Page 51 - MetalForming April 2016

Falling commodity prices have reduced automotive production costs, with material costs in a typical 3500-lb.
U.S.-produced vehicle−including steel, aluminum, plastic resins rubber, glass and iron−dropping by 51 percent since 2011 to below $1200. Photo courtesy of Tesla Motors, Inc.
reflect the ongoing shift of production to Mexico. In 2018, Mexico is expected to produce 2.4 million Big Three vehi- cles and 2.1 vehicles from the new domestics, increasing to 3.0 and 2.0 million, respectively, by 2023. The Southern United States should stay steady as a major producer. In 2018, expect the U.S. South to produce 1.4 million Big Three and 4.1 million new- domestic vehicles, and 1.3 and 4.2 mil- lion vehicles, respectively, by 2023. U.S. Midwest production also should remain steady—4.7 million Big Three and 1.7 million new-domestic vehicles pro- duced in 2018, and 4.8 million and 1.8 million, respectively, in 2023.
Overall for North America, the pro-
duction outlook follows a demand recovery, and growth prospects exist for OEMs with further expansion plans.
Opportunity Targeting is Critical
Summarizing the worldwide auto- motive industry in 2016, IHS’s Wall sees the following:
• North America and Europe serve as critical offsets to the volatility and lack-
luster growth presented by emerging markets.
• The influx of new-product offer- ings creates margin pressure for weak- er players. Competition will only inten- sify, yet opportunity targeting is critical.
• Technology will be a key differentia- tor for automakers and suppliers. Oppor- tunities exist in the areas of advanced driver-assist systems, infotainment, pow- ertrain and lightweighting. M F
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