2012: The End of the Automotive World?


The Mayans predicted the world would come to an end in 2012.

Maybe they were right, as this news from analyst Grant Thornton LLP could signal the end of times:

Foreign automakers will build more cars on U.S. soil than the Detroit 3… by 2012.

Epic, isn’t it?

The analysts predict by 2012 the Detroit 3 (I’ve retired my use of the “Big 3” term) will produce 7.5 million vehicles, compared to an estimated 8 million produced domestically by the likes of BMW, Volkswagen, Honda, Toyota, and Hyundai. Most of those 8 million “foreign” cars will be built with non-union U.S. labor, which is enough reason for me to buy my “American” Toyota and be proud of it.

More good news: U.S. automakers should return to profitability by 2012, even if they reduce production by 35 percent from 2008 numbers. The bad news is for the suppliers, who will have to adapt to these changes in order to survive. I think many won’t.

The whole landscape of what “Made in the USA” means is changing. Does this mean the world is ending? Hardly.

More like a whole new one is beginning.

Are you bothered by the news that foreign automakers will, by 2012, build more vehicles in the U.S. than the Detroit 3?


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