Industryweek 9634 Ford F150

US Auto Industry Gets a Boost, But for How Long?

Oct. 21, 2015
Economic indicators show U.S. motor vehicle output staying flat in 2016, then declining slightly in 2017 and 2018.

With housing starts and employment growing steadily this year, the U.S. automotive industry enjoyed its best summer sales in a decade, the Ann Arbor, Mich.-based Center for Automotive Research reported in its just-released fourth quarter newsletter.

 Seasonally adjusted annual sales in the U.S. were at 17.7 million units in July and August, and 18.2 million in September, the highest since 2007.

Other highlights of CAR’s U.S. Automotive Outlook:

  • U.S. motor vehicle output could stop growing in 2016 due to a slowdown in global demand and production shifting to Mexico, then decline slightly in 2017 and 2018.

  • North American motor vehicle production is expected to increase in 2016 due to stronger domestic demand, with the majority of the output expansion in Mexico. Canadian motor vehicle production is expected to contract further in 2016.

  • The U.S. auto market could expand in 2016 beyond its previous peak at 17.2 million, to 17.5 million. But some analysts are predicting the next recession could come as early as 2016, with labor force participation at its worst level in 40 years and the increase in U.S. student loan debt to $1.2 trillion (the highest non-housing debt carried by U.S. households).

  • With economic contraction in Asia and other emerging markets, the Mexican automotive industry will be even more reliant on the North American market. Already, the majority of Mexican motor vehicle exports are shipped to the U.S.

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!