Hey Mike, read this carefully. When they mean outbuild Detroit, they mean
all of GM, Chrysler and Ford combined. You GM claim will not last long.
But since Fiat owns Chrysler, it is likely sooner than later.
Foreign automakers to outbuild Detroit in North America: study
Mon Jun 22, 2009 10:55am EDT
DETROIT (Reuters) - European and Asian automakers are expected to build more
vehicles in North America than Detroit's three automakers by 2012 following
a sweeping restructuring of the domestic industry, according to a study
released on Monday.
General Motors Corp (GMGMQ.PK), Ford Motor Co (F.N) 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 units by 2012, according to the
study released by industry restructuring advisory Grant Thornton.
In the same period, all other automakers combined -- including Volkswagen
(VOWG.DE), Toyota Motor Corp (7203.T) and Hyundai Motor Co (005380.KS) --
will increase capacity about 20 percent to more than 8 million units, Grant
The Detroit-based automakers are slashing production and closing plants to
align with weaker demand.
Chrysler emerged from Chapter 11 bankruptcy proceedings this month by
completing a sale to a group led by Italy's Fiat (FIA.MI). GM filed for
bankruptcy on June 1 and hopes to complete a sale process to a new company
led by the U.S. Treasury by the end of August.
"A new order is emerging where the Detroit automakers may no longer be the
volume leaders in their home market," said Kimberly Rodriguez, who leads
Grant Thornton's global automotive practice.
The dramatic restructurings of the Detroit automakers also mean that North
American parts suppliers will need to bolster balance sheets, seek key
product lines or technologies by acquisitions and secure more business from
European and Asian automakers, Rodriguez added.