Auto Makers Trim Q2 Output Slate

Having boosted late-Q1 output, North American auto assembly plants now are pegged to build 11,900 fewer cars and trucks in the second quarter than they were a month ago.

The overall reduction comes despite increases as high as 21,200 units at Chrysler and 13,500 at Honda, with lesser hikes at Ford and some lower-volume transplants.

Now on tap for completion in April-June are some 4,231,200 vehicles. That’s still 3.5% ahead of prior-year’s 4,087,800, but down from the 4,243,100 assembles scheduled for the quarter a month ago.

Cars and medium- and heavy-duty trucks are bearing nearly the full weight of the cuts, as light-truck output is being increased in the quarter.

Although some auto makers still are planning to trim their schedules this month and next, for the industry as a whole the reduction already has taken place, with April output estimated to be 21,500 units, or 1.5%, shy of plan.

The shortfall is due in large measure to a significant March overbuild that reflects a pull-ahead of some of the volume once slated for April, as manufacturers alter production plans on an ongoing basis to keep pace with changes in market demand.

Final March output rolled in at 1,405,600 vehicles, 41,900 units more than had been planned, as plants boosted production later in the month to alleviate some developing product shortages.

April’s decline is being offset partially by gains of 6,100 units this month and 3,500 in June, although current plans call for 43,700 fewer cars to be built in the quarter, while truck production increases by 31,800 units

However, dedicated medium- and heavy-duty truck makers in Canada, Mexico and the U.S. now will build 7,100, or 8.5%, fewer units in April-June, as truck commerce continues to languish and trucking companies delay new-vehicle purchases.

With first-quarter gains more than offsetting the latest Q2 cutbacks, output in the first six months now stands at 8,313,600 units, 28,800 ahead of the 8,284,800 slated a month ago and 2.0% ahead of like-2012’s 8,153,100 completions.

Detroit Three production is pegged at 102.2% of year-ago through June, while transplants are pacing at 103.1% of like-2012 volume and medium/heavy producers are running at only 75% of year-ago.

[email protected]