While some industry professionals have raised concerns over subprime lending, rising inventories, incentives and other trends pointing to a downturn in the automotive cycle, the industry should remain healthy in the coming years. That’s according to Mike Wall, director of automotive analysis at IHS Automotive in Grand Rapids, who forecasts North American light vehicle production to close at 17.8 million units this year. While 2017 production is projected to slide to 17.6 million units, he expects it will inch up to 18 million units in 2018 and peak at 18.7 million units in 2020 as new facilities in Mexico come online. Wall spoke with MiBiz about what automotive suppliers in West Michigan should expect in the new year.
British voters wanted to send a message with the Brexit vote, and it was certainly heard loud and clear by manufacturers in West Michigan.
Automakers have witnessed a resurgence in interest for trucks and SUVs as gasoline prices continue to hover around $2 per gallon in many areas of the country.
As West Michigan automotive suppliers race to meet customers’ orders in what’s expected to be another banner year in 2016, those companies must also keep their eyes forward and prepare for the next downturn in the business cycle.
Despite a growing number of plug-in electric vehicles on display at this year’s North American International Auto Show in Detroit, industry analysts say the segment has failed to reach the “aspirational” levels many had hoped.
Automakers’ desire to quicken the pace of new vehicle launches has sent shock waves through the industry’s supply chain.