North American Vehicle Production/Sales to Rise in Second Half of 2016

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking 332 automotive projects worth $56.94 billion in the U.S., Canada and Mexico, 11 of which are assembly projects worth $1.42 billion.

"Rising sales will lift vehicle production across most of the world in the second half of 2016, providing a welcome boost to industrial activity," said Carlos Gomes, senior economist and auto industry specialist at Scotiabank.

North America will lead the way, with assemblies in the July-September period scheduled to post the largest increase in more than two years.

A record number of vehicles are scheduled to be built during the July-September period, making the summer months a busy time for the automotive industry. According to Scotiabank, the annualized production rate in Canada, the U.S. and Mexico is estimated to climb to 18.9 million units during the summer, up from 17.9 million between January and May.

Rising vehicle production is expected to add half of a percentage point to economic growth in the U.S. in the third quarter, the largest increase in more than a year. The 2016 global forecast from IHS Automotive calls for sales of 89.8 million units--just shy of 90 million units for the global automotive light-vehicle market.

Industrial Info is tracking several projects in the Automotive Industry with production slated to begin in 2016-2018, with at least five beginning construction or due to be completed in the second quarter of 2016, including a large grassroot project being built by Samvardhana Motherson Peguform (Bötzingen, Germany) in Tuscaloosa, Alabama, worth $150 million.

Hopefully, 2016 will be a year of transition from the disappointing sales slump in recent years. Despite a slowing economy, IHS Automotive now expects light vehicle sales growth to increase 5-6% in 2016--enough to add more than 1.3 million units of additional sales.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.