U.S. Automakers Prep for Maintenance Amid Rising Demand

Researched by Industrial Info Resources (Sugar Land, Texas)--Rising demand for personal transportation and improving inventories at dealerships are expected to push U.S. auto sales higher in the near term, according to a recent report from J.D. Power and LMC Automotive. Domestic automakers scrambling to keep up with the market know they cannot do so without production plants that are in peak operating condition, highlighting the need for proper maintenance. Industrial Info is tracking more than 300 maintenance-related projects in the U.S. auto industry that are set to kick off in the third quarter, more than half of which are in the Great Lakes region.

Click on the image at right for a graph detailing the top parent companies for maintenance projects in the U.S. auto industry that are set to begin from July through September.

Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) leads all other auto companies in third-quarter maintenance spending, with about $21 million attributed to 19 projects across various regions. This includes Toyota's truck and SUV assembly plant in San Antonio, Texas, which assembles its top-selling Tundra and Tacoma pickups, and its engine and transmission plant in Buffalo, West Virginia, which is its only combined engine and transmission plant in North America. Both projects are expected to take place in July. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed reports on the San Antonio and Buffalo projects.

Honda Motor Company (NYSE:HMC) (Tokyo, Japan) is another major automaker with third-quarter maintenance projects, including one-week shutdowns planned at its assembly plant in Greensburg, Indiana, which assembles its Civic Sedan, Honda CR-V and Insight Hybrid models, and its assembly plant in East Liberty, Ohio, which produces the CR-V, Acura RDX and MDX models. Subscribers can read detailed reports on the Greensburg and East Liberty projects.

Factories that manufacture vehicle parts and accessories account for more than half of the third-quarter maintenance kickoffs, including two major automotive transmission plants: Allison Transmission's (NYSE:ALSN) (Indianapolis, Indiana) Transmissions Plant 4 in Indianapolis, and Robert Bosch GmbH's (Gerlingen, Germany) Transmissions Plant in Gray Court, South Carolina. Both are expected to last about one week. Subscribers can read detailed reports on the Indianapolis and Gray Court projects.

The automotive stamping market accounts for 63 of the projects. Ford Motor Company (NYSE:F) (Dearborn, Michigan) accounts for two via weeklong shutdowns at its stamping plants in Woodhaven, Michigan, and Buffalo, New York. Both facilities manufacture components for Ford's Fiesta, Focus, Kuga and Transit models. Subscribers can learn more from Industrial Info's detailed reports on the Woodhaven and Buffalo projects.

Tire manufacturers account for 24 of the third-quarter maintenance projects, including Michelin (Clermont-Ferrand, France), which is preparing for a one-week shutdown at its 1,025-unit-per-day tire plant in Sandy Springs, South Carolina, and Bridgestone Corporation (Tokyo), which is preparing for a three-day shutdown at its 9,000-unit-per-day Warren County Tire Plant in Morrison, Tennessee, and a four-day shutdown at its 35,000-unit-per-day off-road radial tire plant in Trenton, South Carolina. All three projects are scheduled for July. Subscribers can read detailed reports on the Sandy Springs, Warren County and Trenton projects.

"Despite the challenges posed by elevated interest rates and pricing, sales volume and transaction prices have displayed remarkable resilience, enabled by the combination of improved vehicle availability and pent-up demand," said Thomas King, president of data and analytics at J.D. Power, in reference to the improving U.S. auto market.

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 reports for maintenance-related projects that are set to kick off at auto-manufacturing facilities across the U.S. 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).