Auto factories are ramping up capacity

August 30, 2012 12:00 AM

As the American auto industry rebounds, plants across the nation are stepping up their game and running at full speed, according to Detroit News. All three Detroit automakers are projected to be operating beyond 100 percent capacity, a welcome hustle after these plants were at under 50 percent use just three years ago. It seems the industry got a much needed tune up.

Automotive consultant Ron Harbour, a senior partner at Oliver Wyman, conducted some analysis for the Detroit News that indicates that Ford Motor Co. is making the best use of its factories. They are on track to hit 113 percent utilization this year. General Motors may hit 108 percent, if it follows through with closing the Shreveport, LA, facility. Chrysler Group LLC may use about 104 percent by year's end. This means that more factories are running three shifts or paying workers overtime.

This is good news for stockholders. Moreover, released the August sales and incentive forecast and the sale of new light vehicles, including fleet, is expected to be 1,255,392 which is up 17.2 percent from 2011 and 8.9 percent from July 2012. 

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