Q2 N.A. Production Up 1.8%
Executive Summary
With more truck assemblies on tap, North American vehicle output remains ahead of year-ago through June despite a cutback in car production.
North American auto plants are slated to build 4,776,900 cars and trucks in April-June, the second-best tally for the quarter behind only the 4,823,816 vehicles turned out in like-2000.
The industry’s robust second-quarter plan follows a similar first-quarter performance that, at 4,633,700 units, also was second-best to January-June 2000’s 4,811,021 completions.
Thus, first-half production is set to equal 97.6% of the benchmark 9,634,837 vehicles built in January-June 17 years ago.
With 63 work days in April-June, auto plants in the U.S., Canada and Mexico are being programmed to assemble 75,823 units daily, a 3.0% increase from 73,551 in January-March which also had 63 days. Compared with prior-year’s 64-day pace of 73,295 units, Q2 output is set for a 3.4% gain.
April-June truck output is scheduled at 3,122,000 units, 5.8% ahead of the 2,950,500 vehicles assembled in like-2016. That increase is due entirely to consumer demand for light-duty models that has more than offset a 13.2% production decline among the dedicated medium- and heavy-duty truck producers.
However, the Q2 decline in medium/heavy truck output is less than the 19.9% deficit posted in January-March.
On the other hand, with demand lagging, North American car plants are slated to build 1,654,900 units in the second-quarter, down from 1,740,400 a year earlier, with about a third of the decline resulting from FCA’s decision to halt output of the Chrysler 200 and Dodge Dart late last year.
At the same time April-June schedules were being forged, production planners took another look at how January-March was shaping up and made only a modest 1,300-unit subtraction from earlier March plans.
That came on top of a slight February overbuild estimated at 3,500 vehicles.
The need for only minor tinkering late in the first quarter resulted from some significant cuts made in late January that saw the month’s final count fall 37,600 units short of plan.
Overall, the first-quarter tally now is expected to close at 4,633,700 units, 35,400 below what had been booked a month ago.
Car output alone was cut by 34,200 vehicles. Trucks were off just 1,100 units after all but 1,000 of the 11,300 units taken out of the January plan were reallocated to February and March was left virtually unchanged.
