U.S. Auto Makers Again Boost Q3 Output

For the second consecutive month, North American auto plants are being called on to increase third-quarter production, this time by some 50,000 vehicles.

The latest action comes just 30 days after the industry added some 22,700 assemblies to the July-September production slate and follows an unexpectedly strong second-quarter finish that saw the final June count increase by 98,300 units.

Indeed, the revised Q3 outlook, including a 23,300-unit overbuild in July that exceeded the entire third-quarter increase posted as the month began.

That action paved the way for further production hikes, including another 13,700 vehicles in August and 13,000 in September.

At 49,500 units, cars account for virtually all of the latest Q3 output gains. That number includes an estimated 14,400-unit July overbuild and an additional 19,300 in August and 15,800 in September. The revisions bring planned Q3 car production to about 1,766,700 units, 4.1% ahead of prior-year’s 1,696,500.

On the other hand, truck output for the quarter stands at 2,228,800, virtually unchanged from a month ago, with nearly the entire 8,900-unit July overbuild offset by cuts of 5,600 in August and 2,800 in September.

General Motors, Honda and Nissan are leading the industry drive to boost quarterly output, with gains of 18,300 units, 14,600 and 14,000, respectively.

While GM is focusing its increases on August and September, Honda tentatively is set to follow its estimated 26,600-unit July overbuild with modest cuts in the remainder of the quarter.

In contrast, Nissan is focusing most of its attention on an 8,000-unit September increase, following a 2,500-unit August uptick and 3,500-unit July overbuild.

With the latest schedule revisions, Q3 output now is expected to reach 3,995,500 vehicles, 6.6% ahead of like-2012’s 3,749,100 completions. That brings the January-September count to 12,413,900 units, or 4.3% more than the 11,902,100 cars and trucks built year-ago.

The Detroit Three, operating at 103.7% of their prior-year level, account for 52.3% of the revised January-September slate, slightly less than prior-year’s 52.6%.

Building at 105.8% of their like-2012 pace, transplants account for 45.7% of the 9-month tally, up from 45.1% year-ago.

Dedicated medium- and heavy-duty truck makers, building at just 88.5% of year-ago levels, account for 2.0% of total production vs. like-2012’s 2.4%.

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