The car market in the USA is one of the largest in the world. It is not unusual for a family of four to have at least two cars or more. This demand for motor vehicles has been reflected in the 2013 car and truck production numbers. For the first time since 2005 16.6 million cars have been profitably produced in the United States in 2013.
The sales increase is not just restricted to the USA. Neighboring Mexico too has seen a sharp rise in production levels. 3,071,000 units were manufactured in plants in Mexico over the total 3,020,404 that were produced in 2012. The rise in production levels is by a good 4% over 2012.
Back in 2006, vehicle sales were still around the 16 million mark. However, the American car companies in Detroit i.e. the car capital of the USA were facing deficits of billions of dollars, weighed down by high costs and making average cars that were not as fuel-efficient as Japanese manufacturers like as Subaru, Toyota and Honda.
George Magliano, chief economist for IHS Automotive said, “It’s not just the number 16 that’s amazing. It’s the fact that it’s coming effortlessly. We’re not dumping cars and trucks into the fleets. We’re not using humongous incentives to move them. It’s a reflection of people’s willingness to buy and the strength of the product out there.”
The fact is that American car companies are shedding their reputation of being crude and unreliable. Although they still produce large-sized engines, companies like Ford have developed more frugal motors with cutting edge technology. The 4-cylinder Eco-Boost engine that has featured even on the 2015 Ford Mustang (2.3-liter, with a peak power of 305 BHP and peak torque of 300 NM) has become a favorite with motorists in the USA and beyond.
It was after the implementation of this engine that Ford sales boosted to an extent that they have now become the largest selling automotive brand in the United States. Honda had dominated the market for a long time and manufactured around 1,225,098 units in the US alone. Many of these cars were also designated for exports.
Fellow Japanese car-maker Mazda, will now be shifting operations entirely out of the USA and will be moving its production lines to Mexico. With car companies garnering more sales, the Detroit Motor Show will be bigger than ever before.