Newcomers Auto Production to Outpace Detroit's Big Three for the First Time

GM, Ford and Fiat Chrysler will combine to produce 100,000 fewer units than Tesla and foreign automakers, IHS Markit says.
By Kinsey Grant ,

For the first time, the combined output of Tesla Inc. (TSLA) - Get Report , European automakers and Asian automakers will outpace the combined production of the unionized Detroit Big Three -- General Motors (GM) - Get Report , Ford Motor Co. (F) - Get Report and Fiat Chrysler Automobiles (FCAU) - Get Report , according to data from IHS Markit.

Forecasts show the Detroit Three are on track to build 8.6 million vehicles in North America in 2017, while Tesla and foreign firms will likely produce 8.7 million. By 2024, that gap will widen as Asian and European automakers and Tesla combine to make 9.8 million units in North America and the Detroit Three make just 8.1 million.

While newcomers and foreign producers encroach on the North American auto production market, Mexico is also on track to notch gains. By 2024, Mexico will make 4.5 million vehicles in North America, up from current forecasts of 4 million this year.

IHS Markit's forecast come as Tesla aims to rapidly ramp up production to as many as 500,000 vehicles per year while foreign automakers increase their production capacity stateside.

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