U.S. Small-Car Demand Outpacing North American Capacity

The dramatic market shift the past two months away from large SUVs and trucks to small cars has caught many auto makers and suppliers off guard and is raising concerns over whether there is enough capacity in place near-term to meet demand.

In fact, one industry insider, who requests anonymity, says June sales could come in at a seasonally adjusted annual rate of just 13.0 million units as a result of the dearth of small cars on dealer lots.

The demand-North American ...