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Tag: Honda Production

Auto Industry Goes Into Overdrive

 

According to this article, the auto industry ‘went from reverse to overdrive in three years.’ We all remember the days when the federal government bailed out some American auto makers and the global market took a huge hit with tough economic times.

What some of may not realize is that slowly, the auto industry seems to be making a comeback.

According to the article: “the upbeat signs are everywhere: rising sales, busy production lines, rising profits, higher stock prices, and growing buzz about new plants or shifts being added to meet market demand.”

Citing the fact that both businesses and households are heading back to the dealerships and we currently have the highest gasoline prices since April 2011, consumers are venturing out to purchase newer, more fuel efficient vehicles.

“This is great news,” said Tod McLaughlin, general manager of Apple Valley Honda dealership. “With the economy slowly recovering, we are starting to see a stronger pulse in the car business; even while some areas of the economy lag, the auto industry seem to be the first indication things may be turning around. Both January and February were stronger this year than last for Honda and we are starting to see in uptick in the local dealerships. People who waited to buy a new car the last couple years are starting to poke their heads out of the sand. And we’ll welcome them with open arms.”

What is good for the entire auto industry, especially consumer confidence, is good for Honda.

“The improvement reflects strengthening consumer confidence, the lowest unemployment rate in three years and a rebound in fleet purchases,” says Carlos Gomes, senior economist at Scotia Capital, in a recent report.

Signs of a strengthening industry, and Honda, will continue, not just with sales, but with investments in manufacturing and production. Honda has invested heavily in increasing the capacity of plants in the United States, which also helps local job growth and stability…also needed right now.

“Once the planned expansions by Japanese and European automakers are completed by 2014, we estimate that North American vehicle assembly capacity will climb to 19 million units,” says Gomes, “roughly in line with the level prevailing nearly a decade ago when the Detroit Three began to restructure and shutter some of their facilities.”

http://www.edmontonjournal.com/business/Auto+industry+goes+from+reverse+overdrive+three+years/6254535/story.html

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