In the U.S., sales of light vehicles increased by 13% in 2012 from 2011. For the first time in five years, sales are forecast to exceed 15 million light vehicles in 2013, with continued sales growth forecast through 2016. Railroads carry approximately 70% of all new vehicles manufactured in North America. Over the next three years, independent industry forecasts project that deliveries of automotive railcars will exceed 10,000 units in North America.
"Toyota's ongoing efforts to localize production in North America require flexible production capacity at our seven automotive assembly plants," said Mike Nelson, national rail strategy and operations manager of Toyota Logistics Services, Inc. "Multi-Max's new design enhancements are adjustable and support quality vehicle delivery in the quickest, most efficient way possible. Our 12 North American built vehicles require a rail delivery product that can match our ability to quickly respond to fluctuating market demands."
Mexico recently surpassed Japan as the largest exporter of light vehicles to the United States and is forecast to increase its share of North American light vehicle production substantially over the next decade. This locational shift will further support growth in automotive rail loadings, with rail as the preferred transportation method of light vehicles manufactured in Mexico. Greenbrier's automotive railcar products, including Multi-Max, are also manufactured in Mexico. Greenbrier is well-positioned at its low-cost and flexible facilities to capitalize on the geographic change in automotive manufacturing.
Greenbrier ( www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of transportation equipment and services to the railroad industry. Greenbrier builds new railroad freight cars in its four manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 38 locations across North America. Greenbrier builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 9,200 railcars, and performs management services for approximately 225,000 railcars."SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements. Greenbrier uses words such as "anticipates," "believes," "forecast," "potential," "goal," "contemplates," "expects," "intends," "initiatives," "targets," "plans," "projects," "hopes," "seeks," "estimates," "could," "would," "will," "may," "can," "designed to," "foreseeable future" and similar expressions to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from in the results contemplated by the forward-looking statements. Factors that might cause such a difference include, but are not limited to, reported backlog is not indicative of our financial results; turmoil in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of our indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; loss of one or more significant customers; customer payment defaults or related issues; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, changing technologies, production of new railcar types, or non-performance of subcontractors or suppliers; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; difficulties associated with governmental regulation, including environmental liabilities; integration of current or future acquisitions; succession planning; all as may be discussed in more detail under the headings "Risk Factors" and "Forward Looking Statements" in our Annual Report on Form 10-K for the fiscal year ended August 31, 2012, and our other reports on file with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. Except as required by law, we do not assume any obligation to update any forward-looking statements.
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