With the news of Detroit filing for bankruptcy, it is difficult to imagine that the automotive industry has not suffered immensely alongside the motor city’s financial woes. Even though the city has experienced significant financial issues, the automotive industry is alive and well. In North America, automotive plants are in full swing and slated to produce and sell 16 million vehicles in 2013 alone.
In fact, numerous companies are operating at full capacity and making the automotive industry stronger than ever before. In line for the industry’s comeback are Ford and Honda, which are both at 100% operating capacity. Toyota, Nissan, Chrysler, Volkswagen and GM are all operating at anywhere from 80 to 99% capacity. On top of that, many other manufacturers are operating above expectations.
The recent surge in automotive sales can be attributed to a number of different factors. With interest rates at an all time low, a new car has become an affordable reality for many consumers in today's market. Additionally, the average lifecycle of a vehicle hovers around eleven years before car buyers opt to trade in their old gas guzzlers for something more current. With the immense advancements like technological upgrades and fuel efficiency being at the top of consumers priority lists, many are finding now is the time to buy.
What does all of this mean for North America? In many cases, foreign automotive manufacturers will need to seek new territory in America for the production of their vehicles. This translates to more jobs, which can spur economic growth. This is likely to help to maintain the industry’s upward trend, where it is currently on path to break the 16.4 million dollar record for automotive sales.