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January 12, 2016

Automakers shipping more SUVs to US from Asia

Automakers are shipping more sport utility vehicles to the United States from Japan and South Korea to meet strong demand, according to a report from the Detroit show.

Automakers are shipping more sport utility vehicles to the United States from Japan and South Korea to meet strong demand, according to a report from the Detroit show.

Reuters noted the rise in exports to the United States comes as lawmakers in Washington are gearing up to debate the Trans-Pacific Partnership, a wide-ranging trade liberalisation deal with a dozen Pacific Rim nations, including Japan, that has drawn fire from the United Auto Workers and other American unions worried about losing manufacturing jobs to overseas competition.

Hyundai Motor is rushing to develop a subcompact crossover SUV to expand its lineup. Mike O'Brien, Hyundai's product planning chief for the US market told Reuters the new model would hit US showrooms soon, but not this year.

Hyundai plans to boost the number of Tucson SUVs it brings in from Korea for the US market to more than 80,000 vehicles this year, O'Brien said. Hyundai sold roughly 63,000 Tucsons in the US in 2015.    

"Our Tucson (compact SUV) sales are so good that dealers' top complaint is, 'Why can't you get us more?'" O'Brien said.

Hyundai doesn't produce Tucson crossover SUVs in North America and has always imported those cars into the US. To boost sales, Hyundai more recently moved to "free up capacity in South Korea" to increase the number of Tucson SUVs brought in, he said.

Separately, Nissan chief executive Carlos Ghosn told Reuters the Yokohama-based automaker is moving to ship more Rogue crossover SUVs to the United States from Japan after sales of the model jumped 44% in 2015 to a record high 287,000. Rogue SUVs sold in the US market consist of those produced there and brought in from South Korea.

"Our capacity (for the Rogue) in North America is running at more than 100%," Ghosn said ealier in Detroit. "We have Rogues coming from Korea, and soon we will have some Rogues coming from Japan."

Nissan imported nearly one-third of all light trucks sold in the United States in 2015, up roughly 20% from 2014. Sales of Nissan SUVs rose 20% last year from a year earlier, while sales of smaller passenger cars eased 1.8%.

Toyota's US sales arm boosted imported light truck sales by 30% in 2015 from 2014.

Honda, meanwhile, has just announced it will switch some of its North American CR-V production from Mexico to the US to free up capacity south of the border for the smaller HR-V.

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