U.S. Auto Industry Preps Maintenance Amid Tariff Shake-Ups

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. automotive sector is struggling to navigate a global trade landscape that is constantly shifting, with many importers delaying shipments of foreign-made vehicles and parts until the picture is clearer. Domestic manufacturers--including those based overseas--are tuning up their U.S. facilities as customers rely more on their products. Industrial Info is tracking more than 240 maintenance-related projects at U.S. automotive plants that are set to begin work in the third quarter, with projects at parts and accessories plants accounting for more than half of the investment.

Click on the image at right for a graph detailing the top parent companies for maintenance-related projects at U.S. automotive plants slated to kick off from July through September, by total investment value.

Toyota Motor Corporation (Toyota City, Japan) leads all other auto manufacturers with a mix of maintenance projects at plants that produce both vehicle bodies and parts. Subaru Corporation (Tokyo, Japan), in which Toyota is the largest shareholder, is preparing for a one-week shutdown at its 410,000-vehicle-per-year automotive assembly plant in Lafayette, Indiana, which soon will begin producing its hybrid Forester SUV model. The Lafayette plant previously had produced Subaru's Legacy and Outback models.

Subaru is among the foreign-based auto manufacturers wrestling with the effects of U.S. President Donald Trump's tariffs and ongoing trade disputes. WTHR, an Indiana NBC affiliate, recently debunked rumors Subaru would shut down its Lafayette plant due to the tariffs. But the automaker is planning to reduce exports from the U.S. to Canada, due to the latter's retaliatory tariffs on U.S.-made goods, according to the news station. Subaru plans to make up the difference with cars shipped from Japan to Canada.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project and Plant database can learn more about the Lafayette shutdown from a detailed project report and plant profile.

Other Toyota affiliates with third-quarter maintenance kickoffs include Advanced Intelligent Chassis Systems (ADVICS), a subsidiary of Aisin Seiki Company Limited, which is 30% owned by Toyota. ADVICS, a supplier of original-equipment brake system components, is preparing for one-week shutdowns at its brakes and parts plants in Lebanon, Ohio, and Terre Haute, Indiana. Both plants supply disc brake calipers and control systems to Toyota and other auto manufacturers. Subscribers can read detailed reports on the Lebanon and Terre Haute.

"Compared to the fluctuating profits from new vehicles, value chain profits--such as those from parts and finance--has been steadily expanding" over the past several years, said Yoichi Miyazaki, the chief financial officer of Toyota, in a recent quarterly earnings-related conference call. "We plan to further enhance the value of our 150 million units in operation through expanding maintenance services, strengthening our connection with finance and insurance by connected technologies, as well as expanding the used car business and accessories business."

Ford Motor Company (Dearborn, Michigan), like Toyota, is tackling maintenance projects for both vehicle bodies and parts in the third quarter, including two in Ohio: at its OHAP assembly plant in Avon Lake, where it is planning a 10-day shutdown, and its transmission-manufacturing plant in Sharonville, where it is planning a week of maintenance. Both projects are set for July. Subscribers can read detailed reports on the Avon Lake and Sharonville turnarounds.

Tire titan Bridgestone Corporation (Tokyo) is preparing for a series of third-quarter maintenance projects for several different product lines across multiple U.S. facilities, including:

• off-road radial tires at its plant in Trenton, South Carolina; see project report
• truck tires at its plant in Morrison, Tennessee; see project report
• inner tubes at its plant in Russellville, Arkansas; see project report
• agricultural tires at its plant in Des Moines, Iowa; see project report
• tire cords at its plant in Clarksville, Tennessee; see project report

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of maintenance-related projects at U.S.-based automotive plants that are set to begin work in the third quarter.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).