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North American vehicle production continues to rise

US consulting firm IRN recent survey showed that if the North American vehicle production continues to rise in the coming year, some of the parts suppliers may face a shortage of stock.

IRN company in September to October of this year, more than 100 suppliers were surveyed, 42 percent of respondents said the next 12 months if the North American light vehicle production of over 17 million, they will not provide enough capacity which capacity shortages will be the most obvious chassis and suspension components manufacturer. According to IRN predicts that this year's annual North American light vehicle production will reach 16.8 million, next year will be raised to 17.3 million. After a trough in 2009 after five years of vehicle production in North America to maintain a steady growth, IRN growth is expected to continue for two to three years.

IRN vice president, said there are a lot of vendors currently barely cope with, some of the respondents have begun to expand production capacity, to take action to solve the problem of shortage of production capacity. But suppliers face another problem is that North American vehicle production growth is likely to slow, in the end if there is the need to expand production capacity. There have been a number of companies in the final stages of market growth increased investment. If the intensity of the reaction during this period too, once the market demand to fall, suppliers will be excess capacity.