US Auto Production Shifts: Automakers Add Shifts and Overtime Amid Production Changes

Shift in US Auto Production

• 📈 US auto production has seen a shift, with the percentage of vehicles sold in the US that were built in the US increasing from 51% in Q1 to 56% in May.
• 🚗 Automakers like Ford and GM are adding shifts and overtime for popular models to increase production.
• 🏭 Some production is being moved to the United States from Mexico or Canada, depending on the vehicle and available capacity.

Consumer Impact and Pricing

• 💰 Consumers have not seen significant price increases, with transaction prices only up about 2% compared to March and 1% year-over-year, reaching just under $49,000.
• 📉 The sales rate has slowed slightly, standing at just over 15.3 million in June.

Automaker Performance and Trade Policy

• 📊 Ford has experienced a notable increase in US sales, up over 14% in Q2.
• 🌍 Trade policy with countries like Japan, Korea, and Europe will be a significant factor in future production decisions by foreign automakers in the US.
• 🏗️ Building a new auto plant takes a minimum of three years to complete.