US light vehicle production fell 1.60% in May to a seasonally adjusted 11.04m units versus a year ago, according to forecasters CSM Worldwide.
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Total US car production was off 0.10% over last year with light truck output down 2.60% from 2005 levels. Actual unit production in the United States on a non-seasonally adjusted basis totalled over 1.04m units in May, posting a 4.30% increase from May 2005.
North American production rebounded following a weak April, jumping 6.20% versus May last year to a seasonally adjusted 16.37m units. Year to date, production continues to outpace last year at 15.78m units, 2.10% above last year’s pace to the end of May.
Of the ‘New Six’ North American car manufacturers, only Nissan posted a decline compared to year ago levels, with production down 4.80% in May and down 6.0% year-to-date. Despite the addition of the all-new Versa small car, production is now expected to finish the year below last year’s levels.
One of the root causes is weakness of Nissan’s truck lineup and the changeover to the redesigned Altima sedan later this year. While Ford rebounded in May with production up 9.50% over last year, output to the end of May was down 2.80% to 3.31m units on a seasonally adjusted basis.
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By GlobalDataLike Nissan, Ford’s fortunes are not expected to change for the positive in 2006 with North American production expected to decline 1.5% to 2.0% for the year to around 3.30m units.
DaimlerChrysler and Honda were big gainers in May, posting increases of 10.90% and 9.10% respectively versus year ago levels while also recording solid 1.90% and 5.10% increases year-to-date.
GM posted a 1.70% increase in production in May with Toyota following a 0.60% increase. Year-to-date, both GM and Toyota’s North American output are up 0.90% to 4.62M and 1.62m units respectively. The two automakers’ paths will diverge in the second half of the year with GM expected to decline 3.0% to 3.50% in 2006, while Toyota is expected to grow about 1.0% this year. GM’s weakness is due to lower full- size pickup volume as it prepares to launch the redesigned models in the fourth quarter.
Total North American output is expected to end the year at 15.8m units, slightly above last year.
Over the next 12 to 18 months, a significant amount of high volume new and redesigned vehicles will be launched in North America, fuelling growth in this market. This wave of new vehicle activity is well dispersed across all the major manufacturers in the region and across vehicle segments.
“This increased level of activity will fuel even greater market pressures within core vehicle segments such as the mid-size sedans and full-size pickups while a wide range of new crossover utilities squeeze traditional segments,” said CSM Worldwide analyst Joe Langely.
“In 2007, new or redesigned vehicles will account for nearly 20%, or over 3m units of total North American output.”
