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Auto Makers Are Expanding U.S. Operations

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On: Tue, Aug 13, 2013 at 12:53PM | By: Elizabeth Puckett


Auto Makers Are Expanding U.S. Operations

Amid the great news about strong auto sales in July, it looks like U.S. auto makers are ready to expand their operations. Enjoying the best sales since pre-recession 2007, auto makers revealed plans this week to dish out $434 million to increase their capacity to manufacturer and produce engines and vehicles to meet consumer demand.

The Chrysler Group announced earlier this week that it will be adding increased capacity; this also means that they will be adding almost 300 employment opportunities at their engine plants in Michigan. Chrysler plans to spend $52 million towards its Trenton and Dundee, Michigan engine factories to increase production of the Tigershark motors.

The Ford Motor Company announced that they are looking into ways to produce more cars and trucks in all of their North American factories. Inventory of some vehicles, such as the Ford Fusion sedan, is already very low. Ford has hired a second shift of workers that includes 1,200 new employees at the Flat Rock, Michigan assembly plant. It is possible that the auto maker will be also adding a third shift. Ford is also working to meet demand for the Escape which is also in high demand.

General Motors plans to increase their current plant investment at their factory in Spring Hill, Tennessee—the increase investment is said to be $167 million. Their mid-size vehicle program will get a $40 million boost and a second mid-size vehicle program will get a $127 million investment. This effort will retain and create 1,800 jobs at their Tennessee plant.

The Honda Motor Company made their plans known to invest $215 million in their Ohio plants, which includes a $180 million allotment for their engine plant.

These auto makers are reacting to skyrocketing sales which rose even higher in July with a 14% jump in U.S. sales of cars and light passenger trucks. The current industry sales rate would move 15.8 million sales this year if July's sales pattern keeps up, according to the Automotive News Data Center. That figure was 14.2 in 2012; in 2007, sales were 16.1 million vehicles sold.




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