $700 million to retool its assembly plant in Oakville. “The facility produces several crossover utility vehicles and the company has begun to successfully export these models outside of North America.”