In view of the best sales in the US automobile sector since 2007, the major automotive companies have revealed their plans to invest another 434 million USD for capacity enhancement of engine and vehicle manufacturing. Following the suit, Ford’s Vice President – the North American Manufacturing division, Jim Tetreult recently said in a statement that they are looking out for ways to roll out more cars out of their manufacturing facilities throughout the North America. He added that if the demand stays as high as it is now, they will continue to focus on the sole task of boosting numbers.
The Japanese automaker, Honda Motor Company also announced an investment of 215 million USD in its Ohio manufacturing facilities. This figure includes the investment planned for the company’s engine plant which amounts to 180 million USD. The Chrysler Group LLC gave a statement that confirms the company’s move of adding capacity to its engine plant in Michigan along with an addition of 300 persons to its workforce.
It is to be noted that the sales of cars and light trucks in the US market experienced a 14% hike in the month of July, reaching up to 1.32 million. These figures were made public by the Autodata Corp. After adjusting the annual sales rate of the industry for the seasonal trends, the sales figures still look improved at 15.8 million compared to the 14.2 million sales number of the last year. Thus, with the July sales results, the US automobile industry seems to be right on track to make 2013 to be the best since the highest sales of 16.1 million in the year 2007.
He also told that Ford has been already facing some problems with the low inventory of the sedan Ford Fusion and thus, the company will soon be adding extended capacity for some of its offerings in the US. On being asked if the company would need added capacity for its models – Fusion and Escape, Joe replied in positive.
Recently, the latest sedan from Ford, the Fusion has been running with low inventory issues owing to the ever-growing popularity of the vehicle. This had led the auto giant to add an additional shift for about 1200 workers at its Flat Rock Assembly plant located in Michigan. The plant would be building the Ford Fusions for this quarter.
Probed further, Joe told that they might even add a third shift at the plant. This he says is in response to the demand forecasts from the marketing and sales team of the company.
On another occasion, the Italy based Chrysler Group also revealed their intentions of investing close to 52 million USD in the engine facilities of the company located in Dundee and Trenton city in Michigan. This is being done in order to enhance the company’s production capacity for producing more Tigershark engines. With this, the auto company plans to add 298 persons to its workforce at its Trenton engine plant.
Independently, General Motors (GM) has announced an increase of 40 million USD in the previously announced investment in the mid-size vehicle segment. Furthermore, GM has also announced another 127 million investment to another mid-size vehicle segment program. Thus, the company hiked the total investment by a good 167 million USD. The whole plan will result in the creation of 1800 jobs by the company. With this, the complete expenditure of GM on its Tennessee plant will amount up to 350 million USD.
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I have been writing content for auto blogs for quite a long time now. My passion lies in this field and I love to picture cars as well.
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