Monday, January 21, 2013

Rapid Increase in U.S. New Car Launches May Cause Issues With Suppliers, Quality


There are 61 new or redesigned models due to be launched in the U.S. market this year – a 50 percent increase compared to any year since 2006, while 74 are scheduled for next year. Moreover, total annual sales are expected to reach, or even surpass, 15 million, which is a good thing both for buyers and the automotive industry, correct?

Apparently, things are a bit more complicated than that. After the low-point of 2008-2009, automotive suppliers have cut down on their workforce and facilities due to reduced demand. Now that numbers are climbing to 2007 levels, they may have trouble keeping up – and that may already be affecting quality.

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