North American light vehicle plant capacity increased in the second quarter, both from first quarter and year-ago levels, based on a quarterly analysis by Ward's.
Motor Co. led in the Ward's production efficiency ratings during the second quarter, after ranking second behind DaimlerChrysler Corp. in the January-March period.
The industry's light vehicle capacity utilization during April-June was 95.3%, compared to 94.9% in the first quarter and 94.3% during the same period last year. The capacity utilization compares actual production to total straight-time capacity, which assumes full workweeks with no downtime. It was highlighted by more overtime and less downtime. Second-quarter overtime totaled an estimated 7,641 hours compared to last year's 7,354. Scheduled and non-scheduled downtime hours for the period totaled 1,610, compared to year-ago's 1,793.
Additionally, first-half 2000 capacity utilization was 95.1%, compared to like-1999's 93.1%.
However, net capacity utilization, which assesses assembly plant utilization by deducting holiday and vacation downtime from straight-time capacity, was down in the second quarter from the first: 101.9% vs. 102.6%. But it was still above year-ago's 99.1%. Meantime, net utilization for the first six months of 2000 was 99.4%, well above year-ago's 96.7%.
led all major manufacturers in the Ward's production efficiency ratings for the second quarter and for the entire six months. The efficiency ratings are based on combining capacity utilization with a plant's net utilization, and comparing that with the industry average (a baseline of 1.00). Ford's April-June rating was 1.10, giving it a 1.09 rating for the first six months of the year. Following a first-quarter rating of 1.10, DCC's rating fell to a still respectable 1.02, giving it a six-month mark of 1.06, tying it for second with Toyota Motor Mfg. North America Inc. Toyota also was runner-up in the second quarter with a 1.05 rating.
|Second Quarter 2000||First-Half 2000|
|N. America Car||91.1||99.5||0.97||90.2||95.4||0.96|
|N. America Lt. Truck||99.5||104.3||1.03||100.0||103.4||1.04|
|U.S. lt. Truck||98.9||103.6||1.03||100.0||103.4||1.04|
|Canada Lt. Truck||101.9||108.8||1.07||103.1||106.4||1.07|
|Mexico Lt. Truck||99.8||103.0||1.03||94.5||97.5||0.99|
|Note: The efficiency rating is a combination of capacity utilization and available-capacity utilization vs. the industry average (Total Light Vehicle), which is set at a constant baseline of 1.00. Actual capacity utilization is production vs. straight-time capacity, which assumes no downtime - it includes holidays and vacations. Net capacity utilization assumes straight-time capacity less holidays and vacations, which can vary by manufacturer and plant. No other downtime is deleted.|
Coming in below the industry average in the second quarter wereCorp. (0.98) and Motor Mfg. Corp. U.S.A. (0.90). However, Nissan was the most improved among the Top Six producers compared to second-quarter 1999, when its rating was 0.72.
The rest of the industry, which includes joint-venture companies producing vehicles for the Top Six automakers, held an efficiency rating of 0.80, including capacity utilization of 75.9%; both were below year-ago.
Ford had the highest capacity utilization (106.2%) in the quarter followed by(102.3%). of America Mfg. Inc. — the leader in all rankings for 1999 — and DCC were the only other manufacturers among the Top Six to best the industry average.